As some of you may know, I have long been a friend of Sri Lanka and I continue to try to visit the island regularly. I well remember the dark days of the late 1990s when I was living in Colombo. Then, there didn’t seem to be any sign of light at the end of the tunnel. The change over the past few months has been truly remarkable and all of the partners are to be complimented on their commitment to the peace process. My colleague Mr.Lysholt – Hansen representing the EU Presidency will elaborate on the recent initiatives undertaken by the Council in support of this process.
We fully agree with Norway’s view that now that unprecedented international attention is focused on the peace effort, we must ensure that donor support can continue and succeed.

Since the signing of the cease –fire agreement in February, we have intensified our contacts with the Government of Norway and the Government of Sri Lanka . Already this year, the Commission has been able to find extra funding for Sri Lanka this year, where our commitment will total C17.3 million .

For example, we are using the Rapid Reaction Mechanism to fund specific action foreseen in the cease-fire agreement itself – establishing electricity supply to the A9 checkpoints and the rehabilitation of the Batticaloa rail line – as well as funding for the Peace Secretariat and the Human Rights Commision and through increased allocations to humanitarian assistance programmes.

ECHO, the Commission’s Humanitarian Aid Office, reacted quickly to this positive political development , providing support to the population and to those internally displaced people living in the conflict affected areas. ECHO funds, among other activities,mine field surveys and fencing , mine awareness programmes, medical assistance in Mullaitivu and Mannar districts, supply of temporary shelters and basic agricultural seeds and tools for those who have already returned to their places of origin.

One other areawhere we are anxious to be able to increase our funding is de-mining. It is for this reason that we hope to hear something positive soon, perhaps today, from the Prime Minister, on Sri Lanka’s position on the Ottawa Convention.

Signature of the Ottawa Convention would mean that we could also start engaging in practical de-mining, a vital element in facilitating the gradual return.

Distinguished Delegates,

We are invited by our Norwegian hosts to use this conference to pledge support for immediate humanitarian and rehabilitation activities. In this context, I am pleased to inform you of the following three initiatives undertaken by the European Commission:

First, We will continue the exceptional assistance granted to Sri Lanka in 2002 also in 2003. As of now, I can confirm a peace process related package, ranging from further humanitarian assistance over de- mining to developmental activities of C 17.5 million for 2003.

Secondly, we have agreed in principle with the Government to utilize counterpart funds worth an equivalent of 20M C in support of the “Unified Assistance Scheme in support of returning refugees.

Thirdly, we are already preparing for the conference in Tokyo in Spring 2003 where we hope to be able to announce a further significant pledge to the peace process. In this context, the conference documents and today’s deliberations will provide valuable guidance for the best line to take. We would certainly like to hear more about the proposed peace fund and how it is intended to work. We look forward to participating fully in discussions on the setting up of such a fund for Sri Lanka.

Distinguished Delegates ,

The peace negotiations have led the Government of Sri Lanka to begin a serious study of various federal and other systems of government around the world. We know that there has been interest in the German federal system, as well as devolution within the UK. Later this week the legal adviser to the Peace Secretariat will be in Brussels to look at the Belgian system of regional government
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We hope that we will be able to identify some way to enable the Commisssion to extend to the LTTE the possibility to look at the different European government models as part of the process of expanding EU dialogue with all involved in the peace process.

I have begun to notice advertisements for holidays in Sri Lanka appearing in the European press. New tourism and airline offices are being set up in Europe.
I noticed that a cricket test between Pakistan and Australia was played in Sri Lanka-This is a fantastic feather in cap of Sri Lanka that it was considered as a venue for such an event .

These are the green shoots of the success of the peace process. Donor governments cannot bring private investment to Sri Lanka.But we encourage it, and we can support the process of bringing stability and prosperity to Sri Lanka.

It is easy to lose sight of the fact that although the brunt of the conflict has been borne in the North and East, there has been, and continues to be , considerable suffering and hardship in the rest of the country. Donors need to be aware of the need to provide project assistance with a broad geographical spread in order that the concrete benefits of the peace process can be clearly demonstrated, and appreciated, of all sections of Sri Lankan society.

Distinguished Delegates,

Let me put my environmental hat on for a moment. The conflict has had some devastating impact on the environment in the island. Now with the peace process up and running I would also make a plea that in the process of reconstruction and economic regeneration, concern for the environment is not neglected.

Peace will bring prosperity, economic growth, and new job opportunities. If not properly managed this may put strains on Sri Lanka’s natural resources. I read a report just recently that stated in the past 200 years Sri Lanka has lost 95% of its tropical forest. This makes the remaining 5% particularly precious. Sri Lanka still has a fantastic bio-diversity- this must continue to be protected, and developed as an asset. When considering the country’s greater energy needs, we must ensure that the most appropriate technology is used; that proper conservation measures are put in place and enforced.
Improved management of water resource and sustainable management of other natural resources should be a vital concern for the planners and all actors in Sri Lanka .It is in Sri Lanka’s interest that best practices in environmental protection and sustainable development concerns be incorporated right from the start in the reconstruction and development phase that the country is entering.
On all these fronts, Sri Lanka can certainly count on the co-operation of the European Union. “