French Development Agency AFD strengthens its base here

The French Development Agency’s (Agence Française de Développement also known as AFD) Regional Directorate is strengthening its base in Sri Lanka in line with the commemoration of 75 years of diplomatic relations between Sri Lanka and France. It also marks the enduring partnership between AFD Group and its Sri Lankan partners, which began in 2005 when supporting the post-tsunami reconstruction.

AFD, which finances the public sector, NGOs, research and training, committed EUR 89 million to essential infrastructure impacted by the tsunami. AFD collaborated with key entities, such as the Ceylon Electricity Board (CEB), the National Water Supply and Drainage Board (NWSDB), and the Road Development Authority (RDA). It has also collaborated on projects co-financed with the Asian Development Bank (ADB).

In 2008, Proparco, which is the private sector financing arm of AFD Group, initiated its first partnership with a EUR 5 million credit line with LOLC. Expertise France, dedicated to providing technical assistance, designing and implementing projects that reinforce public policies over the long term, commenced its first project in Sri Lanka in 2023 with a EUR 5 million allocation from European Funds. Today, the entire AFD Group stands present and engaged in Sri Lanka.

The AFD Group’s portfolio now boasts over 30 projects, reflecting a commitment of EUR 708 million in loans, grants, and technical assistance dedicated to supporting Sri Lanka towards its sustainable development goals. The journey of AFD Group since 2005 has been captured in the form of a photo exhibition, curated to illustrate the various projects in which Sri Lanka and France have joined hands. It highlights the diversity of sectors and areas of intervention across the country and the strong relationships fostered through the years.

In his speech at the event marking the now complete presence of AFD Group in Sri Lanka, Ambassador of France to Sri Lanka and the Maldives, Jean-François Pactet said: “The establishment of diplomatic relations between Sri Lanka and France took place on 27 October 1948. Since early October of this year, the Embassy of France has launched a series of actions and events to mark the longevity of this strong relationship. Also for nearly 20 years, the French Development Agency has played a key role in consolidating relations between Sri Lanka and France. France is the 4th largest international public creditor in Sri Lanka with many development projects implemented by AFD and financed through concessional loans for the benefit of the Sri Lankan people. France is proud to have, on a bilateral basis, provided this support to Sri Lanka when it needed it.

The visit of President Ranil Wickremesinghe, to France, in June 2023, and by French President Emmanuel Macron, to Sri Lanka, in July 2023, illustrated the common interests of France and Sri Lanka and their common objectives, in particular those related to the agenda of the Sustainable Development Goals, such as the preservation of the planet and improving social equality.”

In his remarks, Head of AFD Group in Sri Lanka Yazid Bensaïd said: “We are proud to welcome Expertise France, a valuable addition made possible thanks to the support of the European Union Delegation in Sri Lanka. With Expertise France, AFD, and Proparco, France now provides a complete approach to sustainable development through AFD Group.

Looking ahead, our objective is that the presence of all AFD Group entities is an asset for Sri Lanka’s economic recovery and the preservation of its territory. We aim indeed to focus on sustainable management and natural resources development, the transition to a low-carbon economy, improving people’s access to essential services, and supporting the private sector’s transition to a greener and more sustainable recovery.”

Additional Director General to the Department of External Resources at the Ministry of Finance, Visakha Amarasekara, along with over 30 officials and representatives from the private sector, also attended the event and AFD Group photo exhibition.