Sri Lanka is continuing to recover from the 2004 tsunami that killed more than 35,000 people and displaced about 1 million, but the military conflict between the government troops and the Tamil Tiger rebels is slowing down the pace of reconstruction.

Two years after the tsunami, with the support of about 2.9 billion U.S. dollars pledged by the international community, the government said it has succeeded in resettling the majority of the displaced people and reviving most local industries hit by the tidal waves.

Shanthi Fernando, Chief Executive Officer of the Reconstruction and Development Agency, set up to coordinate the rebuilding process, said 56 percent of the houses planned for tsunami displaced families have been completed while housing for another 42 percent was in progress.

"The total housing requirement after the tsunami was 114,069 units. Of this, we have now completed 63,469 houses. Another 47, 859 are in progress," she said.

Fernando said she was also satisfied with the recovery in the livelihood sector as most industries including fisheries, agriculture and tourism recording a recovery rate of over 80 percent.

The fisheries industry was one of the sectors that was hardest hit by the tsunami with 75 percent of the fishing fleet being lost. Of the 150,000 people who lost their livelihood, about 50 percent were employed in the fisheries sector.

"We have been able to provide new boats to 95 percent of people whose fishing boats were completely destroyed in the tsunami while almost all the boats which were partially damaged have been repaired," said Fernando.

Figures from the Fisheries and Aquatic Resources ministry show that during the first nine months of 2006, Sri Lanka produced 172, 460 tons of fish, 74 percent higher than the same period of last year.

Fernando said 84 percent of the agricultural land including 75 percent of paddy lands which were affected by the tsunami are back in cultivation now.

During the tsunami, 84 hotels or one-third of the total found along the southern and eastern coastal belts suffered some degree of damage.

Fernando said 90 percent of the hotels has been fully reconstructed, adding that only seven hotels damaged by the waves remain to be renovated at present.

According to the Sri Lanka Tourist Board (SLTB), the country managed to attract 520,378 tourists for the first 11 months of 2006, representing an increase of 4.5 percent than the same period of 2005. It was also 4 percent higher than the first 11 months of 2004.

Sri Lanka welcomed 549,308 visitors in 2005 and the board is hoping to equal the score this year.

However, Fernando said the rebuilding process of the north and east was seriously affected by the ongoing military conflict between the government troops and the Liberation Tigers of Tamil Eelam (LTTE).

The government said more than 3,500 people have been killed since December 2005 with the escalating of military conflict in the north and east.

A report from the United Nations Office of the Special Envoy for Tsunami Recovery also pointed out the relatively slow pace of recovery in the north and east.

"Affected communities in the east and particularly, the north have experienced a slower pace of progress than those in the south and west of the country," said the report.

"This pattern is, again, partially related to practical constraints, many arising from the more difficult conflict context constraining delivery in the north and east, while stronger infrastructure and private sector support has favored faster delivery in the south," the report added.

According to Fernando, in the Southern Province 98 percent houses have been completed but in the war-torn Eastern Province and Northern Province, only 45 percent and 29 percent have been completed, respectively.

"Construction materials such as iron and cement can be used for other purposes, so the Defense Ministry would not give permission to go to conflict areas to build houses," explained Fernando.

The situation is nearly the same in the recovering of livelihood in the affected areas.

In the fishing sector, nearly 100 percent productivity has been recovered in the south but the north and east lag far behind, said Fernando.

"The construction of houses can be completed in about six months from now, but I don't know when can we finish the rebuilding process in the north and east," Fernando said.

The worsening security situation is also preventing tourists from visiting this island famous for its sunshine, beach, wildlife and culture.

"Usually resort hotels would be doing at least 80 percent but now they are struggling to do 20 percent even after giving special offers," said Hiran Cooray, the president of the Tourist Hoteliers Association of Sri Lanka.

Britain, Germany, France, Italy and New Zealand, some of the major countries that generate the majority of high spending tourists, have issued travel advisories against their nationals from visiting Sri Lanka.

Sri Lanka's hotel industry has been estimated to lose 120 million dollars this year due to the situation.

The island country's tourist arrivals in November slumped 22.4 percent to 37,591 from the same month of 2005. In September and October, the country also recorded lower tourist arrivals than that of 2005.

Industry sources said summer bookings for 2007 were also very poor as bulk of the prospective bookings have gone to other destinations.

Some hotels and resorts are unable to meet loan repayments and hoteliers may even be forced to lay off staff to mitigate some of their losses.

Source: Xinhua