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Monday, 2 September, 2002, 11:37 GMT 12:37 UK
Donors pledge $65m for Sri Lanka
Refugees fleeing fighting in 1999
There are 1.6 million refugees from 20 years of war
The World Bank and United Nations have promised Sri Lanka $65m (�42m) in aid to rebuild the war-ravaged north east of the country.

Brandmon Weerakoon, secretary to the prime minister and Commissioner-General of Relief, Reconstruction and Rehabilitation, said the World Bank had promised $40m and the UN $25m.

He announced the aid while visiting the region for talks with senior members of the separatist Liberation Tigers of Tamil Eelam (LTTE) and to assess the rehabilitation needs.

"There is a lot that needs to be done to rebuild these areas," Mr Weerakoon told AP.

"We want to quicken the whole process."

Reconstruction

The LTTE's own government controls the north east, which has little infrastructure or economic activity and high unemployment and poverty.

In two weeks, the government and Tamil Tiger rebels are due to hold peace talks in Thailand after signing a cease-fire agreement in February.

The LTTE have been engaged in an ethnic civil war with the dominant Sinhalese government since 1983.

The war has killed over 64,500 people and displaced another 1.6 million.

Donor hunting

Mr Weerakoon said he would visit Europe later this month to seek European Union aid for the region's development.

An investment forum will also be held in New York later this month after peace talks begin.

Last week, officials from the Japan Bank for International Cooperation travelled to the northeast for talks with the LTTE to identify urgent rehabilitation needs.

Japan is Sri Lanka's largest donor of foreign aid.

US Deputy Secretary of State Richard Armitage, who visited Sri Lanka last month, promised to increase US aid from the current annual level of $36m.

US military advisers arrived in the country on Sunday to discuss the Sri Lanka's military training needs.


Peace efforts

Background

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06 May 02 | Business
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