France committed helping Sri Lanka return to sustainable financial path – Ambassador

Sri Lanka today is emerging from several crises which have challenged its modern history. The economic crisis, Ditwah and international challenges in the Strait of Hormuz. On all these issues, France has been alongside the Government of Sri Lanka, and stay, remain committed to the Government of Sri Lanka, Rémi Lambert,  Ambassador of France to Sri Lanka told the AFD Group 20th Anniversary Celebrations held in Sri Lanka.

Lambert said during Ditwah with the European Coordination Mechanism, France participated in the response in terms of assistance.  In the Middle East, France is working actively diplomatically to build a coalition of good willing countries to restore safe passage in the way conditions are met.

And during the 2022 debt crisis, France co-chaired the official creditors committee for Sri Lanka alongside India and Japan, and worked actively to build a coalition and to prepare the roadmap of the IMF. This role reflects France’s commitment to constructive multilateral cooperation and  to help Sri Lanka return to a sustainable financial path and the Agence Française de Développement (AFD) is willing to be part of this broad effort. Meanwhile, AFD Group marks 20 years of partnership in Sri Lanka, it reaffirms its long-term commitment to supporting the country’s sustainable, inclusive and resilient development Since its first intervention following the 2005 tsunami, AFD has mobilised financing and expertise across key sectors including water and sanitation, renewable energy, urban  development, education, climate action and food systems, Over the past two decades, AFD-supported projects have connected 80,000 people to safe drinking water, improved road access for 200,000 people, strengthened wastewater and sanitation planning, and supported Sri Lanka’s transition towards a greener economy.

Sri Lanka has enormous potential, a highly educated population, rich biodiversity and a strategic position in the Indian Ocean. Despite recent economic challenges, AFD Group remains confident in the country’s capacity to build a more resilient and sustainable future. AFD has provided €74 million in financing to support renewable energy generation and modernization, helping avoid an estimated 480,000 tonnes of CO emissions while contributing to the country’s objective of generating 70% of its electricity from renewable sources by 2030.

The AFD Group’s engagement extends beyond sovereign financing. Through Proparco, its private-sector arm, the Group has supported Sri Lankan businesses and financial institutions since 2008, promoting access to finance for SMEs, agribusinesses, microfinance and green investments. Proparco-backed investments have also helped strengthen sustainable local value chains, including in the agri-food sector. Expertise France, the Group’s technical cooperation agency, works alongside Sri Lankan institutions to support public policy reforms, green finance, circular economy initiatives, maritime safety.

Through the EU-funded Green Recovery Facility and other programmes, it helps translate sustainability ambitions into practical solutions and economic opportunities. Looking ahead, AFD Group aims to further deepen its partnership with Sri Lanka through the establishment of a permanent AFD presence in the country and the signature of a Host Country Agreement between the Governments of France and Sri Lanka. This agreement would provide a formal framework for AFD’s long-term operations, facilitate closer cooperation with national stakeholders, and reinforce the Group’s ability to mobilise financing, expertise and partnerships in support of Sri Lanka’s development priorities.

Source: Daily News