Contrary to speculations, the government says foreign aid flows are on track with Sri Lanka receiving around US$ 165 mn so far this year.

Contrary to speculations, the government says foreign aid flows are on track with Sri Lanka receiving around US$ 165 mn so far this year. Contrary to speculations, the government says foreign aid flows are on track with Sri Lanka receiving around US$ 165 mn so far this year. The bulk of the funds have come from the World Bank, ADB and Japan to fund rural, health and North East Reconstruction, says Sujatha Cooray, External Resources Dept.’s Director General.

Fund flows so far this year includes: US$ 51 mn for rural development, US$ 60 mn for health, US$ 40 mn for North East reconstruction and US$ 40 mn for Eastern coastal development.

She said foreign aid usually accounts for 50-60 percent of public expenditure, 15 percent of government expenditure and three to four percent of GDP.

At the Tokyo confab last June, donors pledged US$ 4.5 bn – mostly tied to progress in peace talks – with a further US$ 3 bn from other donors which pushed total pledges upto US$ 7 bn.

Despite political rumblings and a stalled peace process, Sri Lanka’s aid utilisation was an all time high of around US$ 986 mn in 2003, over US$ 576 mn in 2002.