ADB and Sri Lanka partner new CPS strategy

Sri Lanka and the Asian Development Bank (ADB) have agreed on a new Country Partnership Strategy (CPS) for 2012 to 2016 to reduce regional disparities, catalyse private sector participation in development, and remove human resource constraints. The CPS builds on the priorities of government’s Development Policy Framework and the ADB’s Strategy 2020, and also refines the focus of the CPS 2009–2011.

With the restoration of political and economic stability, Sri Lanka faces good prospects for rapid economic growth and development.

The economy is expected to continue growing at around 8 percent in the medium term. However, poor quality infrastructure is a major constraint to sustain rapid economic growth.

“The aim of the CPS is to assist the government to address major constraints to sustain inclusive growth in Sri Lanka. The ADB’s operations will be strategically focused on a few sectors. The ADB will support infrastructure development to improve connectivity and service delivery to lagging regions, including the former conflict-affected regions of the country,” said Lead Economist, ADB’s Sri Lanka Resident Mission Narhari Rao.

The ADB will support the environment for Public Private Partnerships (PPPs) and early identification of PPP candidate projects to increase the effectiveness of public investment catalysing private investment.

“ADB’s involvement in developing an effective PPP enabling environment will provide synergies between ADB’s assistance for infrastructure development and private sector development. The ADB will also provide non sovereign loans to reform state-owned enterprises to expose them to alternate sources of finance. Private investments will be catalysed through co-financing using ADB’s credit enhancement products,” said, Country Director of ADB’s Sri Lanka Resident Mission Rita O’Sullivan.

Human resources are likely to be a critical constraint as demand grows for an educated and skilled labour force.

The ADB will support skills development with a focus on reducing gender disparities, by expanding and improving the quality of technical and vocational institutes and related infrastructure.

The CPS focuses on four crosscutting themes. Environmental sustainability will be improved by strengthening country safeguard systems, and through direct intervention to support climate change adaptation.

The ADB’s initiatives to promote multimodal transport systems will help ease the burden on a congested road network, and reduce air pollution and carbon emission. Governance in public financial management and public procurement will be strengthened by introducing stringent anti corruption measures and main streaming accountability and transparency in ADB’s operations.

Gender equity will be promoted by designing projects that are gender-inclusive and emphasise gender empowerment, especially in the education, health, water and sanitation, and infrastructure sectors. Opportunities to foster regional cooperation especially in the transport and energy sectors, and in climate change initiatives, will be looked into.