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Country Operations Business Plan

September 2016

Sri Lanka 2017–2019

This document is being disclosed to the public in accordance with ADB's Public Communications Policy 2011.

CURRENCY EQUIVALENTS (as of 23 September 2016)

Currency unit – Sri Lanka rupee/s (SLRe/SLRs)

SLRe1.00 = $0.00675 $1.00 = SLRs148.10

ABBREVIATIONS

ADB – Asian Development Bank ADF – Asian Development Fund CPS – country partnership strategy GDP – gross domestic product OCR – ordinary capital resources SMEs – small and medium-sized enterprises TA – technical assistance UNP – United National Party

NOTES

(i) The fiscal year of the Government of Sri Lanka ends on 31 December. (ii) In this report, "$" refers to US dollars.

Vice-President W. Zhang, Operations 1 Director General H. Kim, South Asia Department (SARD) Director S. Widowati, Sri Lanka Resident Mission, SARD Team leader T. Hayashi, Senior Country Economist, SARD Team members Sri Lanka country team

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.

CONTENTS Page

I. CONSISTENCY OF BUSINESS PLAN WITH COUNTRY PARTNERSHIP STRATEGY 1

II. INDICATIVE RESOURCE PARAMETERS 3

III. SUMMARY OF CHANGES TO LENDING AND NONLENDING PROGRAMS 3

APPENDIXES 1. Country Assistance Results Areas 5

2. Indicative Assistance Pipeline 8

3. Assistance Program For Current Year 13

4. Indicative Knowledge Publications And Events 15

1

I. CONSISTENCY OF BUSINESS PLAN WITH COUNTRY PARTNERSHIP STRATEGY

1. This document is presented as an enhanced country operations business plan to extend the interim country partnership strategy (CPS), 2015–2016 until a new CPS is approved in 2017.1 The strategic thrusts under the interim CPS are valid and in line with the development direction of the Government of Sri Lanka.

2. Political development. Sri Lanka’s new government was formed after the presidential election in January 2015. President Maithripala Sirisena appointed Mr. Ranil Wickremesinghe, the leader of the United National Party (UNP), as Prime Minister. President Sirisena based his election campaign on good governance, upholding law and order, eliminating corruption, trimming the powers of the executive presidency, and granting more power to the Parliament. As part of President Sirisena’s 100-day program, the Parliament passed the 19th amendment to the Constitution of Sri Lanka in April 2015, which curtailed the power of the President by reinstating the Constitutional Council, reintroducing a two-term limit, and reducing each term from 6 years to 5 years.

3. When UNP emerged as the winner at the parliamentary elections in August 2015, Mr. Wickremesinghe again took oath as Prime Minister. Subsequently, UNP and the President’s Sri Lanka Freedom Party formed a coalition government. The two parties signed a memorandum of understanding covering 10 points of agreement on economic development, establishing freedom, anticorruption, improving education and health, international relations, and women’s and children’s rights, and others.

4. Economic development. Sri Lanka economy continued the modest growth at 4.8% in 2015 following the slowdown from the post-conflict boom to 3.4% and 4.9% in 2013 and 2014. The growth in 2015 was led by private and government consumption, while investment remained weak due to political transition and uncertainty. Growth in the first quarter of 2016 was 5.5%, with construction showing signs of recovery. Growth in 2016 is expected to be stronger than in 2015, with improved investments and continued good performance in services.

5. The new government introduced a monthly allowance for public servants and higher social security transfers, which widened the fiscal deficit to 7.2% of gross domestic product (GDP) in 2015. The government incorporated tax proposals to boost revenue in the 2016 budget, but the implementation of major tax reforms was deferred in January 2016. The Cabinet approved some of the amendments in March 2016, including (i) increasing the value-added tax (VAT) rate from 11% in 2015 to 15% while keeping the nation building tax rate at 2%; (ii) introducing a capital gains tax; and (iii) increasing the statutory personal income tax rate from 15.0% to 17.5%. The VAT rate increase was implemented in May 2016 but suspended in July 2016 until relevant legislation is passed by the parliament.

6. The balance of payments has been under stress because of weak exports, slowing workers’ remittances, and capital outflow. In September 2015, the Central Bank ceased its intervention to support the Sri Lankan rupee, which depreciated against the US dollar by 9% in 2015. Gross international reserves decreased from $9.2 billion (6.1 months of imports) in June 2014 to $5.6 billion (3.6 months of imports) in May 2016. Inflation accelerated as well, with the rate of both food and non-food inflation steadily increasing since February 2016. Monetary policy was tightened to contain inflationary pressures in 2016 with policy rates increase by 0.5% each in February and July. In June 2016, the International Monetary Fund approved a $1.5 billion extended fund facility for the next 3 years to help the Government of Sri Lanka reverse the declining trend in the revenue-to-GDP ratio and ease pressure on the balance of payments.

1 Asian Development Bank (ADB). 2015. Interim Country Partnership Strategy: Sri Lanka, 2015–2016. Manila.

2

7. The government’s development directions. The Prime Minister presented the government’s development policy statement in the Parliament in November 2015. The statement identified five development goals: (i) generating 1 million job opportunities; (ii) enhancing income levels; (iii) developing rural economies; (iv) ensuring land ownership in the rural and estate sectors, and for the middle class and government employees; and (v) creating a wide and strong middle class. Prime Minister Wickremesinghe emphasized the importance of refocusing on the external sector and fiscal consolidation by strengthening revenue collection. Reforms will focus on (i) creating the foundation to enter the global value chain, (ii) encouraging small- and large-scale farmers and entrepreneurs to participate in the global economy, (iii) encouraging foreign investors, both public and private, to invest in Sri Lanka, and (iv) digitizing the economy. The government has prioritized education and skills development to build the necessary knowledge and competence. It has committed to increase expenditure on education and is focused on reforming the system to increase the productivity of the population. Schools will be provided with facilities and access to digital resources to improve knowledge.

8. The government has chosen the Western Province, particularly Colombo, as a key thrust area for achieving the development goals (para. 7). The Western Region Megapolis master plan, released in February 2016, provides a conceptual strategy for the structural transformation of the economy, where the manufacturing sector and high-tech tradable services would comprise the major component of the economy and exports would account for at least one-third of GDP. It plans for the spatial transformation of the Western Region and development of the area as a gateway to the global supply chain.2

9. The government is finalizing its Public Investment Programme which will present how capital expenditure will be allocated during 2017–2020. It also describes the development goals and objectives and explains how the development process will be carried forward over the medium term.

10. ADB response. The Asian Development Bank (ADB) has been adjusting operations in Sri Lanka to align them with the evolving needs of the country and the priorities of the new government. The interim CPS, 2015–2016 brought the agriculture and natural resources sector into the program. The Mahaweli Water Security Investment Program was approved in 2015.3 The country operations business plan, 2016–2018 increased the allocation for the education sector to strengthen support for human capital development, and included assistance for higher education in addition to secondary education and skills development.4 A line of credit to support small and medium-sized enterprises (SMEs) was approved in 2016 to support the government’s efforts toward inclusive growth.5

11. In the transport sector, ADB will continue to support the integration of rural areas into the main road network, while expanding ADB assistance to expressways, railways, and ports. With 100% rural electrification expected to be achieved in 2021, ADB’s intervention in the energy sector will focus more on developing renewable energy and strengthening the stability and reliability of power supply. ADB will continue support for secondary education and technical vocational education and training, while entering into tertiary education with a focus on science

2 The Western Region consists of several districts including: Gampaha in the north, Colombo in the middle and

Kalutara in the south and some parts of Rathnapura, Kegalle and Galle. Government of Sri Lanka, Ministry of Megapolis and Western Development. 2016. The Megapolis Western Region Master Plan – 2030, Sri Lanka: From Island to Continent.

3 ADB. Sri Lanka: Mahaweli Water Security Investment Program. http://www.adb.org/projects/47381-001/main.

4 ADB will explore support for the health sector under the new CPS to be approved in 2017. ADB. 2015. Country

Operations Business Plan: Sri Lanka, 2016–2018. Manila. 5 ADB. Sri Lanka: Small and Medium-Sized Enterprises Line of Credit Project. http://www.adb.org/projects/49273-

001/main.

3

and technology faculties, industry links and entrepreneurship, and reforms in higher education to provide the basis for the knowledge economy.

12. Further, in conjunction with the International Monetary Fund’s extended fund facility (para. 6), the Capital Market Development Program was added into the 2016 pipeline. The program aims to boost the capacity and efficiency of the capital markets to mobilize additional financing for the private sector in Sri Lanka. In February 2016, ADB also entered into its first transaction advisory service agreement for the East Container Terminal of Colombo Port. 6 Appendix 1 summarizes the key areas of ADB assistance against Government development outcomes from 2017 to 2019 and highlights the changes from the last COBP.

II. INDICATIVE RESOURCE PARAMETERS

13. Appendix 2 and 3 list the indicative projects from 2017 to 2019 and the projects that are to be approved in 2016. Sri Lanka is eligible for concessional and regular ordinary capital resources (OCR) lending.7 The indicative resources available during 2017–2019 for sovereign operations amount to $1,845.49 million, comprising $545.49 million for concessional OCR and $1,300.00 million for regular OCR. The final concessional OCR allocation will depend on available resources and the outcome of the country performance assessments. Cofinancing and funding from other sources, including the regional pool under concessional resources and the OCR set-aside for regional cooperation and integration, will be explored.

14. In view of Sri Lanka’s high absorptive capacity and the larger financial resources available following the merger of the Asian Development Fund lending operations with the OCR balance sheet, ADB’s assistance program for 2017–2019 will scale up to about $2.42 billion, which is above the indicative resource allocation. Substantial over-programming is included to build a strong pipeline of projects which can be considered for ADB financing once high-readiness criteria are met, and when additional lending resources become available as a result of the merger of Asian Development Fund lending resources with the OCR balance sheet. The nonlending program for 2017–2019 includes $8.15 million of technical assistance (TA) projects (technical assistance special fund of $7.15 million and other source of $1.0 million) that will support capacity development and project preparation. Knowledge publications and events are listed in Appendix 4 which includes ongoing support for Colombo Trincomalee Economic Corridor Study.

III. SUMMARY OF CHANGES TO LENDING AND NONLENDING PROGRAMS

15. Agriculture. The Northern Province Sustainable Fisheries Development Project is added to the 2017 pipeline to help revive the fisheries sector in four conflict-affected coastal districts: Jaffna, Killinochchi, Mannar, and Mullaitivu. The project will finance the development of fishery harbors and rehabilitate other related infrastructure to develop sustainable aquaculture. A project design advance is being prepared in 2016 to formulate the detailed design and to support advance contracting to improve project readiness. A TA loan for preparing phase 2 of the Mahaweli Water Security Investment Program is planned for 2018, that will complete outstanding investments in the Mahaweli Development Program and will modernize irrigation scheme in dry zones to cascade water transferred by canals constructed under phase 1.

16. Education. The proposed Science and Technology Human Resource Development Project shifted from 2017 to 2018. The project will explore possibilities in supporting technology faculties at selected universities and establishing a new technology university through a public–

6 ADB. 2016. ADB to Help Sri Lanka Expand Colombo Port Operations Using PPP. News release. 23 February.

7 Terminology reflects the combination of the Asian Development Fund lending operations with the OCR balance

sheet that will take effect on 1 January 2017.

4

private partnership. The Second Education Sector Development Program, which continues ADB’s support for the government’s program of transforming the school education system to create a human capital base for a knowledge economy, shifted from 2018 to 2019 standby.

17. Energy. The Wind Power Generation Project is advanced to 2017. It will construct a wind power generation plant in Mannar that will serve as a benchmark for further development of wind power generation by the private sector. The Strengthening Transmission Stability, Reliability, and Protection Project is planned for 2018. Project preparatory TA will identify the most urgent system-protecting actions to be taken for the project. The Distribution Automation and Metering Project is included in the 2019 standby pipeline to establish modern supervisory control and data acquisition distribution systems for remote monitoring and control in all power distribution regions, and to replace old static meters with new digital meters. The TA loan to prepare the Power Development and Interconnection Project shifted from 2017 to standby in 2018 and 2019, and will explore the opportunity to support power trade with India.

18. Finance. The Disaster Risk Financing Program is included as standby in 2017 and 2018 to improve the government’s financial preparedness for disasters. An ongoing capacity development TA will strengthen the ability of regional plantation companies and SMEs to access private investment from capital markets. 8 Another capacity development TA for Cluster Development and Small and Medium-Sized Enterprise Finance Innovation explores the introduction of an SME credit guarantee.9 The $150 million Solar Rooftop Investment Program was added to the 2018 standby and 2019 firm pipeline to promote renewable energy development in Sri Lanka through a line of credit. The Strengthening Public–Private Partnership Capacity in Board of Investment TA was turned into the Establishing an Economic Management Bureau TA to enhance policy coordination capacity in the government.

19. Transport. The Second Integrated Road Investment Program is included in the pipeline to expand the geographic coverage of the ongoing investment program into Northern, Eastern, and Uva provinces, and part of Western Province. Tranche 1 is programmed for 2017 and tranche 2 is scheduled for 2019. The South Asia Subregional Economic Cooperation Port Access Road Project, which has a regional integration component, is also newly added in 2018, and is on standby in 2017. The South Asia Subregional Economic Cooperation Expressway Connectivity Investment Program is rescheduled as standby in 2019 to ensure project readiness. The modality for the proposed assistance to the railway subsector was changed from an OCR loan to a multitranche financing facility to reflect ADB’s long-term commitment and was renamed Colombo Suburban Railway Investment Program. The first tranche of $100 million is planned for 2018 (standby in 2017).

20. Urban. The additional financing for the Jaffna and Kilinochchi Water Supply and Sanitation Project is programmed in 2017 to finance cost overruns and the construction of a desalination plant. The additional financing for the Greater Colombo Water and Wastewater Management Improvement Investment Program is scheduled for 2019 (standby in 2018) to expand the scope.

21. Nonsovereign Operations. ADB will continue to explore opportunities to partner with the private sector and to promote expansion of transport, energy, telecommunication, financial sector, trade, health and agriculture.

8 ADB. Sri Lanka: Mobilizing Finance for Sri Lanka. http://www.adb.org/projects/49426-001/main.

9 ADB. 2016. Report and Recommendation of the President to the Board of Directors: Proposed Loan and

Administration of Technical Assistance Grant to the Democratic Socialist Republic of Sri Lanka for the Small and Medium-Sized Enterprises Line of Credit Project. Attached Technical Assistance (accessible from the list of linked documents in Appendix 2). Manila.

Appendix 1 5

COUNTRY ASSISTANCE RESULTS AREAS

Key Country Development Outcomes that ADB Contributes to

ADB

Key Areas of Assistance Indicative Resource

Allocation in 2017–2019 Changes from Last COBP 1. Agriculture and Natural Resources Increased water availability for the agriculture and drinking water Increased agricultural productivity Increased fish production

Water resource infrastructure development Introduction of water-saving irrigation technologies and agriculture support services Capacity building for integrated water resource management Coastal fisheries infrastructure developed Expansion of aquaculture

Amount: $396.96 million Share of COBP envelope: 16%

The PDA for the Northern Province Sustainable Fisheries Development Project is added to 2016 and its ensuing loan is added to 2017. The TA loan for preparing the Mahaweli Water Security Investment Program, Phase 2 is added to 2018. The Revival of Rural Economy Project is added as standby in 2019.

2. Education Progressive education and skills development systems that create a human capital base required for continuous economic growth More equitable access to education and skills development of high relevance to labor market

Improved quality and relevance of secondary education for all Improved quality and relevance of skills development for new and existing workforce Increased human resources from science and technology disciplines in higher education

Amount: $200 million Share of COBP envelope: 8%

The Science and Technology Human Resource Development Project is moved from 2017 to 2018. The Second Education Sector Development Program is moved from 2018 to standby in 2019.

3. Energy Improved provision of electricity services through sustainable development and efficient use of energy resources

Renewable energy generation (wind) Electricity transmission and distribution


The Wind Power Generation Project is advanced from 2017 standby/2018 firm to firm in 2017. The Strengthening Transmission Stability, Reliability, and Protection Project is included in

Appendix 1

6


ADB


Allocation in 2017–2019 Changes from Last COBP Energy sector development and institutional reform (including cross-border power trade and PPP support)

2018. The Distribution Automation and Metering Project is included in 2019 standby. The TA loan for the Preparing Power Development and Interconnection Project is moved from 2017 to standby in 2018 and 2019.

4. Finance

Ability of RPCs and SMEs to access private investment from capital markets strengthened

Finance sector development


The Disaster Risk Financing Program is included as standby for 2017 and 2018. The Solar Rooftop Investment Program is included in 2018 (standby) and 2019.

5. Transport

Improved transport connectivity to the economic zones across the country and in the region

Road network development Urban railway transport system improvement Port infrastructure development


The Second Integrated Road Investment Program is added to 2017, with tranche 2 in 2019. The Integrated Road Investment Program, Tranche 5 is added to 2019. The South Asia Subregional Economic Cooperation Port Access Road Project is added to 2017 (standby) and 2018. The South Asia Subregional Economic Cooperation Expressway Connectivity Investment Program is moved from 2017 to standby in 2019. The Colombo Suburban Railway Electrification Project is renamed Colombo Suburban Railway Investment Program and its modality changed from OCR loan to MFF, and is added to 2018.

6. Water and Other Urban Infrastructure and Services

Total population has better access to drinking water and sanitation

Drinking water and sanitation systems


Additional financing for the Jaffna and Kilinochchi Water Supply and Sanitation Project is moved from 2016 to 2017.

Appendix 1 7


ADB


Allocation in 2017–2019 Changes from Last COBP Additional financing for the Greater Colombo Water and Wastewater Management Improvement Investment Program is added to 2019.

ADB = Asian Development Bank, COBP = country operations business plan, MFF = multitranche financing facility, OCR = ordinary capital resources, PDA = project design advance, PPP = public–private partnership, RPC = regional plantation company, SMEs = small and medium-sized enterprises, TA = technical assistance. Source: Asian Development Bank.

8 Appendix 2

INDICATIVE ASSISTANCE PIPELINE

Table A2.1: Lending Products, 2017–2019

Project/Program Name Sector Poverty

Targeting

Strategic Agendas

and Drivers of Change Division

Year of PPTA/ PDA

Cost ($ million)

Total

ADBa

Gov’t Co-

finance Regular

OCR Concessional

OCR ADF

Grants Total

2017 Firm Wind Power Generation

Project ENE ESG, GCD,

KNS, PAR SAEN 2016 200.00 200.00 200.00

Mahaweli Water Security Investment Program (tranche 2)

ANR ESG, GCD, KNS, PAR

SAER 2016 285.00 105.00 25.00 130.00 155.00

Skills Sector Enhancement Program (additional financing

EDU GEM, GCD, PSD

SAHS 100.00 30.00 70.00 100.00

Second Integrated Road Investment Program (tranche 1)

TRA ESG, GCD, IEG, GEM,

PSD

SATC 100.00 100.00 100.00

Jaffna and Kilinochchi Water Supply and Sanitation Project (additional financing)

WUS ESG, GEM, PAR

SAUW 2010 100.00 75.00 25.00 100.00

Northern Province Sustainable Fisheries Development Project

ANR TI-G ESG, GEM, GCD, IEG, PAR, PSD

SLRM 63.13 63.13 63.13

Total 848.13 510.00 183.13 693.13 155.00

2017 Standby

Disaster Risk Financing Program

PSM ESG, GCD, KNS

SAPF 100.00 100.00 100.00

Integrated Road Investment Program (tranche 4)


PSD

SATC 200.00 149.00 51.00 200.00

Colombo Suburban Railway Investment Program (tranche 1)

TRA GCD, PAR

SATC 100.00 100.00 100.00

South Asia Subregional Economic Cooperation Port Access Road Project

TRA RCI

SATC 200.00 200.00 200.00

Total 600.00 549.00 51.00 600.00

2018 Firm Strengthening Transmission Stability, Reliability, and Protection Project

ENE GCD, KNS SAEN 2017 200.00 200.00 200.00

Appendix 2 9


Targeting

Strategic Agendas


Year of PPTA/ PDA

Cost ($ million)

Total

ADBa

Gov’t Co-

finance Regular

OCR Concessional

OCR ADF

Grants Total

Science and Technology Human Resource Development Project

EDU GEM, GCD SAHS 2017 100.00 100.00 100.00



PSD

SATC 200.00 149.00 51.00 200.00

South Asia Subregional Economic Cooperation Port Access Road Project

TRA RCI SATC 200.00 200.00 200.00

Colombo Suburban Railway Investment Program (tranche 1)

TRA GCD, PAR SATC 100.00 100.00 100.00

Mahaweli Water Security Investment Program, Phase 2 (TA loan)

ANR ESG SAER 30.83 30.83 30.83

Total 830.83 649.00 181.83 830.83

2018 Standby Mahaweli Water Security

Investment Program (tranche 3)


SAER 2016 173.00 173.00 173.00

Disaster Risk Financing Program

PSM ESG, GCD, KNS

SAPF 100.00 100.00 100.00

Solar Rooftop Investment Program

FIN ESG SAPF 150.00 150.00 150.00

Second Integrated Road Investment Program (tranche 2)


PSD

SATC 200.00 200.00 200.00

Greater Colombo Water and Wastewater Management Improvement Investment Program (additional financing)

WUS ESG, GEM, GCD, PAR

SAUW 2012 230.00 180.00 180.00 50.00 (EIB)

Preparing Power Development and Interconnection Project (TA loan)

ENE RCI, KNS SAEN 10.00 10.00 10.00

Total 863.00 803.00 10.00 813.00 50.00

2019 Firm Mahaweli Water Security



SAER 2016 173.00 173.00 173.00

Solar Rooftop Investment FIN ESG SAPF 150.00 150.00 150.00

10 Appendix 2


Targeting

Strategic Agendas


Year of PPTA/ PDA

Cost ($ million)

Total

ADBa

Gov’t Co-

finance Regular

OCR Concessional

OCR ADF

Grants Total

Program Second Integrated Road



PSD

SATC 200.00 100.00 100.00 200.00

Greater Colombo Water and Wastewater Management Improvement Investment Program (additional financing)

WUS ESG, GEM, GCD, PAR

SAUW 2012 230.00 180.00 180.00 50.00 (EIB)



PSD

SATC 193.00 111.17 81.83 193.00

Total 946.00 714.17 181.83 896.00 50.00

2019 Standby Distribution Automation and Metering Project

ENE ESG, GCD, KNS

SAEN 200.00 200.00 200.00

Revival of Rural Economy Project

ANR TI-G ESG, GCD SAER 60.00 60.00 60.00

Second Education Sector Development Program

EDU GEM SAHS 2017 200.00 80.00 120.00 200.00

South Asia Subregional Economic Cooperation Expressway Connectivity Investment Program (tranche 1)

TRA RCI SATC 200.00 200.00 200.00

Preparing Power Development and Interconnection Project (TA loan)

ENE RCI, KNS SAEN 10.00 10.00 10.00

Total 670.00 480.00 190.00 670.00

ADB = Asian Development Bank; ADF = Asian Development Fund; ANR = agriculture, natural resources, and rural development; EDU = education; EIB = European Investment Bank; ENE = energy; ESG = environmentally sustainable growth; FIN = finance; GCD = governance and capacity development; GEM = gender equity and mainstreaming; Gov’t = government; IEG = inclusive economic growth; KNS = knowledge solutions; OCR = ordinary capital resources; PAR = partnerships; PDA = project design advance; PPTA = project preparatory technical assistance; PSD = private sector development; PSM = public sector management; RCI = regional integration; SAEN = Energy Division, South Asia Department; SAER = Environment, Natural Resources and Agriculture Division, South Asia Department; SAHS = Human and Social Development Division, South Asia Department; SAPF = Public Management, Financial Sector, and Trade Division, South Asia Department; SATC = Transport and Communications Division, South Asia Department; SAUW = Urban Development and Water Division, South Asia Department; SLRM = Sri Lanka Resident Mission; TA = technical assistance; TI-G = targeted intervention—geographic dimensions of inclusive growth; TRA = transport; WUS = water supply and other urban infrastructure and services. a

Reflecting the approved combination of the ADF lending operations with the OCR balance sheet that will become effective on 1 January 2017.

Source: Asian Development Bank.

Appendix 2 11

Table A2.2: Nonlending Products and Services, 2017–2019

Assistance Name Sector Division Assistance

Type

Sources of Funding

ADB Others

Total

($'000) Source Amount


($'000) 2017 Firm Second Human Capital Development Capacity

and Implementation Support EDU SAHS CDTA TASF 1,250 1,250

Attached TA for Jaffna and Kilinochchi Water Supply Project (additional financing)

WUS SAUW CDTA TASF 600 600

Strengthening Transmission Stability, Reliability, and Protection Project

ENE SAEN PPTA TASF 1,500 1,500

Institutional Strengthening of Expressway Operations and Management

TRA SATC CDTA TBD 1,000 1,000

Total 3,350 1,000 4,350

2017 Standby Capacity Building for Disaster Risk Financing

(attached TA to Disaster Risk Financing Program)

FIN SAPF CDTA TASF 500 500

Disaster Risk Reduction for Rural Communities (attached grant to Disaster Risk Financing Program)

FIN SAPF CDTA TBD 3,000 3,000

Establishing an Economic Management Bureau PSM SLRM CDTA TASF 500 500 Total 1,000 3,000 4,000

2018 Firm Preparing Distribution Automation and Metering

Project ENE SAEN PPTA TASF 1,000 1,000

Revival of Rural Economy Project ANR SAER PPTA TASF 800 800 Institutional Strengthening of Sri Lanka

Railways TRA SATC CDTA TASF 1,000 1,000

Total 2,800 2,800

2018 Standby Attached TA for Greater Colombo Water and

Wastewater Management Improvement Investment Program (additional financing)

WUS SAUW CDTA TASF 1,000 1,000

Capacity Building for Disaster Risk Financing (attached TA to Disaster Risk Financing Program)

FIN SAPF CDTA TASF 500 500

Disaster Risk Reduction for Rural Communities (attached grant to Disaster Risk Financing Program)

FIN SAPF CDTA TBD 3,000 3,000

12 Appendix 2


Type

Sources of Funding

ADB Others

Total



($'000) Total 1,500 3,000 4,500

2019 Firm Attached TA for Greater Colombo Water and

Wastewater Management Improvement Investment Program (additional financing)

WUS SAUW CDTA TASF 1,000 1,000

Total 1,000 1,000

2019 Standby Attached TA for Second Education Sector

Development Program EDU SAHS CDTA TASF 2,000 2,000

Total 2,000 2,000

ADB = Asian Development Bank; ANR = agriculture, natural resources, and rural development; CDTA = capacity development technical assistance; EDU = education; ENE = energy; FIN = finance; PPTA = project preparatory technical assistance; PSM = public sector management; SAEN = Energy Division, South Asia Department; SAER = Environment, Natural Resources and Agriculture Division, South Asia Department; SAHS = Human and Social Development Division, South Asia Department; SAPF = Public Management, Financial Sector, and Trade Division, South Asia Department; SATC = Transport and Communications Division, South Asia Department; SAUW = Urban Development and Water Division, South Asia Department; SLRM = Sri Lanka Resident Mission; TA = technical assistance; TASF = Technical Assistance Special Fund; TBD = to be determined; TRA = transport; WUS = water and other urban infrastructure and services. Source: Asian Development Bank.

Appendix 3 13

ASSISTANCE PROGRAM FOR CURRENT YEAR

Table A3.1: Lending Products, 2016


Targeting

Strategic Agendas


Year of

PPTA/ PDA

Cost ($ million)

Totala

ADB

Gov’t Co-

finance OCR

ADF

Total Loans Grants

Firm Supporting Electricity

Supply Reliability Improvement Project

ENE ESG, GCD, PAR, GEM

SAEN 2015 118.80 115.00 115.00 2.00 (JFPR)

1.80 (CEFPF)

Green Power Development and Energy Efficiency Improvement Investment Program (tranche 2)

ENE ESG, GCD, KNS, PAR

SAEN 180.00 95.00 55.00 150.00 30.00 (AFD)

Small and Medium-sized Enterprises Line of Credit Project

FIN ESG, GCD, GEM,

KNS,PAR, PSD

SAPF 100.00 100.00 100.00

Capital Market Development Program

FIN GCD, KNS, PAR, PSD

SAPF 2016 250.00 250.00 250.00

Transport Project Preparatory Facility

TRA GCD, IEG SATC 24.42 24.42 24.42

Local Government Enhancement Sector Project (additional financing)

WUS TI-G GCD, IEG, KNS

SAUW 60.00 60.00

60.00

Northern Province Sustainable Fisheries Development Project (PDA)

b

ANR TI-G ESG SLRM 1.30 1.30

1.30

Total 733.22b 560.00 139.42

b 699.42

b 33.80

ADB = Asian Development Bank, ADF = Asian Development Fund, AFD = Agence Française de Développement, ANR = agriculture, natural resources, and rural development; CEFPF = Clean Energy Financing Partnership Facility; ENE = energy; ESG = environmentally sustainable growth; FIN = finance; GCD = governance and capacity development; GEM = gender equity and mainstreaming; Gov’t = government; IEG = inclusive economic growth; JFPR = Japan Fund for Poverty Reduction; KNS = knowledge solutions; OCR = ordinary capital resources; PAR = partnerships; PDA = project design advance; PPTA = project preparatory technical assistance; PSD = private sector development; SAEN = Energy Division, South Asia Department; SAPF = Public Management, Financial Sector, and Trade Division, South Asia Department; SATC = Transport and Communications Division, South Asia Department; SAUW = Urban Development and Water Division, South Asia Department; SLRM = Sri Lanka Resident Mission; TI-G = targeted intervention—geographic dimensions of inclusive growth; TRA = transport; WUS = water and other urban infrastructure and services. a The total cost and total financing do not tally because of the PDA estimated at $1.3 million, which will be refinanced by the ensuing loan scheduled for 2017.

b The PDA will be refinanced by the ensuing concessional OCR loan for the Northern Province Sustainable Fisheries Development Project for 2017.

Source: Asian Development Bank.

14 Appendix 3

Table A3.2: Nonlending Products and Services, 2016


Type

Sources of Funding

ADB Others

Source Amount


($'000) Total

($'000) Capital Market Development Program FIN SAPF PPTA TASF 500 500 Capital Market Development Program (attached

TA) FIN SAPF CDTA TASF 750 FSDPSF,

RKEKPF 1,250 2,000

Cluster Development and Small and Medium-Sized Enterprise Finance Innovation (attached TA)

FIN SAPF CDTA JFPR 2,000 2,000

Preparing Wind Power Generation Project ENE SAEN PPTA CEFPF 2,000 2,000 Mobilizing Finance for Sri Lanka FIN SAPF CDTA FSDPSF 500 500 National Port Master Plan TRA SATC PATA JFPR 1,500 1,500

Total 1,250 7,250 8,500

ADB = Asian Development Bank; CDTA = capacity development technical assistance; CEFPF = Clean Energy Financing Partnership Facility; ENE = energy; FIN = finance; FSDPSF = Financial Sector Development Partnership Special Fund; JFPR = Japan Fund for Poverty Reduction; PATA = policy and advisory technical assistance; PPTA = project preparatory technical assistance; RKEKPF = Republic of Korea e-Asia and Knowledge Partnership Fund; SAEN = Energy Division, South Asia Department; SAPF = Public Management, Financial Sector, and Trade Division, South Asia Department; SATC = Transport and Communications Division, South Asia Department; TA = technical assistance; TASF = Technical Assistance Special Fund; TRA = transport. Source: Asian Development Bank.

Appendix 4 15

INDICATIVE KNOWLEDGE PUBLICATIONS AND EVENTS

Table A4.1: Knowledge Publications and Events for 2017

Title of Publication or Event Subject Type

Department or Sector Group or Thematic

Group Technical

Assistance

Gender Equality Results Case Studies on SARD Projects Gender Publication and documentation

SARD

Economic Corridor Study for Sri Lanka Industry and trade Publication and documentation

SARD

Training material for policy makers, insurance supervisors, and other insurance stakeholders

Finance Publication and documentation

SDCC

Diagnostic studies conducted (two countries per theme) using diagnostic tool kits and recommendations for proposed policy reforms

Finance Publication and documentation

SDCC

Tool kits on disaster risk financing Finance Publication and documentation

SDCC

Asia SME Finance Monitor Finance, industry, and trade

Publication and documentation

SDCC

Gender-based research on trends in gender mainstreaming in ADB priority sectors

Gender Publication and documentation

SDCC

Progress Report (2016–2017) on the MDB Working Group on Sustainable Transport

Transport Publication and documentation

SDCC

In-country workshops, lateral learning workshops and/or peer-to-peer exchanges on GAP implementation, monitoring, and reporting on gender equality results

Gender Event organization SDCC

Launch Asia SME Finance Monitor Seminar Finance, industry, and trade

Event organization SDCC

Asia Clean Energy Forum 2017 Energy Event organization SDCC 2017 workshop on effective CSO engagement for SARD Training or capacity

development SDCC

Sri Lanka country diagnostic study (including Sri Lanka employment diagnostic study)

Economics Publication and documentation

ERCD

Sri Lanka country diagnostic study on long-term care Social development and health


EARD and SDCC

Total number of publications = 10 Total number of events = 4

ADB = Asian Development Bank, CSO = civil society organization, EARD = East Asia Department, ERCD = Economic Research and Regional Cooperation Department; GAP = gender action plan, MDB = Multilateral Development Bank, SARD = South Asia Department, SDCC = Sustainable Development and Climate Change Department, SMEs = small and medium-sized enterprises. Note: “Publications” may include databases, multimedia, and other forms of documentation. “Events” may include event organization and training or capacity development. Source: Asian Development Bank.

16 Appendix 4

Table A4.2: Additional Knowledge Publications and Events in 2016


Department or Sector Group or Thematic Group

Technical Assistance

Subregional Conference: Going Beyond the Meter: Inclusive Energy Solutions in South Asia

Energy, gender Event organization SARD

SARD Forum: Let's Talk Shop Capacity development Event organization SARD Sri Lanka: Second National Workshop on Customs Valuation Regional

cooperation and integration, capacity development

Training or capacity development

SARD

SAARC–ADB Second Special Meeting on Regional Economic Integration (Phase II)

Regional cooperation and integration

Event organization SARD

Trade and Transport Facilitation Monitoring Mechanism: Baseline Study Meeting

Regional cooperation and integration

Event organization SARD

Wastewater Tariff and Public–Private Participation Urban development, private sector


SARD

Power Sector Regulation: Lessons from Sri Lanka Energy Publication and documentation

SARD

Gender Assessment Gender Publication and documentation

SARD

Cross-Border Electricity Generation, Transmission, and Trading: A Vision for South Asia

Energy Publication and documentation

SARD

Report on Preliminary Findings of ADB Study on Energy Technology Innovation in South Asia and Implications for Inclusive Energy Solutions

Energy Publication and documentation

SARD

Remittances for Development for Asia Finance Publication and documentation

SARD

Results of the Study on Inclusive Energy Solutions in South Asia: A Study on Gender Implications of Energy Technology Innovation (background paper prepared for the Subregional Workshop and/or Conference on Gender and Energy)

Energy, gender Publication and documentation

SARD

Together We Deliver 2015: Partnerships Against Poverty Multi-sector Publication and documentation

SARD, CWRD, EARD

International Urban Health Conference Health, urban development Event organization SDCC Asia-Pacific Youth Exchange Capacity development Training or capacity

development SDCC

How Inclusive is Inclusive Business for Women?—Review of 13 Companies in Asia and Latin America

Gender, poverty, social development and protection, private sector


SDCC

Sri Lanka Women Come Together in Producer Groups to Assemble LED Bulbs

Gender Publication and documentation

SDCC

Shaping Our Technological Futures ICT Publication and documentation

SDCC

Appendix 4 17


Department or Sector Group or Thematic Group

Technical Assistance

Improving Gender-Inclusive Access to Clean and Renewable Energy in Bhutan, Nepal, and Sri Lanka

Gender, energy Publication and documentation

SDCC

ADB Economics Working Paper Series No. 476: In Search of a Better Match: Qualification Mismatches in Developing Asia

Economics Publication and documentation

ERCD

Sri Lanka country diagnostic study inception workshop Economics Event organization ERCD Fact-finding mission for the Sri Lanka employment diagnostic study Economics Event organization ERCD Key Indicators 2016 Conference on The Future of Work: How Trade,

Technology, and Regulations are Shaping Asia’s Quest for Good Jobs

Economics Event organization ERCD

Connecting Asia: Infrastructure for Integrating South and Southeast Asia

Economics, regional cooperation and integration


ADBI

Labor Migration in Asia: Building Effective Institutions Economics, regional cooperation and integration, capacity development, social development and protection


ADBI

Total number of publications = 18 Total number of events = 10

ADB = Asian Development Bank, ADBI = Asian Development Bank Institute, CWRD = Central and West Asia Department, EARD = East Asia Department, ERCD = Economic and Regional Cooperation Department, ICT = information and communication technology, LED = light-emitting diode, SAARC = South Asia Association for Regional Cooperation, SARD = South Asia Department, SDCC = Sustainable Development and Climate Change Department. Note: “Publications” may include databases, multimedia, and other forms of documentation. “Events” may include event organization and training or capacity development. The table includes additional knowledge publications and events delivered outside the list of indicative knowledge publications and events included in the country operations business plan, 2016–2018. Source: Asian Development Bank.

18 Appendix 4

Table A4.3: Innovation, Advanced Technology, and Pilot Initiatives to be Implemented in 2017

Item Nature Project Number Sector or

Theme Division

Introduction of Desalination Plant TCH, PLT

37378-014 http://www.adb.org/projects/37378-014/main

WUS SAUW

Total number of innovation, advanced technology, and pilot initiatives = 1 PLT = pilot initiative, SAUW = Urban Development and Water Division, TCH = advanced technology, WUS = water and other urban infrastructure and services. Source: Asian Development Bank.

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