AVOIDING FUTURE ARMED CONFLICT DEPENDS ON QUALITY OF LIFE
New loans immediately allow marginalized to share in post-war prosperity
Entrepreneurs, the backbone of our economy, are struggling for capital and credit in former battleground cities like Jaffna. Here, quality of life is uneven and people are still facing economic hardship. People want to share in the country's new prosperity. They have suffered for decades; driving into the city, you still see the tops of Palmyra trees blown off. Some people are still angry about the way the war ended; others want to move forward. With support from AusAID, we have teamed with the district chamber of commerce here, as well as in hard-hit Mannar, Trincomalee, and Batticaloa, and with regional banks, to facilitate more lending to small businesses. Banks are reluctant to lend. They are still risk averse so the Foundation has established a tripartite relationship with regional chambers of commerce and banks. Chambers conduct due diligence, work with small enterprises to develop business plans, and certify to the banks that the businesses are loan-worthy. The bank then provides a loan from a revolving capital fund that the Foundation has established with AusAID's backing. Later, after the bank sees that the funds are well spent and the initial loan is paid back, it will provide a larger follow-up loan, out of their own capital. That's what the banks have promised. Our project is meant to give them confidence in small enterprises as being loan-worthy. We are paying special attention to vulnerable groups, like women entrepreneurs, many of whom are war widows and must now support their children. Our position is that it will help heal social division if growth is balanced and broad, reaching all.
— A. SUBAKARAN
Senior Program Officer, Local Governance, Colombo
A tested program makes justice more accessible in the North and East
Asia Foundation support extends the community mediation boards
Restoring workable avenues for citizens to resolve personal conflicts and seek redress is badly needed in the Northern and Eastern Provinces where the justice system was impaired as a result of the armed conflict. Disputes between individuals, if not addressed and effectively resolved, can simmer and escalate into wider conflict that further divides communities.
With assistance from the Foundation, Sri Lanka's Ministry of Justice extended its community mediation boards program for the first time to the North and re-activated boards in the East where the war had interrupted this important service. Sri Lanka's mediation boards were initiated in 1990 as an alternative form of dispute resolution, providing accessible, timely and affordable justice by settling disputes between individuals, families, and small groups. However, boards had never been established in some areas of the North and many boards had become inactive in the East due to the war. Today, 13 boards are active in Jaffna District and 39 boards in Trincomalee, Batticaloa, and Ampara Districts with over 600 mediators trained on interest-based mediation to serve communities in these areas. Mediators are drawn from their communities and serve voluntarily. Both parties to a dispute have to agree on the settlement before a case is considered resolved. The Foundation is currently supporting the Ministry of Justice to increase the number of women mediators and establish new boards in Vavuniya, Mannar, Kilinochchi and Mulaitivu Districts.
Read an overview of the Sri Lanka Community Mediation Boards project.
