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Sri Lanka
>> Regional Overview >> Sri Lanka Overview
Summary Tables
Program Summary
Previous Years' Activities
2001, 2000, 1999, 1998, 1997Last updated: 55
Introduction
The United States is helping Sri Lanka move through an important political and economic transition committed to equality, the rule of law, human rights, and broad-based economic growth. The more than fifty-year-old democracy is being tested and torn by ethnic conflict. The costs of the 17-year conflict are staggering in economic and human terms, and include a significant increase in military spending. Despite these drawbacks, Sri Lanka's gross domestic product grew by approximately 6% in 2000. The country's struggle for peace provides a unique opportunity for advancing U.S. national interests in democratic values and economic opportunities.
USAID program assistance to Sri Lanka helps strengthen democracy and human rights, provide humanitarian assistance, and foster greater Sri Lankan competitiveness in global markets. These programs are reflected in the Mission Performance Plan, which emphasizes democracy, human rights, humanitarian assistance, and economic development.
Development Challenge
In 2000, the conflict in the northern and eastern provinces of Sri Lanka continued to place heavy demands on the country's resources. The Government of Sri Lanka (GSL) continued its strategy of intensive military confrontation, and now devotes approximately 30% of its annual budget to fund the war. At the request of the GSL, Norway agreed to act as facilitator and arrange for peace talks with the Liberation Tigers of Tamil Eelam. It is hoped that these talks will eventually lead to a peace agreement.
The Displaced Children and Orphans Fund supports USAID's humanitarian assistance program. Through this program, USAID assists non-governmental organizations (NGOs) in providing opportunities for children affected by the conflict to participate in and contribute to their communities. These NGO programs help to build bridges between children of different ethnic groups. Funds are also used to support an NGO that provides technical training programs to vulnerable youth and juvenile sex workers to help them seek alternative employment and socially acceptable income generating opportunities. In addition, support from the Leahy War Victims Fund is provided to the only NGO in Sri Lanka that serves the needs of civilian amputees on a large scale.
Sri Lankan peacemaking and human rights issues are high on the U.S. agenda. USAID supports civil society groups that identify and report human rights abuses and assist victims. Election-related violence during the presidential and parliamentary elections last fiscal year resulted in increased human rights violations. USAID has been actively engaged in providing training for local human rights monitoring groups to make them more effective. The issue of women's rights is integrated into USAID's activities, and women have been well served through legal awareness and rights programs. USAID is also working with women in the agriculture and industrial sectors by strengthening women's wings of trade unions and establishing a trade union women's forum. USAID-funded programs on sexual harassment have motivated trade unions and NGOs to develop in-house policies on sexual harassment, while other programs have focused on improved health and safety conditions for female workers.
Sri Lanka has made progress in macro-economic reforms and some financial and structural reforms that stimulate productive investment. The high level of unemployment among Sri Lanka's educated youth continues, threatening political stability in the country. Increased employment among this group requires accelerated growth of value-added industries, allowing Sri Lanka to shift away from its dependence on low-cost advantages such as export of basic commodities and cheap labor.
USAID's economic growth program is aimed at increasing Sri Lanka's competitiveness in global markets. Through strategic partnerships with industry, associations, and the GSL, USAID is assisting key Sri Lankan industries to develop and implement strategies to re-position themselves and achieve greater competitiveness. USAID will measure progress by the number of industry clusters that develop and implement business strategies including innovation and investments in technology. Beneficiaries include targeted industry clusters and support industries, which are characterized by the vertical and horizontal linkages between firms, suppliers, service providers, and specialized institutions, and by men and women in the labor force. USAID may establish an endowment for an NGO to promote competitiveness and support public-private dialogue after this program phases out in September 2002.
USAID also provides assistance to Sri Lanka through regional programs. The Regional Urban Environmental Development Program provides loan guaranties to poor families to invest in household infrastructure such as water distribution, sanitation, and waste management. In addition, the Regional Urban Disaster Mitigation Program provides technical assistance and training for local counterparts to better prepare themselves and disaster-prone communities in the event of an urban natural disaster. The United States-Asia Environmental Partnership program links Sri Lankan businesses with U.S. firms that provide clean, cost-effective technologies, developing and implementing programs that transfer U.S. technology and experience to Sri Lanka. The South Asia Regional Initiative creates a regional network that leads to increased cross-border cooperation. The energy component of this initiative will provide training opportunities and introduce new technologies to provide clean, reliable, and cost-effective energy. It also will lay the groundwork for future international trade in clean energy. The equity component will implement activities to improve the status of women and children in the region.
Other Donors
In 2000, the U.S. was the sixth largest donor to Sri Lanka. The leading donors were the Asian Development Bank (ADB), the World Bank, the United Nations Development Program (UNDP), Japan, Germany, and China. Japan, the ADB and the World Bank are the largest donors. In the economic growth area, Norway and Germany work with the private sector, while Japan, the ADB and the World Bank work with the GSL. The United Kingdom, Norway, European Union, World Bank, UNDP, Germany, and Australia support democracy and human rights programs such as conflict prevention, good governance, training for journalists, judicial and legal reforms, human rights, and decentralization/devolution. In the past, many donors have funded local and foreign election observers and monitors. The GSL allows NGOs to work in the war-affected areas of the north and east. USAID activities complement efforts of the United Nations Children's Fund, the World Health Organization, the United Nations High Commission on Refugees, as well as international voluntary organizations, which are providing health care, rations and shelter to the displaced population.
FY 2002 Program
USAID's democracy programs will continue to support efforts of the GSL and the NGO community to improve the protection of human rights and the ability of the judiciary to resolve complaints efficiently and effectively. USAID will extend humanitarian assistance through NGOs to reach children and families most affected by the conflict and related violence in Sri Lanka to help them return to a normal life. USAID's economic growth program will continue to provide technical assistance to industry clusters to improve their competitiveness, and USAID will continue dialogue with the government on competitiveness issues facing Sri Lanka.
Activity Data Sheets
- 383-001 Improved Framework for Trade and Investment
- 383-003 Enhanced Economic and Social Opportunities for Disadvantaged Groups
- 383-004 Increased Sri Lankan Competitiveness in the Global Marketplace
Country Background Information Resources
CIA Factbook
Library of CongressNational Geographic Country Maps
State Dept. Country Information
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Last Updated on: May 29, 2002 |
