Sri Lanka : Skills Sector Enhancement Program - Additional Financing

Education / Technical and vocational education and training

The current Skills Sector Enhancement Program supported SSDP implementation from 2014 to 2016. When the program was approved by the Board in 2014, additional financing of $100 million was envisaged to continue supporting SSDP implementation up to 2020, subject to good performance. The program has been performing well. The program made good progress toward outcome and output targets. The employment rate of TVET graduates increased from 50% in 2012 to 57% in 2015, exceeding the target of 55%. The program exceeded or fully achieved 12 of the 17 output indicators in the design and monitoring framework, and is on track to achieve the remaining indicators. Capacity development activities and risk mitigation measures have been effective in keeping program performance on track. As of December 2017, ADB disbursed 90.5% or $87.0 million out of $96.1 million against 30 out of 33 disbursement-linked indicator (DLI) targets; the remaining targets are on track for achievement.

Beyond the results achievement, the program has clear value addition, by helping stakeholders stay focused on results rather than transactions and inputs. Focusing on results encouraged a spirit of enquiry, a willingness to learn, an openness to try new approaches and, ultimately, a greater sense of ownership of the progress achieved. This was evident in the employment-linked training program for private training providers, the performance allowance scheme for instructors, and the performance-based financing mechanism for selected training centers.

Continued improvement of the TVET system remains the government's top priority, as reflected in the Public Investment Programme, 2017 2020 and Vision 2025. The midterm review of the SSDP confirmed that its scope and key interventions remain technically sound, and ADB's results-based lending (RBL) modality has been effective in supporting the implementation. In the beginning of 2017, the government provided the Skills Sector Development Division (SSDD) under the executing agency, the Ministry of Skills Development and Vocational Training (MSDVT), with more experienced professionals competitively sourced from the market to strengthen the SSDD's capacity and accelerate implementation progress.

The program used DLIs to focus the stakeholders' efforts on critical reform areas, while strengthening program systems in fiduciary management, safeguards, monitoring and evaluation (M&E), and gender and social inclusion. It helped reorient the TVET system to focus on the employment outcome. The additional financing will scale up key interventions and achieve a higher level of outcome and output targets. It will also incorporate new results areas as DLIs to exert more influence over the SSDP. These will help deepen the ongoing reforms and ensure their sustainability beyond the program period. The additional financing will be accompanied by a grant project for women's empowerment and private sector engagement, where the government has started important reforms under the current program but needs to build up experience in successful innovations to gain momentum for larger-scale interventions.

Additional financing is most suitable for this support because the ongoing government program and well-established implementation arrangements promise large efficiency gains. The RBL modality will continue because it effectively promotes critical changes to the TVET system in an adequately phased but flexible manner by focusing on results rather than inputs and transactions. Stakeholders have gained significant experience in the modality. The additional financing builds on current program achievements but with necessary updates reflecting lessons so far. It will enable ADB to effectively support SSDP objectives, improve program systems, and increase their sustainability beyond the program period. The additional financing is included in ADB's country operations business plan, 2018 2020 for Sri Lanka.

Quality of TVET provision improved

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

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

Skills forecasting reports were prepared for ICT and Construction sectors. Preparation of skills gap analysis report for manufacturing sector is in progress.

Progress of development and revision of NCS/curricula based on skills forecast reports and industry demand are as follows,

-15 new/revised programmes developed with inputs of industry partners and ISSCs covering all 4 sectors have been implemented by IAs since 2017. Training of instructors on new/revised NCS/Curricula are being done.

3,826 students (female 10%) have enrolled as of end of August 2019.

As of Dec 2018, , 6 public and 1 PPP University Colleges are in operation

Construction of another university college in Kinniya is in progress.

1,969 instructors (65% of academic staff) have attended industry exposure training as of August 2019.

As of Dec 2017, 31,440 (71%) students were on OJT.

As of August 2019, 169 industry workers participated skills upgrading training aligned with NVQ

2). QMS certified centers 242 cum.

QIS certified centers -121 (fifty-three 3-stars and sixty-eight 4-stars)

A new NVQ operation manual was introduced in 2016 with some elements to improve progression between levels and credit transfer system. NVQ framework has been reviewed by a consultant appointed by ADB under TA.

68.9% of TVET enrollees graduated in 2017 (68.6% male, 69.3% female). 2018 data will be released end of 2019 via Labor Market Information bulletin (LMIB) by TVEC

Human Resource Development Policy and Plan for TVET institutions were developed and adopted since 2014. Revision of both were done in 2017.

Vocational teacher vacancy ratio across all IAs is 29.05% as of August 2019. Without DTET it is 20%.

3. 214,295 students (female 43%) have enrolled as of Dec 2017.

42,194 existing industry workers (female 25%) were certified as of June 2019

DTET, VTA and CGTTI have provided scholarships and bursaries to 47,200 students between 2014-2016 and 22,093 from 2017-2019 Jan.

325 NVQ graduates (70% females) received SEPI loans in 2017 and 272 (62%) in 2018. Total is 597 (female 66%) up to 2018.

Two new programs were developed and endorsed. Training will be commenced from 2020.

4. Inter-ministerial Committee developed Sri Lanka's first TVET plan which was approved by the National Department of Planning.

SSDD produced annual plans and performance up to 2019 and 2018 respectively.

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

For 2018, 98% of annual recurrent budget and 95% capital budget spent.

Annual budget allocations are made in line with SSDP budget. Performance partnership agreements with implementing agencies are signed annually according to the approved budget and action plan.

As of 2018, 86 centers adopted PBF model (including 21 VTA centers).

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

Graduate tracking module was developed, and circular was issued to all IAs. The module is being piloted by VTA and DTET.

Critical findings of contracts were reduced to 40% by 2017.