Saturday, March 5 2005 12:37 Hrs (IST) - World Time -

Washington: The International Monetary Fund (IMF) has approved about $ 157.5 million in emergency assistance for Sri Lanka.

The amount, approved by the executive board of IMF, will be immediately available to help the Government deal with the devastating effect of the tsunami that struck the Island on December 26, 2004.

The Fund, which expressed sympathy for the massive suffering and casualties due to the tsunami, said the cost of replacing damaged infrastructure has been estimated at over $ 1.5 billion or 7 per cent of GDP.

The commercial centres in the western part of the country were largely unaffected, but the fisheries and tourism sectors sustained severe damages, the fund said in a release.

"The human loss has been incalculable, and the repair and reconstruction effort will require at least three years of sustained effort", Deputy Managing Director and Acting Chair Takashoti Kato said.

The total bill of reconstruction, spread over several years, with money coming from various countries and lenders, is estimated at $ 1.8 billion.

Much of the impact on economic growth will be offset by the reconstruction effort. GDP growth in 2005 is now estimated at five per cent, the same level as in 2004, the fund said.