Sri Lanka: Implementing Products and Services for the Domestic Debt Market (Cluster TA)

Sovereign Project | 37280-012 Status: Closed

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Project Name Implementing Products and Services for the Domestic Debt Market (Cluster TA)
Project Number 37280-012
Country Sri Lanka
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 4421-SRI: Implementing Products and Services for the Domestic Debt Market (Cluster TA)
Technical Assistance Special Fund US$ 500,000.00
A.T.F. - Swedish T.A. Grant US$ 1.20 million
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Finance - Finance sector development

Gender Equity and Mainstreaming
Description The Technical Assistance Cluster's (TAC) purpose is to further strengthen the domestic debt market (and, thus, the financial system) on the basis of identified needs, as outlined in the previous section. The TAC will support implementation of some of the necessary financial reforms for long-term sustainability by providing awareness campaigns, capacity building, and on-site training through "learning by doing" from international institutions. Priority for improving skill development will be given to the Ministry of Finance (MOF) and the Public Debt Department. The expected results and deliverables of the TAC include (i) introduction of relevant products and services for the debt market that should attract more domestic and international investment capital to Sri Lanka; (ii) stimulation of economic growth by providing additional financial products and services; (iii) reduction of overall capital cost and financial risk to the Government and private sector; (iv) improvement and strengthening of financial institutions; (v) diversification of investment opportunities for asset managers, pension funds, and insurance companies; (vi) improvement of liquidity, market efficiency, and transparency in the capital market; (vii) provision of alternative savings products; and (viii) improvement of the management and financial performance of pension and provident funds.
Project Rationale and Linkage to Country/Regional Strategy The Project forms integral part of the CSP in developing the market and reducing contingent liabilities associated with the Government's borrowing process.
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Sri Lanka
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services

The technical assistance cluster (TAC) has six components: (i) Asset and Risk Management; (ii) Publicly Traded Securitized Bonds; (iii) Bond Derivatives; (iv) Infrastructure Bonds with Credit Insurance Guarantee; (v) Capacity Building for the Public Debt Department; (vi) Capacity Building in the Debt Market for the Ministry of Finance. A team of eight international and four domestic consultants will provide 42 person-months of consulting services.

An international consulting firm will provide a full technical proposal and will be recruited for Components 1-4 and Component 6 in accordance with ADB's Guidelines on the Use of Consultants and other arrangements satisfactory to ADB for engaging domestic consultants. The quality-based selection method will be used to select consultants because of the complexity of the TAC, which covers a number of subsectors, public and private debt markets, public and private institutional investors, retail investors, financial intermediaries, and capital market infrastructure. The issues are highly sensitive and will require high-level interaction with Government officials, Government agencies, regulators, and stakeholders. The consultants must have a high level of credibility and competence. Due to its knowledge and success in managing and issuing public debt, and prior experience in working on similar projects with the Central Bank of Sri Lanka, the National Debt Office of Sweden, a Swedish Government agency, will be chosen by direct selection to provide consultancy services for Component 5. The agency will complement the ongoing work of Riksbanken with the Central Bank of Sri Lanka.

Procurement Recruitment of consultants is expected to take place in November 2004.
Responsible ADB Officer Jennifer Romero-Torres
Responsible ADB Department South Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SARD
Executing Agencies
Ministry of Finance and Planning
Ms. Malanie Gamage
MOFP Colombo
Concept Clearance 02 Dec 2003
Fact Finding 26 Apr 2004 to 30 Apr 2004
Approval 26 Oct 2004
Last Review Mission -
PDS Creation Date 31 Jan 2007
Last PDS Update 14 Feb 2008

TA 4421-SRI

Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Oct 2004 08 Dec 2004 08 Dec 2004 31 Mar 2006 31 Dec 2009 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 1,200,000.00 0.00 0.00 0.00 0.00 1,700,000.00 26 Oct 2004 1,030,306.08

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Evaluation Documents

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