Sri Lanka: Skills Sector Enhancement Program

Sovereign Project | 42251-018

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
Asian Development Fund US$ 50.00 million
Loan: Skills Sector Enhancement Program
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
Japan Fund for Poverty Reduction US$ 3.00 million
Loan 3650-SRI: Skills Sector Enhancement Program - Additional Financing
Concessional ordinary capital resources lending 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)

243 QIS certified centers as of 30 June 2021 (120, 3-stars and 123, 4-stars).

-EA should give more focus and attention on the balance achievement of 68 QIS centers

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.

As of June 2021, vocational teacher vacancy ratio in training institutions are 22.9% (without DTET) and efforts to recruit, retain and develop vocational teachers are required.

Output 2

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

7,774 students have enrolled as of April 2021 with the participation of private sector under employment-linked training purchase program. -EA will conduct another round of procurement to sign agreements with the training providers to achieve balance 226 before end of the program.

As of June 2021, 9 university colleges are established and in operation including 3 PPP mode university colleges.

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

2,683 instructors have attended industry exposure training as of December 2020. This is an 94% of the total academic staff in all public vocational training institutions.

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

As of June 2021, 1025 industry workers participated skills upgrading training aligned with NVQ.

- EA will prepare an action plan to attract private sector employers to train their employees to reach the low rate reported, however responses are very low due to current situation of COVID-19.

250,690 students have enrolled as of Dec 2019.

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. Revision of training planning and delivery based on the findings of skills forecasting should be scrutinized.

15 new/revised programmes have been implemented by IAs of SSDP since 2017.

Output 3

250,690 students have enrolled as of Dec 2019 for quality assured TVET courses

55,019 existing industry workers were certified as of May 2021 for recognition for prior learning programme.

DTET, VTA and CGTTI have provided scholarships and bursaries to 76,011 students between 2014 to 2020- Q3

Total 880 NVQ graduates received SEPI loans from 2017 to 2020.

09 new training programs were developed and endorsed. 06 programs have been commenced. 02 commenced in 2021 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's originally proposed budget. However, current changes and requirements in the sector require additional public spending.

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 are made annually for implementation of activities.

SSDD produced annual plans up to 2021 and performance reports up to 2020.

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

As confirmed by AFR, critical findings of contracts were reduced to 16.4% by 2019.

For 2020, 98% of annual recurrent budget and 62% capital budget spent.

128 centers have prepared Center Management Plans.

New MIS is yet to be implemented.

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
State Ministry of Skills Development, Vocational Education, Research & Innovation (SMSDVERI)
[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 22 Sep 2021

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 15 Oct 2021 0.00 2.91 97%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 3.00 15 Oct 2021 0.00 0.37 12%

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 15 Oct 2021 50.00 0.00 100%
Counterpart 185.00 Cumulative Disbursements
Cofinancing 127.50 15 Oct 2021 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 15 Oct 2021 46.76 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 15 Oct 2021 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 15 Oct 2021 46.63 0.00 78%
Counterpart 472.50 Cumulative Disbursements
Cofinancing 0.00 15 Oct 2021 46.63 0.00 78%

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 15 Oct 2021 31.09 0.00 78%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 15 Oct 2021 31.09 0.00 78%

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.

Title Document Type Document Datesort descending
Technical Education and Vocational Training Sector Development Project Initial Poverty and Social Analysis Aug 2010
Skills Sector Enhancement Program Reports and Recommendations of the President Mar 2014
Loan Agreement for Skills Sector Enhancement Program - Results-Based Lending Loan Agreement (Ordinary Resources) May 2014
Loan Agreement (Special Operations) for Skills Sector Enhancement Program - Results-Based Lending Loan Agreement (Special Operations) May 2014
Amendment to Loan Agreement (Special Operations) for Loan 3120-SRI: Skills Sector Enhancement Program - Results-Based Lending Loan Agreement (Special Operations) Dec 2015
Skills Sector Enhancement Program: Audited Project Financial Statements (January-December 2014) Audited Project Financial Statements Dec 2015
Skills Sector Enhancement Program: Audited Project Financial Statements (January-December 2015) Audited Project Financial Statements Sep 2016
Skills Sector Enhancement Program: Program Implementation Document Project/Program Administration Manual Jul 2017
Skills Sector Enhancement Program: Audited Project Financial Statements (January-December 2016) Audited Project Financial Statements Jul 2017
Skills Sector Enhancement Program: Audited Project Financial Statements (January-December 2017) Audited Project Financial Statements Aug 2018
Skills Sector Enhancement Program: Audited Project Financial Statements (January-December 2019) Audited Project Financial Statements Nov 2020
Skills Sector Enhancement Program - Additional Financing: Updated Program Implementation Document Project/Program Administration Manual Feb 2021
Skills Sector Enhancement Program: Grant 9193 Audited Project Financial Statements (3 August 2018-31 December 2019) Audited Project Financial Statements Mar 2021

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.


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 | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
DLI TARGET ACHIEVEMENTS FOR DLI6(II) PRIOR RESULTS , DLI9 (I&II) 2019, DLI1 (II) AND DLI6 (I) 2020 Loan 3650 11 Dec 2020 VARIOUS | VARIOUS SRI LANKA Ministry of Industry & Commerce, RPDP & VT & SD 6,000,000.00 6,000,000.00
DLI TARGET ACHIEVEMENTS FOR DLI6(II) PRIOR RESULTS , DLI9 (I&II) 2019, DLI1 (II) AND DLI6 (I) 2020 Loan 3651 11 Dec 2020 VARIOUS | VARIOUS SRI LANKA Ministry of Industry & Commerce, RPDP & VT & SD 4,000,000.00 4,000,000.00
DISBURSEMENT FOR TARGET ACHIEVEMENTS IN 2019 FOR S SEP-DLI2-2019-I,SSEP-DLI2-2019-II,SSEP-DLI3-2019,S SEP-DLI5-2019, SSEP-DLI7-2019 Loan 3650 23 Sep 2020 VARIOUS | VARIOUS SRI LANKA Ministry of Industry & Commerce, RPDP & VT & SD 7,800,000.00 7,800,000.00
DISBURSEMENT FOR TARGET ACHIEVEMENTS IN 2019 FOR S SEP-DLI2-2019-I,SSEP-DLI2-2019-II,SSEP-DLI3-2019,S SEP-DLI5-2019, SSEP-DLI7-2019 Loan 3651 23 Sep 2020 VARIOUS | VARIOUS SRI LANKA Ministry of Industry & Commerce, RPDP & VT & SD 5,200,000.00 5,200,000.00
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 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 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 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 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 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 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 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 4,583,136.00 4,583,136.00

Procurement Plan

None currently available.