Announcement of Ceylon Aid Group Meeting on May 25, 1972

• 1818 H STREET, N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 May 25, 1972 Subject: Ceylon Aid Group Meeting The eighth meeting of the Ceylon Aid Group was held in Paris on May 24 under the chairmanship of the World Bank. The following countries were represented: Australia, Canada, France, Japan, the United Kingdom and the United States. Representatives of the International Monetary Fund, the Asian Development Bank, the United Nations Development Programme, the Organisation for Economic Co-operation and Development and observers from Denmark, Germany, India, Italy and Sweden also attended. The Ceylon delegation was led by Dr. H.A. de S. Gunasekera, Permanent • Secretary of the Ministry of Planning and Employment • Ceylon's delegation explained the Government's objectives in development as set out in the Five-Year Plan 1972-1976, which places emphasis on increasing employnent opportmities by the expansion of production imd exports. It also outlined the major elements in the Government's strategy for achieving these objectives. Drawing attention to the difficulties c:reated during the past years by the insurgency, the effect of drought on agricult,~ral production and the continuing deterioration in the terms of trade, the Ceylon delegation described several measures which the Govemment had taken to deal with Ceylon's economic problems and the course of future action under consideration by the Government. The Group concurred w.ith t~e Govemment's analysia of the direction of policy action needed for the achievement of the development objecttves of the plan. It agreed further that, in the context of the Government's strategy for development, • CA!ylon wow.d continue to need substantial amounts of external assistance. /more  Ceylon Aid Group Meetin~ - 2 - The Group, recognizing that untoward events in the past year had aggravated considerably the developmental problems confronting Ceylon, expressed its hope • that the Government would proceed expeditiously in establishing conditions conducive to development particularly, as stressed in the plan, by increasing public savings and stimulating the growth of exports. On the basis of indications by member countries and agencies of their inten- tion for fresh conmdtments of assistance in 1972, and taking into account undisbursed balances from prior commitments, it was estimated that, in 1972, disbursements oi: assistance by the Group would remain around last year's level of about $60.0 million. The members expressed the hope that the Group would meet again towards the • end of 1972. - 0 - •