The Asian Development Bank (ADB) says its funding to the North and East may increase if the conflict ends. “If the situation changes, and we are able to do more work in the North and East, we can look at increasing lending to the North and East,” the ADB country director, Richard Vokes told The Sunday FT on the sidelines of the Business For Peace Forum organised by the Federation of Chambers of Commerce and Industry of Sri Lanka, last week.
The ADB has set aside US$ 630 million for the entire country over the three years from 2009-2011. These soft loans will be supplemented with technical assistance grants of US$ 4 million per year.
It says it will put more money into rehabilitation and development in the North and East, on top of a few ongoing projects in these areas. The bank has already allocated around US$ 35 million for a water supply scheme in Batticaloa, which is the largest single development project in the East at the moment. In addition, new projects, with components for the North and East, are also being developed.
“We already have some ongoing projects in the East, and in the North when conditions allow. These projects will continue. In addition, we will have new ‘national projects’ that will also have components in the North and East,” said Mr Vokes addressing the Business For Peace Forum.
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