ASIAN DEVELOPMENT BANK 

 PPA: SRI 24272

PROJECT PERFORMANCE AUDIT REPORT ON THE SECOND SMALL AND MEDIUM INDUSTRIES PROJECT (Loan 1084-SRI[SF]) IN SRI LANKA

August 2003

 

 

CURRENCY EQUIVALENTS

Currency Unit – Sri Lanka rupee/s (SLRe/SLRs)

At Appraisal At Project Completion At Operations Evaluation

(December 1990) (June 1999) (May 2003) SLRe1.00 = $0.0247 $0.0141 $0.0103 $1.00 = SLRs40.00 SLRs71.00 SLRs97.08 Sri Lanka moved from a managed floating exchange rate system to a freely floating exchange rate system on 23 January 2001.

ABBREVIATIONS

 ADB

−

 Asian Development Bank  AWDR

−

 average weighted deposit rate BOC

−

 Bank of Ceylon CBOC

−

 Commercial Bank of Ceylon CBSL

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 Central Bank of Sri Lanka CEA

−

 Central Environment Authority CGS

−

 Credit Guarantee Scheme DFCC

−

 Development Finance Corporation of Ceylon HNB

−

 Hatton National Bank IDA

−

 International Development Association IT

−

 information technology NDBSL

−

 National Development Bank of Sri Lanka NPL

−

 nonperforming loan OEM

−

 Operations Evaluation Mission PB

−

 People’s Bank PCI

−

 participating credit institution PCR

−

 project completion report RDB

−

 regional development bank RRDB

−

 regional rural development bank SDB

−

 Sabaragamuwa Development Bank SME

−

 small and medium enterprise TA

−

 technical assistance

NOTES

(i) The fiscal year (FY) of NDBSL and the participating credit institutions ends on 31 December, except for DFCC, whose FY ends on 31 March. (ii) In this report, “$” refers to US dollars.

Operations Evaluation Department, PE-624

 

 

CONTENTS Page

BASIC DATA iii EXECUTIVE SUMMARY iv MAP vii I. BACKGROUND 1  A. Rationale 1 B. Formulation 1 C. Purpose and Outputs 2 D. Cost, Financing, and Executing Arrangements 2 E. Completion and Self-Evaluation 3 F. Operations Evaluation 3 II. PLANNING AND IMPLEMENTATION PERFORMANCE 4  A. Formulation and Design 4 B. Achievement of Outputs 5 C. Cost and Scheduling 5 D. Procurement and Construction 6 E. Organization and Management 6 III. ACHIEVEMENT OF PROJECT PURPOSE 7  A. Operational Performance 7 B. Performance of the Operating Entities 7 C. Financial and Economic Reevaluation 10 D. Sustainability 10 IV. ACHIEVEMENT OF OTHER DEVELOPMENT IMPACTS 11  A. Socioeconomic Impact 11 B. Environmental Impact 11 C. Impact on Institutions and Policy 11 V. OVERALL ASSESSMENT 13  A. Relevance 13 B. Efficacy 13 C. Efficiency 13 D. Sustainability 14 E. Institutional Development and Other Impacts 14 F. Overall Project Rating 14 G. Asian Development Bank and Borrower Performance 14