Project Reports

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Effective States and Engaged Societies: The Case of Sri Lanka
(World Bank, 2005-07) Knight-John, Malathy; Rajapakse, Amrit
This report is part of an international study by the World Bank titled, “Effective States and Engaged Societies: Capacity Development for Growth, Service Delivery, Empowerment, and Security in Africa.” The objective of the Sri Lanka case study is to examine three areas pertinent to overall capacity of the State – capacity of the public sector, capacity of the private sector and other key stakeholders such as “civil society”, and the role of the country’s international development partners, so as to complement the wider study of the twelve African States.
Economic Challenges of Post Tsunami Reconstruction: Sri Lanka Country Study
(Institute of Policy Studies of Sri Lanka, 2007-01) Jayasuriya, Sisira; Weerakoon, Dushni; Arunatilake, Nisha; Steele, Paul
The aim of this study is to contribute to the discussions and debates on appropriate policies for the medium term reconstruction effort by providing an analysis of some of the priority issues emerging from Sri Lanka’s own experience of the posttsunami reconstruction and rehabilitation phase. To this end, the study also involved a survey of affected households in an attempt to obtain a broader understanding of the perceptions of the recovery process from the grass-root level.
Introducing Venture Capital for Traditional and Small Enterprises in Sri Lanka
(2011-04) Wijesinha, Anushka
This paper first provides a brief introduction to the concept of venture capital and its key facets. It then provides an overview of previous efforts at introducing venture capitalism in Sri Lanka and highlights some issues to bear in mind in the context of the new effort to introduce venture capital. Finally, this paper provides some ideas and policy options for a proposed new venture capitalism structure under a public private partnership (PPP) model, with special focus on the traditional and small enterprise sector which is the key focus sector of the Ministry of Traditional Industries and Small Enterprise Development.
Matrix of Recommendations for Strengthening the Enabling Environment for Business Led Growth and Development
(2012-06) Wijesinha, Anushka; Attygalle, Kaushalya
This report reviews the business climate in Sri Lanka and highlights the key reform areas to improve it. The report was prepared for the UNDP
Implications to Member States of Progression from SAPTA to SAFTA
(2013-08-28) Weerakoon, Dushni; Wijayasiri, Janaka
The purpose of this paper is to examine how to accelerate the process of regional cooperation in South Asia and the implications of the movement from SAPTA to SAFTA on member countries. The report will give an overview of trade regimes in South Asia and examine the extent to which SAPTA has been successful in liberalizing intra-regional trade. Drawing on existing empirical research, the report will assess the likely impact of a South Asian free trade area, and the substantive issues that have to be addressed in the movement towards an FTA. The discussion will draw, wherever possible, on relevant experience of other regional trade initiatives.
Value Chain Development in Conflict-Affected Environments: Analysis of the Fisheries Sector in Sri Lanka
(2013-09-03) Thibbotuwawa, Manoj; Marawila, Dilhani; Gunawardena, Asha; Samaratunga, Parakrama; Senaratne, Athula; Arunatilake, Nisha
The study attempts to address the basic research question of how can value chain analysis and the value chain framework help us identify and understand the major opportunities for upgrading and the driving constraints to market growth of fisheries sector affected by the aforementioned conflicts. This study employs a modification to the standard value chain analysis, in the form of value chain - conflict dimension matrix which enables identifying which stages of the value chain are affected by which dimension of conflict, and how. Further analysis of the opportunities and constraints against various dimensions of conflicts yielded case specific implications of the conflict-value chain interactions.
Challenges and Constraints to Regionalism in South Asia
(2013-09-03) Weerakoon, Dushni; Wijayasiri, Janaka
This paper attempts to clarify the perceived costs and benefits underpinning regional trade cooperation and details the achievements of SAPTA to date and its impact on individual South Asian economies, where evidence is available. It also examines the constraints and challenges that South Asia is likely to face as it moves towards a more intense level of economic cooperation in the form of a South Asian Free Trade Agreement (SAFTA). Then it highlights some of the issues that need to be considered in moving towards a free trade are in the region by drawing upon the experience of ASEAN with the ASEAN Free Trade Area (AFTA).
Educational Opportunities for the Poor: Assessing Spatial Disparities
(2013-09-03) Tilakaratna, Ganga; Galappattige, Ayodya; Jayatilaka, Ruwan; Perera, Ramali
This study will attempt to analyze the availability of resources/facilities of schools and assess the extent of disparity in resources/facilities across districts and among different types of schools. Moreover, it will examine the effectiveness of various educational welfare programs, such as the free school textbook program and the uniform program to find out whether the benefits of these programs are equitably received by students of all schools. The study will attempt to bring together the views, opinions and suggestions of various stakeholders in the education sector (Government officials, principals and teachers, students and parents) on resources/ facilities in schools and the effectiveness of education welfare programs to find out ways to improve the facilities and the quality of education in Sri Lanka, particularly those received by the poor students.
WTO Doha Round and South Asia: Trade Facilitation
(2013-09-03) Weerakoon, Dushni; Weeraratne, Bilesha; Tennakoon, Jayanthi
This report is intended to contribute to a wider discussion of the contents and elements of the multilateral framework on trade facilitation by offering South Asian negotiators an opportunity to examine in greater detail the challenges posed by the negotiations on trade facilitation; the scope of the negotiations as delineated by the July Package; the content and elements to be agreed upon; future challenges posed by any new obligations that may arise from implementation of such an agreement; and finally discuss and evaluate trade facilitation proposals submitted by South Asian members and their implications for the region.
Study on Post-Consumer Plastics in Sri Lanka
(2013-09-05) Institute of Policy Studies of Sri Lanka; Environment and Management Lanka Ltd
This report is Phase 1 of a study on the current status of the plastic industry in Sri Lanka. The objective of the study is to indicate the approximate weight of plastic available in Sri Lanka for recycling with special emphasis given to PET based bottles.
Monetary Cooperation in South Asia
(2013-09-05) Jayasuriya, Sisira; Weerakoon, Dushni; Kurukulasuriya, Shalini; Maskay, Nephil M.; Khatiwada, Yuba Raj
This study reports on the first stage of a research programme into issues of monetary cooperation in South Asia. It describes the main features of the South Asian economies, their recent policy evolution and trends in economic performance. It then examines the patterns of shocks in South Asia using econometric/statistical tools to determine if SAARC countries are candidates for a currency union by conventional OCA criteria. Report also discusses the nature of shocks and historical patterns of policy across countries. Finally it presents the overall conclusions of the study and discusses the main research tasks identified for the next stage.
Foreign Direct Investment and Economic Integration in the SAARC Region
(2013-09-05) Jayasuriya, Sisira; Weerakoon, Dushni
This paper reports on an initial exploration of issues, documenting the nature of intra-SAARC investment flows, and presenting the results of some preliminary investigations of the emerging trade and investment linkages within the SAARC, with particular attention to India-Sri Lanka links.
Report on Policy and Practice: Sharing Lessons among Government, Civil Society and Private Sector
(2013-09-05) Institute of Policy Studies of Sri Lanka
This review of “Disaster Management: Policy and Practice” was conducted over three months by the Institute of Policy Studies of Sri Lanka in collaboration with and financial support from Oxfam America. It is intended to assist the government, NGOs and other stakeholders to improve disaster management in Sri Lanka. It is just over a year since the Parliamentary Select Committee on Natural Disasters presented their recommendations and it seems timely to review whether their recommendations have been implemented in practice. This report is based on an analysis of the legal and policy documents, interviews with stakeholders from government, civil society and the private sector, field visits in Ratnapura, Hambantota and Ampara, a workshop in Hambantota on 25 September 2006 and a national workshop in Colombo with over 90 participants on 28 September 2006.
Impact Assessment As a Result of The 1 KM Sacred Area Rule On Liquor Sales
(2013-09-06) Institute of Policy Studies of Sri Lanka
Ad hoc approach to the subject of alcohol such as 1kmSacred Area Rule for Liquor Sales Outlets, reflects the fact that due to the lack of a coherent far sighted National Alcohol Policy, it drives away the important and valuable contribution of the legal alcohol industry, by creating dry areas to satisfy the need of illegal illicit manufacturers involved in a harmful venture to the society. It is pertinent to review this situation carefully and defer the implementation of the 1km Sacred Area Rule for Liquor Sales Outlet until the formulation of a National Policy on Alcohol, as provided in the National Authority on Tobacco and Alcohol Bill, taking into account policy recommendations envisaged in page 23, and until such time limiting the number of hours of operation of sale of liquor for affected outlets is suggested.
Empowerment of the Agrarian Society through Rationalizing Land Use and Tenure
(2013-09-06) Samaratunga, Parakrama; Marawila, Dilhani
The objective of this study has been set as developing a programme for empowering the poor so that they can participate in planning on matters related to land and land use. This study reviews available information to identify and assess land related problems. It also lays emphasis on the identification of basic land productivity related problems of the poor andthe relevant interventions through expert consultation and participatory rural appraisal (PRA) in the selected specific localities to represent broader areas. The study specificallyconcentrates on identifying the key issues considered important in empowering the rural poor with special reference to; increased income through increased land size and productivity, accumulating wealth, obtaining social recognition and improving health and nutritional conditions of the families.
Promoting Empowerment through Microfinance in Sri Lanka
(2013-09-06) Tilakaratna, Ganga; Galappattige, Ayodya; Perera, Ramali
This study will analyse the extent to which MFIs in Sri Lanka are involved in providing various BDS to their clients and the delivery methods and costs related to BDS provision and the existing demand for BDS by MFI clients. It will also make an attempt to find ways to improve the scope and role of MFIs in providing various BDS like marketing facilities and training to see the possibility of linking MFIs with existing local/national level institutions providing various BDS. Furthermore, some ofthe key issues in the microfinance sector related to interest rates, savings mobilisation, etc are also briefly looked at in the paper.
Gaining Competitive Advantage through the Protection of Geographical Indications: An analysis of the Tea, Sapphires and Cinnamon Industries of Sri Lanka
(2013-09-06) Yatawara, Ravindra; Rajapakse, Amrit
Geographical indications (GIs) are a category of intellectual property protected under the World Trade Organisation’s (WTO) 1994 Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), alongside other categories of intellectual property such as copyrights, trademarks and patents. This study evaluates the costs and benefits of pursuing protection of Sri Lankan GIs, in Sri Lanka and abroad, with particular reference to the tea, sapphires and cinnamon industries. It presents the economic benefits of protecting GIs. Study also shows how they are protected multilaterally along with their national implementation in Sri Lanka. Further it discusses the costs involved in GI protection and provides sector-wise analyses of the appropriateness of GI protection for the tea, sapphires and cinnamon industries, respectively. Finally it provides a way forward strategy on GI protection.
Why people choose to participate in the informal sector in Sri Lanka?
(2013-09-06) Arunatilake, Nisha
This study makes use of the Sri Lanka Integrated Survey 1999/2000 (SLIS, 2000) to analyze how individual, household and location specific characteristics determines employment in different sectors. An ‘occupation choice’ model is used to explore the determinants of sector participation.
Study on the Impact of the Economic Service Charge on Authorized Distributors
(2013-09-06) Rajapakse, Amrit; Knight-John, Malathy
This Study was commissioned by the All Island Authorized Distributors Chamber of Commerce, having as its general objective to perform an independent study of the impact of the Economic Service Charge (ESC) on authorized distributors, as presently imposed in terms of the Economic Service Charge Act, No. 13 of 2006. The study takes a preliminary view of the actual and potential costs and benefits for the different stakeholders – the Government, distributors, principals and consumers – resulting from the present basis of assessing Economic Service Charge (ESC) on authorised distributors. It reveals that there are several important actual and potential costs for all of the stakeholders. The study then considers the available regulatory alternatives to achieve the objective of the ESC, and evaluates them against the internationally accepted principles of good regulation – efficiency, effectiveness and equity.
Will school level decision making improve access to better education in Sri Lanka?
(2013-09-11) Arunatilake, Nisha; Jayawardena, Priyanka; De Silva, Roshani
Achievements in Sri Lanka’s Education sector are praiseworthy, in many respects. However, problems of equity and quality of education are increasingly plaguing the education system in the country. This paper analyzes the effectiveness of one initiative – the Educational Quality Inputs (EQI) Scheme -- that seeks to improving educational inputs at the schools through decentralized decision-making. The study explores the factors that affect the utilization of funds allocated to schools under the EQI scheme and examines how these affect inequity. The study concludes that although the EQI scheme has some equalizing effects, existing discrepancies in the resource availability at the school level lessens the equity outcomes of the EQI scheme. Making funds available does not always result in improving education resources at the school level. Confirming international evidence on other educational decentralization experiences, the study finds that local level capacity to manage funds are important in efficient utilization of funds.

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