SRI LANKAN POST-TSUNAMI RECONSTRUCTION UPDATE

UNCLAS COLOMBO 000677 SIPDIS DEPT FOR EB A/S ANTHONY WAYNE; SA/INS FOR J. BRENNIG, N. DEAN; PLEASE PASS TO TSUNAMI RECONSTRUCTION TASK FORCE; TREASURY FOR C. CARNES E.O. 12958: N/A TAGS: EAID ECON PGOV CE SUBJECT: SRI LANKAN POST-TSUNAMI RECONSTRUCTION UPDATE (APRIL 6, 2005) REF: A. COLOMBO 557 ¶B. COLOMBO 558 ¶C. COLOMBO 583 ¶1. This cable is for use in the Tsunami IAWG meeting on Wednesday, April 6. ¶2. Post-tsunami relief and reconstruction continues at a measured pace in Sri Lanka, while Maldives appears to be moving ahead smartly. Ambassador will visit Maldives this week to survey reconstruction efforts and discuss possible avenues for US assistance through the GORM trust fund. ¶3. To update ongoing issues in Sri Lanka: --The Ambassador sent a letter to President Kumaratunga outlining our concerns about GSL efforts to charge value added tax on relief and reconstruction supplies entering the country, despite the existence of a USAID-GSL agreement. Commissioner for Essential Services (and close Embassy contact) Tilak Ranaviraja has indicated that he has been told to sort the issue out. USAID Director has requested a meeting with the Finance Ministry to discuss further. --Ambassador has requested a meeting with Task Force for Rebuilding the Nation (TAFREN) Chairman Mano Tittawella to discuss the potential SOAG - which would govern USAID rebuilding efforts following passage of the supplemental. The Ambassador also intends to raise potential GSL involvement in the US Chamber/Asia Foundation/Asia Society Private Sector Summit currently scheduled for May 12 in Washington. --USAID is sending teams out this week to Galle and Matara in the south and Ampara and Batticaloa in the east to assess progress on the relief and rehabilitation front. The teams will visit all local partners involved in temporary shelter to assess progress in that sector. We will report septel following these visits. --Temporary shelter is being constructed, but problems with coordination continue to create delays at the local level. Land acquisition remains a problem as does access to supplies. Nonetheless, many groups are finding it possible to operate, even if more slowly than planned, and many informal temporary shelter projects are sprouting up around the country as well. --The Phase 2 Assessment Team (WB, ADB, JBIC/Bilat/UN/NGO representation) is having a meeting with TAFREN on April 6 to go over key policy issues which are effecting ground level implementation of tsunami relief, rehabilitation and reconstruction. These issues include relocation and settlements, communications, coordination and consultation, and equity. LUNSTEAD