World Bank MD calls on President: Acknowledges Lanka's improved economy

Surpassing the USD 2000 per capita income, Sri Lanka is no longer an underdeveloped country and as a result not qualified for International Development Association (IDA) loans that provide interest free financial assistance to underdeveloped countries, Dr. Ngozi Okonjo-Iweala, Managing Director of the World Bank Group stated.

She made this statement when she called on President Mahinda Rajapaksa at Temple Trees today (17).

Instead, the World Bank will consider providing a commercial loan of USD 265 million from International Bank for Reconstruction and Development, she said.

International Bank for Reconstruction and Development (IBRD), an arm of the World Bank aims to reduce poverty in middle-income and creditworthy countries by promoting sustainable development through loans, guarantees, risk management products, and analytical and advisory services.

'The World Bank has been an active partner in supporting Sri Lanka in its transition from a low income country in conflict to a middle income country in peace', said Dr. Okonjo-Iweala.

The post-conflict environment provides an opportunity to build on our relationship to support the government's vision to firmly establish the country's place in the ranks of fast growing middle income countries, she said.

In addition to funding, she said the World Bank is willing to share knowledge and expertise with Sri Lanka regarding urban development.

Foreign Direct Investment is vital for any middle income country to achieve its economic targets, she added.

She also emphasized the importance of seeking alternative energy sources as the world is on the brink of an energy crisis.
Deputy Minister of External Affairs Geethanjana Gunawardena, Secretary to the President Lalith Weeratunga and Governor of the Central Bank Ajith Novard Cabrall were also present at the dicussion.

'Dr. Ngozi Okonjo-Iweala's trip coincides with a new era of development in Sri Lanka as it embarks on an ambitious new course towards a middle income country in lasting peace,' a World Bank said in a recent statement.

Dr. Okonjo-Iweala, a national of Nigeria, was formerly the Minister of Foreign Affairs as well as the first female Minister of Finance and Economy for Nigeria.

>> Full Story

Sri Lanka ready to assist India in combating LTTE

(Colombo Lankapuvath) Sri Lanka is to consider assisting India in combating the threat posed by LTTE elements said Minister of Media Keheliya Rambukwella.

Answering a query of a journalist at the Cabinet media briefing held in Colombo a short while ago (16), he said that Sri Lanka will consider on the issue if such a request is made and the country will share all its experiences in combating terrorism.

India is the neigbhouring country of Sri Lanka who has had strong ties for centuries mentioned the Minister.

The Minister mentioned this commenting on the very recent reports on LTTE attempts to take the lives of Indian Prime Minister Manmohan Singh and TamilNadu Chief Minister M Karunanidi. These details were revealed by the intelligence units of the country.

>> Full Story

Healthcare delivery: Lanka on top

Sri Lanka has once again emerged as the most successful country in South Asia in healthcare delivery, recording low indicators in Maternal Mortality and a high rate of Life Expectancy , ‘The State of World Population 2010’ (Report) issued by the United Nations Population Fund (UNFPA) said today.

According to the Report all other countries in South Asia, India, Pakistan, Bangladesh, Nepal, Bhutan and Maldives lag much behind Sri Lanka in respect of these important health and social indicators.

The Infant Mortality Rate per thousand births in India in 2010 was 52, Pakistan 61, Bhutan 41, Nepal 38 and Maldives 20 while Sri Lanka had only15 deaths which was highly satisfactory.

The Maternal Mortality rate per 100,000 births stood at a high 830 in Nepal while in India it was 450, Bangladesh 570, Pakistan 320, Maldives 120 with Sri Lanka only 58 mother deaths.

The life expectancy in India respectively for male and female was 62 / 66 years, Bangladesh 68 years for both, Pakistan 66 / 67, Nepal 66 / 68, Maldives 70 / 74 and Sri Lanka was 71 and 74 years.

The country with most dismal indicators in the world, Afghanistan records 152 infant deaths per 1,000 births and 1,800 maternal deaths per 100,000. The life expectancy in Afghanistan is only 44 for both sexes.

Some of the best countries to live in, Sweden, Australia and Switzerland, the Infant Mortality rate, Maternal Morality rate and Life Expectancy stood respective at 3, 3 and 79 / 83, 4, 4 and 79 / 84 and 4, 5, and 79 / 84.

Mrs. Lene K. Christiansen, UNFPA country director Sri Lanka, addressing the gathering at the ceremony held to mark the release of the Report said the Report makes the case for replacing the vicious cycle of crisis and underdevelopment with virtuous cycle of peace and stability.

“It is time to tear down the false barriers between crisis, recovery and development. Investing in the development soften the impact of crisis and natural disaster and whatever is invested during humanitarian response can become a solid foundation for development and rebuilding a society,” Mrs. Cristiansen stressed. Mr. Reza Hassaini and Mrs. Sunila Abesekara also addressed the ceremony. (Sandun A. Jayasekera)
>> Full Story

TOURISM ARRIVAL FIGURE PASSES 600,000 MARK

December 14, 2010: A landmark in the island's tourism will be recorded today with the arrival of a group from London that will see tourist arrivals to Sri Lanka surpassing the 600,000 mark.

“This is a very significant event for tourism in Sri Lanka,” said Lakshman Yapa Abeywardena, Deputy Minister of Economic Development, speaking to Newsfirst.

“By end November last year, only 447,890 had arrived as tourists, but this year, it rose to 569,849. Going by the month of November, the increase in arrivals was 63 per cent, and today, with the arrival of the flight from London around 4pm, the arrival figure for this year will surpass the 600,000 mark,” said Minister Yapa.

He observed that in the month of November alone, 71,151 tourists had arrived in Sri Lanka and the percentages of the increase by regions were: Europe – 50.5; Middle East - 60; India – 51 and North America – 19.5.

>> Full Story

Thai Hotel Chains eye Sri Lanka’s tourist industry

The rapidly growing Sri Lankan tourist industry has become a focal point for foreign hoteliers to invest in Sri Lanka. Thailand’s two main hotel chains are the new prospective investors to invest in the Sri Lankan hotel industry.

These Thai hotel chains include Minor International, popularly known as MINT and Centara Hotels and Resorts.

MINT is to invest Thai Bhat 10 billion to open 42 hotels and food outlets in domestic and internationals including Sri Lanka, while Centara Hotels and Resorts, plan to form a joint venture with one of the biggest European tour and airline operators in a strategic move to expand the group's mid-range hotels in Asia.

Other countries that include in MINT chain, Anantara Sanya Resort and Spa’s expansions plan are China, India and U.A.E.

The Centara Hotels and Resort’s expansion plan, other than Sri Lanka, include establishments of hotels and resorts in Maldives, Egypt, India, the Philippines Vietnam., Bahrain, Malaysia and Indonesia. (niz).

>> Full Story

Partnership Model

Sri Lanka said keen on public-private partnerships
Dec 13, 2010 (LBO) - Sri Lanka is keen on partnerships between the public and private sectors in developing its economy, the International Finance Corporation, which is supporting the initiative, said in a statement.

“Sri Lanka is actively considering options to increase private participation in development," it quoted Sarath Amunugama, Sri Lanka’s Senior Minister of International Monetary Cooperation as telling a forum.
"A sustainable public-private partnership model is an important part of our framework for economic growth and infrastructure development.”

The IFC, a member of the World Bank Group, said it is working with policymakers and private sector players to help meet Sri Lanka’s ongoing development agenda through public-private partnerships.

The forum held in Sri Lanka Monday was part of a series of IFC-led events in South Asia to identify and address concerns and challenges related to public-private partnerships among stakeholders, it said.

The event brought together specialists and expert speakers from around the world and was attended by officials of ministries and public sector departments of health, transportation, and municipal infrastructure and other multilateral partners.

"Improving quality of services in Sri Lanka, gaining efficiencies, and boosting economic growth through private participation in social and physical infrastructure were part of the discussions," the IFC said.

“Long lasting public-private arrangements receive public ownership while generating interest among local private sector players and other development partners with shared goals,” said Vipul Bhagat, Manager of IFC Advisory Services for Public-Private Partnerships in South Asia.

The Sri Lankan government is committed to facilitating the transition necessary to boost the country’s economic growth and build on development fundamentals, the IFC statement said.

"Public-private partnership activity can make an important contribution to help address the country’s immediate infrastructure needs and garner needed funding for the purpose."
>> Full Story