ADB assistance to improve education, SMEs in Sri Lanka

The Government entered into an agreement with the Asian Development Bank (ADB) to improve quality relevance effectiveness, and equity of access to secondary and tertiary education under the Education for Knowledge Society Project.

These two projects worth over US$ 130 million will accelerate the development of Small and Medium Enterprises located outside the Western Province, Finance Ministry release said.

The total investment for the Education for Knowledge Society Project is US$ 105.3 million and it comprises of US$ 65 million loan and US$ 15 million grant from the ADB and US$ 25.3 million from the Government of Sri Lanka.

These funds will be utilised for upgrading 150 provincially administered secondary schools in the poorest administrative divisions under the Isuru schools programme enabling them to offer advanced level science streams. Facilities for teaching in key subjects such as Information and Communication Technology (ICT), English and Technical subjects will be improved. Computers and internet facilities for 2125 schools and 15000 scholarships for poor students will also be provided.

In addition, the project will support Government reforms in competency based education through the development of curriculum, instructional materials, performance standards and teacher training. The Centre of Excellence in English Education (CEIEE) will be established in Peradeniya to improve the quality of English langauge teaching while Sri Lanka Institute of Advanced Technological Education (SLIATE) will be upgraded to deliver more market responsive tertiary education.

Integrating the HIV/AIDs and Health Education in the secondary school curriculum and Training of trainers and secondary school teachers in HIV/AIDS and Health Education will also be funded under the project.

The project will be executed by the Education Ministry through the Higher Education Ministry, Provincial Education Departments, National Institute of Education and National Evaluation and Testing Service. All project activities are expected to be completed by 2012.

The total investment for the Small and Medium Enterprise Regional Development Project is US$ 88.89 million. Of this the ADB provides US$ 50 million. The Participating Financial Institutions and Small and Medium Enterprises will finance US$ 16.67 mn and US$ 22.22 mn respectively.

These funds will be used for on-lending to Small and Medium Enterprise (SMEs) located outside the Western province, through the DFCC, NDB, Commercial and Sampath Banks to accelerate SMEs development by improving their access to credit, creating SME value chain clusters, mainstreaming best practices in SME financing and improving access to business development services for SMEs.

The project will be executed by the Finance Ministry through Central Bank and expected to be completed by December 31, 2010.

Finance Ministry Secretary, Dr. P.B. Jayasundera, on behalf of Sri Lanka and APB Country Director Richard W.A. Vokes signed the loan and financing agreements. A project agreement was also entered into between the ADB and the DFCC, NDB, Commercial and Sampath Banks.