European Union pledges Euro 40 million to Sri Lanka
The European Union (EU) is financing the project “Strengthening Stability, Reconciliation and Inclusive Democratic Engagement” (STRIDE) with Euro 40 million to Sri Lanka. This new development means defence, growth, and progress for Sri Lanka. The funding agreement was signed on Wednesday, 9 October 2019, by Dr R.H.S. Samaratunga, Treasury Secretary at the Ministry of Finance and Tung-Lai Margue, Ambassador of the EU to Sri Lanka and the Maldives.
“Good governance and community participation are essential to ensure that the development of a nation reaches everyone. Local government systems must be responsive to the needs of individuals. These are vital elements that help address the causes of conflict in ensuring effective governance on the ground. The EU is contributing to long-term peace, security, and development in Sri Lanka with STRIDE,” said the EU Ambassador.
The STRIDE initiative, sponsored by the EU, is a partnership with the Local Government Development Project, supported by the World Bank. The EU and World Bank will launch a small grant scheme for local authorities with the assistance of the United Nations Development Programme (UNDP) to improve their capacity in planning and service delivery.
STRIDE will also expand local and unique boards of mediation to improve the experience and access to justice services for residents. The WB, UNDP, and the British Council will undertake the projects in cooperation with the Ministry of Interior and Home Affairs and Local Government, as well as the Ministry of Justice and Prison Reforms.
This project is to run for four years reportedly and will benefit an estimated one million Sri Lankans in the four provinces under 134 local authorities.
OSL Take:
The signing of three loan agreements between the Sri Lankan government and the EU indicates the opening up of business/investment opportunities in several key sectors in Sri Lanka. The above statement, in turn, would result in funding for critical projects in the Sri Lankan government’s development agenda.
Therefore, with funding availability, foreign companies could explore opportunities to take part in Sri Lanka’s development projects. Also, the support of the ADB along with other international agencies, would result in Sri Lanka’s economy recording overall growth. Therefore, foreign businesses could confidently look at investing in the Sri Lankan economy.
| Article Code : | VBS/AT/20191108/Z_T1 |