ADB: Political stability essential amidst controversy over LG polls and 13A
By Shamindra Ferdinando
The Asian Development Bank (ADB) says political stability is of pivotal importance to ensure the continuation of the ongoing economic recovery programme meant to achieve sustained growth.
The ADB sources said so when The Island asked its Colombo mission whether it had initiated talks with the government or took precautionary measures against the backdrop of political instability caused by an alleged bid to put off scheduled Local Government polls, and the sudden declaration of plans to fully implement the 13th Amendment to the Constitution
Sources said that they had been engaged in close discussion with the government on the economic context and their future assistance. “We will continue this dialogue as the country moves towards recovery and implements reforms. Our assistance to Sri Lanka will be designed in consultation with the government and other stakeholders. Political stability is important to ensure the economic recovery programme goes ahead and the country can achieve sustained growth.”
Last year, the ADB made available USD 200 mn in emergency assistance, following a request made by Sri Lanka. In addition, the ADB supervises a USD 3 mn Japanese grant intended to improve food security and livelihoods of the poor and vulnerable, especially women and children. The ADB, as well as its partners, have intervened in the continuing balance of payments and debt crisis.
The Island also sought an explanation as to how the ADB intended to address continuing failure on the part of Sri Lanka to regulate the Samurdhi Bank by the Central Bank or at least subject the SB to be brought under the supervision of the National Audit Office.
ADB sources said that in terms of the Food Security and Livelihood Recovery Emergency Assistance Project, the streamlining of the Samurdhi Bank’s cash transfer processes, using digital technologies, was being discussed, in consultation with the Central Bank of Sri Lanka, and other relevant agencies. A special audit of emergency cash assistance, processed by the Samurdhi Bank, will be conducted by the National Audit Office for the project in 2023, sources said.
