Economic & Market Bulletin
[November 7, 2005]

	Today's Stories
	FEATURE: Economic & Market Bulletin

A weekly publication of the Economic Affairs Division of the Ministry of Foreign Affairs
Volume 2:Issue 34 
04^th November, 2005 

Rs.900 million grant from EU 

• The European Union signed an agreement with the Sri Lankan Government to offer Euro 7.4 million (around Rs.900 million) for livelihood assistance and waste disposal in the North and East for Tsunami and Conflict affected families.

• The assistance is through the United Nations Development Program (UNDP). The support will be given through two Projects namely;

1)     Quick Recovery Project (QRP)

2)     Livelihood Development Project in the North and East (LDP)

• Under the QRP, the activities will include:

a)      Support to local bodies by assisting in waste removal and storage;

b)     Improvement to access roads and transport corridors

c)      Provision of employment by engaging in activities such as, debris removal and small infrastructure development

• Under the LDP, the activities will include;

a)      Assisting in the provision of productive inputs in the Fisheries and Agriculture Sectors

b)     Construction of associated community infrastructure relating to livelihood development

National market strategy to export professional service

• A National Market Strategy to promote the export of professional services from Sri Lanka has been launched by the Export Development Board.

• The newly launched market development strategy is focused on goals such as;

Ø     To create awareness among local service providers on existing export opportunities and establish a market information system for them.

Ø     To promote and establish the credibility of local exporters.  

Ø     Establishing market penetration mechanisms and enhancing the supply capacity.

• The service sectors being promoted are legal, construction, accountancy, ICT and Ayurveda.

Sri Lanka and Vietnam sign double taxation avoidance deal 

• The Governments of Sri Lanka and Vietnam signed an Agreement on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income on 2^nd November 2005 at the Vietnamese Finance Ministry in Hanoi.

• The Agreement primarily aims at enhancing bilateral economic, trade and investment ties between the two nations and will create a favourable environment especially for business and service sectors of both countries.

• The Agreement will come into force once the National Parliaments of both countries give their approval to the text.

6^th Tourism Working Group Meeting of SASEC 

• The 6^th Tourism Working Group Meeting under the South Asia Subregional Economic Cooperation (SASEC) Programme of the Asian Development Bank (ADB) will be held on 4,5 November 2005.

• The Meeting will bring together Tourism Secretaries and heads of National Tourism Organizations (NTOs) from Bhutan, India, Nepal and Sri Lanka to discuss issues and opportunities for subregional cooperation in the areas of conservation and sustainable tourism development.

• The meeting will also discuss ADB’s assistance on SASEC Human Resources Development (HRD) and Capacity Building, and the proposed technical assistance grant for preparing the SASEC Tourism Development Project, aimed at upgrading tourism infrastructure and facilities.

Government sign deal on $ 4 million with ADB 

• The Government and the Asian Development Bank (ADB) signed two grant agreements for US$ 2 million each to implement several projects to help tsunami affected households.

• The specific projects are;

     1)  Post Tsunami Utility Connection for the Poor. (US$ 2million)

 2) Public Works Restoration and Rehabilitation of Line Drainage Systems of Tsunami Affected Local Government Roads. (US$ 2 million)

• The first Project (Post Tsunami Utility Connection for the Poor Project) will provide financial assistance to tsunami affected people to obtain electricity and water connections after reconstruction of their houses.

• The objectives of the second project (Public Works Restoration and Rehabilitation of Line Drainage Systems of Tsunami Affected Local Government Roads) is to improve the quality of life of tsunami affected poor people through a cash for work programme.

SME Bank to help Betel growers tap export markets direct 

• The SME Bank is to help betel growers to expand their business and tap export markets direct. Rs.5.5 million will be invested by the SME Bank as part of the working capital required by the Apaladeniya Betel Growers Company to carry out direct exports.

• Under the FTA with Pakistan Sri Lanka will be able export 1200 mt of Betel Leaves at a concessionary tariff rate to Pakistan. At present Pakistan is the main country, which imports Sri Lankan betel. This project will be supervised by the Ministry of Advanced Technology and National Development and handled by the Sri Lanka Export Development Board and the Export Agriculture Department.

• In 2001 Sri Lanka exported 1328 tons of Betel Leaves to Pakistan and by the year 2004 it had reached to 2654 tons, up by 100%. In 2001 exports to other countries were 5 tons and this rose to 22 tons by 2004.  Total export revenue for this year is Rs.627 million.