In a significant collaboration, Sri Lanka and Australia have signed two subsidiary arrangements aimed at strengthening governance and expanding cooperation in market systems development. According to a media release from the Australian High Commission in Colombo, the agreements mark a commitment to mutual development objectives.
- Governance Strengthening Subsidiary Arrangement:
- A 10-year subsidiary arrangement has been inked, pledging an initial AUD 30 million (LKR 6.3 billion) over five years to enhance governance in Sri Lanka.
- The program focuses on supporting the Sri Lankan government, nonprofit institutions, and civil society to improve evidence-based policy and decision-making. It aims to deliver better services for communities and amplify the voice and agency of marginalized groups, particularly women.
- Key delivery partners include the World Bank, The Asia Foundation, and the International Foundation of Electoral Systems, with support for twinning arrangements between Australian and Sri Lankan institutions.
- This commitment builds on the foundation of a prior five-year arrangement valued at AUD 31 million (LKR 6.5 billion) over five years.
- Secretary of the Finance Ministry, Mahinda Siriwardana, highlighted the significance of improved governance for long-term economic growth and stability in alignment with the IMF Governance Diagnostic and program for Sri Lanka.
- Australian High Commissioner Paul Stephens emphasized the critical role of strong governance systems in supporting resilient and inclusive economic growth.
- Market Systems Development Subsidiary Arrangement:
- The second subsidiary arrangement spans five years, emphasizing ongoing development cooperation in market systems development.
- The focus lies on economic diversification, foreign exchange generation, and the reinforcement of livelihoods and women’s economic empowerment.
- Building on the previous five-year investment in the Market Development Facility (MDF) program, this new commitment includes an additional investment of AUD 12.1 million (2.55 billion LKR), with AUD 9.45 million (1.99 billion LKR) provided in the initial phase.
- Since 2015, the MDF program has played a pivotal role in catalyzing economic development by collaborating with the private sector and implementing innovative solutions in Sri Lanka’s tourism and agriculture sectors.
- The collaboration aims to support sustainable development, increase profits, and improve livelihoods. Australia, through MDF, looks forward to engaging with the private sector to foster partnerships that contribute to prosperity and inclusivity for a resilient recovery.
- Secretary to the Ministry of Finance, Mahinda Siriwardana, acknowledged the partnership’s role in supporting economic growth and development, particularly in key sectors such as tourism and agriculture.
These collaborative efforts underscore the commitment of both nations to fostering economic growth, inclusivity, and resilience in the face of emerging challenges.
