France helps promote Sri Lanka’s green growth

As a result of a major aid reform, AFD, France’s development agency, is poised to promote Sri Lanka’s green growth and social cohesion under its new five year strategy in the island nation for 2017-2021.

It was presented by Martin Parent, AFD Director in Sri Lanka at the 5th annual consultation meeting held at AFD headquarters in Paris recently.

The main operational objectives of the strategy are to support the urban transition to promote sustainable management of natural resources and to enhance the resilience of communities prone to hazards, AFD sources revealed.

Four types of operations will be supported in order to meet these objectives: (1) promotion of sustainable development for attractive and inclusive cities, (2) support to integrated management at the watershed level, (3) development of renewable energies and energy efficiency and (4) contribution to boost the Blue Economy potential.

At the meeting in Paris, Jeremie Pellet, AFD Deputy CEO, expressed his confidence that the partnership between AFD and Sri Lanka will strengthen and develop for the benefit of the people, the Sri Lankan economy and Sri Lanka environment, the latter being unique.

He reminded that AFD’s mandate in Sri Lanka for “green and inclusive growth” is fully in line with the French President Emmanuel Macron’s recent motto: “Let us make our planet great again.”

The AFD will provide technical aid of Euro 5.7 million or Rs. 910 million for Sri Lanka’s Sanitation Hygiene Initiative for Towns Project which will be implemented by the National Water Supply and Drainage Board (NWSDB), a senior Treasury official told the Business Times.

This project aims to develop a collective sewerage system and sanitation solutions in Sri Lanka. The programme will analyse NWSDB requirements and capacity to expand into the wastewater sector. This initiative will also look to develop the capacities of the NWSDB management and its wastewater/sewerage division's technical staff.

Two financing agreements were signed in Paris pertaining to ‘Support to Integrated Rural Development in the most vulnerable districts of the Central and Uva Provinces in Sri Lanka’ and trade related assistance in Sri Lanka.

Proparco, a subsidiary of AFD, has also granted a Euro 20 million loan to DFCC Bank to help finance renewable energy projects and improve access to credit for the SMEs that constitute one of the country’s main growth engines. AFD welcomed for the first time a Sri Lankan delegation headed by Treasury Secretary Dr. R.H.S. Samaratunga in Paris at AFD Headquarters for the 5th annual consultation meeting between the Sri Lankan government and AFD.

Members of the Sri Lankan delegation comprised secretaries and officials from several key ministries - National Policies and Economic Development, Megapolis and Western Development, Power and Energy, City Planning and Water Supply, Fisheries and Aquatic Resources and Irrigation.