An Exchange of
Letters between the Government of Sri Lanka (GOSL) and the
World Bank took place on 26 February 2003, at the Finance
Ministry, providing the framework to establish a fund known
as the “North-East Reconstruction Fund” (NERF).
The NERF will support activities of the Sub-Committee for
Immediate Humanitarian and Reconstruction Needs of the North
and East (SIHRN).
The World Bank was selected as the custodian
for the NERF during the fourth meeting of peace talks
in Nakorn Pathom, Thailand in January 2003. The exchange
of letters is a prelude to the custodian arrangement to
be negotiated between the World Bank and SIHRN.
The NERF will receive grant assistance
from donor countries to support immediate humanitarian
and rehabilitation needs of the North and East. The fund
will have several funding-windows making it flexible to
attract donor contributions.
The donor countries pledged commitments
to the tune of US $ 70 million at the Oslo Donor Conference
in November 2002.
The custodian will employ an internationally
recognised monitoring agency to physically monitor project
implementation, while the accounts of the fund will be
audited by an internationally reputed auditing firm with
a view to maximising transparency and accountability.