June 25, 2009 (LBO) – The World Bank said it has approved a 24 million dollar loan to support Sri Lanka’s state health services mainly in former war-zones in the North and the East of the country. The credit from the International Development Association (IDA), the World Bank™s concessionary lending arm, has 20 years to maturity with a 10-year grace period, a bank statement said.
Half the project funds will be allocated to the northern and eastern provinces which bore the brunt of the ethnic conflict.
Government forces last month defeated the Tamil Tigers and wiped out its top leadership.
“With the end of the military conflict, Sri Lanka is now facing the challenges of resettlement and reconstruction within the context of reconciliation,” the bank statement said.
“An immediate challenge is to provide basic health services to the conflict-affected populations in the Northern and Eastern Provinces, including around 280,000 internally displaced persons currently residing in temporary camps.”
Naoko Ishii, World Bank Country Director for Sri Lanka, said half the project™s amount will go to the northern and eastern provinces to help them meet their special health needs arisi