Welcome to Education Sector Development Program (ESDP)

The Education Sector Development Program (ESDP) aims to support the Government of Sri Lanka (GOSL) in equitably developing its human capital base in order to meet the objectives of the National Policy: Vision for the Future and the National Human Resources and Employment Policy (NHREP) for Sri Lanka. 

The results-based lending program, builds on ADB’s long-standing sector experience in Sri Lanka, and will support GOSL’s Education Sector Development Framework and Program (ESDFP), which seeks to transform the school education system to create a human capital foundation for a knowledge economy. A marked departure from the “project” approach adopted in previous investments, ESDP seeks to support the sector program, using a results-based financing modality, in which funds disbursement are based on achievement of a series of 9 Disbursement Linked Results (DLRs) which are a subset of the targets set in the ESDFP developed by MOE. Progress towards achievement of the DLRs are broken down into annual targets—called Disbursement Linked Indicators (DLIs)—which are to be regularly monitored by GOSL and MOE.  Funds disbursement from ADB to GOSL will be done based on achievement of the given year’s DLI targets, and their verification by ADB.

The Results-based Financing Modality

The ESDP program financed by ADB is designed to

(i) build on past investment experience to support fundamental second generation education quality reforms;
(ii) provide sector wide predictable and sustainable financing for the ESDFP expenditure framework;
(iii) allow for achieving and sustaining key results, moving away from a transactional approach;
(iv) enhance the leverage of the education sector to secure adequate and predictable financing from the Ministry of Finance and Planning (MOFP); and
(v) support institutional development of the sector by incrementally strengthening program implementation and fiduciary systems to improve efficiency and adequately manage risks.

Program implementation arrangements

The Ministry of Education (MOE) will be the Executing Agency for the Education Sector Development Program (ESDP), and the implementing agencies will be MOE and the 9 provincial education authorities. MOE will be responsible for Education Sector Development Framework and Program (ESDFP) coordination with development partners and provinces, program-specific monitoring and reporting, and will be supported by the MOE‘s Sector Monitoring and Technical Support Unit (SMTSU) with staff nominated by the MOE with outreach support to the provinces. The SMTSU will undertake timely monitoring and support for implementation of the disbursement-linked indicators (DLIs), supported by third party verification of results for certain DLIs. The provincial education departments will be responsible for formulating and implementing provincial ESDFP plans through the zonal education offices. Performance-based partnership agreements (PPAs) between the MOE, Provincial Councils, and provincial education authorities will ensure greater coordination. The Ministry of Finance and Planning (MOFP) will ensure smooth funds flow, budget and fund appropriation.