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Velayuthan Sivagnanasothy


Ministry of Traditional Industries and Small Enterprise Development



The Government of Sri Lanka’s National Development Plan known as Mahinda Chintana – Vision for the Future sets out results based micro economic targets to transform Sri Lanka into the “Emerging Wonder of Asia”.


            Government of Sri Lanka has recognized the importance of institutionalizing Managing for Development Results (MfDR) in the whole of Government to meet the Mahinda Chintana national goals and to achieve development effectiveness. In Sri Lanka, it is imperative to note that in the public sector management cycle, the important phases such as planning, budgeting, monitoring, evaluation and auditing systems are gradually moving towards results orientation. The National Administrative Reforms Council (NARC) Circular requires all Government Ministries and Departments to establish Management Reforms Cells (MRCs) – as change agents and develop a result framework which translate their Vision and Mission into well defined thrust areas and goals using key performance indicators (KPIs). Such results frameworks should set out the baseline and medium term targets to meet the government’s ambitious Mahinda Chintana National Development targets.


The Budget Call 2010 issued by the Department of National Budget of the Ministry of Finance and Planning requested all Ministries to set medium term output and outcome targets to achieve budget expectations. This process has been coordinated by the then Department of Foreign Aid and Budget Monitoring and now it is known as Department of Project Management and Monitoring of the Ministry of Finance and Planning.

Following these circular instructions, the Ministries and the Departments prepared their results frameworks that clarified their aims and expected results by setting performance expectations through KPI targets.  This process is being cascaded to public enterprises (Statutory Boards and Institutions) into their Corporate Plan. The Department of Auditor General is gradually moving away from compliance audit to performance audit and value for money audit which complements the MfDR efforts in public sector. Officers of the Auditor General and other public officers are being trained by the Sri Lanka Institute for Development Administration (SLIDA) and Postgraduate Institute of Management (PIM) of the University of Jayawardenepura to look performance beyond financial and physical perspective focusing on outcomes and results. Extensive training takes place in developing results framework and logical framework analysis.


In the case of development projects and programmes use of logical frameworks with KPIs have become mandatory for all mega and large projects in planning, monitoring and evaluation. Performance of development projects are tracked using LFA based output and outcome indicators. Further, the Finance Commission through its Budget Call is introducing MfDR in Provincial Councils thus making the sub national planning and budgeting systems results oriented.  


            The experiences of advanced countries have revealed that institutionalization of MfDR has gone through a phased out step by step process. The Government of Sri Lanka is committed to strengthen the MfDR process and has taken many steps to institutionalize managing for development results at both national and sub national level to enhance development effectiveness.