WB approves US $75.6 mn aid for Lanka

Colombo: The World Bank approved a US$75.6 million support package to Sri Lanka for the reconstruction of houses in the North and East and upgrade the lives of people in conflict areas.

Recognising the decline in poverty occurred in regions outside the Western Province due to Sri Lanka’s strong economic growth World Bank Country Director for Sri Lanka Ms. Naoko Ishii said the aid package will help to address several pressing needs in several areas where pockets of high poverty still remain.

“It will provide assistance to families in the North and East to rebuild their homes and restart their lives; improve the quality of education in high poverty areas; and strengthen the capacity of the Auditor General’s Department and the Department of Census and Statistics,” Ms. Ishii said.

The North East Housing Reconstruction Program designed to finance the reconstruction of 13,615 houses in the North and East of the country will receive US$43 million. Funds of US$22.6 million for the Public Sector Capacity Building Project aims to improve public administration and financial management by strengthening and modernizing key public sector institutions - Department of Census and Statistics and Auditor General’s Department.

Another US$10 million in additional financing for the Education Sector Development Project is designed to improve educational outcomes of children living in poor regions of the country.
The concessionary loans given by the International Development Association (IDA), the lending arm of World Bank have 20 years to maturity with a 10-year grace period.