Increased IDA assistance to Lanka

Considering the significant improvements in Sri Lanka’s economic prospects, country rating and  resource needs, the allocation of resources to Sri Lanka from the World Bank’s International Development Association (IDA) has been increased by 50 percent from the earlier planned US$200 million per year over the next two years to US$300 million per year. World Bank Managing Director Shengman Zhang conveyed this news to Minister Milinda Moragoda, Minister of Economic Reform, Science & Technology who has just concluded an official visit to Washington D.C. He also met S.Sugisaki, Deputy Managing Director of the IMF.

At these two meetings they discussed the improving economic prospects in Sri Lanka, highlighting the importance of making effective use of the large amount of aid pledges committed by the donor community.

Both Zhang and Sugisaki commended the Government for its commitment to the peace process and for implementing necessary economic reforms.

During his visit Minister Moragoda met with a number of senior officials of the US Administration, Congressional Leaders, Senior Officials of the World Bank and the IMF, media personalities, and members of the academic community.

Among the senior Administration officials Minister Moragoda met were Ambassador Robert Zoellick, United States Trade Representative, Jim Moriarty, Special Assistant to the President and Senior Director for South Asian Affairs in the National Security Council, Ms Christina Rocca, Assistant Secretary for South Asian Affairs of the Department of State. Ambassador Jeffrey Lunstead, U.S Ambassador Designate to Sri Lanka called on Minister Moragoda for discussions prior to taking up his new assignment in Sri Lanka. The Minister discussed with these US Government officials Post-Tokyo development involving the peace process and bilateral matters.

These discussions included the proposed official visit of Prime Minister Ranil Wickremesinghe to the U.S to meet with president George.W.Bush later this year, the Sri Lankan Embassy in Washington said.

At his meeting with U.S Trade Representative Ambassador Robert Zoelick, the Minister discussed Sri Lanka’s economic reform process and Sri Lanka-US bilateral trade liberalisation.

Ambassador Zoellick complimented the leadership of Prime Minister Wickremesinghe and the Minister in implementing economic reforms and assured that his office stands ready to support this process and agreed to in regular contact.

The Minister also participated in the inaugural meeting of the Sri Lanka Congressional Caucus of the 108th Congress. This meeting was attended by the Co-Chairs, Representative Jerry Weller (Republican – Illinois) and Frank Pallone (Democrat - New Jersey). Representatives Weller and Scott Garrett (Republican – New Jersey) will visit Sri Lanka to discuss trade and business relations. Representative Weller serves on the powerful House Ways and Means Committee responsible for trade matters.The Ambassador of Sri Lanka to the United States Devinda R. Subasinghe participated in all the meetings with Minister Moragoda.