Sri Lanka : Skills Sector Enhancement Program

Project Name

Skills Sector Enhancement Program

Project Number

42251-018

Country / Economy

• Sri Lanka

Project Status

Closed

Project Type / Modality of Assistance

• Grant
• Loan

Source of Funding / Amount

Grant: Skills Sector Enhancement Program

Source	Amount
Germany	US$ 15.40 million

Loan 3119-SRI: Skills Sector Enhancement Program

Source	Amount
Ordinary capital resources	US$ 50.00 million

Loan 3120-SRI: Skills Sector Enhancement Program

Source	Amount
Asian Development Fund	US$ 50.00 million

Loan: Skills Sector Enhancement Program

Source	Amount
Export-Import Bank of Korea	US$ 26.00 million
World Bank	US$ 101.50 million

Grant 9193-SRI: Demonstrating Innovative Approaches for Private Sector and Women's Empowerment in TVET in Sri Lanka

Source	Amount
Japan Fund for Prosperous and Resilient Asia and the Pacific	US$ 3.00 million

Loan 3650-SRI: Skills Sector Enhancement Program - Additional Financing

Source	Amount
Concessional ordinary capital resources lending	US$ 60.00 million

Loan 3651-SRI: Skills Sector Enhancement Program - Additional Financing

Source	Amount
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

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)

Output 1

A total of 305 centers (3-stars-175, 4-stars- 130) have been QIS certified under the quality improvement system for TVEC registered TVET providers.

Human Resource Development Policy and Plan for TVET institutions were developed and adopted since 2014. Revision of both were done in 2017 under the target of comprehensive vocational teacher development policy and plan

A new NVQ operation manual was

introduced in 2016 with some

elements to improve progression between levels and credit transfer system.

The NVQ framework was reviewed in 2019 and the NVQ operation manual is being revised based on the review recommendations.

2019, there were 70.23% of TVET enrollees graduated under the overall target of 80% TVET enrollees including both males and females , however, due to closure of training centers in 2020 the ratios were reduced to 60% (total). In 2021 it was further dropped to 50%

The vocational teacher vacancy ratio was 12.5% across seven implementing agencies as of June 2022. Without DTET.

Output 2

Four ISSCs have been established in four priority areas (ICT, Construction, Manufacturing & Engineering Services and Hospitality & Tourism) to provide workforce planning services to industry groups and the government.

8,426 students have been enrolled for the employment linked training program as of end of Sep 2022.

9 university colleges have been established and in operation including 3 PPP mode university colleges as of Sep 2022.

Note- 1 PPP university college is not in operation currently.

2,683 instructors (94% of academic staff) have attended industry exposure training as of June 2022

All graduates of NVQ level 4-6 have completed on-the job- training (100%).

A cumulative of 1512 industry workers participated skills upgrading training aligned with NVQ as of Sep 2022.

- EA will prepare an action plan to attract private sector employers to train their employees to reach the low rate reported.

Skills forecasting reports were prepared for ICT, Construction, Manufacturing and Automobile sectors. Skills forecast for Tourism sector developed and validation to be done. Health sector report is being done under the preparation of skills forecasting reports for at least six priority sectors.

-15 new/revised programs have been implemented by IAs of SSDP since 2017 on the target of at least training programs updated or developed based on the skills forecasting report.

Output 3

250,690 students have been enrolled for the quality assured TVET as of Dec 2019.

59,356 existing industry workers assessed and certified through recognition of prior learning program as of Sep 2022.

DTET, VTA and CGTTI have provided scholarships and bursaries to 76,011 students between 2014 to 2020- Q3 for students from poor, disadvantaged groups to receive stipends to bridge critical skills gap.

A total of 887 NVQ graduates received SEPI loans during the period of 2017 to 2021.

09 new programs have been developed and implemented; 2051 students have been enrolled up to Dec 2020 to improve employability.

Output 4

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

Annual budget allocations are made in line with SSDP budget to reflect SSDP resource requirement. Performance partnership agreements with Implementing Agencies are signed annually according to the approved budget and action plan.

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

Surveys of public and private sector training providers completed in 2015. District coordination committees strengthened to maximize training capacity across different IAs under the TVET capacity rationalization plan.

As confirmed by AFR, critical findings of contracts were reduced to 16.4% by 2019 reduce significantly negative findings from sample-based procurement review contracts.

For 2020, 98% of annual recurrent budget and 82% capital budget spent.

138 centers have prepared Center Management Plans under the performance-based financing tested in training centers. .

New MIS is yet to be implemented to track graduates' employment data.

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 ADBs 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 ADBs 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.

Contact

Responsible ADB Officer

Halgamage Don, Sudarshana Anojan Jayasundara

Responsible ADB Department

South Asia Department

Responsible ADB Division

Sri Lanka Resident Mission (SLRM)

Executing Agencies

State Ministry of Skills Development, Vocational Education, Research & Innovation (SMSDVERI)

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

14 Dec 2022

Funding

Grant 9193-SRI

Loan 3119-SRI

Loan 3120-SRI

Loan 3650-SRI

Loan 3651-SRI