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Sunday Dec 22, 2024
Thursday, 9 February 2017 00:00 - - {{hitsCtrl.values.hits}}
The Government yesterday announced plans to enter into an agreement with the European Union (EU) to provide grant assistance of €42 million to finance two agriculture based programs. A major component of the funds, provided under EU’s Multiannual Indicative Program 2014-2020, will finance programs to “support the Modernisation of the Agricultural Sector in Sri Lanka” and “strength the reconciliation processes in Sri Lanka”.
The funds allocated under the EU aid program remained unused during the past regime due to the country’s political disengagement with the EU.
The program, designed by the Government with support from the World Bank with the aim of increasing private investment in the agriculture sector to drive export oriented farming while improving conditions of smallholder farmers in poverty stricken districts, will receive €30 million.
According to the Cabinet paper submitted by Prime Minister Ranil Wickremesinghe in his capacity as the National Policies and Economic Affairs Minister, the World Bank will grant a loan facility to the value of $125 million to finance part of the same program.
The second program, focusing on reconciliation processes, has been granted a total of €12 million. The remaining funds of the total estimated cost of the program, €14.5 million, will be co-financed by the Foreign Office of the Federal Republic of Germany, and the British Council, by providing additional €2.4 million and €0.1 million respectively.
