US embassy cable - 05COLOMBO677

UNCLAS COLOMBO 000677 
 
SIPDIS 
 
DEPT FOR EB A/S ANTHONY WAYNE; SA/INS FOR J. BRENNIG, N. 
DEAN; PLEASE PASS TO TSUNAMI RECONSTRUCTION TASK FORCE; 
TREASURY FOR C. CARNES 
 
E.O. 12958: N/A 
TAGS: EAID, ECON, PGOV, CE, Tsunami 
SUBJECT: SRI LANKAN POST-TSUNAMI RECONSTRUCTION UPDATE 
(APRIL 6, 2005) 
 
REF: A. COLOMBO 557 
     B. COLOMBO 558 
     C. COLOMBO 583 
 
1.  This cable is for use in the Tsunami IAWG meeting on 
Wednesday, April 6. 
 
2.  Post-tsunami relief and reconstruction continues at a 
measured pace in Sri Lanka, while Maldives appears to be 
moving ahead smartly.  Ambassador will visit Maldives this 
week to survey reconstruction efforts and discuss possible 
avenues for US assistance through the GORM trust fund. 
 
3.  To update ongoing issues in Sri Lanka: 
 
--The Ambassador sent a letter to President Kumaratunga 
outlining our concerns about GSL efforts to charge value 
added tax on relief and reconstruction supplies entering the 
country, despite the existence of a USAID-GSL agreement. 
Commissioner for Essential Services (and close Embassy 
contact) Tilak Ranaviraja has indicated that he has been 
told to sort the issue out.  USAID Director has requested a 
meeting with the Finance Ministry to discuss further. 
 
--Ambassador has requested a meeting with Task Force for 
Rebuilding the Nation (TAFREN) Chairman Mano Tittawella to 
discuss the potential SOAG - which would govern USAID 
rebuilding efforts following passage of the supplemental. 
The Ambassador also intends to raise potential GSL 
involvement in the US Chamber/Asia Foundation/Asia Society 
Private Sector Summit currently scheduled for May 12 in 
Washington. 
 
--USAID is sending teams out this week to Galle and Matara 
in the south and Ampara and Batticaloa in the east to assess 
progress on the relief and rehabilitation front.  The teams 
will visit all local partners involved in temporary shelter 
to assess progress in that sector.  We will report septel 
following these visits. 
 
--Temporary shelter is being constructed, but problems with 
coordination continue to create delays at the local level. 
Land acquisition remains a problem as does access to 
supplies.  Nonetheless, many groups are finding it possible 
to operate, even if more slowly than planned, and many 
informal temporary shelter projects are sprouting up around 
the country as well. 
 
--The Phase 2 Assessment Team (WB, ADB, JBIC/Bilat/UN/NGO 
representation) is having a meeting with TAFREN on April 6 
to go over key policy issues which are effecting ground 
level implementation of tsunami relief, rehabilitation and 
reconstruction.  These issues include relocation and 
settlements, communications, coordination and consultation, 
and equity. 
 
 
LUNSTEAD