This press release has been issued by the Royal Netherlands Embassy Colombo

18 September 2005

Note: The following Statement was prepared in advance of the Development Forum. During the Forum the Government of Sri Lanka presented a number of Policy initiatives and programmes, that are not reflected in this Statement.

General remarks
The primary goals of EU development partners are to help Sri Lanka to promote peace, democratic governance and sustainable pro-poor economic growth for the benefit of all Sri Lankans, without discrimination on the basis of politics, religion, ethnicity or gender. The following issues underpin key prospects for achieving these goals.

Economic policies
The Sri Lankan Government’s broad policy priorities are set out in the Rata Perata of July 2004. To implement these priorities, a corresponding set of operational plans remains imperative but is yet to be seen. The development partners stand ready to assist the Government in developing and refining such plans.

The EU urges the Government to develop an inclusive consultative process to elaborate a poverty reduction strategy (PRS) of which sector, regional and district strategies form coherent components. It is essential that the Government produces a medium term expenditure framework that clearly reflects revenues and funding provided by development partners. Monitoring of expenditure and results is essential. Together, these steps will promote transparency and accountability, enabling both ministries and partners to better plan and track implementation progress in areas such as housing, livelihoods and health.

Peace Process 

• The EU reiterates its commitment to the Tokyo Declaration. 
• The EU commends the Norwegian facilitator for its continuing efforts and commitment to the peace process, and the Sri Lanka Monitoring Mission for their valuable work.
• Continued observance of the Cease fire Agreement and credible progress on peace remain vital to Sri Lanka's long term development. We commend the Government and the LTTE on maintaining their overall commitment to the cease fire agreement. We urge all parties to build on this through credible efforts to promote a basis for resuming negotiations for a sustainable peace. Progress here will include strong action to address political killings, an end to underage LTTE recruitment and concerted action from all sides to promote an all-inclusive national consensus on peace building.
• In the early stages of the peace process, we were encouraged to see both parties indicate their commitment to explore a federal solution. We believe this vision continues to offer a sound basis for a peaceful and sustainable settlement of the conflict and urge action from all parties to make concrete steps towards this goal.

Poverty reductionstrategy and MDG’s

• The EU supports the internationally agreed Millennium Development Goals (MDG’s) and recognises the MDGs at the forefront of the international development agenda today. The EU therefore commends the Government’s explicit commitment to the MDGs, yet at the same time wants to underline that the stalled peace process is currently the most limiting factor hindering substantive progress in achieving the MDGs.
• The EU suggests integration of the MDG’s in a consultative and inclusive Poverty Reduction Strategy process. The PRS would contribute to the convergence of the agendas of tsunami, poverty reduction strategy, and the MDGs, resulting in more effective planning and implementation.
• According to the MDG report, Sri Lanka fares well with respect to many goals, in particular in social areas such as education and health. However, positive nation-wide statistics hide regional and other discrepancies. Steady economic growth recorded in recent years in and around Colombo and Kandy has not translated into growth and poverty reduction in the rest of the country.
• The MDG’s need to maintain focus on the development of the whole country, to avoid aggravating imbalances. However, due to its special developmental circumstances , a separate strategy for achievement of the MDGs is needed for the North East.
• The government’s leadership and the emergence of broad national ownership are essential for improving governance, ensuring the protection of human rights and the rule of law, and for the development of progressive policies for human development, all of which are fundamental prerequisites for the achievement of the Millennium Development Goals.

Tsunami Rehabilitation and Reconstruction

• The Tsunami brought enormous suffering and unprecedented destruction to Sri Lanka. The EU and other development partners were swift to support Government efforts in the emergency phase. The EU stands ready now to support the longer term reconstruction efforts.
• While addressing underlying policy challenges (such as land provision) remain critical, failure to resolve these issues speedily can only aggravate the plight of affected communities. The development and management of coastal buffer zones in particular has led to serious implementation problems.  In this respect, we urge the Government and all partners to properly apply the Guiding Principles in their reconstruction efforts to deliver efficient and sustainable solutions to affected communities. Adherence to the Guiding Principles is crucial to ensure steady and adequate flows of continued financial support. We particularly encourage Government and all partners to fully define responsibilities and strengthen capacities for programme delivery between central, regional and local levels of Government and non-government institutions. 
• An operational and expedient Joint Mechanism constitutes a critical step towards ensuring that much needed assistance can be delivered to all affected communities on an equitable basis without delay. The EU notes and welcomes the President’s recent public commitment to the Joint Mechanism.
• The EU welcomes the possible establishment of a Multi-Donor Trust Fund for the efficient delivery of the tsunami reconstruction funds.  In the immediate context of tsunami reconstruction, we urge all stakeholders to pursue an equitable approach to conflict and tsunami affected areas and to boost local capacity and community involvement.
• The EU urges the Government and donor partners to ensure that tsunami reconstruction is environmentally and socially sustainable. The EU is concerned there should be closer and more open co-ordination of tsunami reconstruction activities in particular of international and local NGOs’ activities.

16-17th May, 2005 For press & public affairs please contact Mr. Harry van Dijk – Deputy Head of Mission on tel. 011-2596914 or  nethemb@sri.lanka.net