[ad#200×200]With the global financial crisis threatening a recession in most developed countries, some NGOs and INGOs operating in Sri Lanka are worried over a possible impact on their fund raising activities eventually leading to a curtailment of humanitarian work.
In some African countries, the credit crunch has led to the NGOs and INGOs cutting down on staff and having to limit their humanitarian assistance programmes.
Plan Sri Lanka country director Han Dijsselbloem commenting on the situation said the financial crisis was likely to slow down the world economy and already there were signs that unemployment would rise in fundraising countries.
“This not only means that private individuals who support Plan’s work may face financial hardship, but that also governments, companies and other donors may have to resort to belt tightening leading to a decrease in donations to Plan and similar organizations.
While the effects of the crisis on Plan’s income are not yet evident, it is likely to affect them too in the not too distant future,” Mr. Dijsselbloem said.
He said Plan officials were working out possible scenarios and making an effort to reduce operational and other non-essential costs.
“However if there is a significant deterioration we might be forced to postpone some of our projects or activities. We have not reached that stage yet,” he said.
Plan International has already talked to their donors and sponsors in Europe, North America, Australia, Korea and Japan.
“Many of our sponsors and supporters realize that during any global crisis it is the world’s poor who are often the hardest hit,” he said.
Plan’s 2008/09 budget for Sri Lanka is about Rs.800 million and 67 percent of it is from private donors through child sponsorship and the remaining percentage from the governments, corporations and other institutions.
Plan Sri Lanka has operated here since 1981, in areas such as Anuradhapura, Kurunegala, Kandy, Matale, Badulla, Monaragala and in the Tsunami Response Program in Hambantota and Galle.
Oxfam-Australia also said it was concerned about a possible impact on its fund raising activities due to the global credit crunch. Country director B. Goutaman said his organization would be compelled to limit its development work if there was a reduction in the funds they receive.
In the meantime, United Nations spokesman Gordon Weiss said it was too early comment because the situation depended on the financial performance of each country.
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