The Challenge

A think tank said implementation will be the main challenge for the government now that donors have pledged the full tsunami reconstruction requirement. A think tank said implementation will be the main challenge for the government now that donors have pledged the full tsunami reconstruction requirement. The Institute of Policy Studies says transparency and accountability will be a key determinant.

Sri Lanka's aid utilization ratio fell to 18 percent last year from a 22 percent high in 2003.

The coming four-five years, irrespective of which government comes into power Sri Lanka is assured of foreign assistance between US$ 900 million to US$ 1.2-3 million.

In that perspective Sri Lanka is quite lucky. This includes the pledges from the US$ 4.

5 billion funds from the Tokyo package previous commitments all that together. It is a huge amount. The relevant question is 'Can the economy absorb that amount. Do we have the framework?'.

"I think substantial work has been done by the Treasury to ensure that the absorption takes place," says Dr. Saman Kelegama, Executive Director, IPS.

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Sri Lanka's recorded a poor 20 percent aid utilization