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Part of USD 200 mn ADB loan spent on cash assistance scheme for paddy farmers

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USD 3 mn Japanese grant attached to ongoing project

By Shamindra Ferdinando

An agreement on the much advertised cash assistance, provided exclusively to paddy farmers by the Wickremesinghe-Rajapaksa government, was finalised several weeks before then President Gotabaya Rajapaksa stepped down on July 14, 2022 amidst violent protests.

The Asian Development Bank (ADB) has provided the wherewithal for this purpose to cash-strapped Sri Lanka following a request made on May 20, 2022.

Senior External Relations Officer, ADB, Roshani Yogarajah said that cash assistance to paddy farmers was discussed and decided in June-August 2022 during preparation of the latest project. Cash assistance provided to paddy farmers in two installments during the 2022/2023 Maha season (September-March) would cost USD 30 mn, Yogarajah declared. According to her, USD 30 mn had been allocated from USD 200 mn emergency assistance loan that was sought by Sri Lanka to provide relief to families badly affected by the continuing economic crisis. The Yala season covers May-August.

The ADB spokesperson at the ADB Resident Mission said so in response to The Island queries regarding when Sri Lanka sought the emergency loan, the amount of the ADB facility, terms and conditions of the loan if it was not a grant as indicated by Agriculture Minister Mahinda Amaraweera as reported by a section of the media and the total amount of ADB loans provided since the last presidential election held in Nov 2019.

Sri Lanka entered into a loan agreement with the ADB on Sept.09, 2022 for USD 200 mn that has to be paid back with stipulated interest and other charges within 24 years.

The spokesperson said: “The cash assistance referred to in the articles is being supported under the Food Security and Livelihood Recovery Emergency Assistance Project. The government made an official request for the emergency assistance ($200 million to be provided with surplus loan proceeds cancelled from six ongoing projects) in May 2022. The inclusion of the cash assistance to farmers in the emergency assistance was discussed and decided in June-August 2022 during project preparation. The allocation for the cash assistance for farmers (to be provided in two installments during the 2022/2023 Maha season) is $30 million.”

In addition to the USD 200 mn emergency loan, the ADB has diverted USD 40 mn from what it called the Mahaweli Water Security Investment Programme to procure Muriate of Potash (MoP) fertilizer for paddy farmers for 2023 Maha season. According to Yogarajah, 40,000 tonnes of MoP that had been obtained was distributed among farmers.

The ADB said that the Ministry of Finance, Economic Stabilization and National Policies would execute the project. Sri Lanka sought USD 200 mn from ADB close on the heels of Ranil Wickremesinghe receiving Premiership on May 12 and five days after he received finance portfolio.

In the wake of Dr. Nandalal Weerasinghe receiving appointment as Governor, CBSL, in April 2022, Sri Lanka requested the ADB’s intervention. According to the ADB, it has formulated an emergency assistance package in close coordination with the World Bank, the Asian Infrastructure Investment Bank, the International Monetary Fund, and United Nations agencies. ADB has coordinated with these development partners in preparing the main project, as well as with the Embassy of Japan and JICA, Sri Lanka in designing the Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPR) grant project.

USD 3 mn JFPR grant has been attached to ADB’s USD 200 mn loan with the intention of providing relief to those who were excluded from the ongoing social assistance programme. In terms of a previous agreement between ADB and Japan, the former will administer the USD 3 mn grant.

Asserting Russia-Ukraine war that erupted in February 2022 aggravated the crisis here, the ADB, too, faulted Gotabaya Rajapaksa government for hasty ban on the import of chemical fertilizers and pesticides in May 2021 that resulted in quite heavy loss of paddy production in 2021-2022.

ADB said that it has received assurance from Sri Lanka that the Japanese grant would be subjected to its policies, including those concerning anti- corruption measures, safeguards, gender, procurement, and consulting services.



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UN Humanitarian Priorities Plan (HPP) for Cyclone Ditwah successfully concluded

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The conclusion of the Humanitarian Priorities Plan (HPP) implemented by the United Nations for those affected by Cyclone Ditwah was marked at a ceremony held in Colombo this morning (11), under the patronage of Commissioner General of Essential Services and Chief of Staff to the President, Prabath Chandrakeerthi, and United Nations Resident Coordinator in Sri Lanka, Marc-André Franche.

Speaking at the event, UN Resident Coordinator Marc-André Franche noted that the humanitarian relief programme launched for those affected by Cyclone Ditwah had been successfully implemented owing to the strong political leadership and the swift response demonstrated in managing the disaster situation.

Commissioner General of Essential Services and Chief of Staff to the President Prabath Chandrakeerthi emphasized that Sri Lanka had demonstrated how strong national leadership and effective partnerships could ensure the delivery of relief to affected communities in a fair and efficient manner during times of crisis. He further stated that the timely and accurate data and assessments provided by the United Nations had played a crucial role in facilitating rapid relief efforts. He also noted that the Government is continuing its efforts to strengthen multi-hazard early warning systems to enhance resilience against future natural disasters of a similar nature and to further expand institutional coordination at national, provincial and local levels.

Expressing appreciation and gratitude for the generous and prompt assistance extended by various countries and partners, the Commissioner General also commended the contribution of all state institutions that helped ensure the uninterrupted provision of essential services and facilitated the swift delivery of relief assistance.

Under the United Nations’ Humanitarian Priorities Plan for Cyclone Ditwah, a fundraising initiative was launched to mobilise US$35.4 million for those affected by the disaster. Of this amount, 75 per cent has already been disbursed as assistance to affected communities across the country. Through the programme, each affected family received an allowance of Rs. 27,000 through Divisional Secretariats, while a range of additional relief measures, including the construction of temporary housing, were also implemented.

The Humanitarian Priorities Plan covered 25 districts and delivered assistance through nine key sectors. Official reports indicate that 87 per cent of the targeted population of more than 650,000 people, equivalent to approximately 575,000 individuals, directly benefited from the programme. This achievement clearly reflects the confidence and support extended by foreign governments and organisations towards the Cyclone Ditwah response programme being implemented by the present Government.

Among those who attended the event were Additional Secretary (Disaster Management) to the Ministry of Defence K. G. Dharmatilake, ambassadors and high commissioners from several countries, representatives of the United Nations Development Programme (UNDP), representatives of the World Health Organization (WHO), representatives of international humanitarian organisations, and a number of local and international dignitaries.

(PMD)

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President chairs discussion on potential El Niño impacts and institutional preparedness

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A discussion to review the potential impacts of the anticipated El Niño phenomenon and the preparedness plans of relevant institutions to address its effects was held this morning (11) at the Presidential Secretariat under the patronage of President Anura Kumara Dissanayake.

The meeting was attended by representatives of the Department of Meteorology, the Department of Irrigation, the Central Environmental Authority, Mahaweli Authority of Sri Lanka, the Disaster Management Centre, Vidulijanana Lanka (Pvt) Ltd and the National System Operator (Pvt) Ltd, among other relevant institutions.

Extensive discussions were held on the possible impact of the anticipated El Niño conditions on the country’s food security, drinking water supply and energy sector, as well as the immediate measures required to effectively manage these sectors.

Particular attention was given to current reservoir water levels and the measures required managing potential pressure on agriculture, drinking water supply and energy generation. Officials also briefed the President on the preparedness plans already in place to mitigate any adverse effects.

Officials noted that the expected El Niño conditions are likely to resemble those experienced during 2016–2017. They further stated that water management plans have been formulated accordingly and that steps have already been taken to commence the 2026 Yala season approximately one and a half months earlier than usual.

Special attention was also focused on ensuring an uninterrupted electricity supply over the upcoming months, maintaining agricultural activities and safeguarding food security. The President instructed relevant officials to prepare and submit detailed plans to ensure adequate electricity generation, the provision of water required for the forthcoming cultivation season and the protection of drinking water resources.

President Dissanayake observed that, just as Sri Lanka had successfully managed challenges arising from Cyclone Ditwah and the conflict situation in the Middle East, the country possesses the capacity to effectively address this global challenge as well. The President expressed confidence that with proper planning and timely implementation, Sri Lanka would be well positioned to respond to any eventuality.

Among those present were Secretary to the President Dr. Nandika Sanath Kumanayake, Senior Additional Secretary to the President Kapila Janaka Bandara, Director General of the Department of Meteorology A. L. K. Wijemannage, Director General of the Department of Irrigation Kithsiri Weligopolage, Director General of the Mahaweli Authority of Sri Lanka H. M. K. K. Herath, Chairman of the Central Environmental Authority Professor Tilak Hewawasam, Acting Director General of the Disaster Management Centre Brigadier D. D. G. A. Jayawardena and several senior officials representing the relevant institutions.

 (PMD)

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New Sasakawa Memorial Sri Lanka–Japan Cultural Centre reflects enduring friendship between Sri Lanka and Japan – PM

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Prime Minister Dr. Harini Amarasuriya participated at the ceremonial opening of the new Sasakawa Memorial Sri Lanka–Japan Cultural Centre today [11th of June 2026].

The cultural centre, commissioned by the Sasakawa Memorial Sri Lanka–Japan Cultural Centre Trust and situated at No. 85, Ward Place, Colombo 07, is a landmark development designed to promote cultural exchange, education, professional training and bilateral cooperation between Sri Lanka and Japan.

The New Sasakawa Centre was ceremonially opened  by the Ambassador of Japan to Sri Lanka Akio ISOMATA, Minister of Fisheries, Aquatic and Ocean Resources, Ramalingam Chandrasekar, Minister of Buddhasasana, Religious and Cultural Affairs, Hiniduma Sunil Senevi, Yohei SASAKAWA,  Chairman of The Nippon Foundation, Japan, Premalal Fernando, Chairman, Sasakawa Centre Trust. The Prime Minister unveiled the inaugural plaque.

Following the occasion Memorandum of Understanding was signed between the Ministry of Defence and Sasakawa Peace Foundation in the presence of Prime Minister Dr. Harini Amarasuriya and  Yohei SASAKAWA, Honorary Chairman.

Addressing the occasion, Prime Minister Dr. Harini Amarasuriya stated, that the friendship between Sri Lanka and Japan is enriched by a long history of cultural and spiritual connections and that the societies are connected through a deep appreciation of nature, culture, learning, and community.

Highlighting the longstanding contribution of the Sasakawa Centre, the Prime Minister stated that it has played an invaluable role in promoting Japanese language education and strengthening mutual understanding between the people of Sri Lanka and Japan. She expressed confidence that the new Centre would emerge as a dynamic platform for cultural exchange, educational cooperation, and meaningful people-to-people engagement.

The Prime Minister stated that, at a time of increasing global uncertainty, partnerships based on mutual respect, shared values, and a commitment to peace are more important than ever. She reaffirmed that Sri Lanka and Japan remain committed to dialogue, international cooperation, and s rules-based international order that promotes peace, prosperity, and human dignity.

The occasion was attended by the Ambassador of Japan to Sri Lanka  Akio ISOMATA, Minister of Fisheries, Aquatic and Ocean Resources, Ramalingam Chandrasekar, Minister of Buddhasasana, Religious and Cultural Affairs, Hiniduma Sunil Senevi, Yohei SASAKAWA, Chairman, The Nippon Foundation, Japan, Premalal Fernando, Chairman, Sasakawa Centre Trust and Diplomatic core, distinguished guests.

[Prime Minister’s Media Division]

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