AMBASSADOR DISCUSSES POST-TSUNAMI RECONSTRUCTION

C O N F I D E N T I A L COLOMBO 000532

SIPDIS

E.O. 12958: DECL: 03/14/2015
TAGS: EAID PGOV PREL
SUBJECT: AMBASSADOR DISCUSSES POST-TSUNAMI RECONSTRUCTION
PROBLEMS WITH PRIME MINISTER

Classified By: Ambassador Jeffrey J. Lunstead


1. (U) Ambassador called on Prime Minister Mahinda
Rajapakse March 14 to discuss problems in post-tsunami
reconstruction. (n.b., Rajapakse has no formal role to play
in reconstruction process, since the Prime Minister's
functions are severely limited under the Sri Lankan
Constitution. Rajapakse is an extremely popular and savvy
politician, however, and we believe it is useful to update
him on our concerns.) USAID Mission Director Carol Becker
also attended, as did PM's Secretary Lalith Weeratunga.


2. (C) Ambassador told Rajapakse that initial emergency
phase of tsunami relief had gone well. US (and other donors)
were NOW concerned about reconstruction phase, however.
There were several problems:

-- No clear coordinating mechanism between different entities
charged with parts of reconstruction effort: TAFREN, TAFROR,
line ministries. President was in overall charge and she
could not be approached with every problem.

-- Transitional shelter program was moving very slowly with
monsoon approaching (end-April). Disease problems which had
been averted in the emergency phase could re-appear then if
people were not moved quickly into suitable shelter.
Authorities were slow to identify land which donors/NGO's
could use for transitional shelter construction, or found
only small plots.

-- Related to this was continuing controversy over 100/200
meter setback rule. Affected persons within the exclusion
zone were reluctant to move to housing further away if it
meant giving up their chance to ever move back.

Ambassador also raised issue of customs duties being charged
on relief goods and overall slow clearance of goods from port.


3. (C) Rajapakse nodded as Ambassador made each of these
points, indicating that he was already aware of them. He
said that he agreed with Ambassador that it would be helpful
if President appointed an overall coordinator with
ministerial rank. He also said that MP's and officials would
raise concerns with him, but when asked by the President,
would only say: "Everything is fine, madam."


4. Rajapakse, who has his own political differences with
President Kumaratunga, told Ambassador that he would raise
these issues with President this week when he traveled to
Tangalle with her for opening of a luxury hotel. He also
urged Ambassador to speak to President directly. Ambassador
said that he had requested an appointment with President this
week for that very purpose.


5. (C) Ambassador also mentioned that, in addition to the
substance of these issues, there was also a significant
public relations question. Governments and especially
individual citizens who had contributed so generously to
tsunami assistance would turn quickly negative if the program

SIPDIS
were not run right. Media were already beginning to raise
questions, as seen in John Lancaster's March 8 Washington
Post piece which Ambassador handed to PM.


6. (C) COMMENT: Though Rajapakse does not control any
resources or entities related to reconstruction, and although
he has political issues with President, he may still be able
to have some influence. PM told Ambassador that President
had restricted his tsunami-related activities to his home
district of Hambantota, where he has been very active. PM
had just been discharged from the hospital, where he had been
admitted last week with severe gastritis. Doctors told him
it was a result of his irregular schedule and mealtimes.
While making light of the issue, PM confided to Ambassador
that he had been bleeding internally, and had received two
units of blood.
LUNSTEAD