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Sri Lanka
>> Regional Overview >> Sri Lanka Overview ACTIVITY DATA SHEET
PROGRAM: Sri Lanka
TITLE AND NUMBER: Increased Sri Lankan Competitiveness in the Global Marketplace, 383-004
STATUS: Continuing
PLANNED FY 2001 OBLIGATION AND FUNDING SOURCE: $3,000,000 DA
PROPOSED FY 2002 OBLIGATION AND FUNDING SOURCE: $3,000,000 DA; $3,000,000 ESF
INITIAL OBLIGATION: FY 2000 ESTIMATED COMPLETION DATE: FY 2002Summary: The high level of unemployment among Sri Lanka's educated youth threatens political stability. Increased employment among this group requires accelerated growth of value-added industries, allowing Sri Lanka to shift away from its dependence on low-cost advantages such as the exportation of basic commodities and cheap labor. The purpose of this objective is to increase Sri Lanka's competitiveness in global markets. USAID will measure progress by the number of industry clusters that develop and implement business strategies including innovation and investments in technology. Beneficiaries include targeted industry clusters and support industries, which are characterized by the vertical and horizontal linkages between firms, suppliers, service providers, and specialized institutions, and by men and woman in the labor force. This goal contributes directly to USAID's objective of expanded and strengthened private markets and to the Mission Performance Plan's goal of open markets.
Key Results: By the end of FY 2000, USAID had helped form six clusters (in tea, tourism, eco-tourism, rubber, jewelry, and information and communication technologies), with cluster coordinators hired by private sector stakeholders. Benchmarking on global best practices in the cluster areas was partially completed, and work on cluster strategies had commenced. USAID helped carry out a trial survey for the World Economic Forum's Global Competitiveness Report to rank Sri Lanka in a global competitiveness index. This exercise will help policy makers to prioritize and plan necessary changes in the economy. The analysis is expected to generate interest and dialogue between public and private sectors on competitiveness. USAID established a Competitiveness Unit in June 2000 to act as a nexus between the private sector strategy and government policy. The unit operates as an incubator to facilitate the analysis and development of cluster strategy and the policy environment.
Performance and Prospects: In FY 2001, USAID will spend $3 million to provide technical assistance to expand cluster work outside the metropolitan areas of Colombo. Sri Lanka will be ranked in the 2001 World Economic Forum competitiveness report. USAID will facilitate a conference to review the report and its findings and to discuss implementation of effective policy and regulatory frameworks for competitiveness. The ability to develop and implement good strategy is key in re-positioning Sri Lankan industry to achieve its goal of increased competitiveness. Short-term technical assistance will help the clusters to complete and market their strategies to investors. The greatest challenge in FY 2002 will be to oversee the development of action plans and ensure their implementation and use as a tool to obtain investments. USAID may also establish an endowment for a non-governmental organization to promote competitiveness and support public-private dialogue when this program phases out in September 2002.
Possible Adjustments to Plans: The recently approved strategy reduced the implementation period of this objective from FY 2005 to FY 2002. This, together with the country's weakened financial position, will affect the potential results and expected impact. A mid-term evaluation scheduled for FY 2001 will assess progress to date and suggest a programmatic approach and related results for the revised timeframe.
Other Donor Programs: The World Bank and Asian Development Bank focus on activities that contribute to the environment for private sector competitiveness, such as improvement of the Colombo port, private power generation, rural electrification, and loan guarantee programs for small and medium enterprises. Japan's private sector program in Sri Lanka uses a government-led, rather than private sector-led, approach to improving competitiveness, but works primarily in sectors not covered by USAID's program.
Principal Contractors, Grantees, or Agencies: Nathan Associates/MSI, Inc. joint venture with J.E. Austin Associates.
Selected Performance Measures: Baseline
(1999)Target
(2001)Target
(2002)Number of competitiveness clusters established with coordinators hired 0 12 12 Number of industry clusters that have completed benchmarking of their industry 0 10 10 Number of clusters that have developed business strategies 0 8 8 Number of clusters with increased investments 0 3 3 Percentage increase in value-added exports of targeted clusters relative to the industry sector as a whole 0 2% 2% U.S. Financing
(In thousands of dollars)
Obligations Expenditures Unliquidated Through September 30, 1999 0 DA 0 DA 0 DA 0 CSD 0 CSD 0 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA Fiscal Year 2000 2,050 DA 0 DA 0 CSD 0 CSD 0 ESF 0 ESF 0 SEED 0 SEED 0 FSA 0 FSA 0 DFA 0 DFA Through September 30, 2000 2,050 DA 0 DA 2,050 DA 0 CSD 0 CSD 0 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA Prior Year Unobligated Funds 0 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Planned Fiscal Year 2001 NOA 3,000 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Total Planned Fiscal Year 2001 3,000 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Future Obligations Est. Total Cost Proposed Fiscal Year 2002 NOA 3,000 DA 0 DA 8,050 DA 0 CSD 0 CSD 0 CSD 3,000 ESF 0 ESF 3,000 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA
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Last Updated on: May 29, 2002 |
