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Sri Lanka: Skills Sector Enhancement Program

Sovereign (Public) Project | 42251-018 Status: Active

ADB is helping Sri Lanka revamp its technical and vocational education and training (TVET) to equip its workforce, especially the youth, with the required skills for the job market. The program will support the government’s Skills Sector Development Program and improve employment rates in four priority sectors: construction, tourism, information technology, and manufacturing, particularly for disadvantaged groups, including women.

Project Details

Project Officer
Halgamage Don, Sudarshana Anojan Jayasundara South Asia Department Request for information
Country
  • Sri Lanka
Modality
  • Grant
  • Loan
Sector
  • Education
 
Project Name Skills Sector Enhancement Program
Project Number 42251-018
Country Sri Lanka
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant: Skills Sector Enhancement Program
Germany US$ 15.40 million
Loan 3119-SRI: Skills Sector Enhancement Program
Ordinary capital resources US$ 50.00 million
Loan 3120-SRI: Skills Sector Enhancement Program
concessional ordinary capital resources lending / Asian Development Fund US$ 50.00 million
Loan: Skills Sector Enhancement Program
World Bank US$ 101.50 million
Export-Import Bank of Korea US$ 26.00 million
Grant 9193-SRI: Demonstrating Innovative Approaches for Private Sector and Women's Empowerment in TVET in Sri Lanka
Japan Fund for Poverty Reduction US$ 3.00 million
Loan 3650-SRI: Skills Sector Enhancement Program - Additional Financing
concessional ordinary capital resources lending / Asian Development Fund US$ 60.00 million
Loan 3651-SRI: Skills Sector Enhancement Program - Additional Financing
Ordinary capital resources US$ 40.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Education / Technical and vocational education and training

Gender Equity and Mainstreaming Effective gender mainstreaming
Description ADB and the Government of Sri Lanka are working together to provide people in the country with the skills they need to get good jobs. The Skills Sector Enhancement Program is improving the teacher training and the government's overall quality assurance efforts in regards to technical training. It is also helping the Sri Lankan government analyze where the gaps are greatest in the labor market's demand for skills. This is allowing technical training to be focused on the areas where there is the most demand. The program is also working to increase the number of students enrolled in technical programs to 224,000 and is providing financial help to at least 60,000 students from disadvantaged situations. The program is working to improve coordination, monitor and evaluation of skills development efforts and strengthen performance management of publicly financed training initiatives.
Project Rationale and Linkage to Country/Regional Strategy Sri Lanka's progress in education is noteworthy compared with that of other countries in South Asia. However, a significant mismatch exists between the skills of graduates and what is needed by employers. Sri Lankan firms have identified lack of skilled labor as one of the key constraints to their business and youth unemployment remains very high at 23.3% (aged 15-24) - compared to an overall unemployment rate of 5.1%. The skills mismatch became even more evident during the recent period of high economic growth as both education and technical training systems failed to adapt to the rapid labor market shifts resulting from the rise of the service sector. Sri Lanka is working to reconfigure the skills, abilities, and competencies of young people to meet the demands of the global economy and to support the country's transition to a knowledge-based economy.
Impact Employability of the Sri Lankan workforce, particularly youths, increased
Project Outcome
Description of Outcome Market-responsive and inclusive TVET system developed
Progress Toward Outcome Satisfactory.
Implementation Progress
Description of Project Outputs

Improved quality of TVET provision

Industry partnership for TVET planning and provision enhanced

TVET participation and equitable access increased

TVET sector management to implement policy, institutional, and operational reforms improved

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

1. Improved quality of TVET provision;

142 training centers are certified under quality improvement system against the target of 300 centers.

-EA should give more focus and attention on the balance achievement of 158 QIS centers which they confirmed that the target could be achieved in 2020.

A new NVQ operation manual was introduced in 2016 with some elements to improve progression between levels and credit transfer system. A review of the NVQ framework was conducted in 2019 and the findings of the review should be prioritized and implemented.

Vocational teacher vacancy ratio in training institutions are high (34.5%) and efforts to recruit, retain and develop vocational teachers are required.

2. Industry partnership for TVET planning and provision enhanced;

Four ISSCs have been established in four priority areas (ICT, Construction, Manufacturing & Engineering Services and Hospitality & Tourism).

Skills forecasting reports were prepared for ICT, Construction, Manufacturing and Automobile sectors. VET plans/skills forecast for Agriculture and Health sectors are to be developed during 2020. Revision of training planning and delivery based on the findings of skills forecasting should be scrutinized.

5,092 students have been enrolled as of December 2019 with the participation of private sector under employment-linked training purchase program. Nearly 3000 more students should be enrolled under the program to achieve the set target for 2020.

6 university colleges are established and in operation. Construction of another university college in Kinniya is in progress.

2,388 instructors have attended industry exposure training as of December 2019. This is an 85% of the total academic staff in all public vocational training institutions.

All graduates of NVQ level 4-6 have undergone OJT (100%).

3. TVET participation and equitable access increased;

186,042 students have been enrolled in 2018 by public and private training institutions.

- This is a reduction from the total enrolment in 2017 (214,295 and EA will conduct a dropped-out survey to find out factors related to the low rate of student enrollment.

By December 2019, 46,662 existing industry workers were certified under recognition of prior learning.

DTET, VTA and CGTTI have provided scholarships and bursaries to 69782 students between 2014-2019 June.

735 NVQ graduates received SEPI loans from 2017 to June 2019.

Two new training programs were endorsed out of 5 new training programs to improve employability, training will be commenced in 2020 for these two programs.

4. TVET sector management to implement policy, institutional, and operational reforms improved;

Inter-ministerial Committee developed Sri Lankas first TVET plan which was approved by the National Department of Planning and adopted by the Ministry in 2014.

Annual budget allocations are made in line with SSDP's originally proposed budget. However, current changes and requirements in the sector require additional public spending.

Gender Equality and Social Inclusion Framework was developed and adopted by the Ministry in 2017 and budgetary provision are made annually for implementation of activities.

District coordination committees initiated to maximize training capacity across different IAs. However, regularizing and strengthening the district coordination committees are essential to make training delivery customized to the needs of local industries and priority sectors.

Significantly negative findings from sample -based procurement review contracts were reduced to 40% 2017.

Establishment of the central MIS for TVET sector is delayed. Operationalization of the system is critical for evidence based TVET planning, reliable monitoring of the TVET delivery, and for improvement of TVET system in Sri Lanka.

Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The program is classified as environment category B according to ADB's Safeguard Policy Statement (2009). Construction activities will be limited to refurbishment, extension, renovation of existing structures and new buildings within the existing TVET center premises or government owned land. No significant environmental impacts are envisaged from the proposed works. Any work inviting higher category of environment classification (category A) shall not be included in the program.
Involuntary Resettlement The program is classified as category C for involuntary resettlement according to ADB's Safeguard Policy Statement (2009). The safeguard requirements 2 will not apply as there will be no land acquisition and involuntary resettlement. Mostly minor civil works will be carried out for refurbishment of existing buildings and facilities. New buildings will be constructed either within the existing TVET institute premises or on government owned land.
Indigenous Peoples The project is classified category C for indigenous peoples according to ADB's Safeguard Policy Statement (2009). Implementation of program components neither directly nor indirectly affects the dignity, human rights, livelihood systems, or culture of indigenous people. Hence, the safeguard requirements 3 will not trigger.
Stakeholder Communication, Participation, and Consultation
During Project Design

Throughout the design phase there were regular meetings with stakeholders to assess sectoral issues and discuss the program design. Key issues discussed were quality, relevance, staff training, working with industry, and increasing participation rates. There were regular briefings with the heads of the Ministry of Skills Development, Employment and Labour Relations and TVET agencies, higher level officials and representatives of development partners. Special meetings were held to present the findings and recommendations of the design team to relevant officials and management in Ministry of Skills Development, Employment and Labour Relations and TVET agencies for their feedback. Organizations consulted include Foreign Employment Bureau, ministries of education, higher education, and others, Senior Ministers Secretariat, the Board of Investment, the Information and Communication Technology Agency, Tourism Development Authority, Institute of Construction Training and Development, and Institute of Tourism and Hotel Management, development partners, and industry representatives such as the Employers Federation, National Construction Association, Chambers of Commerce and Industries, Chambers of Small and Medium Enterprises, Chamber of Construction Industries, Association of Software and Service Companies, and Hotels Association.

About 15 private and public training institutes were visited to review the status of training delivery, QA measures and the operation of career guidance and counseling units and to assess the existing institutional arrangements and capacity, including accessibility for under-represented groups. Around 125 interviews were conducted with stakeholders (students and teachers) in Colombo in Western Province, Galle in Southern Province, Kandy in Central Province, Anuradhapura in North Central Province and Vavuniya and Killinochchi in Northern Provinces.

During Project Implementation

The program will strengthen the engagement of the employers organizations and professional bodies in TVET planning and delivery through (i) industry working groups to validate skills gap analysis, training plans, competency standards, and curricula; and (ii) introduction of purchasing model where employer can deliver training to bridge the skills gaps. A student tracking system will be established to ensure feedback from students and graduates can inform the TVET system improvement. The program will also introduce a targeted stipend program to encourage the participation of disadvantaged groups including women in TVET.

In addition to the engagement of employers organizations and professional bodies, civil society organizations providing TVET will also benefit from the program through access to curricula, assessment, quality management systems, as well as opportunities for public-private partnerships.

In 2016 and 2018, tracer studies were conducted including focus group discussions among TVET graduates, training centers and employers to receive feedbacks to the TVET system performance.

Business Opportunities
Consulting Services As results-based lending, the procurement of consulting services will follow the country system.
Procurement As results-based lending, the procurement will follow the country system.
Responsible ADB Officer Halgamage Don, Sudarshana Anojan Jayasundara
Responsible ADB Department South Asia Department
Responsible ADB Division Sri Lanka Resident Mission
Executing Agencies
Ministry of Science, Technology, Research, Skills Development & Vocational Training and Kandyan Heritage
[email protected]
Nipunatha Piyasa,
No. 354/2, Elvitigala Mawatha,
Colombo 05, Sri Lanka
Timetable
Concept Clearance 29 Jan 2014
Fact Finding 02 Dec 2013 to 13 Dec 2013
MRM 31 Jan 2014
Approval 28 Mar 2014
Last Review Mission -
Last PDS Update 12 Mar 2020

Grant 9193-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Mar 2018 11 May 2018 03 Aug 2018 30 Sep 2021 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 3.00 Cumulative Contract Awards
ADB 0.00 28 Mar 2018 0.00 2.91 97%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 3.00 28 Mar 2018 0.00 0.11 4%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Partly satisfactory - -

Loan 3119-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Mar 2014 27 May 2014 30 May 2014 30 Jun 2017 31 Mar 2018 17 Jul 2018
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 362.50 Cumulative Contract Awards
ADB 50.00 28 Mar 2014 50.00 0.00 100%
Counterpart 185.00 Cumulative Disbursements
Cofinancing 127.50 28 Mar 2014 50.00 0.00 100%

Loan 3120-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Mar 2014 27 May 2014 30 May 2014 30 Jun 2017 31 Mar 2018 17 Jul 2018
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 50.00 Cumulative Contract Awards
ADB 50.00 28 Mar 2014 46.76 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 28 Mar 2014 46.76 0.00 100%

Loan 3650-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Mar 2018 11 May 2018 03 Aug 2018 31 Dec 2021 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 532.50 Cumulative Contract Awards
ADB 60.00 28 Mar 2018 25.63 0.00 43%
Counterpart 472.50 Cumulative Disbursements
Cofinancing 0.00 28 Mar 2018 25.63 0.00 43%

Loan 3651-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Mar 2018 11 May 2018 03 Aug 2018 31 Dec 2021 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 40.00 Cumulative Contract Awards
ADB 40.00 28 Mar 2018 17.09 0.00 43%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 28 Mar 2018 17.09 0.00 43%

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 Access to Information Policy (AIP) 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.

Title Document Type Document Date
Skills Sector Enhancement Program - Additional Financing: Environmental and Social Management Framework Environmental and Social Management System Frameworks Nov 2017
Skills Sector Enhancement Program: Environmental and Social Management Framework (Draft) Environmental and Social Management System Frameworks Mar 2014
Skills Sector Enhancement Program: Program Safeguard Systems Assessment Program Safeguard Systems Assessments Jan 2014

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Access to Information Policy (AIP) 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$) Contract Amount Financed by ADB (US$)
DISBURSEMENTS FOR TARGET ACHIEVEMENTS OF SSEP-DLI1 -2018, SSEP-DLI6(I)-2018 AND SSEP-DLI7-2018 Loan 3650 13 Dec 2019 VARIOUS VARIOUS SRI LANKA Ministry of Industry & Commerce, RPDP & VT & SD OTHERS 5,400,000.00 5,400,000.00
DISBURSEMENTS FOR TARGET ACHIEVEMENTS OF SSEP-DLI1 -2018, SSEP-DLI6(I)-2018 AND SSEP-DLI7-2018 Loan 3651 13 Dec 2019 VARIOUS VARIOUS SRI LANKA Ministry of Industry & Commerce, RPDP & VT & SD OTHERS 3,600,000.00 3,600,000.00
DISBURSEMENTS FOR DLI3(MAY 2016), DLI4 (MAY 2016), DLI5 (MAY 2016) Loan 3120 28 Mar 2018 VARIOUS VARIOUS SRI LANKA Ministry of Skills Devt and Vocational Training OTHERS 4,745,321.00 4,745,321.00
DISBURSEMENT FOR DLI3(MAY 2016),DLI4(MAY 2016) DLI5(MAY 2016) Loan 3119 21 Mar 2018 VARIOUS VARIOUS VARIOUS SRI LANKA Ministry of Skills Devt and Vocational Training OTHERS 5,000,000.00 5,000,000.00
FOR DLI5 (YEAR 2) Loan 3119 15 Dec 2017 VARIOUS VARIOUS SRI LANKA Ministry of Skills Devt and Vocational Training OTHERS 2,000,000.00 2,000,000.00
DLI5 (YEAR 2) Loan 3120 15 Dec 2017 VARIOUS VARIOUS SRI LANKA SRI LANKA Ministry of Skills Devt and Vocational Training OTHERS 1,844,821.00 1,844,821.00
DISBURSEMENT FOR DLI 3 (2015), DLI 4 (2015), DLI 2 (2016) Loan 3119 10 Oct 2017 VARIOUS VARIOUS SRI LANKA Ministry of Skills Devt and Vocational Training OTHERS 5,000,000.00 5,000,000.00
DISBURSEMENT FOR DLI 3 (2015), DLI 4 (2015), DLI 2 (2016) TOTALLING SDR3,260,000 Loan 3120 10 Oct 2017 VARIOUS VARIOUS SRI LANKA Ministry of Skills Devt and Vocational Training OTHERS 4,583,136.00 4,583,136.00

Procurement Plan

None currently available.