“The Government has mobilized nearly US$ 650 million for development in the North and East,” stated the Hon. Finance Minister in the 2005-06 Budget presented to the parliament on November 8, 2005. “The Government itself provides nearly Rs. 5 billion from its annual budget to improve living conditions of people in these areas. The RRR strategy in the North and East consists of four major components namely health, education, livelihood support and infrastructure. In respect of health, priority is accorded to meeting manpower shortages in the delivery of health services and to rebuild hospitals, clinics and other physical infrastructure. In education, the focus has been placed on filling teacher vacancies and teacher training, building new schools and improving class room facilities, the expansion of non-formal education to children who have missed education due to the ethnic conflict and the expansion of the school- feeding programme. Infrastructure priorities include housing for re-settlers, reconstruction of the road network, restoration of electricity, transportation and other infrastructure facilities.

“The rehabilitation of major irrigation schemes such as Yoda Weva, Irranamadu, Allai and 240 other local village tank development programmes are being implemented under NEIAP II Project, funded by the World Bank. Similarly the NEHRP Project, funded by the World Bank to build 46,000 houses has seen the completion of about 10,000 already. Under the ADB funded rehabilitation programme – CAARP, five Ayrvedic dispensaries in Kilinochchi, Vavunia, Batticaloa and Ampara have been reconstructed and the reconstruction work of the Jaffna Ayurvedic Teaching Hospital is to commence shortly. The construction of 10 ‘Gramodaya’ health centres, 120 school buildings and the provision of furniture to 232 schools are also to be completed.

“The North East Community Restoration project (NECORD) assisted by a consortium of donors led by the ADB, has completed the construction of a 3 storied ward complex in Manner, an OPD and a clinic complex in Vavuniya, a 4 storied out-patients complex and a dental unit in Batticaloa. Work of water supply and sanitation schemes are to commence shortly in Batticaloa, Mutur and Ampara coastal areas to provide water and sanitation to over 300,000 people. The new highway bridge at Manampitiya, connecting the Eastern Province with North-Central Province and the new Vavuniya/ Killinochchi transmission line funded by the Government of Japan are now under construction.

“Although, significant progress has been achieved with the participatory approach in the implementation of livelihood support porgrammes, the progress of infrastructure development is not satisfactory. The Government will focus on removing various implementation bottlenecks associated with the process to ensure early completion of reconstruction work in the affected areas.”

In respect of expenditure priorities, the Hon. Minister said, “According to the Department of Census and Statistics, nearly 50 percent of the total population has shown a higher poverty ratio than the national average, in 12 administrative districts. They are Matale, Galle, Matara, Hambantota, Kurunegala, Puttalam, Anuradhapura, Pollonaruwa, Badulla, Monaragala, Ratnapura and Kegalle and in the Northern and Eastern districts. In this background, the 2006 Budget, which has been designed on a pro-regional basis, provides Rs. 89,576 million - the highest allocation made for regional development. This includes Rs. 4,434 million for ‘Maga Naguma’ – the provincial road improvement and development program, Rs. 2,770 million for specific regional development programmes such as ‘Rajarata Navodaya’, ‘Pubudamu Wellesse’ and Central Province and southern infrastructure development, Rs. 12,390 million for North and East rehabilitation and reconstruction, Rs. 750 million for ‘Dahasak Maha Wav’ irrigation programme including Deduru Oya and Kirindi Oya projects and Rs. 672 million for the estate infrastructure development programme.”

The expected contributions of the various donors to North and East development by sector are shown below: