His Excellency, Mr. Junichiro Koizumi, Prime Minister of Japan,
His Excellency, Mr. Ranil Wickremesinghe, Prime Minister of Sri Lanka,
Excellencies, Ladies and Gentlemen,

The peace process that began last year has already started gradually transforming the lives of the people of Sri Lanka and paving the way for the country’s economic recovery. Let me start by appreciating the efforts of the Government and the LTTE for the progress made so far. Allow me, also, to express my appreciation to the Government of Norway for organizing this Conference, which will, no doubt, contribute to the process of peace building in Sri Lanka.

In March 2002, the Prime Minister of Sri Lanka asked the Secretary General for the UN System’s support .An Inter Agency Needs Assessment Mission, led by UNDP, including UNICEF, UNHCR, OCHA,WFP, DPA, OHCHR , was fielded. Its mandate was to explore avenues, in the context of the peace initiative, for efficient mobilization of funds and technical assistance, in support of the government’s socio-economic development efforts.

The first outcome of this Mission was the formulation of a Joint Government-UN Strategy to address the Immediate Needs of Returning Internally Displaced People. The strategy was launched in July 2002, and is currently under implementation.

The second stage of the Secretary General’s response has been the UN’s contribution towards preparing the Needs Assessment for the North and the East that is presented here today, along with the Asian Development Bank.

As we all know, peace and development are closely interrelated. The Government Strategy “Regaining Sri Lanka” and the Needs Assessment, which is endorsed by both the Government of Sri Lanka and the LTTE, identify the programmes necessary to improve the well- being of all Sri Lankans. Both documents will serve simultaneously as tools for peace and for development. The political and the financial support of the international community to the fulfillment of these needs are therefore crucial.

Throughout the period of conflict, as well as over the past year, UNDP has maintained a presence on the ground. Among the on-going UNDP initiatives, the Transition Programme is helping to bridge the gap between the humanitarian relief and sustainable development. Local partners are given the means, and the necessary training, to promote economic recovery through participatory planning, as well as through peace- building and reconciliation techniques. The main objectives of this project are sustainable livelihoods, economic rehabilitation and post- conflict panning. Operating through six field officers throughout the country, there are 13 active sub-projects. Currently we are also working with FAO on the fisheries sector of the North and East, as well as on the continuation of micro-credit initiatives.

The UNDP support to the Mine Action Project is helping strengthen capacities for efficient coordination of all aspects of mine action. In the area of governance, among our national initiatives,UNDP is currently providing support towards strengthening of the Parliament, Commissioner General for Relief, Rehabilitation and Reconciliation.

In addition, promotion of private sector investment is essential. The Invest-in-Peace initiative was launched in New York last September by the Prime Minister and UNDP Administrator. Its purpose is to attract business opportunities and to help channel private investments that will benefit conflict – affected areas. In this connection, UNDP is pleased to be associated to the Government in organizing the Japan – Sri Lanka Business Opportunities Seminar that will be held on Wednesday morning at the JBIC Auditorium.

Altogether, UNDP plans to make grant assistance of US$ 23 million available to Sri Lanka for the 5year period starting 2003.

Despite the many formidable challenges, the transition from conflict to peace in Sri Lanka is underway. We sincerely hope that the peace talks will resume soon and that the path from consolidation of peace to sustainable development will open up. We are fully committed, along with other partners, to supporting the people of Sri Lanka on this extremely important journey.