Sri Lanka Country Office 146, Reid Avenue Bambalapitiya Colombo 4 Tel: +94 11 2502743 Fax: +94 11 4512976

colombo@acted.org Headquarters 33, rue Godot de Mauroy 75009 Paris France Tel: +33 1 42653333 paris@acted.org www.acted.org

Sri Lanka Country Strategy Paper 2011 - 2013

Foreword by the ACTED Sri Lanka Country Director

alleviating potential sources of conflict resulting from socio-economic inequalities. In parallel, we will support community-driven development management as a way to ensure more democratic and participatory local development processes. Last but not least, we will focus on encouraging the protection and sustainable use of environmental resources, as these represent one of Sri Lankas most precious and crucial assets, as well as its most threatened due to the increasing impact of climate change. On behalf of ACTED, I would like to extend a warm thank you to our partners, donors and national and local level authorities for the support they provided to us over the past five years. We look forward to a continued good cooperation in the future.

As the 26-year civil war finally came to an end in 2009, newfound stability offers an incredible opportunity for Sri Lanka to harness its untapped development potential and build a strong foundation for long-term peace and prosperity across the island. With a brighter and more stable future on the horizon, a long-term country strategy for ACTED Sri Lanka is now fully warranted. Since the 2004 Tsunami, our presence mainly focused on responding to the succession of emergencies which shook the countrys Eastern and Northern provinces and support the recovery efforts of affected populations. While retaining the capacity to react to urgent needs as they emerge, in case of a natural disaster for instance, our strategy for the next three years will strive to stay in line with the countrys longterm potential, needs and opportunities. To achieve this, our actions will focus on promoting equitable economic development and pro-poor growth in vulnerable areas, to help reduce poverty while

Andr Krummacher

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1. About ACTED
ACTED (Agency for Technical Cooperation and Development) is a non-governmental organization founded in 1993 with Headquarters in Paris, France. Independent, private and not-for-profit, ACTED respects a strict political and religious impartiality and operates according to principles of nondiscrimination and transparency in 27 countries around the world.

Our Vision: To guarantee the link between Emergency, Rehabilitation and Development ACTEDs vision is to establish a link between emergency, rehabilitation and development. Once basic needs have been covered, the populations living conditions remain critical as our areas of intervention are among the poorest in the world. We guarantee the sustainability of our interventions carried out during crises, through remaining on the field after the emergency and involving the communities, ACTED engages in a long-term support with a continued presence in the field to break the poverty cycle and accompany the populations on their way to development. Our Experience ACTED strives to share experiences and expertise with other actors working in development cooperation, with whom we share common values. ACTED has joined Alliance2015 (www.alliance2015.org), a partnership of seven likeminded non-government organizations working in the field of development cooperation and for the Millennium Development Goals (CESVI from Italy, Concern Worldwide from Ireland, Welthungerhilfe from Germany, Hivos from the Netherlands, IBIS from Denmark, People in Need from the Czech Republic). ACTED is also member of Voice (www.ngovoice.org), the European network representing 85 European non-governmental organizations active in humanitarian aid worldwide, as well of CoordinationSud (www.coordinationsud.org), the French network for relief agencies.

Our Mission: Providing Adapted Responses ACTEDs vocation is to support vulnerable populations affected by wars, natural disasters and/or economic and social crises, and to accompany them in building a better future; thus contributing to the Millennium Development Goals. The programs implemented by ACTED in Africa, Asia, the Middle East, Latin America and the Caribbean, aim to address the needs of populations affected by wars, natural disasters and/or economic and social crises. Our interventions seek to cover the multiple aspects of humanitarian and development crises through a multidisciplinary approach which is both global and local, and adapted to each context. ACTED is committed to meeting the highest standards of accountability and strives to meet the needs of the most vulnerable populations by delivering the adequate humanitarian service in each situation. As a charity, we will intervene whenever and wherever needs arise, guaranteeing the compliance and relevance of our interventions and innovating whenever possible. ACTED is a member of HAP International which supports humanitarian accountability and quality management.

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2. Sri Lanka Country Profile and Outlook

Sri Lanka is an island country of 65,610 sq km located in the Indian Ocean off the southeastern cost of India. Its population is estimated to be approximately 20 Mill in 2010 with an annual population growth rate of 0.7%. Sri Lanka gained independence from the United Kingdom in 1948 after nearly 450 years of colonization by various western powers. Since independence national politics have been characterized by tensions between the Sinhalese majority and the Tamil minority. The Liberation Tigers of Tamil Eelam (LTTE) undertook military and terrorist operations in pursuit of an independent homeland in Northern and Eastern Sri Lanka for the Tamil minority from the early 1980s until their defeat in May 2009. The final stages of the war saw intense fighting resulting in the mass displacement of about 280,000 people living in the heavy conflict affected mainland area of the Northern Province (also called the Vanni) to Internally Displaced People (IDP) camps.
Map of Sri Lanka

With the end of the war, the government of Sri Lanka called for the redevelopment of the nation and there are many reconstruction opportunities in the North and East of the island. By the end of 2010, the authorities, together with the international community, had resettled approximately 330,000 persons to their areas of origin and only 20,000 IDPs were still in camps with the remaining in host families.1 The resettlement process is expected to be completed by mid-2011. However, people returning to the Vanni are facing dire living conditions in their war-ravaged home region: widespread destruction of infrastructure, a prevalent mine risk and a lack of resources and social services to meet basic needs in food, water, shelter, sanitation and education, all of which are not sufficiently mitigated by the limited aid which has so far trickled into the area. 1,000 km of Sri Lankas Eastern and Southern coast line was hit by the 2004 Tsunami which killed 35,000 people and displaced 450,000. The country needed about 2.2 billion USD to effectively
1

implement a recovery and reconstruction strategy which can be considered as successfully accomplished by now. Despite Sri Lankas almost three decades of civil war, the devastating 2004 Tsunami and the 2008 global financial crisis (which required the country to take an IMF loan), economic growth has experienced healthy and impressive rates of about 5.5% per annum for most of this centurys first decade. The GDP growth in 2010 even peaked at 7.5%. Sri Lankas Gross National Income (GNI) per capita is 2,013 USD (2008) and therefore the country is characterized as a lower-middle income country. Its life expectancy of 74.4 years and literacy rate of 91 percent are far higher than most of its South-Asian neighbors. However, the economic growth has been uneven and many provinces, especially the Eastern and Northern Province, are lagging behind. High growth rate is mainly in the Western province and accounts for a 50% GDP contribution reflecting uneven distribution of employment and income.

Source: UNHCR

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Selected Human Development Index Indicators Human Development Index (HDI) Value GDP Per Capita, PPP (in US$) GNI Per Capita (in US$) Live Expectancy at Birth Adult Literacy Rate % Maternal Mortality Rate per 100,000 Live Births % of Population living below Poverty Line of 1.25 US$ Average Annual Population Growth % Expenditure on Health Per Capita, PPP (in US$)
Source: Human Development Report 2010

Sri Lanka 0.658 (91) 4,886 2,013 74.4 90.6 58 14.0 0.7 179

South Asia 0.516 3,417 954 65.1 62.4 454 N/A 1.4 123

World 0.624 10,631 664 69.3 N/A 273 N/A 1.1 869

The outlook for Sri Lanka in 2011 2015 is considered by many as positive as the country will profit from a peace dividend following the end of the civil war. GDP growth between 2011 and 2015 is expected to average 6.6% a year. The agricultural sector will be supported by increased cultivation in the formerly conflict-affected Northern and Eastern Provinces. The recovery in consumer and business confidence is also expected to stimulate economic activity while private consumption growth is set to become the main driver of economic expansion, fuelled by rising incomes - notably among agricultural workers - and remittances from expatriate Sri Lankans.

Four pillars are thought to support investment: large scale reconstruction efforts in the North and East; public investment in infrastructure which was long neglected during the civil war; business investment, as companies seek to capture market share amid the economic growth and rising real-estate investment.2 Given this positive outlook, Sri Lanka however needs to bridge the gap between the regions and facilitate Pro-Poor Growth (PPG) to eradicate poverty, especially among the rural population outside the Western Province. ACTEDs 2011 2013 Sri Lanka Country Strategy is geared towards this need.

Sri Lanka's Progress on Achieving the Millenium Development Goals (MDGs) Millennium Development Goals Target To halve the number of people who live on less than $1 a day To halve the proportion of people suffering from hunger Ensure that by 2015, children everywhere, girls and boys alike, will be able to complete a full primary schooling Eliminate gender disparity in primary and secondary education and in all levels of education no later than 2015 Reduce by two-thirds, the under-five mortality rate Reduce by three quarters between 1990 and 2015 the maternal mortality rate Have halted by 2015, and begun to reverse, the spread of HIV/AIDS Have halted by 2015 and begun to reverse, the incidence of malaria and other major diseases

Progress Not on track Not on track On track Partly on track On track On track On track Partly on track

Integrate the principles of sustainable development into country policies and programs and Not on track reverse the loss of environmental resources Halve by 2015, the proportion of people without sustainable access to safe drinking water and On track basic sanitation.
Source: National Council for Economic Development

Source: Economist Intelligence Unit, Nov. 2010

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3. ACTED in Sri Lanka

3.1. A Short History of ACTED in Sri Lanka
ACTED Sri Lanka launched its operations in January 2005, in the immediate aftermath of the December 2004 Tsunami. Interventions in 2005 and early 2006 were focused on providing immediate disaster relief followed by rehabilitation activities to Tsunamiaffected populations in the Eastern Province. However, the massive internal displacement which resulted from the resumption of the conflict between the LTTE and the Sri Lankan government in the East in August 2006 required ACTED to adapt its strategy to the changing context and needs of the population. ACTED therefore took a lead role in implementing emergency water, sanitation and hygiene interventions for 16,000 IDPs, alongside its Tsunamirelated rehabilitation activities.
Water provision in IDP Camps

However, while the situation calmed down in the East and interventions were slowly shifting towards longer-term development, the violence spread to the North in 2008, causing the displacement of over 280,000 people and prompting ACTED to expand its operations and address the critical basic needs of IDPs in camps. The scope of ACTEDs operations in 2009 therefore spanned both the East through projects geared towards economic development, food security and civil society strengthening, and the North with a focus on emergency relief through water, sanitation and hygiene promotion activities. With the end of the conflict in May 2009 and the fast-moving return process under way, ACTED adapted its strategy once more in 2010 by covering short-term relief and rehabilitation interventions for returnees in the North combined with longerterm development activities in the East. In the North, activities focused largely on ensuring livelihood and food security through Cash-for-Work, micro-enterprise development, distribution of boats and fishing gear and shelter provision, while building the foundation for long-term sustainable recovery. This included the rehabilitation and construction of productive infrastructure. ACTEDs 2010 activities in the North amounted to 210 Mill. LKR - 8.5% of the overall total amount spent by the NGO sector on the resettlement process. Cash-based rehabilitation of
productive assets

As the government took control of the East in mid2007 and civilians returned to their homes, ACTED once more shifted its focus and began implementing post-conflict reconstruction projects along with the last major Tsunami-related reconstruction activities, both of which focused on the provision of livelihood support and rehabilitation of critical infrastructure.

Livelihood Support in Batticaloa District

In the East, ACTEDs longer-term development activities aimed at strengthening Civil Society Organizations (CSOs) in representing public needs and engaging in local development planning and management while monitoring service delivery of state actors thus contributing to improved local governance in the area. ACTED also supported community-led socio-economic development through a holistic, multi-pronged approach including infrastructure, livelihood, psychosocial and conflict mitigation components, with special attention paid to persons with disabilities.

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3.2. ACTEDs Presence in Sri Lanka since 2010

3.4. ACTEDs Partners in 2010

3.5. Financial Resources

ACTED Sri Lanka Budget Evolution 2007 - 2010 (in EUR)
3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 2007 2008 2009 2010

Total Budget ACTED Direct Implementation by ACTED Implementation through Partners

3.3. ACTEDs Donors in 2010

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4. ACTED Sri Lanka Strategy 2011 2013

4.1. Mission Statement
ACTED aims to contribute to the eradication of poverty in Sri Lanka by facilitating equitable propoor economic growth and decentralized development management while promoting sustainable environmental resource use.

4.2. Strategic Sectors of Intervention

ACTEDs 2011-2013 strategy in Sri Lanka is focused on four pillars: Pillar 1: Agricultural Livelihoods and Economic Development; Pillar 2: Local Governance; Pillar 3: Environment and Natural Resource Management; Pillar 4: Cross-Cutting and Other Aspects.

Decades of blockades and access restrictions in former conflict-affected areas, combined with poor roads, limited storage facilities and high transportation costs have prevented the formation of extensive local, national and regional market linkages, trapping the farming population in a vicious cycle of subsistence agriculture with few export-focused cash crops and limited capacity for value addition. In the North in particular, the realization of economies of scale through a system of common marketing or collective transportation is problematic due to the widespread destruction of community infrastructure, making such initiatives more difficult to organize. In addition, the persistent state of isolation of the area from the rest of the country has prevented farmers from accessing better quality inputs (including better fertilizers and seeds) as well as improved technology and innovative cultivation methods. Income diversification is equally difficult given the lack of opportunities for vocational training and business expansion, compounded by limited access to credit, especially in the North. Agricultural households that also operate a small business experience a 50% reduction in their poverty rate, according to the World Bank4, reflecting the dire need to support small and medium business creation and market linkages in former conflict areas. Increasing productivity and diversifying income is all the more important as food remains the main household expenditure, with the majority of returned households in the North still spending 65% of their income on food as of December 20105, more than 18 months after the end of the conflict. Economic growth in the North and East has therefore significantly lagged behind the rest of the country as it moves towards achieving middleincome status and opens up to global markets and foreign investment. The biggest challenge is therefore to empower populations excluded from this process to move beyond subsistence agriculture, establish sustainable livelihoods with substantial potential for growth, and profit from the wealth of economic opportunities which have accrued to Sri Lanka since the war ended.
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4.2.1. Pillar 1: Agricultural Livelihoods and Economic Development Sector Analysis

Over 70% of the rural population in Sri Lanka depends on agriculture for their livelihoods, a figure in stark contrast with the relatively meager contribution of the agricultural sector to national GDP, valued at 11.7% in 20103. Low GDP value reflects the fact that 90% of the population living under the poverty rate is part of the rural agricultural economy, illustrating the need for rapidly increasing agricultural productivity to reduce poverty. Most affected are the former conflictaffected regions in the North and East, where over 60% of the population relies on cultivation, livestock rearing or fishing for food and income security. Almost three decades of conflict took a heavy toll on critical infrastructure, land, livelihood assets and access to services, leaving the East and North isolated from national and regional markets, distribution channels and development opportunities. Smallholder agriculture remains predominant with an average of 60% of households owning less than a hectare of land.
3

Source: World Food Programme

Source: World Bank Sri Lanka Country Assistance Strategy 2011-2013 5 Source: World Food Programme

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ACTED Response Strategy

Sector Objective ACTED Sri Lanka recognises that pro-poor economic growth involves promoting competitive agriculturally focused interventions along with labour-intensive industrialisation that encourages adding value to local produce, promotes trade links and encourages a business-friendly environment for the poor. ACTED Sri Lanka considers agriculture as a key sector due to a number of factors including: a) the number of people making a living from it as well as its overall contribution to the GDP; b) the importance of supplying agricultural products to urban areas; c) its potential for generating savings to invest in non-farm sectors; and d) its contribution to the overall food security and nutrition of the Sri Lankan population. In addition, agriculture and natural resources will have an increasingly important role to play in the context of climate change and rising food prices. Far-reaching changes in Sri Lankas domestic market but also in global markets are creating opportunities for farmers and agribusiness entrepreneurs. The demand for high-value primary and processed products is quickly increasing, driven by rising incomes, faster urbanisation, liberalised trade, foreign investment and advancing technology. But the new markets demand quality, timely deliveries and economies of scale, posing special challenges for smallholders. Activities 1. Increasing agricultural productivity of smallholder farmers through the adoption of effective, locally appropriate and environmentally sustainable agricultural technologies Introduction of improved cropping systems, including promotion of System of Rice Intensification (SRI), Rice Good Agricultural Practice (Rice GAP), Integrated Pest Management (IPM) and Integrated Plant Nutrition System (IPNS) in paddy cultivation. This component also includes crop diversification, the promotion of organic farming to exploit niche markets and soil fertility management. It will be achieved

through facilitating sustainable linkages between farmer organizations and national institutions of technology generation and dissemination. Crop yield competitions which create a healthy, competitive spirit among farmers and develop motivation for the adoption of new technologies which are essential for increasing the productivity of crops. Also, it encourages farmers participation in extension programs. Water resource management with a focus on local solutions to seasonal water shortages and the promotion of water saving technology such as drip irrigation and rain water harvesting systems. This component also includes the rehabilitation of existing agricultural water facilities.

A farmer showing his paddy

2. Improving market linkages resulting in higher and more regular incomes for farmers Building the capacity of farmer organizations to take advantage of market opportunities (promotion of pooling systems and creation of economies of scale, facilitation of buy-back arrangements, link with private sector, agrimarketing information system). Rehabilitation and construction of storage facilities. Value addition of agriculture based products. 3. Small and medium enterprise (SME) development Transformation of mainly CBO or cooperativebased production and value addition into privately and professionally run small and medium sized businesses which create formal

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employment opportunities enabling the poorest to access work. Facilitate business registration. Provision of small-scale start-up and/or expansion capital. Developing business, managerial, accounting and technical skills.

Municipal and Urban Councils (MC/UC) and the Pradeshiya Sabhas at the local level. However, in the Northern and Eastern Provinces, decades of conflict hampered if not stopped the local government in playing its assigned roles and responsibilities in delivery of development and administrative services, yet the administration was largely in place during the conflict and maintains a high degree of institutional capacity. In addition, the conflict has weakened links between state and non-state actors and eroded populations trust in these sub-units of governance. With the end of the war, the civil administration began to re-establish itself, in order to oversee the on-the-ground planning, delivery, coordination and monitoring of the return effort. There is now need to ensure increased and more predictable access to key government services with a special attention to functionality of service, delivery timelines, transparency and accountability, and attention to the needs of the most vulnerable which will generate a peace dividend benefitting the people of the Northern and Eastern Province.6 In addition, the planning processes of the local governments are currently fragmented and despite the formal existence of a participatory process through the GN function, there is very limited involvement of and accountability towards the population when preparing local plans and budgets. As such, policies and programs are often not relevant, representative and inclusive and therefore may not address the real issues faced by local communities and their most vulnerable members.7 Sri Lanka has a long history of village-level Community-Based Organizations (CBOs) formed to identify and address shared problems. These groups have demonstrated potential to drive a grassroots development process, improve rural access to services and markets, and contribute to a more equitable, democratic and peaceful society, but they continue to face a number of constraints: The conflict has left the majority of the registered CBOs either inactive, weak and ineffective, or politicized. In addition, most established CBOs face institutional and operational challenges to follow their original
6

Grocery store owner supported by ACTED

4. Facilitating access to micro-credit Internal: Promotion of minimal risk, savingsbased approaches to financial resource mobilization. External: Creating linkages with Microfinance Institutions (MFIs) and/or banks.

4.2.2. Pillar 2: Local Governance Sector Analysis

The local government system of Sri Lanka has a very long history. Village level governance was a main feature of Sri Lankas system of governance and dates back to the Sinhalese kingdoms in the fourth century B.C. Todays system of local governance is based on the 13th constitutional amendment of 1987 which stipulates a dichotomous service delivery system whereby the responsibility of service delivery is shared between a) line ministries and agencies of the central government, through their local administration at the district (District Secretariats) and local governments at the divisional level (Divisional Secretary Divisions), and b) the devolved government structure, comprising elected local governments at the provincial and local level: the Provincial Councils (PCs), the

Source: Joint Plan for Assistance for the Northern Province 2011. 7 Source: UNDP Local Governance Project

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mandate, as well as minimal ability to access financial resources, preventing them from becoming powerful change actors in their communities. Consequently, there has been a marked decrease in lobbying at the government level for development initiatives, and corresponding failure to hold government accountable to its actions. Civil Society Organizations (CSOs) and especially CBOs are not well connected to local authorities and do not actively demand improvements to government service provision. The CBO leaders are often not familiar with the CBO coordination processes and with working with the state agents to meet their needs. In addition, CBOs continue acting independently of each other and fail to pool their interests in order to amplify their vis--vis the government. CBO coordination bodies with the mandate to organize collective CBO interests are weak, resource poor and unaware of relevant procedures for incorporating CBO needs into government plans. Therefore, there is an urgent need to support local civil society organizations and link them effectively to the local administration to ensure their voices are heard.

ACTED Response Strategy

Sector Objective ACTED Sri Lanka believes that decentralized development management and the promotion of good local governance produces producing a favorable environment to effectively address the various manifestations of rural poverty. Therefore, ACTED Sri Lanka aims at strengthening civil society in representing public needs and engaging in local development management while monitoring service delivery of state actors. Activities 1. Developing the capacity of CBOs to act as accountable and transparent service providers that complement government functions and to represent their communities needs vis--vis state actors Strengthening the institutional and operational capacity of CBOs in the following aspects: a) capacity to plan and implement community action, b) financial management, c) administrative management, d)

participation and group dynamics, and e) external linkages. Enhancing CBO financial self-sustainability by a) promoting minimal risk, savings-based approaches to financial resource mobilization (such as internal savings and loan associations), b) supporting CBO-based small and medium enterprise development; c) facilitating access to credit. Supporting community-led planning and development through the creation of Village Development Plans (VDPs). The plans identify constraints and root problems faced by the communities the CBOs represent and outline a clear action plan to address these issues using resources from the community itself and from state and non-state actors. To a limited scale, and as an incentive for kick starting the VDP implementation process, small grants of between $5,000 and $10,000 may be allocated to CBOs through a competitive process. Enhancing CBO understanding of financial resources with a particular focus on assisting CBOs to access financial resources both public and private in order to implement a greater number of the development activities identified by their representative communities.

CBO members conducting a SWOT analysis

2. Promoting networking among civil society groups and develop the capacity of CBO networks and coordination bodies to pool CBO interests in order to amplify their voice and influence vis--vis the local government

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3. Promoting linkages between state and non-state actors to improve the quality of service delivery and enhance accountability Strengthening the ability of local government units to interact with civil society. On a limited scale, this includes the provision of necessary equipment. Promoting the inclusion of CBO-created VDPs into local level government planning and management (Divisional and District Development Plans) in order to strengthen the relevance of grassroots and district level public policies and ensure that their implementation fits the needs of the local communities. In addition, specific assistance to strengthen planning and coordination functions of the District and Divisional Secretariats, especially in the area of information management, GIS mapping and monitoring will be provided. Publishing Service Providers Handbooks. Local government institutions and private sector actors have substantial pools of expertise and deliver a number of important services. Through CBO networks, Service Providers Handbook will be created and widely distributed so as to increase community awareness of available services and increase the legitimacy of the networks as representatives of CBOs.

1940s, the island had a 45% forest cover but by 2010 this had fallen to approximately 29% according to FAO. Between 1990 and 2010, Sri Lanka lost 20.9% of its forest cover (around 490,000 ha), at an average of 24,500 ha or 1.04% per year. Sri Lanka has had one of the highest deforestation rates of primary forests in the world. This has a considerable impact on livelihoods and the economy as deforestation contributes to landslides, flooding, soil loss, and productivity losses.8 The soils suffer from varying degrees of erosion and degradation mainly due to rapid rates of deforestation, poor irrigation and drainage practice, inadequate soil conservation, chena cultivation and vegetable cultivation in steep slopes and overgrazing. It has been estimated that about 46% of the land in the country has been affected by soil erosion. The coastal environment has been threatened due to the erosion of coastal areas (about 1 meter per year) due to river damming, sand mining, collection of coral rubble and removal of costal vegetation. Salinisation of paddy land has become a trend due to the reduction of flood buffering capacity of mangroves, lagoons and estuaries. Coral reefs have been degraded as a result of human activities (including tourism) and increased sea temperatures. Proper management of solid and liquid waste is critical issue, particularly in urban areas around industrial sites as well as former IDP camp and newly-resettled areas after the conflict. However, the present method of solid waste disposal is mainly open discarding in low-lying lands. Lack of sites for use for waste disposal has been a major impediment in resolving the issue. The impact of this practice is pollution of wetland habitats, pollution of surface and ground water and creation of environments facilitating insect/mosquito breeding. Although well endowed with water resources, waters are getting increasingly polluted especially due to unsustainable agricultural and fishing practices with extensive use of agro-chemical and fertilizers, urbanization and industrialization.9
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4.2.3. Pillar 3: Environment and Natural Resource Management Sector Analysis

Sri Lanka is endowed with many natural resources whose management is critical to the rural poors ability to improve livelihoods and to exit from poverty. However, the countrys natural resource base has been threatened by unsustainable agricultural and fishing activities, population pressure, rising industrial demand, the impact of years of conflict as well as increasing dependence of rural communities on natural resources. Intensification of agricultural production has contributed to serious degradation of land and coastal resources. Deforestation is one of the most serious environmental issues in Sri Lanka. In the

Source: FAO Global Forest Resource Assessment (2010) and FAO State of the Worlds Forests (2009) 9 Source: Ministry of Environment and Natural Resources

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ACTED Response Strategy

Sector Objective The majority of Sri Lankas most vulnerable people live in marginalised rural areas, depending on natural resources and the environment for their livelihoods. Natural resources also often provide a means of survival during emergencies. ACTED believes that sustainable and efficient environmental resource management and preservation are crucial elements of poverty alleviation in rural and coastal areas and should therefore be integrated into any interventions aimed at reducing socio-economic vulnerability ACTEDs objective is to increase equitable access to and sustainably control of natural resources through community management. This reflects both a conservation as well as a rural development strategy. There are strong links between components in this sector and components in the agricultural livelihoods and economic development pillar. Also, some of the activities are closely linked to Disaster Risk Reduction (DRR) as poor environmental resource management can intensify the impact of natural disasters, contributing to entrenched poverty. Activities 1. Improve liquid and solid waste management in rural areas by emphasizing the economic value of waste thereby facilitating the improvement of sanitation and livelihoods without contaminating land and water resources Conversion of the biodegradable component of the households garbage to compost so that it could be utilized as a garden soil fertilizer. Promotion of ECOSAN latrines as an alternative approach for healthy and economically sustainable sanitation. By separating solid and liquid human waste, this latrine offers a safe sanitation solution that prevents disease and promotes health by successfully and hygienically removing pathogen-rich excreta from the immediate environment. It is environmentally sound as it does not contaminate groundwater and also recovers and recycles the nutrients from the

excreta. This therefore creates a valuable resource rather than a mere waste product, which can reduce the need for artificial fertilizers in agriculture. 2. Community-based rehabilitation and restoration of degraded land areas to improve income and reduce risks of disaster such as flooding and soil erosion Tree planting, especially multi-purpose tree species which promote agro-forestry such as Palmyra, coconut and fruit trees. These trees also have great potential for value-added productive activities, thus contributing to the economic development of the area. 3. Promotion of Green Entrepreneurship among small and medium enterprises (SMEs) Cleaner production by introducing technical innovations, where possible with indigenous or locally produced technology and improved resource efficiency (materials, water, energy). Greening the supply chain by inducing environmental practices as part of the market push-pull mechanism in the whole chain of production. Consumer awareness raising and marketing of eco-products.

4.2.4. Pillar 4: Cross-Cutting and Other Aspects

Emergency Response ACTED will maintain its capacity to provide timely and reliable humanitarian assistance to victims of natural and/or human-made disasters in Sri Lanka. During its presence in Sri Lanka, and the disasters ACTED has responded to from the Tsunami to the IDP crisis in the East and North ACTED Sri Lanka has particular in-house experience in the following activities: Water, sanitation and hygiene promotion; Improving short-term access to food and nonfood relief items (free distributions); Rapid shelter provision; Protecting and restoring livelihood assets (provision of tools, seeds, fishing gear, etc); Building of community infrastructure and assets through cash-based programmes.

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Woman Empowerment and Gender Equality ACTED Sri Lanka systematically considers gender equality in all its interventions. It is not only a question of rights, but when women are given opportunities, the benefits are large for their families, their communities and ultimately for national development efforts. Womens economic empowerment puts poverty reduction on the fast track and supports progress towards achieving the Millennium Development Goals (MDGs).

Advocacy A key to pro poor growth and poverty reduction is the analysis of how the external environment affects the livelihood options of vulnerable communities. ACTED strives to explore the impact of these external factors for local and national level advocacy work.

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4. ACTED Sri Lanka Principles

Ownership All of ACTEDs intervention are developed with the active participation of all stakeholders and especially those whom the interventions aim to benefit. ACTED always aims to ensure that vulnerable populations are central to and own the process and benefits that derives from our activities. Sustainability ACTEDs intervention aim to be sustainable. We are striving to help vulnerable communities meet their needs independently and sustainably through local involvement in, and ownership of our interventions, while preserving environmental resources so that these needs can be met not only in the present, but also for generations to come. Empowerment ACTED focuses on mobilizing the self-help efforts of vulnerable communities, rather than providing free social welfare. We are supporting vulnerable communities to develop their own capacities and capabilities to address root factors of vulnerability affecting them. Equality When necessary, ACTEDs intervention may challenge social structures, norms and relations if they impede livelihood security and pro-poor growth, particularly for women and extremely vulnerable individuals such as Female-Headed Households and Persons with Disability. Appropriateness ACTEDs interventions of building stocks of capital aim to be appropriate, practical and achievable without exposing our primary stakeholders to excessive new risks. Working in Partnerships ACTED works with a wide array of partners. ACTED closely coordinates and collaborates with line ministries and national and local authorities. Whenever possible and where an added value is realized, ACTED implements with and through local partners. This helps us ensure that our programs meet local needs and are sustainable due to local involvement in and ownership of the interventions. The partners benefit from technical assistance, capacity building, administrative structures and resources provided by ACTED. Micro-to-Macro Synergies ACTEDs interventions, often implemented at microlevel, aim, where appropriate, at informing policy and contribute to local and national policies where they exist. Influencing macro-level policy can have an impact on the lives of the most vulnerable.

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www.acted.org