Sri Lanka : Human Capital Development Capacity and Implementation Support

Education / Secondary - Technical and vocational education and training - Tertiary

To address the bottleneck of insufficiently prepared graduates and students for entering the labor workforce, and by building upon the gains in basic education, Sri Lanka aims at equitable access to quality and relevant secondary education and demand-driven skills training. It also emphasizes science and technology as a key driver for socioeconomic transformation which starts with solid foundation of science education in the school sector. Guided by the long term vision, Government of Sri Lanka has developed several policy frameworks and strategies to address the human capital development challenge including (i) National Human Resources and Employment Policy; (ii) Education Sector Development Framework and Program (ESDFP) 2012-2016; (iii) A Road Map for Technical & Vocational Education and Training (TVET); and (iv) Science, Technology & Innovation Strategy for Sri Lanka 2011-2015 (2010).

Implementing these policies and strategies requires coordinated effort and solid technical capacities to better plan, design and implement a wide range of initiatives and government programs for secondary and post-secondary education, including skills. While government agencies have led efforts to prepare medium term expenditure program frameworks (in education, skills), a much stronger effort to link sectoral programs with national planning is necessary in order to ensure that individual sector results contribute to the overall outcome of a stronger workforce that supports national economic goals. Further, public financial management and procurement capacities need to be strengthened to improve the efficiency of programs, and monitoring systems need improvement in order to track results. Focus on quality, implementation and results, together with expanded private sector participation to ensure relevance, synergy among different sectors, will be the underpinning drivers of a paradigm shift in human capital development (HCD). This paradigm shift will be stimulated by a coordinated effort that enables sector-specific achievements to be linked more closely to the growth agenda, and could help propel Sri Lanka into a competitive knowledge-based economy.

Responding to the government, ADB will take a longer term approach to support in HCD to make education more competitive and responsive, and creating space and financing for knowledge economy and innovation that includes modernized secondary education and skills training that is responsive to industry and economic needs, with greater focus on research and education for knowledge economy. The government has a strong vision, and it requires ADB's value addition in knowledge, know-how, innovative approaches, strategic planning and selected implementation support. Given the long term nature of achieving HCD outcomes, ADB will adopt a phased results-based approach over longer period. To this end, a proposed MFF HCDIP will provide results-based financing to support government's programs in education, skills development and research and innovation.

While a long term investment will enable ADB to support and strengthen policy frameworks pivoted on sound strategic context and backed by government financing, it also challenges the capacity of the various implementing agencies to develop, plan, implement and systemically monitor their medium term sector (expenditure) frameworks and result achievements; and tests the capacity of country systems for public financial management and procurement. The CDTA will augment these capacities to support and work closely with the line ministries sector programs. The CDTA will be aligned to the MFF HCDIP and support the country's HCD needs, encompassing secondary education, post secondary including TVET, and an innovation system, with an aim to promote socially and gender inclusive growth. The CDTA will also respond to the government's demand for ADB support to be longer-term, more flexible, and lower in transaction cost. It will also entail efficiency gains by reducing staff resources in processing and administration and sharing consultant inputs across subsectors.

In 2014, the Skills Sector Development Program 2014-2020 approved by MOFP including indicative expenditure estimates.

For 2015, 3-year rolling medium term expenditure frameworks for (i) education and (ii) skills development were developed and approved by the government.

Improved policy and technical capacity for planning HCD programs

Strengthened institutional and fiduciary capacity for planning, coordinating, and implementing HCD sector programs

Research on HCD programs to guide better design conducted

1a. (i) The Skills Sector Development Program (2014 2020) with results framework and medium-term expenditure framework of over $960 million for TVET sector was developed and approved with the support of the TA. This became the basis for ADB's RBL support for TVET, SSEP. (ii) For higher education, a medium-term plan for technology faculty development in three state universities was developed in preparation for the proposed Science Technology Human Resources Development Project.

1b. Studies and policy inputs for the following have been provided by the TA: (i) strengthening coordination capacity for publicly financed science and technology research and development; (ii) issues school education reform (as part of ESDP midterm review); (iii) school leadership development; (iv) quality assurance mechanism for TVET; (v) skills-gap analyses in four priority industry sectors; (vi) establishing industry sector skills councils for TVET; (vii) various reform initiative concept papers for TVET sector (NVQ, employment linked training program, performance allowance for instructors; etc.); (viii) guidance for higher technology education; (ix) roadmap for bio-systems technology higher education program is being finalized for stakeholder review.

1c. A road map for PPP science and technology university is developed by the TA consultant.

1d. (i) The TA supported COSTI to develop Sri Lanka Innovation Dashboard for Science, Technology and Innovation (http://dashboard.costi.gov.lk), which provides snap shots of Sri Lanka's innovation capacity using interactive database. (ii) An online project monitoring system to coordinate planning, progress monitoring, and evaluation of projects and activities under the National Human Resources and Employment Policy across key ministries including MOE, MSDVT, MOHEH, etc. has been developed and operational. (iii) Education Project Management Information System developed with the support of a programmer from the TA to strengthen planning, progress monitoring (both financial and physical), and evaluation of the overall Education Sector Development Framework and Program, and (iv) MSDVT is developing an integrated MIS for which TA provides quality checks. It captures student information from application until graduation and employment (with sex-disaggregated data)

2a. (i) AFR conducted for ESDP (2014, 2015 and 2016) and SSEP (2014 and 2015) has been completed. AFR for SSEP for 2016 will be finalized in Q3 2018. (ii) Fiduciary management assessment for Sri Lanka Institute of Printing (an additional IA to SSEP) and PCA and FMA of MOHEH and four state universities (EA and IA for proposed STHRDP) are completed.

2b. (i) GESIF for TVET sector has been developed and adopted by MSDVT. Budget allocated for its implementation from 2017, and activities are being monitored. (ii) STHRDP has GAP in place. For technology faculty building design, the facility design consultant's ToR include ensuring female and differently abled people friendly building features are incorporated in the DB bidding documents.

2c. Several training programs were conducted including (i) futuristic policy framework (for National Education Commission staff [26 persons]); (ii) career guidance and counseling teachers for technology stream promotion (eight programs for 156 persons); (iii) safeguard awareness and EMP training for MOE staff, CECB engineers, and nine provincial stakeholders (11 programs for 680 persons); (iv) public procurement training (19 programs for 568 persons); (v) financial management training (22 programs for 750 persons); and (vi) planning and M&E training (three programs for 136 persons). Most of the training costs were born by MOE, but training programs are facilitated and coordinated by the TA consultants. The total number of people trained under the TA for ESDP was 2,316. (Two gender training sessions for MSDVT and TVET institutions were supported by another TA at SLRM). Safeguard training for TVET completed (number to be added)

2d. (i) Implementation support consultants under ESDP and project coordinator under SSEP (from TA) supported the EAs in preparing regular progress report. Nine quarterly progress reports for ESDP submitted. Monthly updates for SSEP were submitted until September 2016 when EA takes over the responsibility. (ii) AFR team (TA consultant) completed physical verification of DLIs 3, 4, and 9 for ESDP, and DLIs 3, 7, and 8 for SSEP as per the verification protocol.

2e. (i) Midterm reviews conducted by TA consultant (international) for ESDP and SSEP. (ii) A tracer study of TVET graduates was carried by Center for Poverty Analysis (contracted by TA) to confirm the employment rate of TVET graduates to verify the achievement of DLI 1 of SSEP, and provide quantitative and qualitative feedback on the TVET system performance, and the findings and policy implications were discussed with MSDVT and TVET institutions and other government agencies such as Prime Minister's Office and National Planning Department. (iii) AFR firm hired under the TA carried out third-party validation for selected DLIs.

2g. Not to be pursued as IED's evaluation of RBL evaluation is being conducted including ESDP and SSEP.

3a. (i) Gender analysis carried out for skills sector to inform the GESIF, which has been adopted by MSDVT for implementation from 2017. (ii) Gender analyses for technology education at higher education completed.

3b. (i) Midterm reviews of ESDP and SSEP was informed by international experts engaged by the TA, informing the adjustment in ESDP's remaining implementation period, and the proposed additional financing to SSEP. (ii) Sector assessment for technology education at higher education completed in preparation of STHRDP

3c. (i) A study visit of eight officials (three females) to Malaysia to obtaining insights and best practices for technology stream implementation conducted in October 2016. (ii) A team of nine officials and academics from MOHEH, UGC, and three state universities attended an international conference and pre-conference workshop on science and engineering facilities to inform the design of physical facilities and management of them under the proposed STHRDP. (iii) The TA supported several government officials to attend ADB's annual International Skills Forum in 2014, 2015, and 2016. (iv) The TA supported a workshop on green building design for STHRDP PMU and PIUs (number to be added)

3d. (i) A feasibility study and road map for a PPP science and technology university is completed. (ii) A scoping study completed for establishing technology faculty in three state universities.

3e. (i) Due diligence assessment reports and loan design documents completed for the additional financing to SSEP (fact-finding mission completed in July 2017). (ii) Safeguard assessment, financial management assessment, and procurement capacity assessment for the proposed STHRDP completed (fact-finding mission completed in May 2018).

4a. Diagnostic study completed to inform the action plan for each component. Discussion on going with NIEI Singapore.

4c. and 4d. Pilot implementation plan being finalized

4e. Diagnostic study completed to inform the action plan for each component. Discussion on going with NIEI Singapore.