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Sri Lanka Needs US$1.5 bln for Rebuilding

Sri Lanka will need approximately US$1.5 billion to effectively implement a recovery and reconstruction strategy, the official Daily News reported on Thursday.

The estimated figure was based on a preliminary damage and needs assessment released on Wednesday by the Asian Development Bank, the Japan Bank for International Cooperation and the World Bank, the paper said.

The assessment, prepared in close cooperation with the government of Sri Lanka, sets out clear guiding principles for the reconstruction strategy, with an emphasis on the inclusion of affected communities in the planning and process of rebuilding.

It estimates the overall damage to Sri Lanka stands at one billion dollars with a large proportion of losses concentrated in housing, tourism, fisheries and transportation.

Total losses are estimated to equal 4.4 percent of GDP with about US$500 million in external financing required in the short term for 2005.

All three lead banks have already indicated high levels of financial commitment to Sri Lanka to address the emergency, amounting to some US$500 million for the short term.

Approximately 31,000 people were killed, about another 6,300 remain missing, and around 443,000 people have been displaced by the disaster, the paper said.
 
(Xinhua News Agency February 4, 2005)

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