British Government agreement with Government of Sri Lanka for the provision of debt relief

BRITISH HIGH COMMISSION PRESS RELEASE

In December 2005, the British and Sri Lankan governments signed an agreement for the provision of £41 million of debt relief. The debt relief was to be used for post-tsunami recovery and poverty reduction work and would be paid in yearly instalments of about £4 million between 2005 and 2015. The two governments agreed a number of conditions against which these yearly instalments would be made. These conditions relate to human rights, hostilities, defence spending and accountability systems.

As part of the process leading to the release of the next instalment of debt relief, the British Secretary of State for International Development wrote last week to the Sri Lankan government to seek clarification that these conditions were still being met.

Debt relief was just part of the British government's response to the tsunami. We donated over £6 million to immediate relief and reconstruction in Sri Lanka. We contributed in excess of £140 million, from which Sri Lanka benefited, for longer-term reconstruction and rehabilitation in the region.

In addition to tsunami assistance, the British government has contributed more than £13 million to activities in Sri Lanka including de-mining; promotion of conflict resolution and programmes to promote the rights of children in Sri Lanka. Most recently in September 2006, we contributed £500,000 in response to an urgent plea for funds to help internally displaced people.

Recent press reporting has suggested that debt relief is linked to possible de-proscription of the LTTE. As British Minister, Dr Kim Howells, made clear during his visit to Sri Lanka this week, the British government is not considering de-proscribing the LTTE. The issues of debt relief and de-proscription are not in any way linked.

The British government remains committed to helping the people of Sri Lanka develop the conditions necessary for a sustainable peace in their country.

British High Commission
Colombo
18 February 2007