Announcement of Sri Lanka Receives Twenty Five Million Dollars for Agricultural Development on December 15, 1975

.World Bank 1818 H Street, N.W.; Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 75/72 DECEMBER 15, 1975 SRI LANKA RECEIVES $25 MILLION FOR AGRICtg,,TURAL DEVELOPMENT A credit of $25 million from the International Development Association (IDA), an affiliate of the World Bank, will help finance an agricultural development project in Sri Lanka. Agriculture is the dominant sector in Sri Lanka's economy. It accounts for about 90% of the country's export earnings and provides employment to some two million people. Agricultural production, including the tree crop, the main source of foreign exchange earnings, however, has been stagnant since 1970. There has been a shortage of • foreign exchange for the import of capital equipment required by the food and tree crop sectors. The IDA credit will assist Sri Lanka's agricultural rehabil- itation and development programs through the provision of imported capital equipment and technical assistance. These programs will 'help to increase output in the foodcrop sector and to maintain employment and quality in the tree crop sector. At full development in 1982', the project will increase annual production of rice, cereals and pulses and sugar by 182,000 tons valued at $41 million per anm.nn. The IDA credit to Sri Lanka is for 50 years, including a 10-year grace period. It is interest-free except for a service charge of 3/4 of 1% to cover IDA's administrative expenses. Note: Money figures are expressed in US dollar equivalents . • Form No. L.Ll (9-75) PROJECT: TECHNICAL DATA Agricultural Development • COUNTRY: Sri Lanka TOTAL COST: $60.5 million IDA FINANCING: $25 million, standard IDA terms OTHER FINANCING: Government of Sri Lanka IMPLEMENTING ORGANIZATION: Ministry of Planning and Economic Affairs, Central Bank Building (8th floor), P.O. Box 898, Colombo 1, Sri Lanka. PROJECT DESCRIPTION: The project is designed to support the Government's on-goin~ priority rehabilitation and development programs in agriculW ture and will finance imports of farm tractors, equipment, machinery and spares and provision of technical assistance for increasing food crop and sugar production on an early and sustained basis and supporting tree crop sector to maintain employment and quality of end products. PROCUREMENT: International competitive bidding (ICB) on IDA guidelines for new tractors and vehicles including spares, bearing in mind the need for standardization of the tractor fleet and, in particular, individual estate fleets; ICB on IDA guidelines for transport and equipment for Territorial Civil Engineer- ing Organization (TCEO), motor cycles for extension officers, and transport for all other government organizations; direct purchase from suppliers for spare parts for tractors, vehicles, Department of Machinery and Equipment (DME) owned equipment, coconut processing industry; normal trade channels for minor equipment valued less than $100,000. TECHNICAL ASSISTANCE~ Three specialists to assist DME and Sri Lanka Tractor Corporation (SLTC) in improvement of repair and maintenance facilities, local production of farm equipment, and planning for storage and import of spare parts; two experts to assist the Government in designing development plans for Lower Uva region; one specialist to assist the Government in execution of tree crop incentive study. ESTIMATED COMPLETION DATE: 1978 • . n ..