US embassy cable - 02COLOMBO1887

UNCLAS COLOMBO 001887 
 
SIPDIS 
 
DEPT FOR SA/INS AND OES/ETC 
TREASURY FOR GEETHA RAO AND CARRIE MCKELLOGG 
 
E.O. 12958: N/A 
TAGS: EAID, ECON, CE, ECONOMICS 
SUBJECT: SRI LANKA: REQUEST FOR DEBT RELIEF UNDER TROPICAL 
FOREST CONSERVATION ACT 
 
 
1. This is an action request.  Please see para. 3. 
 
2. The Ambassador received the following letter dated 
September 19 from K.N. Choksy, Minister of Finance and 
Planning, requesting consideration under the Tropical Forest 
Conservation Act (TFCA). 
 
Begin Text:  Further to the recent informal discussions held 
between your staff and the Ministry of Environment and 
Natural Resources, I wish to indicate that the Government of 
Sri Lanka is interested in looking into the possibilities of 
treating some or all of its outstanding USAID and/or PL-480 
debt under the Tropical Forest Conservation Act mechanism. 
 
Accordingly, I would be grateful if you would kindly inform 
the relevant authorities of the United States Department of 
Treasury of our interest in this regard and request them to 
take such steps as are necessary to initiate this process. 
 
I should stress that this initiative is being taken purely 
by way of exploration of the possible benefits to Sri Lanka 
and that the Government of Sri Lanka will take a decision on 
this matter only after the mutual benefits and obligations 
involved are fully assessed and understood.  End Text. 
 
3. Action Request:  Post requests the Department of Treasury 
to determine whether Sri Lanka meets TFCA eligibility 
criteria.  Post supports the Sri Lankan request.  Please 
advise. 
 
WILLS