sign in sign up
<<
Home , Asian Development Bank, Western Region Megapolis

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 – 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 appointed Mr. , 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 , establishing freedom, anticorruption, improving and health, , 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 . .

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 , 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 sector, ADB will continue to support the integration of rural areas into the main road network, while expanding ADB assistance to expressways, railways, and . 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 . 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 .

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 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

ADB Key Country Development Outcomes that Indicative Resource ADB Contributes to Key Areas of Assistance Allocation in 2017–2019 Changes from Last COBP 1. Agriculture and Natural Resources Increased water availability for the agriculture Water resource Amount: $396.96 million The PDA for the Northern Province Sustainable and drinking water infrastructure development Fisheries Development Project is added to 2016 Share of COBP envelope: and its ensuing loan is added to 2017. Increased agricultural productivity Introduction of water- 16% saving irrigation The TA loan for preparing the Mahaweli Water Increased fish production technologies and Security Investment Program, Phase 2 is added agriculture support services to 2018.

Capacity building for The Revival of Rural Economy Project is added integrated water resource as standby in 2019. management

Coastal fisheries infrastructure developed

Expansion of aquaculture

2. Education Progressive education and skills development Improved quality and Amount: $200 million The Science and Technology Human Resource systems that create a human capital base relevance of secondary Development Project is moved from 2017 to required for continuous education for all Share of COBP envelope: 2018. 8% More equitable access to education and skills Improved quality and The Second Education Sector Development development of high relevance to labor market relevance of skills Program is moved from 2018 to standby in 2019. development for new and existing workforce

Increased human resources from science and technology disciplines in higher education

3. Energy Improved provision of electricity services through Renewable energy Amount: $400 million The Wind Power Generation Project is advanced and efficient use of generation (wind) from 2017 standby/2018 firm to firm in 2017. energy resources Share of COBP envelope: Electricity transmission and 17% The Strengthening Transmission Stability, distribution Reliability, and Protection Project is included in

6 Appendix 1

ADB Key Country Development Outcomes that Indicative Resource ADB Contributes to Key Areas of Assistance Allocation in 2017–2019 Changes from Last COBP 2018. Energy sector development and institutional reform The Distribution Automation and Metering Project is (including cross-border included in 2019 standby. power trade and PPP support) 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 Finance sector Amount: $150 million The Disaster Risk Financing Program is included investment from capital markets strengthened development as standby for 2017 and 2018. Share of COBP envelope: 6% The Solar Rooftop Investment Program is included in 2018 (standby) and 2019.

5. Transport Improved transport connectivity to the economic Road network development Amount: $993 million The Second Integrated Road Investment Program zones across the country and in the region is added to 2017, with tranche 2 in 2019. Urban railway transport Share of COBP envelope: system improvement 41% The Integrated Road Investment Program, Tranche 5 is added to 2019. Port infrastructure development 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 Drinking water and Amount: $280 million Additional financing for the Jaffna and Kilinochchi water and sanitation sanitation systems Water Supply and Sanitation Project is moved Share of COBP envelope: from 2016 to 2017. 12%

Appendix 1 7

ADB Key Country Development Outcomes that Indicative Resource ADB Contributes to Key Areas of Assistance 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 Strategic Cost ($ million) Agendas Year of ADB a and Drivers PPTA/ Regular Concessional ADF Co- Project/Program Name Sector Targeting of Change Division PDA Total OCR OCR Grants Total Gov’t finance 2017 Firm Wind Power Generation ENE ESG, GCD, SAEN 2016 200.00 200.00 200.00 Project KNS, PAR Mahaweli Water Security ANR ESG, GCD, SAER 2016 285.00 105.00 25.00 130.00 155.00 Investment Program KNS, PAR (tranche 2) Skills Sector Enhancement EDU GEM, GCD, SAHS 100.00 30.00 70.00 100.00 Program (additional PSD financing Second Integrated Road TRA ESG, GCD, SATC 100.00 100.00 100.00 Investment Program IEG, GEM, (tranche 1) PSD Jaffna and Kilinochchi Water WUS ESG, GEM, SAUW 2010 100.00 75.00 25.00 100.00 Supply and Sanitation PAR Project (additional financing) Northern Province Sustainable ANR TI-G ESG, GEM, SLRM 63.13 63.13 63.13 Fisheries Development GCD, IEG, Project PAR, PSD Total 848.13 510 .00 183.13 693.13 155 .00

2017 Standby Disaster Risk Financing PSM ESG, GCD, SAPF 100.00 100.00 100.00 Program KNS Integrated Road Investment TRA ESG, GCD, SATC 200.00 149.00 51.00 200.00 Program (tranche 4) IEG, GEM, PSD Colombo Suburban Railway TRA GCD, PAR SATC 100.00 100.00 100.00 Investment Program (tranche 1) South Asia Subregional TRA RCI SATC 200.00 200.00 200.00 Economic Cooperation Port Access Road Project Total 600 .00 549 .00 51 .00 600 .00

2018 Firm Strengthening Transmission ENE GCD, KNS SAEN 2017 200.00 200.00 200.00 Stability, Reliability, and Protection Project

Appendix 2 9

Strategic Cost ($ million) Agendas Year of ADB a Poverty and Drivers PPTA/ Regular Concessional ADF Co- Project/Program Name Sector Targeting of Change Division PDA Total OCR OCR Grants Total Gov’t finance Science and Technology EDU GEM, GCD SAHS 2017 100.00 100.00 100.00 Human Resource Development Project Integrated Road Investment TRA ESG, GCD, SATC 200.00 149.00 51.00 200.00 Program (tranche 4) IEG, GEM, PSD South Asia Subregional TRA RCI SATC 200.00 200.00 200.00 Economic Cooperation Port Access Road Project Colombo Suburban Railway TRA GCD, PAR SATC 100.00 100.00 100.00 Investment Program (tranche 1) Mahaweli Water Security ANR ESG SAER 30.83 30.83 30.83 Investment Program, Phase 2 (TA loan) Total 830.83 649.00 181.83 830.83

2018 Standby Mahaweli Water Security ANR ESG, GCD, SAER 2016 173.00 173.00 173.00 Investment Program KNS, PAR (tranche 3) Disaster Risk Financing PSM ESG, GCD, SAPF 100.00 100.00 100.00 Program KNS Solar Rooftop Investment FIN ESG SAPF 150.00 150.00 150.00 Program Second Integrated Road TRA ESG, GCD, SATC 200.00 200.00 200.00 Investment Program IEG, GEM, (tranche 2) PSD Greater Colombo Water and WUS ESG, GEM, SAUW 2012 230.00 180.00 180.00 50.00 Wastewater Management GCD, PAR (EIB) Improvement Investment Program (additional financing) Preparing Power Development ENE RCI, KNS SAEN 10.00 10.00 10.00 and Interconnection Project (TA loan) Total 863.00 803.00 10.00 813.00 50.00

2019 Firm Mahaweli Water Security ANR ESG, GCD, SAER 2016 173.00 173.00 173.00 Investment Program KNS, PAR (tranche 3) Solar Rooftop Investment FIN ESG SAPF 150.00 150.00 150.00

10 Appendix 2

Strategic Cost ($ million) Agendas Year of ADB a Poverty and Drivers PPTA/ Regular Concessional ADF Co- Project/Program Name Sector Targeting of Change Division PDA Total OCR OCR Grants Total Gov’t finance Program Second Integrated Road TRA ESG, GCD, SATC 200.00 100.00 100.00 200.00 Investment Program IEG, GEM, (tranche 2) PSD Greater Colombo Water and WUS ESG, GEM, SAUW 2012 230.00 180.00 180.00 50.00 Wastewater Management GCD, PAR (EIB) Improvement Investment Program (additional financing) Integrated Road Investment TRA ESG, GCD, SATC 193.00 111.17 81.83 193.00 Program (tranche 5) IEG, GEM, PSD Total 946.00 714.17 181.83 896.00 50.00

2019 Standby Distribution Automation and ENE ESG, GCD, SAEN 200.00 200.00 200.00 Metering Project KNS Revival of Rural Economy ANR TI-G ESG, GCD SAER 60.00 60.00 60.00 Project Second Education Sector EDU GEM SAHS 2017 200.00 80.00 120.00 200.00 Development Program South Asia Subregional TRA RCI SATC 200.00 200.00 200.00 Economic Cooperation Expressway Connectivity Investment Program (tranche 1) Preparing Power Development ENE RCI, KNS SAEN 10.00 10.00 10.00 and Interconnection Project (TA loan) 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 = ; 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 Sources of Funding ADB Others Assistance Amount Amount Total Assistance Name Sector Division Type Source ($'000) Source ($'000) ($'000) 2017 Firm Second Human Capital Development Capacity EDU SAHS CDTA TASF 1,250 1,250 and Implementation Support Attached TA for Jaffna and Kilinochchi Water WUS SAUW CDTA TASF 600 600 Supply Project (additional financing) Strengthening Transmission Stability, ENE SAEN PPTA TASF 1,500 1,500 Reliability, and Protection Project Institutional Strengthening of Expressway TRA SATC CDTA TBD 1,000 1,000 Operations and Management Total 3,350 1,000 4,350

2017 Standby Capacity Building for Disaster Risk Financing FIN SAPF CDTA TASF 500 500 (attached TA to Disaster Risk Financing Program) Disaster Risk Reduction for Rural Communities FIN SAPF CDTA TBD 3,000 3,000 (attached grant to Disaster Risk Financing Program) 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 ENE SAEN PPTA TASF 1,000 1,000 Project Revival of Rural Economy Project ANR SAER PPTA TASF 800 800 Institutional Strengthening of Sri Lanka TRA SATC CDTA TASF 1,000 1,000 Railways Total 2,800 2,800

2018 Standby Attached TA for Greater Colombo Water and WUS SAUW CDTA TASF 1,000 1,000 Wastewater Management Improvement Investment Program (additional financing) Capacity Building for Disaster Risk Financing FIN SAPF CDTA TASF 500 500 (attached TA to Disaster Risk Financing Program) Disaster Risk Reduction for Rural Communities FIN SAPF CDTA TBD 3,000 3,000 (attached grant to Disaster Risk Financing Program)

12 Appendix 2

Sources of Funding ADB Others Assistance Amount Amount Total Assistance Name Sector Division Type Source ($'000) Source ($'000) ($'000) Total 1,500 3,000 4,500

2019 Firm Attached TA for Greater Colombo Water and WUS SAUW CDTA TASF 1,000 1,000 Wastewater Management Improvement Investment Program (additional financing) Total 1,000 1,000

2019 Standby Attached TA for Second Education Sector EDU SAHS CDTA TASF 2,000 2,000 Development Program 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 Strategic Year Cost ($ million)

Agendas of ADB Poverty and Drivers PPTA/ ADF Co- Project/Program Name Sector Targeting of Change Division PDA Total a OCR Loans Grants Total Gov’t finance Firm Supporting Electricity ENE ESG, GCD, SAEN 2015 118.80 115.00 115.00 2.00 Supply Reliability PAR, GEM (JFPR) Improvement Project 1.80 (CEFPF) Green Power ENE ESG, GCD, SAEN 180.00 95.00 55.00 150.00 30.00 Development and KNS, PAR (AFD) Energy Efficiency Improvement Investment Program (tranche 2) Small and Medium-sized FIN ESG, GCD, SAPF 100.00 100.00 100.00 Enterprises Line of GEM, Credit Project KNS,PAR, PSD Capital Market FIN GCD, KNS, SAPF 2016 250.00 250.00 250.00 Development Program PAR, PSD Transport Project TRA GCD, IEG SATC 24.42 24.42 24.42 Preparatory Facility Local Government WUS TI-G GCD, IEG, SAUW 60.00 60.00 60.00 Enhancement Sector KNS Project (additional financing) Northern Province ANR TI-G ESG SLRM 1.30 1.30 1.30 Sustainable Fisheries Development Project (PDA) b Total 733.22 b 560 .00 139.42 b 699.42 b 33.8 0 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 = 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 Sources of Funding ADB Others Assistance Amount Amount Total Assistance Name Sector Division Type Source ($'000) Source ($'000) ($'000) Capital Market Development Program FIN SAPF PPTA TASF 500 500 Capital Market Development Program (attached FIN SAPF CDTA TASF 750 FSDPSF, 1,250 2,000 TA) RKEKPF Cluster Development and Small and Medium- FIN SAPF CDTA JFPR 2,000 2,000 Sized Enterprise Finance Innovation (attached TA) 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 Department or Sector Group or Thematic Technical Title of Publication or Event Subject Type Group Assistance Gender Equality Results Case Studies on SARD Projects Gender Publication and SARD documentation Economic Corridor Study for Sri Lanka Industry and trade Publication and SARD documentation Training material for policy makers, insurance supervisors, and other Finance Publication and SDCC insurance stakeholders documentation Diagnostic studies conducted (two countries per theme) using diagnostic Finance Publication and SDCC tool kits and recommendations for proposed policy reforms documentation Tool kits on disaster risk financing Finance Publication and SDCC documentation Asia SME Finance Monitor Finance, industry, and Publication and SDCC trade documentation Gender-based research on trends in gender mainstreaming in ADB Gender Publication and SDCC priority sectors documentation Progress Report (2016–2017) on the MDB Working Group on Transport Publication and SDCC Sustainable Transport documentation In-country workshops, lateral learning workshops and/or peer-to-peer Gender Event organization SDCC exchanges on GAP implementation, monitoring, and reporting on gender equality results Launch Asia SME Finance Monitor Seminar Finance, industry, and Event organization SDCC trade Asia Clean Energy Forum 2017 Energy Event organization SDCC 2017 workshop on effective CSO engagement for SARD Training or capacity SDCC development Sri Lanka country diagnostic study (including Sri Lanka employment Economics Publication and ERCD diagnostic study) documentation Sri Lanka country diagnostic study on long-term care Social development Publication and EARD and and health documentation 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 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 Technical Title of Publication or Event Subject Type Thematic Group Assistance Subregional Conference: Going Beyond the Meter: Inclusive Energy Energy, gender Event organization SARD Solutions in South Asia SARD Forum: Let's Talk Shop Capacity development Event organization SARD Sri Lanka: Second National Workshop on Customs Valuation Regional Training or capacity SARD cooperation and development integration, capacity development SAARC–ADB Second Special Meeting on Regional Economic Regional cooperation and Event organization SARD Integration (Phase II) integration Trade and Transport Facilitation Monitoring Mechanism: Baseline Study Regional cooperation and Event organization SARD Meeting integration Wastewater Tariff and Public–Private Participation Urban development, private Publication and SARD sector documentation Power Sector Regulation: Lessons from Sri Lanka Energy Publication and SARD documentation Gender Assessment Gender Publication and SARD documentation Cross-Border Electricity Generation, Transmission, and Trading: A Energy Publication and SARD Vision for South Asia documentation Report on Preliminary Findings of ADB Study on Energy Technology Energy Publication and SARD Innovation in South Asia and Implications for Inclusive Energy documentation Solutions Remittances for Development for Asia Finance Publication and SARD documentation Results of the Study on Inclusive Energy Solutions in South Asia: A Energy, gender Publication and SARD Study on Gender Implications of Energy Technology Innovation documentation (background paper prepared for the Subregional Workshop and/or Conference on Gender and Energy) Together We Deliver 2015: Partnerships Against Poverty Multi-sector Publication and SARD, CWRD, documentation EARD International Urban Health Conference Health, urban development Event organization SDCC Asia-Pacific Youth Exchange Capacity development Training or capacity SDCC development How Inclusive is Inclusive Business for Women?—Review of 13 Gender, poverty, social Publication and SDCC Companies in Asia and Latin America development and documentation protection, private sector Sri Lanka Women Come Together in Producer Groups to Assemble Gender Publication and SDCC LED Bulbs documentation Shaping Our Technological Futures ICT Publication and SDCC documentation

Appendix 4 17

Department or Sector Group or Technical Title of Publication or Event Subject Type Thematic Group Assistance Improving Gender-Inclusive Access to Clean and Renewable Energy in Gender, energy Publication and SDCC , , and Sri Lanka documentation ADB Economics Working Paper Series No. 476: In Search of a Better Economics Publication and ERCD Match: Qualification Mismatches in Developing Asia documentation 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, Economics Event organization ERCD Technology, and Regulations are Shaping Asia’s Quest for Good Jobs Connecting Asia: Infrastructure for Integrating South and Southeast Economics, regional Publication and ADBI Asia cooperation and integration documentation Labor Migration in Asia: Building Effective Institutions Economics, regional Publication and ADBI cooperation and integration, documentation capacity development, social development and protection 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 Sector or Item Nature Project Number Theme Division Introduction of Desalination Plant TCH, 37378-014 WUS SAUW PLT http://www.adb.org/projects/37378- 014/main 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.