Smoothing the Way

The Multilateral Investment Guarantee Agency (MIGA) – international insurer against non-commercial risk, in the World Bank group – to set up a trust fund to encourage private investment in Sri Lanka. The Multilateral Investment Guarantee Agency (MIGA) – international insurer against non-commercial risk, in the World Bank group – to set up a trust fund to encourage private investment in Sri Lanka. MIGA is talking to the government about an investment guarantee trust fund, for conflict-affected areas of the North-East, for tsunami reconstruction.

“The trust fund is unique. It will encourage investment from abroad as well as local, for conflict affected parts of the North and the East,” Yukiko Omura, Executive Vice President of MIGA told journalists on Tuesday.

MIGA investment guarantees do not usually extend to local investors, but the trust fund that is designed for “exceptional requirements in post conflict situations,” can cover foreign as well as local investment from the private sector.

Similar trust funds are already active in Bosnia and Palestine and since last year in Afghanistan.

“The Afghan trust fund model is an exact fit for Sri Lanka. The same model can be appl