38356-013: Fiscal Management Efficiency Project (formerly Fiscal Management Reform Program II) | Asian Development Bank

Sri Lanka: Fiscal Management Efficiency Project (formerly Fiscal Management Reform Program II)

Sovereign (Public) Project | 38356-013 Status: Active

ADB is supporting Sri Lanka’s public finance management reforms that will enable increased investments in less developed regions. The project will introduce new tax revenue and treasury management systems, which will strengthen public resource management, giving the government the fiscal space to step up spending in lagging and conflict-affected regions.

Project Details

Project Officer
Amerasinghe, Nishanthi Manjula South Asia Department Request for information
Country
  • Sri Lanka
Modality
  • Loan
Sector
  • Public sector management
 
Project Name Fiscal Management Efficiency Project (formerly Fiscal Management Reform Program II)
Project Number 38356-013
Country Sri Lanka
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2624-SRI: Fiscal Management Efficiency Project (formerly Fiscal Management Reform Program II)
Ordinary capital resources US$ 30.80 million
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Sector / Subsector

Public sector management / Public expenditure and fiscal management

Gender Equity and Mainstreaming Some gender elements
Description The project aims to ensure greater sustainability of public investments in Sri Lanka, particularly in the less developed regions, through more effective public resource management. It seeks to do so by enhancing the fiscal space (i.e., availability of greater resources) as a result of bringing about improved tax administration and compliance as well as more efficient public financial management. This will be largely attained through establishment of two management information system- one related to revenue and the other to expenditure management.
Project Rationale and Linkage to Country/Regional Strategy The rationale for the project is to help the government in its efforts, particularly in a post-conflict environment, to bring about sustainable and equitable development, including providing greater scope for increasing investments in reconstruction and infrastructure development. The success of the Fiscal Management Reform Program (FMRP), and the impetus for fiscal management reforms that it helped create, sets the proper scene for a project that now focuses on systems and on human resource capacity development in this area.
Impact Greater sustainability of public investments, particularly in the less-developed regions, achieved through more effective public resource management
Project Outcome
Description of Outcome

Enhanced fiscal space for social and economic development resulting from improved tax administration and

compliance as well as efficient public financial management system

Progress Toward Outcome Both RAMIS and ITMIS are still not fully operational. With the current achievement, RAMIS has helped improve the tax administration and compliance to a greater extent as evidenced in fiscal revenue figures. ITMIS is still under development.
Implementation Progress
Description of Project Outputs

1. More accountable revenue management

2. More efficient expenditure management

3. More capable public resource managers

Status of Implementation Progress (Outputs, Activities, and Issues)

1. Following the Budget Speech 2017 and the newly approved Inland Revenue Act, several areas in phases 1 and 2 of RAMIS are being currently revised, which will be completed by the end of 2017. With the partial functionality of RAMIS, the number of tax filers have doubled and currently there are 318,941 tax filers. Each taxpayer has been provided a unique tax identification number generated through RAMIS.

2. Of the 14 modules to be finalized, the payroll module has been excluded as the Information Communication Technology Agency has developed payroll system. Therefore, ITMIS contractor is responsible for 13 modules. Of these modules, budget planning; system administration; budget control and appropriations; purchasing, revenue management; general ledger, debt loan and investment sub ledgers; internal audit; asset module; and court case tracking are ready for roll out (contractor still needs to address gaps) where training can be initiated. Expenditure management, treasury management and cash planning modules are still under preparation, with 14 out of the 29 scenarios still to be finalized.

3. Close to 1,000 staff were trained in international and national training programs conducted during the project period in various aspects of public resource management including programs on Macroeconomic policies, E-Governance and Change Management, Strengthening Public Policy Making Process, Public Sector Leadership and Decision Making, Negotiation and Conflict Resolution.

Further training programs will be rolled out during 2017 once the system modules are successfully tested and accepted by MoF. ITMIS change management workshops are concluded for most of the government agencies in various parts of the country. End-user training programs will be conducted in other government agencies in local languages during the roll out.

For RAMIS, approximately 72 awareness and 84 training programs have been conducted.

Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Not applicable
Involuntary Resettlement Not applicable
Indigenous Peoples Not applicable
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholder groups engaged in project formulation include government agencies, think tanks, and business associations. The decisions made through consultation and participation processes included (i) computerization and simplification of processes, including those in revenue and expenditure management information system, and (ii) related capacity development and training.
During Project Implementation A consultation & participation (C&P) plan was not prepared as the scope of the loan is designing and implementing management information system projects in the public sector, C&P with other stakeholder groups is not deemed mandatory.
Business Opportunities
Consulting Services All consultants to be financed from the proceeds of the loan shall be selected in accordance with ADB Guidelines on the Use of Consultants (2013, as amended from time to time). The project is supported by 260 person-months of international consultant and 40 person-months of national consultant services. International and national firms and individual consultants are bring engaged to provide advanced IT training, and knowledge enhancement training in various areas including national budget execution and implementation, public expenditure management, centralized accounting system management, tax and customs administration, revenue enhancement, treasury operation management, and procurement management.
Procurement The procurement of goods and services under the loan will be in accordance with ADB's Procurement Guidelines (2015), as amended from time to time). Procurement of goods and services estimated at $2,000,000 and above will be awarded on the basis of international competitive bidding. National competitive bidding will be followed for goods and services less than $2,000,000, and procurement will be carried out in accordance with the government procurement guidelines acceptable to ADB with clarifications and modifications described in Section E of the procurement plan in Appendix 7. Shopping method will be followed for procurement of goods below $100,000.
Responsible ADB Officer Amerasinghe, Nishanthi Manjula
Responsible ADB Department South Asia Department
Responsible ADB Division Sri Lanka Resident Mission
Executing Agencies
Ministry of Finance and Planning
[email protected]
P.O. Box 277
The Secretariat Building, Colombo 1
Sri Lanka
Timetable
Concept Clearance 17 Jul 2009
Fact Finding 03 Dec 2009 to 11 Dec 2009
MRM 02 Feb 2010
Approval 15 Apr 2010
Last Review Mission -
PDS Creation Date 06 Apr 2010
Last PDS Update 27 Sep 2017

Loan 2624-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Apr 2010 07 Jun 2010 05 Jul 2010 30 Apr 2014 31 Oct 2018 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 40.80 Cumulative Contract Awards
ADB 30.80 15 Apr 2010 26.70 0.00 87%
Counterpart 10.00 Cumulative Disbursements
Cofinancing 0.00 15 Apr 2010 19.12 0.00 62%

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.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

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.

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

No tenders for this project were found.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Logistical Expenses of Executive Training Programme on Macroeconomic Policies for the Staff of the Ministry of Finance, Sri Lanka Loan 2624 24 Apr 2017 Various Various Sri Lanka Ministry of Finance and Planning Others 325612 325612
Course Fees Related to Executive Training Program on Macroeconomic Policies for the Staff of the Ministry of Finance, Sri Lanka Loan 2624 24 Apr 2017 The University of Hong Kong Room 304, Block B, Cyberport 4, Cyberport Road, Hong Kong, China Ministry of Finance and Planning Consultancy 170000
Contract for Consultant's Services - Supporting Fiscal Management Efficiency Project Loan 2624 07 Apr 2017 PriceWaterhouseCoopers Pvt. Ltd. DLF Cyber City, Gurgaon India - 122002 Ministry of Finance and Planning Consultancy 424403

Procurement Plan