The development of human capital is critical and a key priority for positioning Sri Lanka as a competitive economy and society based on knowledge and innovation. It sees inclusive and equitable growth possible if based on strong education, skills development and research. During the country programming discussions held during May-August 2012, and special consultation missions for human development, the government indicated that the Asian Development Bank (ADB) should support a coordinated effort to improve planning and implementation of various human development programs in the education sector. Accordingly, a proposed Multitranche Financing Facility for Human Capital Development Investment Program (MFF HCDIP) is being prepared to increase human capital and by enhancing employability of school leavers and graduates and strengthening research and innovation for productivity.
|Project Name||Human Capital Development Capacity and Implementation Support|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
|Sector / Subsector||
Education / Secondary - Technical and vocational education and training - Tertiary
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||The development of human capital is critical and a key priority for positioning Sri Lanka as a competitive economy and society based on knowledge and innovation. It sees inclusive and equitable growth possible if based on strong education, skills development and research. During the country programming discussions held during May-August 2012, and special consultation missions for human development, the government indicated that the Asian Development Bank (ADB) should support a coordinated effort to improve planning and implementation of various human development programs in the education sector. Accordingly, a proposed Multitranche Financing Facility for Human Capital Development Investment Program (MFF HCDIP) is being prepared to increase human capital and by enhancing employability of school leavers and graduates and strengthening research and innovation for productivity. To support and strengthen country capacity to implement this long term investment, this $1.5 million capacity development technical assistance (CDTA) for Human Capital Development Capacity and Implementation Support was included in the 2012 non-lending program for Sri Lanka. The proposed CDTA aims to improve results-oriented planning based on medium term expenditure frameworks which would lead to increased and rational investments in human development in Sri Lanka. While this long term approach 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 proposed CDTA will augment these capacities, to support and work closely with the line ministries sector programs.|
|Project Rationale and Linkage to Country/Regional Strategy||
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.
|Impact||Enhanced human capital in Sri Lanka for a productive knowledge-based economy|
|Description of Outcome||Enhanced government capacity for planning, coordinating, and implementing results-oriented HCD with greater synergies across subsectors|
|Progress Toward Outcome||
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.
|Description of Project Outputs||
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
|Status of Implementation Progress (Outputs, Activities, and Issues)||
1.1 Medium-term sector frameworks for TVET is developed and adopted by 2014.
1.2 (i) Quality Management System has been reviewed and areas for improvement and plan for change management were developed in August 2015. (ii) Industry sector skills council establishment was facilitated with policy inputs, industry consultations and coordination support, and operational documents. (iii) SSDP human resource development policy was reviewed and recommendations made.
1.4 Management information systems established in MOE and MSDVT with sex-disaggregated data. Additional support (consultant inputs) to the Senior Ministers Secretariat (later Ministry of Labor and Employment from 2015) provided to develop a monitoring system for the National Human Resource and Employment Policy implementation, which will take up the information from MOE and MSDVT to provide high level overview of NHREP progress. As of Aug 2016, the system is operational and training of officials at line ministries is ongoing (training funded by the government).
2.1 Fiduciary management assessment of implementing agencies completed and capacity development plans developed. Annual fiduciary review of FY2014 and FY 2015 for ESDP has been completed. AFR for SSEP for FY2014 and FY 2015 have been completed.
2.3 Training in financial management (542 planning officers, accountant, internal auditors, accounting staff at MOE and provincial staff under ESDP and 91 accountants and 49 internal auditors under SSEP) and procurement (440 MOE staff and provincial staff are trained on procurement under ESDP and 61 persons under SSEP) completed by July 2015. Total number trained in procurement and financial management is 1,183. Total 680 MOE and provincial officers (ESDP) and total 102 MSDVT and TVET agency officials (SSEP) were trained in safeguard issues, too, by Feb 2016.
2.4 DLI and PAP status updated through quarterly reports for ESDP and review missions for ESDP and SSEP with the support of TA consultants. The TA consultants supported MOE in developing the education leadership competency framework since mid 2016 and will continue supporting MOE in improving the education leadership programs (training program as well as performance management).
2.5 Third-party validation reports were completed (DLI 3 for ESDP and performance allowance for SSEP by December 2015 and DLI 3 and 4 for ESDP by December 2016).
2.6 100 MOE staff and provincial coordinators are trained in planning and results management by end of 2014.
2.7 An independent tracer study was completed by October 2016 and the report findings have been used to validate the first disbursement-linked indicator (employability of graduates from quality assured TVET program increased) under the SSEP. The final report will be developed into an ADB publication.
3.1 Sex-disaggregated data from project activities collected and monitored for feedback into sector plans.
3.2 A study on ICT for education within the ESDFP was carried out in coordination with Korean Government-funded Knowledge Sharing Program (KSP) by December 2014.
3.3 A study visit for technology stream (ESDP) washeld in Malaysia and is scheduled in Sep 2016. The study visit helped improve the understanding of relevant officials of the Government of Sri Lanka on secondary level technological education focusing on its curriculum development, learning and teaching process, course evaluation, school accreditation, etc.
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||The TA design was informed by extensive consultations conducted under the PPTAs for the Edcuation Sector Development Program and Skills Sector Enhancement Program, and other policy dialogue ADB missions conducted with a wide range of stakeholders at government, schools and training institutions, private sector entities, as well as students and trainees.|
|During Project Implementation||During the TA implementation, ADB will maintain close communication with the executing agencies of ADB supported human capital development programs (education and skills development) as well as the National Planning Department and other relevant government agencies and other stakeholders to ensure relevant and quality technical inputs and assistance.|
|Responsible ADB Officer||Song, Gi Soon|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||Human and Social Development Division, SARD|
Ministry of Finance and Planning
P.O. Box 277
The Secretariat Building, Colombo 1
Sri Lanka National Planning Department
The Secretariat Building, Colombo 01,
|Concept Clearance||12 Oct 2012|
|Approval||03 Dec 2012|
|Last Review Mission||-|
|Last PDS Update||08 Mar 2018|
|Approval||Signing Date||Effectivity Date||Closing|
|03 Dec 2012||04 Mar 2013||04 Mar 2013||31 Dec 2014||31 Dec 2020||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|3,350,000.00||0.00||200,000.00||0.00||0.00||0.00||3,550,000.00||03 Dec 2012||1,993,374.99|
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.
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|Title||Document Type||Document Date|
|Human Capital Development Capacity and Implementation Support||Technical Assistance Reports||Dec 2012|
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.
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.
|Contract Title||Approval Number||Contract Date||Contractor||Contractor Address||Executing Agency||Contract Description||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|Capacity Development||Technical Assistance 8235||28 Aug 2015||PriceWaterhouseCoopers (Sri Lanka)||100 Braybrooke Place, Colombo 2, Western Sri Lanka, Sri Lanka||National Planning Department||145,737.00||—|
None currently available.