Sri Lanka: Deepening of Fiscal Management Reforms

Sovereign Project | 38356-012 Status: Closed


The PPTA will support implementation of FMRP II and ensure that the Government has relevant information for effective decision making in support of fiscal consolidation.

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Project Name Deepening of Fiscal Management Reforms
Project Number 38356-012
Country Sri Lanka
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7104-SRI: Deepening of Fiscal Management Reforms
Japan Special Fund US$ 300,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Public sector management - Public expenditure and fiscal management

Gender Equity and Mainstreaming
Description The PPTA will support implementation of FMRP II and ensure that the Government has relevant information for effective decision making in support of fiscal consolidation.
Project Rationale and Linkage to Country/Regional Strategy The PPTA is consistent with the Sri Lanka Country Strategy and Program (2004-2008) which focuses on three main areas, namely: (i) economic reform, (ii) governance, and (iii) social development.
Impact The PPTA will support the design of Fiscal Management Reform Program (FMRP) II and ensure that the Government has relevant analysis and information for effective decision making in support of fiscal consolidation and in particular, contribute to achieving the Government's revised target of a fiscal deficit of 5% of gross domestic product (GDP) and a national debt of 85% of GDP by 2010.
Project Outcome
Description of Outcome The PPTA will develop background studies that will serve to provide inputs towards the design of a policy framework to provide (i) continuity of reforms initiated under FMRP (i.e., strengthening revenue effort at selected provincial councils), (ii) deepening of reforms following FMRP (i.e., application of public expenditure reviews and extension of Treasury Fund Transfer System (TFTS); and (iii) complementary reforms following FMRP (i.e., developing capacity for management audit functions of the Treasury, developing foundations of a service delivery framework).
Progress Toward Outcome
Implementation Progress
Description of Project Outputs The PPTA will assist in identifying at the core further expenditure containment measures and complemented by medium term revenue measures to support the Government's fiscal consolidation program. On the expenditure side, expected outputs include developing (i) a comprehensive review of public expenditures in three sectors, including agriculture, education, health, with the objective of identifying expenditure containment measures in these three sectors; and (ii) a proposal for developing management audit functions at Ministry of Finance and Planning (MOFP) to develop improved systems and methods to increase effectiveness of spending and to enhance reporting on public spending. These fiscal supporting measures will be complemented by developing a (i) concept paper to assess the state of service delivery in three key sectors in Sri Lanka and developing a service delivery framework to ensure improved effectiveness and quality of service delivery over the medium term; and (ii) a proposal for deepening reforms on Treasury Single Account System (TSAS) and build further structure towards developing the PAFMIS as the final objective.
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Sri Lanka
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
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 Consulting services required for the TA include 5 person-months of international consultants and 20 person-months of national consultants. The international and national consultants will be mobilized intermittently over a 6-month period. A consulting firm will be selected using the quality-and cost-based selection method. Consultants will be recruited in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). The findings of the TA will be presented in a workshop at the end of the project.
Procurement tbd
Responsible ADB Officer Kevin Kyung-Nam Shin
Responsible ADB Department South Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SARD
Executing Agencies
Ministry of Finance and Planning
Shamalie Gunawardana
Saman Mawatha, Galawilawatta, Homagama, Sri Lanka
Concept Clearance 04 Feb 2008
Fact Finding 30 Apr 2008 to 02 May 2008
Approval 25 Jul 2008
Last Review Mission -
PDS Creation Date 13 Mar 2008
Last PDS Update 06 Apr 2010

TA 7104-SRI

Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Jul 2008 05 Sep 2008 05 Sep 2008 31 May 2009 31 Dec 2010 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
300,000.00 0.00 60,000.00 0.00 0.00 0.00 360,000.00 25 Jul 2008 274,062.00

Safeguard Documents

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Evaluation Documents

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