Contrary to widely held misconceptions, the administrative machinery and infrastructure facilities in LTTE controlled areas is funded and maintained substantially by the Government. In addition, the Government meets an overwhelmingly substantial part of the humanitarian and infrastructural needs of the civilian population living in the North and the East, including the LTTE controlled areas.

For instance :

    • State hospitals and State run healthcare centres provide a totally free service – both preventative and curative and are funded by the Government. The State meets the recurrent costs of Doctors’ salaries, drugs, dressings and maintenance of hospitals. In the North and East, there are over 53 Hospital institutions with more than 4427 hospital beds providing free curative healthcare and an estimated 1848 functioning state funded schools with over 700,000 students.

    • The State funded education system including schools, non-formal education institutions, technical colleges, provides free education. The salaries of teachers, administrative, clerical and elementary staff are met by state funds.

    • The district and sub-district administrative offices functioning in areas under LTTE control are funded by the Government – this includes the salaries of Government Agents, Divisional Secretaries, Grama Niladaris and administrative staff.

The Government provides these services and amenities from revenue collected from the public in the rest of the country as the revenue from the North and the East is less than 0.1% of the total revenue.

In addition, a significant number of small, medium and large scale projects have been completed with the assistance of the international community, including the World Bank and the Asian Development Bank in many cases with funds borrowed by the Government. These projects cover a wide variety of sectors.

In the latest figures on ongoing projects in the Northern and Eastern Provinces, which include both tsunami and non-tsunami projects, there has been a total allocation of US$ 1283.10 Million comprising loans US$ 673.8 Million and grants US $ 609.3 Million.

State Investment in Development and Infrastructure Activities in Northern and Eastern Provinces (2002-2006) - A Summary

Education
    • Schools - Rs.3.721 Billion
    • Universities - Rs.792 Million
    • Skills Development, Vocational and Technical Education – Rs.1.044 Billion

Healthcare
    •  Healthcare - Rs.6.020 Billion

Livelihood Assistance
    •  Relief and Livelihood Assistance - Rs.14.735 Billion

Infrastructure Development
    •  Roads and Bridges (Rs.38.674 Billion)
    •  Housing (Rs.1.582 Billion)
    •  Electricity (Rs.692 Million)
    •  Water Supply and Sanitation (Rs.21 Billion)
    •  Ports (Rs.460 Million)
    •  Telecommunication (Rs.600 Million)
    •  Irrigation (Rs.1.635 Billion)
    •  Institutional and Community Development (Rs.124 Million)
    •  Agriculture (Rs.133 Million)
    •  Fisheries (Rs.1.5 Billion)
    •  Livestock (Rs.60 Million)

Relief, Rehabilitation and Reconstruction - 2002-2006
    1) North East Housing Reconstruction Programme – World Bank US$ 75 M (Rs.7500 M)
    2) North East Coastal Community Development Project – ADB US$ 22 M (Rs.2200 M)
    3) North East Irrigated Agriculture Project II - World Bank US$ 64 M (Rs.6400 M)
    4) North East Road Rehabilitation Programme – EU
    5) North East Community Restoration and Development Project Loan – ADB US$ 180 M (Rs.18000 M)
    6) Rehabilitation of Bridges in the North-East - UK
    7) North East Emergency Rehabilitation Programme WB/EU
    8) Conflict Affected Area Rehabilitation Programme - ADB US$ 80 M (Rs.8000 M)
    9) National Protection and Durable Solution for IDP’s - UNHCR
    10) Jaffna Water Conservation and Environmental Management Project - GTZ
    11) Mannar District Rehabilitation and Reconstruction through Community Approach Project - JICA
    12) UNDP Technical Assistance Programme - UNDP
    13) Food Security and Reconciliation in Batticaloa District - GTZ
    14) Agricultural and Rural Development in Trincomalee Districts - JICA
    15) Recovery Programme for People Affected by North East conflict - WB
    16) Emergency Rehabilitation for the Community in the Vanni and the East - JICA
    17) Water Supply Scheme in Mannar District
    18) Northern Rehabilitation Project NRP-GTZ
    19) Pro Poor Economic Advancement and Community Enhancement Project - JBIC
    20) Secondary Education Modernization Project - ADB
    21) Teacher Education and Teacher Development Project - WB
    22) General Education Project II - WB

More than 50% of the foreign funded projects are based on loans granted by international institutions and foreign governments to the Government of Sri Lanka, which is then required to repay these loans. It is the Government that bears the burden of funding the development of the North and the East and repaying these borrowed funds.

However, studies reveal that approximately 10-20% of these funds are siphoned off by the LTTE. It is largely from these illegally acquired funds that the LTTE maintains its name-board structures and logistics, trains its child soldiers and places its armed cadres, both men and women, in a perpetual state of war.

This is an aspect that the donor community needs to address while engaging the LTTE. It is an illusion to assume that the LTTE has the capability to provide even the minimum services to the people of the North and the East. The Government on its part will continue to do its utmost to address the deprivations of the people of the region and ameliorate their living conditions.