Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date 02 Feb 2007
PDS Updated as of 29 Jul 2010

Project Name Southern Province Rural Economic Advancement
Country Sri Lanka
Project/Program Number 31282-013
Status Approved
Geographical Location Southern Province (Galle, Matara, and Hambantota Districts)
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector Agriculture, natural resources and rural development
Subsector Agriculture and Natural Resources
Strategic Agendas
Drivers of Change
Gender Equity and Mainstreaming Categories


Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)

Safeguard Categories

For more information about the safeguard categories, please see

Environment B

Summary of Environmental and Social Issues

No major environmental impacts are expected in implementing subprojects, No major social issues are expected.

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation and Consultation

Consultations were carried out with local authorities and business community for identification of project activities

During Project Design
During Project Implementation


The objectives of the Project are to support the Government's efforts to promote the region's development, accelerate economic growth and create income and employment opportunities in the Southern Province through greater participation and involvement of the private sector. Project activities will focus on (i) establishment and expansion of agriculture and agriculture-related micro, small and medium enterprises (MSMEs) in the region, (ii) the provision and maintenance of key economic infrastructure, and (iii) the enhancement of capacities in the public and private sectors to facilitate, support and sustain this process.

Project Rationale and Linkage to Country/Regional Strategy

Despite economic growth of 5.4 percent during 1990-1999, development and income distribution in Sri Lanka remain uneven. Rural areas of Southern Province continue to suffer from high levels of poverty and unemployment due to the predominance of low-value agriculture and limited development of value-added enterprises in the region. The Government has in recent years placed high priority on development investments in Southern Province to stimulate its rural economy and achieve more balanced regional development. However, in promoting investment, the Government recognizes the importance of a holistic development approach that promotes linkages between agriculture and industry, and addresses issues of backward and forward linkages to provide opportunities for farm households to graduate from their subsistence income levels to micro and small enterprises. It is also cognizant of the many infrastructure and policy developments that have occurred in the last few years. In response to these factors, the Project is designed to focus on stimulating private sector-led economic growth in the rural areas of Southern Province, while at the same time develop the physical and institutional environment to sustain the process.

Development Impact

Project Outcome

Description of Outcome
Progress Towards Outcome

Outputs and Implementation Progress

Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing 2007 Feb 02
Consulting Services
Recruitment completed.
All procurement under the Project will be done in accordance with ADB's Guidelines for Procurement. Civil works will consist of a large number of small contracts for road maintenance works and upgrading of market facilities with no single contract likely to exceed $200,000. Vehicles and equipment will be procured through international shopping for packages costing more than $100,000 and less than $500,000, and by direct purchase for packages costing less than $100,000. Contracts for goods and services in excess of $100,000 will be procured through local competitive bidding. Service contracts for enterprise training will be awarded on the basis of local competitive bidding among prequalified agencies using ADB guidelines. Service contracts for enterprise development services will be through direct purchase, negotiated on the basis of pre-selection of the service providers and with payment of standard fees.
Procurement and Consulting Notices


Concept Clearance
Fact-finding 30 Apr 2001 to 12 May 2001
Management Review Meeting 04 Jul 2001
Approval 26 Oct 2001
Last Review Mission


Approval No. Approval Signing Effectivity Closing
Original Revised Actual
Loan 1849 26 Oct 2001 10 Jan 2002 12 Dec 2002 31 Jul 2008 31 Dec 2009 05 Aug 2010


Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
22 Oct 2014 Loan 1849 27,381 0 97.00%
Cumulative Disbursements
22 Oct 2014 Loan 1849 28,086 0 100.00%

Status of Covenants

Covenants are categorized under the following categories—audited accounts, safeguards, social, sector, financial, economic, and others. Covenant compliance is rated by category by applying the following criteria: (i) Satisfactory—all covenants in the category are being complied with, with a maximum of one exception allowed, (ii) Partly Satisfactory—a maximum of two covenants in the category are not being complied with, (iii) Unsatisfactory—three or more covenants in the category are not being complied with. As per the 2011 Public Communications Policy, covenant compliance ratings for Project Financial Statements apply only to projects whose invitation for negotiation falls after 2 April 2012.

Approval No. Category
Sector Social Financial Economic Others Safeguards Project Financial Statements
Loan 1849

Contacts and Update Details

Responsible ADB Officer K. M. Tilakaratne (
Responsible ADB Department South Asia Department
Responsible ADB Divisions Environment, Natural Resources & Agriculture Division, SARD
Executing Agencies Ministry of Regional Development
Mr. P S Gajanayake


Project Website
List of Project Documents