Identifier
Created
Classification
Origin
05COLOMBO542
2005-03-16 10:54:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Colombo
Cable title:  

SRI LANKA AND MALDIVES TSUNAMI RELIEF AND

Tags:  EAID ECON PREL CE MV 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 04 COLOMBO 000542 

SIPDIS

SENSITIVE

TO EB A/S TONY WAYNE FROM AMBASSADOR LUNSTEAD; DEPT FOR
SA/INS; TREASURY FOR C.CARNES; COMMERCE FOR A.BENAISSA;
DEPT PLEASE PASS TO MCC D.NASSIRY; MANILA FOR USADB

E.O. 12958: N/A
TAGS: EAID ECON PREL CE MV
SUBJECT: SRI LANKA AND MALDIVES TSUNAMI RELIEF AND
RECONSTRUCTION UPDATE (MARCH 16)

REF: A. COLOMBO 497

B. COLOMBO 512

This telegram is to update for Tsunami IAWG Meeting.

UNCLAS SECTION 01 OF 04 COLOMBO 000542

SIPDIS

SENSITIVE

TO EB A/S TONY WAYNE FROM AMBASSADOR LUNSTEAD; DEPT FOR
SA/INS; TREASURY FOR C.CARNES; COMMERCE FOR A.BENAISSA;
DEPT PLEASE PASS TO MCC D.NASSIRY; MANILA FOR USADB

E.O. 12958: N/A
TAGS: EAID ECON PREL CE MV
SUBJECT: SRI LANKA AND MALDIVES TSUNAMI RELIEF AND
RECONSTRUCTION UPDATE (MARCH 16)

REF: A. COLOMBO 497

B. COLOMBO 512

This telegram is to update for Tsunami IAWG Meeting.


1. (SBU) Summary: While challenges remain, there has been
some positive momentum in the transition from relief to
rebuilding this week. The Ambassador met with the Prime
Minister on March 14 and will meet the President on March
17 to discuss GSL policies and initiatives on tsunami
relief and reconstruction. Provision of temporary
shelter is moving ahead, with land allocation and import
clearance procedures causing some headaches. There has
been some progress on transparency, through increased
public outreach by the GSL and pressure brought by the
citizenry (including a legal case brought by a prominent
Sri Lankan against the GSL). An assessment by the donor
working group (which includes USAID) has indicated that
all areas of the country have moved from relief to
rebuilding, but that coordination remains the key
challenge. Clearance of relief and reconstruction-
related imports remains a challenge, and has become more
high profile in recent days. GSL Customs and the Navy
are working to coordinate a faster clearance process.
Tensions are rising in the East, where there is a popular
perception of unequal aid distribution among ethnic
groups. While post hopes a more positive trend will
develop, we believe the process will continue to vary
day-to-day, until a better coordination mechanism is
developed. End Summary.

Senior-level Engagement
--------------


2. (SBU) Ambassador met with Prime Minister Mahinda
Rajapakse on March 14 regarding problems with relief and
rebuilding assistance. As described in Ref A, Ambassador
raised concerns about a lack of coordination among GSL,
donors and NGOs, concerns about the temporary shelter
program and the slow clearance of land, and the
controversial 100/200 meter coastal exclusion zone, which
could be the eventual cause of serious disparity and
displacement of affected persons. Rajapakse acknowledged
the problem and urged the Ambassador to raise them with
President Kumaratunga. Ambassador is meeting the

President tomorrow to discuss the same issues.

Shelter
--------------


3. (SBU) While challenges remain, there appears to be
some semblance of organization creeping into the
temporary housing sector. A new administrative
structure, the Transitional Accommodation Project (TAP)
under the Task Force for Relief (TAFOR) has been
established to coordinate shelter issues. Under the TAP
framework, the GSL is committing to have, through its NGO
partners, 10,000 shelters constructed by April 10 and
30,000 finished by May 31. (When queried about whether
this number was sufficient to meet the entire need, the
TAFOR Coordinator suggested it was "about the right
amount.")


4. (SBU) Land acquisition, import clearance issues and
sorting out allocations given to unfunded groups that
have promised to build houses, but now cannot deliver,
remain problematic. Nonetheless, USAID contractors
report they are able to begin work on land they have been
given, while waiting for final approvals for other
tracts.


5. (SBU) The land acquisition effort appears to be a
double-edged sword for the Government, which must balance
enforcement of the 100m/200m coastal exclusion zones with
efforts to find new land close to the previous dwellings.
On the one hand, the GSL's desire to keep communities as
intact as possible is laudable, and a stated goal of the
IFI assessments. On the other, the longer the delay in
identifying appropriate land, the closer the rainy season
looms-and with it, the potential for even greater
problems for communities that are not yet in transitional
shelter.


6. (SBU) The acting-UNHCR Rep told the Ambassador last
week that things were going "as well as can be expected"
and that progress was being made on the housing and
temporary shelter front.

Transparency Initiatives
--------------


7. (U) There have been recent newspaper advertisements,
placed by the Task Force for Rebuilding the Nation
(TAFREN) and relevant line ministries, highlighting
agreements with donors and NGOs in various sectors. Over
the weekend several full-page ads published the names of
NGOs and their partner GSL agencies working on relief and
rehabilitation efforts in the health sector, and on March
16, there was a full page advertisement listing the NGOs
with which the Government had signed MOUs for rebuilding
houses, the number of houses each group would take, and
guidelines for donors interested to join the housing
reconstruction effort.


8. (SBU) A lawsuit asking that the Government publish a
list of all the donors to GSL trust funds and an
accounting of how those funds are allocated was brought
against the Government by Ceylinco Chairman Lalith
Kotelawela, a well-respected businessman who heads the
largest insurance conglomerate in Sri Lanka. The Appeals
Court upheld the suit and the GSL is required to respond
by March 24. Kotelawela told Econchief that he was not
seeking damages, but merely wanted to do something to
force the Government to be more transparent in its
accounting. He said the suit was prompted by Ceylinco's
efforts to rebuild schools in a certain area, only to be
told that their offer of assistance was not "high enough"
and that another NGO had offered several times as much,
despite the fact that the rebuilding estimates were
considerably less. "Where do you think that extra money
will go?" Kotelawela queried with a grin.

Donor Assessments
--------------


9. (U) Bilateral verification missions, undertaken by the
bilateral donor working group - which consists of
representatives of various donor governments, including
USAID - produced an assessment of the situation on the
ground in the hardest-hit portions of the country:
Jaffna, Mullaitivu, Kilinochchi, Trincomalee, Batticaloa,
Ampara, Hambantota, Matara and Galle. In general, the
report indicates that:

--the immediate relief phase is over in all districts;

--there are questions about the equity of aid
distribution;

--shelter, permanent housing and livelihoods were the
most
critical need;

--the South is ahead of the North and East in
rehabilitation and reconstruction;

--livelihood focus has been on fisheries, with other less
common forms of livelihood largely neglected;

--there is duplication and a lack of coordination on the
part of Government agencies, thereby making it difficult
for donors and NGOs to understand the Government's
reconstruction plan and participate effectively.

Duty on Relief and Reconstruction Materials
--------------

10. (SBU) There continue to be delays at the Colombo port
to clear materials for relief and rehabilitation work.
In response to the Ambassador's recent letter of concern
to the Foreign Minister, there were several immediate
outcomes:

--The Finance Secretary responded noting that relief
items would not be charged duty, and that some items had
been incorrectly sent (by consignees) through "normal"
commercial channels, thereby incurring duty. He also
indicated customs would refund any duties incorrectly
assessed. (Note: it is proving very difficult to find
anyone in the Finance Ministry who is aware of a
mechanism for "refunding" duties. End Note)

--The Government accused the Tamil Rehabilitation
Organization (TRO - the LTTE's relief organization) of
purposely pushing relief items through commercial
channels, in order to incur duty and embarrass the GSL.
The GSL claimed that "only" a small duty had been charged
on a high-profile case involving water purifiers donated
by a Baltimore church, and that the shipping agent had
presented fraudulent documents to the TRO for over $6,000
in duties, when less than $3000 had been assessed. (Note:
the GSL is splitting hairs, while the authorities will
look into the case of the overcharge, the GSL still
assessed almost $3,000 in duty on legitimate relief items
coming from a US source. End note).


11. (SBU) In the past week there has been a significant
increase in concern among shippers and importers about
the slow pace at which container cargo is being cleared
into the country. Customs has blamed the Navy, which had
been given emergency authority to check relief cargo and
vice versa. As of March 15, Customs and Navy were
exploring a joint clearance mechanism to speed clearance
and there were reports on March 16 that the Navy would
withdraw from the inspection process, but would have the
authority to inspect any suspect containers that arrive.
(Note: The GSL is concerned about the LTTE smuggling
items into the country via relief cargo, but the Sri
Lanka Port Authority (SLPA) is adamant that the port not
become "militarized." Early in the process the GSL had
requested the CSI-related loaner equipment from US
Customs in order to facilitate this in-bound clearance
process. US Customs has identified a scanner, but now
the GSL says the MOU for the loan has to go to cabinet.
Nonetheless, Sri Lankan Customs still has several
projects that must be completed before the equipment
could be installed and operated. The procurement of new
scanning equipment for the port, including portable
scanners is underway, but will not likely be completed
before the end of the year. End Note.)

Protests in North and East
--------------


12. (U) There have been reports of increased agitation
over slow progress on reconstruction. While these remain
somewhat isolated incidents, there is concern that
continued delays will exacerbate tensions. The following
events have been reported:

March 8 - Ampara: Internally Displaced Persons (IDPS)
pitched tents across a main road to protest delays in
providing temporary and permanent shelter.

March 12 - Trincomalee: IDPs blocked roads in the main
town, demanding they be moved from tents to temporary
housing. According to the pro-LTTE website TamilNet, the
protest was sparked by the March 11 death, reportedly
from heat stroke, of an elderly IDP living in a tent.

March 12 - present, Trincomalee: A Buddhist monk is
staging a public fast to protest slow delivery of tsunami
aid.

March 13 - Batticaloa: Angry mob attacked the Divisional
Secretary's office after discovering tsunami aid

SIPDIS
(apparently food items) buried on the premises. Police
used tear gas to disperse crowds.


13. (U) Discussions with aid workers in the East indicate
that tempers are rising due to the perception that
assistance is getting through to Singhalese areas, but
not Tamil and Muslim dominated ones. Some of these
tensions may be exacerbated by certain follies, such as a
recent TamilNet accusation that none of the 44 relief
coordinators hired by TAFOR to work in the primarily
Tamil-speaking East are Tamil-speakers. TAFOR has
acknowledged the problem and claims to be seeking Tamil-
speakers to fill the positions.

Maldives
--------------


14. (U) Maldives continues to move forward impressively
with reconstruction. Maldives will participate in a
donor meeting this week in Manila, on the margins of an
ADB sponsored Tsunami meeting.


15. (SBU) We understand there continues to be discussion
over the best way to provide USG assistance to Maldives.
The GORM has been very well organized and efficient in
its coordination of the tsunami response and relief and
reconstruction efforts. The GORM has established a trust
fund, with a well coordinated disbursement mechanism and
transparent allocation process, which Post believes would
be the best channel for USG assistance. We understand US
representatives in Manila will attend the Maldives
conference. We strongly suggest a meeting be arranged
with Maldives Finance Ministry Executive Director Riluwan
Shareef for additional information and a full accounting
of the trust fund mechanism.

Comment
--------------


16. (SBU) We note that the situation on the ground in Sri
Lanka appears to be moving in a more positive direction
than previously reported (Ref b). While we hope this
will be a trend, we think we are in for a bit of a
tsunami seesaw of up and down periods with regard to the

SIPDIS
coordination effort, which will necessitate constant
intervention and bird-dogging by us. We will report on
the Ambassador's meeting with the President septel. To
move in a consistently positive direction will require
further refinement of GSL policies and procedures.
Better enforcement and dissemination of GSL decisions
will minimize the need for ad hoc decisions by NGOs and
donors due to a lack of information and guidance from the
GSL's coordination mechanisms. End Comment.
LUNSTEAD