Countries and Regions

	Table of Contents
p. 16 of 20 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Sri Lanka

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V. Donor Activities and Aid Coordination

88. Japan, ADB, and the World Bank continue to be the largest donors to Sri Lanka. Significant assistance also continues to be provided by bilateral funding agencies³⁴. The Development Forum (formerly the Aide Group Meeting), chaired by the World Bank, is held every 1-2 years. The last Forum was held in May 1998, and the next will be held in December 2000. Due to the significant economic and financial impact of the civil conflict and the Government’s efforts to reduce the budget deficit, donor-financed projects constitute a significant proportion of the overall public sector investment program. This situation is expected to continue in the medium-term. In view of the substantial assistance programs provided by Japan, ADB and the World Bank, special attention has been paid to close coordination to ensure compatibility of policy advice and avoidance of duplication of investments. Specifically, broad understandings have been reached between ADB and the World Bank on areas of respective sectoral focus and cooperation through regular interagency consultations. Since the opening of the Resident Mission in Colombo in October 1997, ADB has been prominent in local donor coordination, particularly in the sectors where ADB has a major role, including especially roads, energy, water, urban development, environmental and natural resources management.

89. International Monetary Fund (IMF) has a resident advisor in Sri Lanka, mainly advising the Government on macroeconomic policy related issues. The IMF’s Article IV Consultation mission visits the country on annual basis and ADB has been closely consulted and/or actively participating in the consultation missions. Close contact with IMF is also maintained through meetings during ADB’s project and especially programs loan processing stages. The proposed ADTA for Governance and Institutional Support for Private Sector Development (2000) has been formulated and in close consultation with both the IMF and the World Bank, aiming to promote good governance over the financial markets. The IMF is considering formulating a program of reform under its poverty reduction and growth facility in 2000, which would compliment ADB’s work toward a poverty reduction partnership agreement.

90. Japanese development assistance continues to place emphasis on supporting improvements in key physical infrastructure, but in more recent times has also been broadened to include social infrastructure and environment. Accordingly, there are several sectors where cofinancing is being explored, including roads, port development, energy, natural resources management and rural development. The World Bank assistance, through International Development Association (IDA), amounted to $341 million during 1997-1999, with focus on general education and teacher education, health, irrigation rehabilitation (including in the conflict-affected regions), telecommunications reform, Y2K assistance, and urban transport. About $440 million is programmed by the World Bank for Sri Lanka for the period of 2001-2003, targeting legal reform, postal service reform, land titling, port efficiency improvement, water and sanitation, power restructuring (in cooperation with the ADB), food marketing, and health. Depending on the commitment of the Government to reforms, the World Bank is also considering providing assistance for civil service and pension reforms. Details of external assistance provided to Sri Lanka are at Appendix 3.

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