Countries and Regions

	Table of Contents
p. 12 of 20 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies A. Agriculture B. Infrastructure C. Social Infrastructure and Environment D. Governance Dimensions of ADB Operations E. Gender Dimensions of ADB Operations F. Private Sector Operations IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Sri Lanka : III. Sector Strategies

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D. Governance Dimensions of ADB Operations

80. ADB is assisting the Government at two levels on governance issues in Sri Lanka. At one level support is being provided to the Government to improve key segments of the public administration system, particularly the institutions in the sectors where ADB operations are focused. In 1999, a cluster TA was approved to strengthen the public expenditure management system in the Ministry of Finance and Planning. At another level, assistance is being provided to the Government strengthen capacity and performance across the public sector. ADB’s ongoing support for the improvement of procurement practices and procedures is an example. In support of a more substantial and broader program of reform especially in decentralization to increase managerial and administrative capabilities at provincial and local government levels, a PPTA is included in 2001 for preparation of an Action Plan for Public Administration Reform/Decentralization. The PPTA is expected to lead to a program loan in 2002 for implementation of the action plan.

81. In order for Sri Lanka to successfully achieve self-sustained growth, it will need to take measures to re-establish the capacity of the public sector and effectively harness the efficiency gains inherent in the expansion of the role of the private sector in the economy. With respect to the former, ADB, in recent years, has recognized the potential for a wider and more sustainable impact on public sector performance if a multi-dimensional approach is adopted, including ensuring the appropriateness of the policy environment, rationalization of the institutional setup, improving the procedural arrangements of the public administration system, facilitating technology modernization and manpower development. This approach is increasingly being applied in the areas where ADB operations are focused, such as the power, water supply, urban development, roads and natural resources management subsectors.

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