At the Oslo conference in November 2003, The Netherlands Government pledged 1 billion Sri Lankan Rupees (9.9 million Euro) of general budget support to Sri Lanka. This amount corresponds to the bilateral debt service of Sri Lanka in 2002 and 2003. The Netherlands has effectuated this debt relief by wavering Sri Lanka's debt service for 2003 and by refunding the debt service that was already paid by the Sri Lankan government in 2002. Through this debt relief, a considerable amount has become effectively available in support of the Sri Lankan budget, with a view to assist the government in meeting its public expenses. The presentation of this debt relief at the Oslo conference was meant to encourage the Sri Lankan Government to contribute, through the State Budget, to various programs presented on that occasion.

This debt relief comes on top of the 1.1 billion Sri Lankan Rupees (10.6 million Euro) per year. The Netherlands grants to Sri Lankan programs in the field of environment and rehabilitation, and in the Plantation Welfare Trust.

Another 45 million Rupees (US 465,000) has recently been granted to the HALO trust Mine Clearance program in Sri Lanka. The program is funded until the end of 2003. This contribution is a follow up to the discussion between Prime Minister, Hon. Ranil Wickremesinghe and Dutch Development Co-operation Minister, H.E. Agnes van Aardenne, in September last year when they met in New York in the context of the United Nations General Assembly. The HALO program will seek to target priority minefields in the Jaffna peninsula. Clearing Schools, public buildings, domestic houses and agricultural land, using a combination of mechanical and manual mine clearance. The 40 Sri Lankan staff employed by HALO for this project will complete their training soon and will then deploy to start clearing live minefields.

Furthermore, Sri Lanka is eligible for the Dutch ORET programme, which is designed to help generate employment and boost trade and industry in developing countries. The ORET programme reduces the costs of eligible projects through the award of grants for the purchase of capital goods, services or works from The Netherlands. The ORET grant agreements concluded between the governments of Sri Lanka and The Netherlands in 2001 and 2002 support transactions in the field of shipping, construction and infrastructure, and represent a total grant value of 1,7 billion Sri Lankan Rupees (Euro 18,9 million). In 2003, on the basis of these existing commitments and implementation prospects, the Dutch government plans to release approximately 526 million Sri Lankan Rupees (Euro 4,9 million) Euro under the ORET grant scheme.

Finally, cultural co-operation between Sri Lanka and The Netherlands is actively taking place, mainly in the field of preservation and development of common cultural heritage. Total financial involvement of the Dutch government in this respect amounts to approximately 37 million Sri Lankan Rupees (Euro 350,000) on an annual basis. This brings the total amount of bilateral assistance (grants only) from The Netherlands' government to 2,7 billion Srilankan Rupees (approx. Euro 26 million) in 2003. The government of The Netherlands hopes to support the peace process with these grants and to deliver substantial peace dividend to the population in Sri Lanka.