Macroeconomic Environment and Project Performance in Sri Lanka | Asian Development Bank

Macroeconomic Environment and Project Performance in Sri Lanka

Evaluation Document | 31 December 1997

This evaluation assesses the Sri Lankan macroeconomic, sector, institutional, social and other policies; policy constraints; and conditions prevailing at the time of formulation and implementation of the loan projects funded by ADB.

The success of postevaluated ADB projects in Sri Lanka has been heavily affected by changes in economic policy and economic environment. Because Sri Lanka is a small, open economy, projects have been affected by changes in world oil prices and foreign trade policies.

ADB's assistance to Sri Lanka has shown varying degrees of success. Out of 26 projects postevaluated, only 46% were rated successful. This study examines the links between project performance and specific conditions associated with the macroeconomic environment.

It emphasizes the importance of economic policies for the success or failure of ADB-supported programs, and the importance of policy conditions in shaping program strategies.

Recommendations include giving adequate consideration to the macroeconomic environment during project formulation, and to have policy content designed to contribute towards improving that policy environment.


  • Executive Summary
  • Introduction
  • Main Findings
  • Key Issues and Implications for the Bank's Current Program
  • Conclusions and Recommendations
  • Appendixes