US embassy cable - 05COLOMBO464

UNCLAS SECTION 01 OF 03 COLOMBO 000464 
 
SIPDIS 
 
SENSITIVE 
 
FOR ASSISTANT SECRETARY TONY WAYNE FROM AMBASSADOR 
LUNSTEAD; SA/INS FOR NDEAN/JBRENNIG; 
 
E.O. 12958: N/A 
TAGS: EAID, ECON, EFIN, CE, Tsunami 
SUBJECT: SRI LANKA RELIEF TO RECONSTRUCTION UPDATE 
 
Ref: Colombo 457 
 
1. (U) This telegram is sensitive but 
unclassified, please handle accordingly. 
 
SIPDIS 
 
2. (U) We are sending these various items in hope 
they will be helpful in this week's IAWG 
discussions. 
 
3. (U) Summary: 
--The GSL has outlined its policy on housing and 
tourism industry rebuilding along the coast and 
has indicated that there will be 100 meter and 200 
meter setbacks for construction in the West and 
East respectively. 
--Donors have assessed that emergency phase has 
successfully concluded, but problems looming for 
reconstruction. 
--Relief agencies continue to struggle with duties 
assessed on relief items entering the country.  We 
have heard from most other embassies that their 
nationals are having the same problem. 
--The US Army Corps of Engineers is in Sri Lanka 
and working with USAID to cost the various 
signature infrastructure projects that have been 
proposed. 
--We are in discussions with the EU about possible 
co-financing of a media campaign to encourage 
tourists to return to Sri Lanka. 
--Phase two of the multi-lateral development bank 
led damage assessment is underway, following a GSL 
request that Government representatives comprise 
at least 50 percent of each team. End Summary 
 
"Coastal Conservation Zone" (100 meter setback) 
--------------------------------------------- -- 
 
4. (U) On February 27 the GSL advertised its new 
policy housing and tourism industry reconstruction 
and repair in tsunami-affected areas.  The Coastal 
Conservation Zone (CCZ) will actually consist of 
two zones. Zone One will include most of the West 
and Southern coast, and will consist of a 100- 
meter setback.  Zone Two, which is most of the 
East coast (from Ampara to Jaffna), and which 
coincides with the territory claimed by the 
Liberation Tigers of Tamil Eelam (LTTE), will 
require a 200-meter setback.  Guidelines have been 
published regarding replacement and repair of 
tsunami-affected structures (both houses and 
 
SIPDIS 
tourism establishments).  Reftel provides more 
detailed information. 
 
5. (SBU) While there is now an official GSL 
policy, questions regarding enforcement and 
availability of land abound.  Furthermore, the 
sustainability and suitability of Government 
resettlement and housing schemes remain 
questionable (will fisherman, used to living next 
to their boats and equipment on the waterfront, 
take to apartment dwelling and commuting to 
work?).  To complicate matters further, local 
officials are interpreting the buffer zone policy 
differently, slowing the relief and recovery 
process. 
 
Donor Coordination 
------------------ 
 
6. (SBU) Ambassador and USAID Director attended 
Thursday meeting of major donors/UN agencies/MDB's 
to discuss overall situation. "Stocktaking Report" 
by UNOCHA (faxed to SA/INS - please share with 
IAWG participants) concluded that emergency phase 
had been overall successfully concluded (we 
agree).  Participants also agreed that heading 
into reconstruction phase major potential problems 
remain: 
 
--coordination (or lack thereof), and lack of 
point for policy discussion/input, 
--land availability, complicated by 100/200  meter 
rule, 
--taxation of relief goods, 
--coordination (or lack thereof) on NGO's, who are 
awash with funds. 
 
7. (SBU) UNDP Resrep and MDB heads had discussed 
these previous day with Task Force for Rebuilding 
the Nation (TAFREN) head Mano Tittawella and 
Relief Task Force (TAFROR) head Tilak Ranaviraja. 
Mano took the issues on board, said he would 
discuss them with President on Friday.  Ambassador 
is seeking appointment with Tittawella before he 
sees President to reinforce these points. 
 
Continued Relief Activities and Issues 
-------------------------------------- 
 
8. (U) At a special meeting of the Transitional 
Shelter Task Force the GSL, complaining that tents 
are too hot and not waterproof, said it will no 
longer release tents for temporary housing. 
Government officials also emphasized the country's 
commitment to providing transitional housing for 
up to 18 months. 
 
9. (SBU) Problems with the duty-free import of 
relief items persist.  Most recently, the 
Ambassador wrote to the Foreign Minister, 
highlighting the experience of a Baltimore church 
that tried to import water purification equipment. 
After encountering numerous bureaucratic delays, 
the representatives on the ground elected to pay 
duty on the items, which amounted to 70 percent of 
the value of the goods.  They are now on the 
ground in the east and implementing their project, 
but their experience is indicative of the 
challenges faced by many groups here, especially 
those without longstanding experience in Sri 
Lanka.  Consultations with colleagues in the 
diplomatic and aid communities reveal that this is 
a problem for most Western embassies and relief 
organizations in Sri Lanka.  Foreign Minister told 
Ambassador Thursday that he had sent Ambassador's 
letter to the President and would discuss the 
issue her that same day. 
 
10. (U) We have been told that new guidance on the 
importation of relief and reconstruction items 
will be available soon, but the Treasury Secretary 
has said that the Government intends to return to 
normal duty charges on non-humanitarian relief 
supplies, or goods that can be purchased in Sri 
Lanka, in order to help local industries.  The 
following items remain qualified for duty-free 
entry: medical supplies, specifically drugs and 
equipment; milk powder, infant milk powder and 
infant food; roofing material; and, prefabricated 
houses. 
 
Signature Infrastructure Projects 
--------------------------------- 
 
11. (SBU) A US Army Corps of Engineers team 
arrived this week to prepare cost estimates, 
procurement options and initial environmental 
impact assessments of a number of potential USAID 
signature infrastructure projects.  Projects 
include rebuilding a major bridge in Eastern Sri 
Lanka, rehabilitation or rebuilding of 14 
vocational-technical schools damaged or destroyed 
in the East and South, and reconstruction and 
upgrading of three fishing harbors in the South. 
The engineers will spend three weeks in Sri Lanka 
and work with planners, contractors and USAID Sri 
Lanka staff. 
 
US-EU Cooperation 
----------------- 
 
12. (U) The European Union has expressed strong 
interest in matching $3.5 million from USAID Sri 
Lanka to conduct an international media campaign 
aimed at revitalizing the tourism industry.  The 
campaign's objective is to communicate to the 
world that Sri Lanka remains a safe, idyllic 
tourist destination ready to receive visitors. 
Sites in tsunami-affected areas are making a rapid 
recovery, and other highlights of the island's 
varied tourism package--including the cultural 
triangle, tea plantations, and game parks--were 
untouched by the tsunami.  The goal is to attract 
more tourists, encourage them to stay longer, 
spend more, and enjoy attractions beyond the 
beaches. 
 
Damage Assessments, Phase Two 
----------------------------- 
 
13. (U) The World Bank (WB), Asian Development 
Bank (ADB) and Japanese Bank for International 
Cooperation (JBIC) launched a plan for a second 
phase of damage assessments approximately three 
weeks ago.  Last week, however, the GSL announced 
that it wanted Government representatives to 
comprise 50 percent of the assessment teams (the 
plan had been for the teams to consist of staff 
representatives with specific sector expertise 
from NGOs, multilateral, bilateral and UN 
organizations, the private sector and government- 
from the national and district levels). Team 
composition was worked out, along the lines of the 
GSL's request, and phase two assessments and teams 
will be deployed starting next Wednesday. 
Districts in the North and East will have the 
participation of the LTTE.  USAID will have 
representation on two teams, both in the South. 
The teams hope to conclude their assessment work 
by April 10. 
LUNSTEAD