Connecting Regional Economies (CORE)

Building on earlier and ongoing Mission economic growth programs, the COnnecting Regional Economies (CORE) seeks to address the disparity in economic development between the North and East and the rest of Sri Lanka. This disparity is a major driver of Sri Lanka?s ongoing ethnic conflict. CORE can help establishconditions conducive to a political solution to the conflict by fostering economic growth that addresses regional and socio-cultural inequities.

CORE will provide technical assistance and training to accomplish the objectives of the program. In addition, the CORE program will include a flexible small grants-under-contracts program of up to 10% of the contract award to support small-scale infrastructure, business development services, support to associations, chambers of commerce and others to promote peace-building economic growth activities.

Small grants will be limited to no more than the equivalent of US$100,000 per grant in order to ensure that a significant number of grant activities are funded by a variety of groups working in the target conflict affected and ?strategic areas.

 

USAID will provide the contractor the equivalent of US$5 million in Sri Lankan Rupees from a PL 480 Title III Agreement local currency account held jointly with the Government of Sri Lanka to augment the U.S. dollar obligated in the contract. These local currency funds are within the U.S. Government?s maximum estimated budget stated in Section L. It is not additional to the stated budget amount (funding to be made available). The local currency funds must be utilized by the contractor for small grants, microcredit, local training and other closely related costs thereto. It will enhance the contractor?s ability to improve food security and agricultural development, promote free and open markets, support microenterprise development, and provide small grants for infrastructure activities in rural areas.

CORE will build upon the achievements of previous and ongoing USAID economic growth programs, while bringing to the new program a strong emphasis on the more equitable distribution of benefits. The Mission activities to date offer a number of examples of interventions with impacts that CORE may want to develop further to the benefit of populations in conflict-affected and ?strategic areas.