Countries and Regions

	Table of Contents
p. 3 of 4 BACK | NEXT I. Current Development Trends and Issues II. Implementation of the Country Strategy and Program III. Portfolio Management Issues IV. Country Performance and Assistance Levels

Country Strategy and Program Update 2005-2006: Sri Lanka

---

III. Portfolio Management Issues

A. Portfolio Performance

21. Portfolio performance has generally been satisfactory. As of 31 December 2003, the portfolio for Sri Lanka consisted of 41 public sector loans covering 32 projects with a net loan amount of $1.6 billion, of which $1.3 billion (85%) was from the Asian Development Fund (ADF). Of the total loan amount of $824 million, 52% was undisbursed at end-2003. Contract awards and disbursements exceeded projections for the year. The 2003 contract awards for both project and program loans totaled $315 million, or 117% of the $269 million projected, due primarily to a $78 million contract for a road sector project and $64 million for program loans. Contract awards for only program loans amounted to 111% of the projected $60 million, while contract awards for project loans reached $250 million, about 113% of the projected $209 million. The contract award ratio for 2003 was 31% for all loans and 29% for project loans only, significantly above the ADB-wide average of 17% for all loans and 15% just for project loans. Disbursements for all loans reached $214 million, 110% of the projected $194 million. Project loans also exceeded projections for 2003, with disbursements reaching $149 million, or 111% of projections. The disbursement ratio, including program loans, was at 22%, above the ADB-wide average of 20%.

B. Performance Monitoring and Evaluation

22. As of 31 December 2003, all 41 projects were rated satisfactory for implementation progress and one project was rated highly satisfactory. All the projects were rated satisfactory for attainment of development objectives. Quarterly portfolio review meetings led by the Resident Mission continued in 2003, in addition to project-specific review missions by both the Resident Mission and headquarters staff. Project implementation progress was adversely affected in the third quarter of 2003 by the lack of counterpart funds. However, this situation was corrected in the fourth quarter, and, as noted above, annual projections for disbursements were exceeded. Although the Government has introduced new streamlined tender procedures, and improvements have been made, delays, at times significant, in awarding contracts persist. Implementation was also severely and negatively affected by delays in land acquisition and resettlement, primarily in road sector projects.

Back II. Implementation of the Country Strategy and Program	Next IV. Country Performance and Assistance Levels