100079  Sri Lanka SABER Country Report WORKFORCE DEVELOPMENT 2014  Dimensions Status 1. Strategic Framework Government leaders in Sri Lanka have promoted workforce development (WfD)  over the last two decades through sustained advocacy and systematic efforts. Positive steps have been taken to foster a demand-led approach to WfD. The assessments of economic prospects and their implications for skills have been adequate, although this can be further improved by greater coordination among the Department of National Planning, the Tertiary and Vocational Education Commission (TVEC), and the Ministry of Youth Affairs and Skills Development (MYASD). Critical coordination for implementation has been improved by bringing most public training providers under MYASD, but inter-ministerial coordination and monitoring mechanisms within MYASD and the training institutions are not adequately comprehensive. 2. System Oversight Public institutions play a greater role than others in providing technical and  vocational education and training (TVET), and programs are largely funded by the government. However, funding is not tied to the training output and outcomes. Competency standards for a number of occupations and fields have been established with industry participation, but wider use of standards in public and private institutions needs to be promoted. Quality assurance through course accreditation also needs to be further promoted. The National Vocational Qualifications (NVQ) Framework, established in 2004, provides diversified pathways for skills acquisition and qualification upgrading for those following a vocational track. These pathways are further strengthened by mapping the NVQ Framework to the broader Sri Lanka Qualifications Framework. 3. Service Delivery Only limited incentives are offered to induce and enable private and public  training providers to improve performance. The lack of enabling policy interventions to incentivize private training providers has limited the growth of private sector efforts to promote diversity and excellence in training. Linkages between industry and public training institutions are moderate and mainly exist at the head-office level of institutions. Training for center managers and instructors is provided in an ad hoc manner, so there is a need to institutionalize professional development. Improvements are also needed in the reporting of training and administrative data, and the design of policies and system improvements must be strongly supported by reliable data and the results of surveys and impact evaluations.     SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  TableofContents ExecutiveSummary............................................................................................................................... ........................4 SummaryofResults............................................................................................................................... ...................4 KeyDevelopments............................................................................................................................... .....................4 LookingForward............................................................................................................................... ........................5 StrategicFramework............................................................................................................................... ..............5 SystemOversight............................................................................................................................... ...................5 ServiceDelivery............................................................................................................................... ......................5 1.Introduction............................................................................................................................... ...............................6 2.CountryContext............................................................................................................................... .........................8 PoliticalContext............................................................................................................................... .........................8 EconomicTrends............................................................................................................................... ........................8 PovertyandInequality............................................................................................................................... ...........9 Demographics............................................................................................................................... ........................9 Employment............................................................................................................................... ...........................9 DemandforSkills............................................................................................................................... .....................10 SkillsShortagesandMismatches........................................................................................................................ 10 EducationandTraining............................................................................................................................... ........11 3.KeyFindingsandPolicyImplications...................................................................................................................... 13 OverviewoftheSABERͲWfDScores....................................................................................................................... 13 OverviewofFindingsandImplications................................................................................................................... 13 PolicyImplications............................................................................................................................... ...............14 4.AligningWorkforceDevelopmenttoKeyEconomicandSocialPriorities.............................................................. 16 KeySocioeconomicAspirations,Priorities,andReforms....................................................................................... 16 WorkforceDevelopmentPriorities..................................................................................................................... 16 CurrentandProposedReforms.......................................................................................................................... 16 SABERͲWfDRatingsoftheStrategicFramework.................................................................................................... 17 PolicyGoal1:ArticulatingaStrategicDirectionforWfD .................................................................................... 17 PolicyGoal2:FosteringaDemandͲledApproach.............................................................................................. 18 PolicyGoal3:StrengtheningCriticalCoordinationforImplementation............................................................ 18 DirectionsforPolicyDevelopment......................................................................................................................... 19 5.GoverningtheSystemforWorkforceDevelopment.............................................................................................. 20 ............................................................................................................................... 20 OverallInstitutionalLandscape OrganizationalStructures............................................................................................................................... ....20 LevelsandPatternsofFunding........................................................................................................................... 20  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 2 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  SABERͲWfDRatingsonOversightoftheWfDSystem............................................................................................ 21 .................................................................................... 21 PolicyGoal4:EnsuringEfficiencyandEquityinFunding PolicyGoal5:AssuringRelevantandReliableStandards................................................................................... 22 PolicyGoal6:DiversifyingPathwaysforSkillsAcquisition................................................................................. 23 DirectionsforPolicyDevelopment......................................................................................................................... 23 6.ManagingServiceDeliveryforResultsontheGround........................................................................................... 25 OverviewoftheDeliveryofTrainingServices........................................................................................................ 25 NonͲStateProviders............................................................................................................................... .............25 StateProviders............................................................................................................................... .....................25 ................................................................................................................... 25 SABERͲWfDratingsonservicedelivery PolicyGoal7:EnablingDiversityandExcellenceinTrainingProvision.............................................................. 26 PolicyGoal8:FosteringRelevanceinPublicTrainingPrograms........................................................................ 27 ................................................................. 27 PolicyGoal9:EnhancingEvidenceͲbasedAccountabilityforResults DirectionsforPolicyDevelopment......................................................................................................................... 28 Annex1:Acronyms............................................................................................................................... ......................29 Annex2:StructureoftheSABERͲWfDFramework..................................................................................................... 30 Annex3:RubricsforScoringtheData........................................................................................................................ 31 Annex4:ReferencesandInformants .......................................................................................................................... 40 Annex5:TableofSABERͲWfDScores......................................................................................................................... 41 Annex6:AuthorshipandAcknowledgements............................................................................................................ 42      SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 3 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  ExecutiveSummary1 SustainedeconomicgrowthandstructuralchangehavebeenafeatureoftheSriLankaneconomyoverthepastdecade, despite armed internal conflict and the global financial crisis. This has transformed the skills requirements of the workforce.Thecountryisfollowinganambitiousdevelopmentplan,publishedunderthetitle“MahindaChintana,”aiming to become a regional hub in strategic economic areas and to transform itself into an efficiencyͲdriven middleͲincome economy. As a result, the demand for skills is likely to accelerate. Unfortunately, despite high achievements in general education,majorskillsgapsandmismatchesinthelabormarketremainthatconstrainfirmandworkerproductivity. The government of Sri Lanka recognizes the critical importance of developing a skilled labor force for achieving the country’s development goals, and it is committed to building a high quality, market demandͲdriven, and responsive workforcedevelopment(WfD)system.ThestrategicdirectionsforWfDareoutlinedinboth“MahindaChintana”andthe National Human Resources and Employment Policy. The WfD sectorͲwide strategy is being developed by the Ministry of Finance and Planning and other relevant line ministries to operationalize these strategic directions. The SABERͲWfD diagnostictoolpresentsagreatopportunitytoenrichthepolicydialogueonWfDinSriLanka,helpingthegovernmentof SriLankaidentifykeybottlenecksandsetprioritiesintheWfDprocess. SummaryofResults TheSABERͲWfDscores,summarizedonthecoverofthereport,showthattheSriLankanWfDsystemisattheEstablished levelalongoneofthethreefunctionaldimensions—StrategicFramework—andattheEmerginglevelalongtheothertwo dimensions:SystemOversightandServiceDelivery.Theanalysishighlightsastrongcommitmentfromthegovernmentin settingastrategicdirection;however,theimplementationofthestrategyislaggingbehind.Intermsofsystemoversight, thesystemneedstobestrengthenedtoensurebetterefficiencyandequityinthefundingofpublicinstitutions.Moreover, althoughamajorefforthasbeenmadeinsettingupthecompetencystandardsandtheNationalVocationalQualifications (NVQ) framework, challenges remain in their implementation and in ensuring the market relevance of those standards and qualifications. Finally, there is much room for improvement in service delivery. Accountability for training delivery needs to be strengthened, the relevance of public training programs needs to be improved, and both the diversity and excellenceoftrainingprovisionneedtobeincreasedthroughprivatesectorparticipation. KeyDevelopments Strategic Framework. There is sustained leadership from government leaders that manifests itself through a range of specific efforts to raise awareness of WfD and to include it as a priority in the country’s national strategy. However, advocacybynonͲgovernmentstakeholdersisgenerallyabsent.Thegovernmenthastakensomepositiveyetmodeststeps tofosterademandͲledapproachtoWfD.However,thesystemremainslargelysupplyͲdriven,withlimitedprivatesector participationbothintrainingdeliveryandinprovidingfeedbackonskillsneedstothesystem.TheMinistryofYouthAffairs andSkillsDevelopment(MYASD)isthemainministryinchargeofskillsdevelopmentinSriLanka,butWfDresponsibilities arespreadacrossmanyministries.CoordinationforimplementationofWfDpolicypresentsamajorchallenge. SystemOversight.Theanalysisidentifiedthatthefundingofthetraininginstitutionsisadhocandisnottiedtothetraining outputs or outcomes. There is no continuous monitoring and assessing of the equity of funding, and the links with employersarealsogenerallyweak.Toensurethatstandardsintrainingarerelevantandreliable,theNVQFrameworkand CompetencyBasedTrainingwerebothlaunchedin2004.TherearediversepathwaysforskillsacquisitioninSriLanka:The NVQFrameworkprovidesclearpathwaysforskillsacquisitionwithintheTechnicalandVocationalEducationandTraining (TVET)system.TheNVQsystemwasalsomappedtoageneralqualificationsframework.Formalprovisionsforrecognition  1 ThisreportpresentsadiagnosticassessmentofSriLanka’sworkforcedevelopment(WfD)policiesandinstitutionsasofDecember2014.SriLanka’sMinistryof Educationhassinceundergoneseveralstructuralchanges,andanewMinistryofSkillsDevelopmentandVocationalTrainingwasestablishedinApril2015.  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 4 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  of prior learning (RPL) allow employees who have acquired competencies through work practice in an industry to have those competencies assessed and certified, which in turn opens avenues to them for further learning. However, the implementationoftheseinitiativesneedsstrengthening. ServiceDelivery.Therearefewmechanismsandincentivestoenhancediversityandexcellenceintrainingprovision.Most ofthetrainingiscarriedoutbypublicproviders;70percentofstudentsreceivetraininginpublicTVETinstitutions.While there are some links between public training providers and the industry in setting competency standards and in placing studentsinonͲtheͲjobtraining, these linksarevery weakinmostinstitutionsandrequirestrengthening. Finally,there is no mechanism to ensure evidenceͲbased accountability for the training results. The public training institutions mostly trackonlyenrollmentsandcompletionresults.Tracerstudiesaredoneonlyrarelyandonanirregularbasis. LookingForward The government is committed to skills development – a priority which is outlined in “Mahinda Chintana” – to foster effective WfD in Sri Lanka. A comprehensive skills development strategy is also currently under preparation; it aims to identifythekeysectoralissuesandpolicydirectionsneededtoachievethevisionandgoalssetoutin“MahindaChintana.” The results of the SABERͲWfD diagnostic tool, together with a comprehensive skills development report, are meant to contribute to the continuous efforts of the government to strengthen system efficiency, improve quality and relevance, andexpandaccessinordertocreateamarketͲdrivenandresponsiveWfDsystem.Keyareasforactionsuggestedbythe SABERͲWfDanalysisincludethefollowing: –”ƒ–‡‰‹… ”ƒ‡™‘” x Strengthenmechanismstoensurethatstrategicdecisionsareeffectivelyfollowed. x Strengthenthecollectionandmonitoringoflabormarketinformation. x EncourageemployerparticipationinWfD. x ImprovesectorͲwidecoordination.  ›•–‡˜‡”•‹‰Š– x EnsurethateffortstoexpandaccesstoTVETaresufficientlyresourced. x PromotecontinualimprovementoftheNVQsystemandstrengthenitsimplementation. x Strengthenthesystem’scapacityforassessingtraineesandemployees. x Improveinstructorqualityandschoolinfrastructureandequipment. x EncouragecourseaccreditationforprivateandpublicsectorprovidersthatarenotundertheMYASDumbrella. x Encouragetrainingfortheinformalsectorandforentrepreneurship. x StrengthenRPLtestingandcareeradvancementservices. x RaiseawarenessaboutTVETasacareerpathasasteptoimprovingitsattractiveness. x Introducemechanismstobroadenthepathsforlifetimelearning,suchasatraininglevysystem.  ‡”˜‹…‡‡Ž‹˜‡”› x TakestepstoenforcetheregistrationofnonͲstatetrainingproviders. x BroadentheincentivesfornonͲstatetrainingproviderstoenterthemarketandimprovequality. x Increaseadministrativeandfinancialautonomyoftrainingproviders. x Strengthentherelevanceofpublictrainingprogramsbyincreasingindustrypartnerships. x Increaseopportunitiesfortheprofessionaldevelopmentofinstructors. x Strengthenthemanagementinformationsystem(MIS)andtakemeasurestoimprovereportingbyproviders.  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 5 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  1.Introduction Sri Lanka aims to transform itself into an efficiencyͲ ground by enabling individuals to acquire marketͲ driven middleͲincome economy and become a regional andjobͲrelevantskills. hub in strategic economic areas by 2016, as outlined in  its national development strategy “Mahinda Chintana,” Taken together, these three dimensions allow for issued by the Ministry of Finance and National Planning systematicanalysisofthefunctioningofaWfDsystemas in2010.2“MahindaChintana”stressestheimportanceof a whole. The focus in the SABERͲWfD framework is on improving the education and training sectors to achieve the institutional structures and practices of public these ambitious development goals, transforming them policymakingandwhattheyrevealaboutcapacityinthe into modern, stateͲofͲtheͲart systems and improving system to conceptualize, design, coordinate, and labor productivity by enhancing the skills of the implement policies in order to achieve results on the population.Toinformpolicydialogueontheseimportant ground. issues, this report presents a comprehensive diagnostic of the country’s workforce development (WfD) policies Each dimension is composed of three policy goals that and institutions. The results are based on a new World correspond to important functional aspects of WfD Bank tool designed for this purpose. Known as SABERͲ systems (see Figure 1). Policy goals are further broken WfD, the tool is part of a World Bank initiative—the down into discrete policy actions and topics that reveal Systems Approach for Better Education Results moredetailaboutthesystem.5 (SABER) 3 —whose aim is to provide systematic  documentation and assessment of the policy and Figure1. FunctionalDimensionsandPolicyGoalsinthe SABERͲWfDFramework institutional factors that influence the performance of education and training systems. The SABERͲWfD tool examines initial, continuing, and targeted vocational education and training offered through multiple channels, and focuses largely on programs at the secondaryandpostͲsecondarylevels. The tool is based on an analytical framework 4 that identifies three functional dimensions of WfD policies andinstitutions: (1) Strategic Framework, which refers to the praxis of advocacy, partnership, and coordination in relation to the objective of aligning WfD in critical areas to prioritiesfornationaldevelopment;  (2) SystemOversight,whichreferstothearrangements Source: Tanetal.2013. governing funding, quality assurance, and learning  pathwaysthatshapetheincentivesandinformation Information for the analysis is gathered using a signals affecting the choices of individuals, structured SABERͲWfD data collection instrument. The employers, training providers, and other instrumentisdesignedtocollect,totheextentpossible, stakeholders;and facts rather than opinions about WfD policies and  institutions.Foreachtopic,theinstrumentposesasetof (3) Service Delivery, which refers to the diversity, multipleͲchoicequestionswhichareansweredbasedon organization,andmanagementoftrainingprovision, documentary evidence and interviews with bothstateandnonͲstate,thatdeliversresultsonthe knowledgeable informants. The answers allow each  2 3 SriLanka,MinistryofFinanceandNationalPlanning,“MahindaChintanaͲͲ FordetailsonSABER,seehttp://www.worldbank.org/education/saber. 4 VisionfortheFuture:TheDevelopmentPolicyFramework,Governmentof ForanexplanationoftheSABERͲWfDframework,seeTanetal2013. 5 SriLanka.”Colombo:2010. SeeAnnex2foranoverviewofthestructureoftheSABERͲWfDframework. http://www.treasury.gov.lk/publications/mahindaChintanaVisionͲ2010fullͲ eng.pdf.  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 6 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  topic to be scored on a fourͲpoint scale against  standardized rubrics based on available knowledge on global good practice (See Figure 2). 6  Topic scores are  averaged to produce policy goal scores, which are then  aggregated into dimension scores. 7 The results are finalized following validation by the relevant national  counterparts,includingtheinformantsthemselves.  Figure2.SABERͲWfDScoringRubrics     Source:Tanetal.2013.   Therestofthisreportsummarizesthekeyfindingsofthe SABERͲWfD assessment and also presents the detailed  results for each of the three functional dimensions. To  puttheresultsintocontext,thereportbeginswithabrief profileofthecountry’ssocioeconomicmakeup.                           6 7 SeeAnnex3fortherubricsusedtoscorethedata.Asinothercountries, Sincethecompositescoresareaveragesoftheunderlyingscores,theyare thedataaregatheredbyanationalprincipalinvestigatorandhisorher rarelywholenumbers.Foragivencompositescore,X,theconversiontothe team,basedonthesourcesindicatedinAnnex4;theyarethenscoredbythe categoricalrating(shownonthecoverofthisreport)isbasedonthe WorldBank’sSABERͲWfDteam.SeeAnnex5forthedetailedscoresand followingrule:1.00чXч1.75convertsto“Latent”;1.75<Xч2.50,to Annex6foralistofthoseinvolvedindatagathering,scoringandvalidation, “Emerging”;2.50<Xч3.25to“Established;”and3.25<Xч4.00to andreportwriting. “Advanced.”  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 7 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  2.CountryContext8 Once agricultureͲbased, the Sri Lankan economy has become one based on manufacturing and services. PoliticalContext Between 1977 and 2010, agriculture’s share of GDP steadily declined from 31 to 12.8 percent, while Sri Lanka is an island nation located in the Indian Ocean industry’s share rose from 12 to 29.4 percent, and the off the Indian subͲcontinent with a total area of 65,707 shareofservicesgrewfrom41to57.8percent.The12.8 square kilometers. It gained independence from Great percent share of agriculture in Sri Lanka’s GDP is lower Britain in 1948. Much of the nation’s recent history has thanfortheSouthAsiaregionasawhole(18.3percent), been marked by a violent struggle that began in the close to Malaysia’s 10.6 percent share, and below the 1970s between the government and the separatist averageofotherLMICs(at17percent)(seeFigure3). movementknownastheTigersofTamilEelam.Uponhis electionin2005,PresidentMahindaRajapaksalaunched Figure 3. Shares of GDP for Agriculture, Services, and a military campaign that brought an end to the 30Ͳyear Industry,2010 conflict in 2009. President Rajapaksa was reͲelected in 2010 to a sixͲyear term, and his party, the United 100% 29.4 27.1 31.5 27.0 80% 39.3 44.4 People’s Freedom Alliance, gained strong support in 60% subsequent parliamentary elections (where it holds 55.1 54.8 40% 57.8 51.5 morethanatwoͲthirdsmajority)aswellasprovincialand 20% 58.2 45.0 localelections. 0% 12.8 2.6 10.6 17.7 17.0 18.3 Sri Lanka Korea Malaysia India Low middle South Asia EconomicTrends income SriLankaisalowerͲmiddleͲincomecountry(LMIC)witha Agriculture Services Industry per capita GDP of $2,835 in 2011—higher than that of  Source:Tanetal.2013. theSouthAsiaregionasawholebutconsiderablybelow theaverageformiddleͲincome countries(MICs). The Sri In1977,SriLankabecamethefirsteconomyinSouthAsia Lankaneconomyhasenjoyedanaveragegrowthrateof toliberalizetrade.TradepeakedasashareofGDPat89 5.3percentoverthepastdecade.Theendofthearmed percentin2000,subsequentlydecliningto60percentin conflict in 2009 accelerated growth to an average of 8 2011. Reflecting the growing prominence of industry in percentin2010and2011. the Sri Lankan economy, in 2011 industrial products made up over 75 percent of Sri Lanka’s total exports, Building on a period of unprecedented peace and on its with textiles and apparel accounting for nearly 40 national recovery effort after the 2004 tsunami, percent of industrial exports (see Figure 4). The according to its “Mahinda Chintana” strategy Sri Lanka “Mahinda Chintana” envisions further strengthening of plansto(i)doublethesizeofitseconomybetween2010 SriLanka’sexportsasoneofitsstrategicgoals,callingfor and 2016 to achieve middleͲincome status through an expansion of total exports from US$8 billion in 2010 sustained economic growth; and (ii) increase per capita toUS$18billionby2016. income to $4,470 by 2016. Based on the recent growth rate, this vision appears to have been overͲambitious. Figure4.CompositionofExports,2011 However, Sri Lanka is moving in the right direction. Its Textiles and Petroleum Garments, effortstoachievethisvisionrestonthediversificationof 39.7% Products, 5.2% Rubber Products, Other, 0.4% the Sri Lankan economy by taking advantage of the 8.4% country’sgeographiclocationtobecomeanAsianhubin Industrial Exports, 75.7% Printing Industry Products, 2.2% five strategic spheres: naval, aviation, commerce, Food, Beverages, Transport energy, and knowledge. To support this vision, the Tobbaco, 3.3% Equipment, governmentistreatingasimportantprioritiesthesefour Other Industrial Exports, 6.8% 2.1% Agricultural Machinery & Mechanical areas:infrastructuredevelopment,improvementsinthe Exports, 23.9% Gems,Diamonds,andJewelry,5% Appliances, 3% business environment, firm competitiveness, and Source:CentralBankofSriLanka,2012. workforcequality.  8 Thissectionisbasedon“BuildingtheSkillsforEconomicGrowthand Dundar,BenoîtMillot,YevgeniyaSavchenko,T.A.Piyasiri,andHarsha CompetitivenessinSriLanka,”a2013WorldBankreportwrittenbyHalil Aturupane.  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 8 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  ‘˜‡”–›ƒ† ‡“—ƒŽ‹–› unemployed, with an unemployment rate of 13 percent The inclusive growth policy enabled Sri Lanka to in 2012, three times higher than the rate for adults dramaticallyreducetheproportionofpoorpeopleinthe (Gunatilaka, Mayer, and Vodopivec 2010). In addition, countryfrom22.7percentin2002to8.9percentin2009, while for adults the unemployment rates decline with with poverty declining in urban, rural, and estate areas their education level, for youth these rates actually rise (see Figure 5). However, inequality within the country with increasing education. For example, almost 28 increased:TheGinicoefficientwentupfrom0.3in1985 percent of Sri Lankans ages 19–25 with a bachelor’s or to0.47in2002to0.49in2009. higherdegreeareunemployed,comparedwith1percent  of adults over 25 years old with similar education (see Figure5.CompositionofExports,2011 Figure 6). Finally, the unemployment rate for women is morethanthreetimesthatformenat10percentand3 percent, respectively (STEP Household Skills HeadCountRatio(%) 38.4% Measurementsurvey,2012). 29.5% 30.0% 32.0%  Urban 30.9% Figure6.UnemploymentbyAgeandEducation,2012 24.7% Rural 20.5% 30% 15.7% 25% 16.3% 11.4% Estate 14.0% 20% 9.4% 7.9% 6.7% 15% 5.3% 10% adults 1990/91 1995/96 2002 2006/07 2009/10 5% youth  0% no edu below primary secondary passed O passed A bachelor + Source:SriLanka,DepartmentofCensusandStatistics,2011a. primary (grade 5) (grade 9) (Grade 5) ‡‘‰”ƒ’Š‹…• Sri Lanka had a population of 20.3 million in 2011, with Source:Dundaretal.,2013 an average annual population growth rate of around 1 The structural change in the Sri Lankan economy has percent between 1981 and 2011. The country has been shifted employment from agriculture to industry and enjoying a favorable ageͲdependency ratio, 9 which has services. Between 1971 and 2010, the share of been conducive to economic growth. In 2005, the ageͲ employment in agriculture declined from 51 percent to dependency ratio was 46.7 percent; since then, it has 34 percent, the industry share rose from 11 percent to been steadily rising, reaching 49.9 percent in 2011. The 25 percent, and the services share fluctuated between proportion of youth in the total population is expected 38 percent and 42 percent (see Figure 7). Within the to decline, from 19 percent in 1995 to a projected 12.8 services sector, the major areas of employment growth percent by 2030. Sri Lanka is also experiencing a rise in havebeenintheretailtrade,health,education,business, internal migration to urban areas from individuals andpersonalservicessubsectors. seeking to earn wages. The percentage of the total population that is living in urban areas has increased Figure7.StructuralChangesinEmployment,1971–2010 from 24.9 percent in 1991 to 31.3 percent in 2011. This process began as early as 1977, in great part as a result 60.0 50.8 of more open economic policies related to the export 45.1 47.6 50.0 processing zones, which have attracted a huge number 36.0 32.7 40.0 Percent ofyoungpeoplefromruralareas(Ranathunga,2011). 30.0 Agri  20.0 Industry ’Ž‘›‡– 10.0 Services SriLankahasmadesubstantialprogressinbringingdown 0.0 1971 1981 1990 2000 2010 unemployment, which has declined from 9 percent in 2000 to 4.2 percent in 2011 (Sri Lanka, DCS 2011b). Source: DepartmentofCensusandStatistics,2011a. However, youth constitute more than half of all  9 Thedependencyratioistheratioofdependents(peopleyoungerthan15or olderthan64)totheworkingͲagepopulation(thoseaged15–64).  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 9 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  LaborforceparticipationinSriLankaislow,withonly53 Figure 8. Expected Hiring over the Next 12 Months, by percent of those ages 15 and up in the workforce OccupationandSector(2012)(PercentGrowth) (Department of Census and Statistics, 2011b). However, 25 themajorityofthepopulationofthoseinthelaborforce (62 percent) are employed in the informal sector 20 (Department of Census and Statistics, 2011b), including 15 an estimated 86 percent of employment in agriculture. 10 Another important feature of the Sri Lankan labor marketisoverseasemployment;estimatessuggestthat 5 morethanamillionSriLankans—about12percentofthe 0 laborforce—areemployedabroad(SecretariatforSenior Ministers, 2012). Moreover, the annual departures of Ͳ5 migrants has been increasing, rising from 182,188 in 2000to266,445in2010(BureauofForeignEmployment, Manufacturing 2010).About42percentofthesemigrantworkersleave Tourism OtherServices thecountrytoworkashousemaids.Inadditiontobeing  a significant source of jobs, overseas employment Source:Dundaretal.,2013. provides substantial foreign exchange, with 2010  remittances accounting for nearly US$4 billion, about 7 percent of GDP. To enhance remittances, the ‹ŽŽ•Š‘”–ƒ‰‡•ƒ†‹•ƒ–…Š‡• government would like to ensure that emigrating SriLankahasseriousmismatchesbetweenthesupplyof workers have higher skills (Secretariat for Senior andthedemandforeducation,training,andskills.Firms Ministers, 2012). However, the government has not yet therearemuchmorelikely(at16percent)toidentifyan takenmanyconcretestepstoachievethisgoal. inadequate labor force as a major or severe constraint than are firms in Pakistan (8.1 percent) or Nepal (5.9 DemandforSkills percent). Moreover, the percentage of manufacturing firms that complained about the labor force’s skills The increasing integration of Sri Lanka into global increasedfrom21percentin2004to26percentin2010. markets and its evolution from a resourceͲbased to a Itappearsthatthemostseriousconstraintsarefacedby productivityͲdriveneconomyrequirethatthelaborforce firms in modern, higherͲvalueͲadded industries and become better educated and trained, have upgraded whenfirmsarehiringforhigherͲskilledoccupations. skills, and become  equipped with higherͲorder  competencies so that workers can apply new Additional evidence of skills gaps comes from the 2012 technologies and perform complex tasks efficiently. As Skills Toward Employment and Productivity (STEP) illustrated by Figure 8, the demand for relatively lowͲ survey, in which employers were asked about their skilled workers remains high in manufacturing, and expectationsregardingtheeducationallevelsofworkers employers in all sectors expect positive growth in all in various jobs. In highͲskilled occupations, about 60 occupations,10yetthereisalsoanincreasingdemandfor percent of the employers surveyed expect the average highͲskilled workers in tourism and other services. The worker to have completed technical or vocational government’s goal of turning Sri Lanka into a regional education and training, while the corresponding share hubinfiveareas(naval,aviation,commerce,energy,and for lowͲskilled occupations is 24 percent. With only 16 knowledge)islikelytoacceleratethedemandforskillsin percent of the current workingͲage population sectors such as information and communications possessingthisleveloftraining,employers’expectations technology(ICT),construction,andtourism. do not align with actual educational attainment in Sri Lanka.       10 Exceptforprofessionalsinmanufacturing,wheredemandisunchanged.  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 10 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  The gap between employers’ expectations and the Figure9.EducationandTrainingbyWealthQuintile(2012) supply of language and technical skills such as English 15 0.4 Apprenticeship,share and computer literacy is particularly acute. Eighty Education,Years 0.3 percent of employers expect a higherͲskilled worker to 10 TVETand be competent in English and 40 percent have the same 0.2 expectationoflessͲskilledworkers.Similarly,75percent 5 0.1 of employers think an average higherͲskilled worker 0 0 should have computer skills and 38 percent expect 1 2 3 4 5 lowerͲskilledworkerstohavethoseskills.However,only HouseholdAssetIndex,Quintiles 20percentofSriLankansages15to64speakEnglishand YearsofEducation TVET,Share Apprenticeship,Share just15percentcanusecomputers.  Source:Dundaretal.,2013. Simply increasing the quantity of technical and vocational education and training (TVET) graduates will Education in Sri Lanka is compulsory until grade 9, and not necessarily ease these constraints. Unmet demand the system of public education provides essentially free forskilledlaborcoexistswithhighyouthunemployment, schooling through university (see Figure 10). Students in particular among the educated. Sri Lanka’s TVET enrolledingrade11taketheGCE(OrdinaryLevel–O/L) systemhasfailedtoprovidetheneededskillsforworkin examinations, but only about 45 percent pass them and fields like tourism that can help sustain economic qualifytoentergrade12.Atgrade13,studentstakeGCE diversification and enhance competitiveness. (Advanced Level – A/L) examinations, which are Meanwhile, the unemployment rate for educated Sri compulsory for enrollment in tertiary education. Only Lankansages19to25isashighas28percent. about50percentpasstheGCEͲA/L,andofthosewhodo,  only 11 percent enroll in universities and advanced †—…ƒ–‹‘ƒ†”ƒ‹‹‰ technical institutions due to supply constraints. There Sri Lanka’s general education system has made are an estimated 128,000 tertiary students at state important gains in the recent past. The country has educational institutions, with a number of private achievednearuniversalprimaryschoolenrollmentatthe institutions also offering tertiary programs to an national level with a 99.4 percent primary enrollment estimatedadditional46,000students. rate(approximately350,000)in2011.Thepercentageof  Figure10.SriLanka’sEducationandTrainingSystem children ages 5 to 14 currently attending school is 99.4 percent, and 83 percent of those ages 15 to 65 have  completed at least lower secondary education. There is gender parity in education completion, but people from  poorer backgrounds have had fewer years of education than those from higherͲincome families. Figure 9 shows  years of education by asset quintile, 11 a proxy for householdwealth.Peopleinthelowestquintilehaveon  average7.6yearsofeducation,andpeopleinthehighest  quintile11.6years.      Source:Dundaretal.,2013.           11 ThismethodologywasdevelopedbytheSTEPteamandisbasedonFilmer andScott(2008).  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 11 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  After completing general education, students may end between TVET and general education. To address this their studies, continue on to university, or enroll in lack of mobility, in 2012 the government approved the vocationalortechnicaltraining.About150,000students, Sri Lanka Qualification Framework and integrated the 43 percent of whom are women, enroll in TVET courses NVQ into it. This has led to recognition of prior learning in Sri Lanka’s wide network of training institutes (TVEC (RPL) and credit transfers, leading to greater flexibility 2011).In2011,ofthe2,269traininginstitutesregistered betweenvocationalandhighereducation. with the Tertiary and Vocational Education Commission  (TVEC), 318 were public, 704 were statutory board Table1.NationalVocationalQualificationsinSriLanka institutes, 990 were private, and 257 were run by NGOs LevelNo. Qualification Description (TVEC 2012a). Altogether, they offer 852 accredited programs. Level1 National Thislevelrecognizestheacquisition  Certificate ofacoreentryͲlevelskill. The public sector is the dominant provider of TVET and Level2 Theselevelsrecognizeincreasing accounts for about twoͲthirds of total enrollment. The levelsofcompetency.Level4 largestpublicagenciesintermsofTVETenrollmentsare National Level3 providesaFullNational Certificate the Department of Technical Education and Training Craftsmanshipcertification. (DTET), the National Apprentice and Industrial Training Level4 Authority (NAITA), the Vocational Training Authority of Level5 Theselevelsrecognizeincreasing SriLanka(VTA),andtheNationalYouthServicesCouncil Diploma competencies,fromthetechnicianto (NYSC). These agencies, which report to the Ministry of Level6 themanagementlevel. Youth Affairs and Skills Development (MYASD), enroll Level7 Bachelor’s Thislevelincludescompetencein about83,000studentsayear—morethan80percentof degree resourceplanningandmanagement thetotaltrainedbypublicTVETproviders.Severalother orequivalent processes. ministrieshavetheirowntrainingprogramsinareasthat fall within their purview. Public TVET programs are Source:Author’sconstruction. essentially free for new school leavers, but fees are charged to those currently employed who take short or partͲtimecourses.  About 29 percent of TVET students attend private institutes, and about 3 percent attend NGOͲfinanced institutions. Private training is provided through feeͲ based professional associations, some of which offer certificate, diploma, and degree courses, and through private institutes set up under the Companies Act of 2007. Religious and voluntary NGOs offer craft training tounemployedyouth,ruralwomen,schoolleavers, and semiͲ or unskilled workers. Most programs are free or haveonlyanominalfee.  The National Vocational Qualifications (NVQ) system, introduced in 2005, offers a clear path for progressing through TVET. The NVQ Framework is mandatory for public institutions; the private sector also increasingly offers NVQͲcertified courses. The NVQ Framework has led to setting national skills standards and national quality standards for teaching and assessment using a competencyͲbasedapproach.However,studentsarenot allowedtocontinuetotertiaryeducationfromtheTVET stream.Inaddition,thereisalackofhorizontalmobility  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 12 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  3.KeyFindingsandPolicyImplications programs is inadequate. Critical coordination for implementation has been improved by bringing most This chapter highlights findings from the assessment of public training providers under MYASD, but interͲ Sri Lanka’s workforce development (WfD) system based ministerial coordination and monitoring mechanisms on the Systems Approach for Better Education Results withinMYASDandtraininginstitutionsareinadequate. (SABER)ͲWfDanalyticalframeworkandtool.Thefocusis onpolicies,institutions,andpracticesinthreeimportant System Oversight: Public institutions are the main functional dimensions of policymaking and providers of technical and vocational education and implementation—strategic framework, system training(TVET),beingresponsibleforthetrainingof70 oversight, and service delivery. Because these aspects percent of TVET students. Public TVET programs are collectivelycreatetheoperationalenvironmentinwhich largely funded by the government; however, the individuals,firms,andtrainingproviders,bothstateand fundingisnottiedtothetrainingoutputandoutcomes. nonͲstate, make decisions with regard to training, they Competency standards for a number of occupations exert an important influence on observed outcomes in and fields have been established with industry skills development. Strong WfD systems have participation, but wider use of the standards in public institutionalized processes and practices for reaching and private institutes, as well as quality assurance agreementonpriorities,collaborationandcoordination, through course accreditation, needs to be further andgeneratingroutinefeedbackthatsustaincontinuous promoted. The National Vocational Qualifications innovationandimprovement.Bycontrast,weaksystems (NVQ) Framework, established in 2004, is intended to arecharacterizedbyfragmentation,duplicationofeffort, provide diversified pathways for skills acquisition and andlimitedlearningfromexperience. upgradingofqualifications. The SABERͲWfD assessment results summarized below Service Delivery: Incentives to betterͲperforming provide a baseline for understanding the current status private and public training providers are limited. The of the WfD system in the country, as well as a basis for lack of policy interventions to incentivize private discussing ideas on how best to strengthen it in the training providers has limited the growth of such comingyears. providers and affected diversity and excellence in privatetrainingprovision.Linksbetweenpublictraining OverviewoftheSABERǦWfDScores institutions and industry function are moderately Figure 11 shows the overall results for the three strong,buttheyaremainlylimitedtothemanagement Functional Dimensions in the SABERͲWfD framework.12 levelofinstitutes.Thetrainingofcentermanagersand For its Strategic Framework, Sri Lanka is rated at the instructorsisconductedinanadhocmanner,indicating Established level. For Service Delivery and System a need to institutionalize professional development. Oversight, the score falls at the Emerging level of Improvements are also needed in the reporting of development. training and administrative data, since the design of policies and systems improvements must be strongly OverviewofFindingsandImplications supportedbyreliabledataandbytheresultsofsurveys Strategic Framework: Sustained advocacy for andimpactevaluations. workforce development has taken place throughout the last two decades, but policy implementation has  suffered due to a lack of critical coordination and  monitoring. Economic prospects and the implications for skills have been adequately assessed, but such  assessments can be further improved through greater coordination among the Department of National  Planning, Tertiary and Vocational Education  Commission (TVEC) and Ministry of Youth Affairs and Skills Development (MYASD). The use of such assessments for designing and delivering training  12 SeeAnnex5forthefullresults.  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 13 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  Figure11.ResultsfortheThreeFunctionalDimensionsinthe MYASD and TVEC, which were done with employer SABERͲWfDFramework participation, provide directions for labor marketͲ oriented WfD. However, the participation of these WfD stakeholdersinpolicyformulationiscurrentlyadhoc,so the need remains for an institutionalized coordinating mechanism. The second aspect of relevance is the identification of competencies to perform the functions assigned to each occupation or profession, in order to meet the needs of employers. Sri Lanka has established asystemfordevelopingcompetencystandardswiththe participation of industry, employers, employees, and training providers, and these competency standards are embedded in the NVQ Framework. Processes for competency standard development and curriculum development should be improved to involve more industry participants, and an adequate number of qualified staff should be maintained for timely development and updating of documentation and for handlingindustryfeedbackandsurveys. Quality: The TVEC has established a system for the Source:Dundaretal.2013. registration of training institutes of both the public and private sectors under the Tertiary and Vocational ‘Ž‹…› ’Ž‹…ƒ–‹‘• Education Act of 1999. Norms have been established to Leaders in Sri Lanka have provided sustained advocacy assess institute facilities, course curricula, and the overthelasttwodecadestoestablishaTVETsystemthat qualificationsofinstructors,andTVECprovidestechnical willsupportthedevelopmentofacompetentworkforce. guidance to institutes. However, according to TVEC Several policy documents endorsed by the government estimates,approximately20percentofinstitutes,mostly have provided the direction for the transformation of in the private sector, operate without registration, so education and training systems to realize this objective, mechanismsneedtobeestablishedtoensurethatthese and successive governments have supported the institutes get registered. Course accreditation and the development process. Considerable progress has been establishment of quality management systems further madeinseveralareastoimprovetherelevance,quality, improvethequalityoftraining.Whilealargenumberof equity, and efficiency of training, enabling Sri Lanka to public sector courses have received accreditation, bring its workforce development system above the expansion of coverage requires dedicating an emerging level. However, many goals remain unmet, appropriate amount of funding and a sufficient number including advancing the TVET programs’ relevance, of qualified staff. The technical assistance and limited efficiency, and quality, and ensuring access to them. 13 fundingthatTVEChasprovidedtoprivatesectortraining The remainder of this section presents potential policy institutes has promoted course accreditation and actions that could address these challenges and may enabled these institutes to award National Vocational supportcontinuedprogress. Qualifications.Theprofessionaldevelopmentoftraining centermanagersandinstructorsisalsokeytodelivering Relevance: There are several dimensions to the work of quality training programs, and institutionalized systems improving the relevance of education and training to needtobeestablishedforthispurpose.Toenhancethe employers. First, WfD needs to cater to the manpower quality of training, industry needs to participate at all requirementsoftheprioritysectorsoftheeconomy.The levels by providing onͲtheͲjob training; industry analysisofdevelopmenttrendsandtheidentificationof participationinthisworkespeciallyneedstooccuratthe priority areas by the Department of National Planning,  13 ForadetailedreviewofTVETperformance,challengesandpolicyoptions, seeDundaretal.(2013).  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 14 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  decisionͲmaking and implementing levels of training make informed decisions on their career path and be institutes,aswellasatthetraineelevel. morelikelytochoosetheTVETsector. Access: A majority of the funding for TVET comes from Efficiency: The establishment of MYASD has improved thegovernment.Thishasenabledyouthinurbanaswell coordination among training providers and facilitated as rural areas to access TVET, although the capacity of the implementation of policy decisions. However, some public networks needs to expand to accommodate a training institutes remain under other ministries, and greaternumberofsecondaryschoolleavers.Thenumber therefore interͲministerial coordination needs of youth entering the informal sector without specific strengthening for systematic workforce development. skillsneedstobereducedtoaminimum.ThefocusofSri Furthermore, WfD policies need to be integrated with Lanka’s TVET is on initial vocational education and economic development and fiscal policies in order to training (IVET), and little emphasis has been given to ensureacoherentapproach. continuingvocationaleducationandtraining(CVET)and trainingͲrelated active labor market programs. Public institutes are mostly funded by the General Enhancing the skills of the existing labor force in the Treasury through taxation, though some capital inputs industry is not currently promoted by government have been provided through external development policies; for example, a training levy system has not yet partnerssuchastheAsianDevelopmentBankduringthe beenintroduced.Whilelimitedassistanceisprovidedto pastdecade.Fundingallocationstoinstitutesaremostly privatesectortrainingprovidersatpresent,government based on the previous year’s budget and on special policies need to focus on facilitating the expansion of initiatives introduced by the government for priority trainingbytheprivatesector. sectors. The main criterion for measuring training institute performance is student enrollment, with little Sri Lanka has established a policy for the provision of emphasis on completion rates, employability, quality of training to disadvantaged groups, and it has introduced employment, employer satisfaction, and so on. various initiatives for this purpose, such as providing Therefore,theinternalandexternalefficiencyoftraining small stipends to lowͲincome students and establishing institutes is not properly determined. The budgeting Vocational Training Authority (VTA) centers in rural system of public sector institutes also needs reviewing, areas.TheNVQsystemprovidesqualificationͲupgrading with the aim of improving operational efficiency. pathways and opportunities for continuing education, Training and administrative data gathering from public butthepathwaysforskillsacquisitionneedtobefurther andprivatetrainingprovidersisnotcomprehensiveand diversified.TVETalsosuffersfromalowimagewhenitis there are gaps in the data collected. Research and comparedtothehighereducationalternative,soitisthe surveysthatwillassistinmakingpolicyleveldecisionsfor secondchoiceofsecondaryschoolleavers.Byproviding theTVETsectorneedtobeconductedonaregularbasis, vocational training orientation within secondary and greater collaboration should be established with education and establishing a coordinated career researchinstitutesforthispurpose. guidance system, students would be better equipped to  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 15 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  4.AligningWorkforceDevelopmenttoKey identified in “Mahinda Chintana.” These priorities are detailedinBox1. EconomicandSocialPriorities Workforcedevelopment(WfD)isnotanendinitselfbut Box1.AreasPrioritizedforWorkforceDevelopment an input toward broader objectives: boosting Information and CommunicationsTechnology (ICT): The employability and productivity; relieving skills ICT workforce that stood at about 50,000 in 2010 is constraints on business growth and development; and expected to increase to 186,000 by 2016 in the areas of advancing overall economic growth and social wellͲ database management, digital media and animation, being. This section briefly introduces Sri Lanka’s business analysis and systems integration, network socioeconomic aspirations, priorities, and reforms administration, programming and software engineering before presenting the detailed SABERͲWfD findings on andrelatedapplications. theStrategicFrameworkandtheirpolicyimplications. Tourism: The tourism industry is fast growing, with the Key Socioeconomic Aspirations, Priorities, return of peace to the country, and Sri Lanka expects to receive 2.5 million tourists by 2016. This development in andReforms thetouristsectorenvisagesrapidgrowthinconstruction, “MahindaChintana”setsthegoalofdoublingthesizeof furniture making, transport, food and beverages, room theeconomyfrom2010to2016,accompaniedbyashift services,andhotelandtourismrelatedmanagement.The inthestructureoftheeconomy.Theshareofagriculture sectorisprojectedtogenerate700,000newjobs. in GDP is to be consolidated at around 12 percent, the Port and Airport Development: Two port projects and a industry share at 28–30 percent, and services at around newairportdevelopmentalreadyunderwaywillgenerate 60 percent, thereby diversifying the economy and employment in engineering, skilled craft work, and balancinggrowthtopreventthewideningofurban–rural serviceͲrelatedoccupations. gaps. To make effective use of the country’s strategic  geographicallocation,thegovernmenthasembarkedon Commerce, Transport, Irrigation, and Urban major developments to make Sri Lanka a hub for naval, Development: Similar employment generation is aviation,commercial,energy,andknowledgeindustries, expectedfromdevelopmentsinthecommercial,roadand servingasakeylinkbetweentheEastandtheWest.This transport,urbandevelopment,irrigation,andknowledge strategic direction requires significant infrastructure sectors.  development and increased investment. In the medium Health:Thehealthsectorisexpectedtogrow,andabout term, the government expects investment to be 2,500 nurses and 600 radiographers, pharmacists, and increased to over a third of GDP, with a sustained medical laboratory technicians are estimated to be commitment of 6–7 percent of GDP coming from the needed annually to serve the public and private medical government and the balance coming from the private institutesandmeet theoverseasdemand. sector.Itisalsointendedthatby2016exportswillhave grown at twice the rate of real GDP, that tourism will  showafourfoldexpansionofearnings,thatremittances fromskilledmigrantworkerswillhavedoubled,thatthe —””‡–ƒ†”‘’‘•‡†‡ˆ‘”• shareofruralemploymentwillhavedeclinedfromabout The Presidential Task Force recommendations (1998) twoͲthirds to oneͲhalf, and that the share of the urban provided guidance for workforce development, and populationwillhaveincreasedfromaquartertoathird. technical and vocational education and training (TVET) reforms were embarked upon to offer industryͲrelevant ‘”ˆ‘”…‡‡˜‡Ž‘’‡–”‹‘”‹–‹‡• and qualityͲassured training programs. The system of As Sri Lanka transitions to become an efficiencyͲdriven training in public training institutes was to be middleͲincome economy, building jobͲrelevant skills transformed into competencyͲbased training in keeping becomes a major concern in order to support economic with the industryͲidentified competency standards and growthand thecountry’stransformationintoaregional quality assurance mechanisms, which included course hub. Considering the existing demands of industry and accreditation, and quality management mechanisms the expected growth in the medium term, the were to be introduced. This system development and government has prioritized workforce development in implementation process was facilitated by the certain sectors and taken steps for implementation, as establishment of a ministry dedicated to TVET; most of  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 16 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  the public training institutes came under the purview of WfD (2.7). The explanation for these ratings and their MYASDin2004. implicationsfollowbelow.  The reform process was further strengthened by Figure 12. SABERͲWfD Ratings of the Strategic Framework establishing a National Vocational Qualifications (NVQ) Dimension Framework. NVQ certification can be obtained through two modalities: (i) through completion of an accredited training program; and (ii) through recognition of prior learning(RPL)byprovidingcompetencyexamsforthose who have acquired a commensurate level of skill on the job.Inaddition,instituteswereestablishedtooffermidͲ level technical programs and bachelor degreeͲlevel coursesintheTVETsector.   It is proposed that training in identified priority sectors Note:SeeFigure2foranexplanationofthescaleonthehorizontalaxis. should be expanded by the agencies responsible for Source: Based on analysis of the data collected using the SABERͲWfD questionnaire. traininginstitutions14andthroughapprenticeshipͲbased training in industry; the private sector is encouraged to ‘Ž‹…› ‘ƒŽͳǣ”–‹…—Žƒ–‹‰ƒ–”ƒ–‡‰‹…‹”‡…–‹‘ˆ‘” engageintrainingprovisionaswell(SriLanka,Secretariat ˆ for Senior Ministers, 2012). The midͲlevel technical educationandtrainingistobeexpandedinareasofhigh Leaders play an important role in crystalizing a strategic labor market relevance and will provide access to a vision for WfD appropriate to the country’s unique significantnumberofuppersecondarystudentswhoare circumstances and opportunities. Their advocacy and competing to enter the programs. The relevance and commitment attract partnership with stakeholders for qualityofprogramswillbeimprovedandwillincorporate thecommongood,buildpublicsupportforkeypriorities employableskillsforTVETgraduatessotheycanbecome in WfD, and ensure that critical issues receive due nationallyandinternationallycompetitive. attention in policy dialogue. Taking these ideas into account,PolicyGoal1assessestheextenttowhichapexͲ SABERǦWfD Ratings of the Strategic level leaders in government and in the private sector Framework provide sustained advocacy for WfD priorities through institutionalizedprocesses. IntheSABERͲWfDframework,theroleofWfDinhelping Sri Lanka to realize its socioeconomic aspirations Sri Lanka scores at the Established level on this Policy materializes through actions to advance the following Goal (3.0), reflecting sustained leadership from three policy goals: (i) setting a strategic direction for governmentleadersthatmanifestsitselfthrougharange WfD; (ii) fostering a demandͲled approach in WfD; and of specific efforts to raise awareness about WfD and (iii) ensuring coordination among key WfD leaders and includingitasapriorityinthecountry’snationalstrategy. stakeholders. The ratings for these policy goals are Advocacy by nonͲgovernment stakeholders is generally presented and explained below, followed by a brief absent,however. reflectionontheirimplicationsforpolicydialogue.  Political leaders, officials occupying strategic positions, Based on data collected by the SABERͲWfD and WfD champions in both the public and private questionnaire,Sri Lankareceivesanoverallratingof2.6 sectors have provided sustained advocacy over the past (Established)ontheStrategicFrameworkdimension(see twodecades,mainlyfocusingontheindustryandservice Figure12.Thisscoreistheaverageoftheratingsforthe sectors. Systematic WfD began in the 1990s with the underlying policy goals relating to: (i) setting a direction establishment of the Tertiary and Vocational Education for WfD (3.0); (ii) fostering a demandͲled approach to Commission (TVEC), the planning and regulatory body. WfD(2.2);and(iii)strengtheningcriticalcoordinationfor The“MahindaChintana”emphasizesthatWfDshouldbe a priority, and the nationalͲlevel policy documents on  14 ThetrainingagenciesaretheDepartmentofTechnicalEducationand Authority(NAITA),theVocationalTrainingAuthority(VTA)andtheNational Training(DTET),theNationalApprenticeshipandIndustrialTraining YouthSkillsDevelopmentCouncil(NYSC).  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 17 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  TVET in 1998 and in 2009 set the specific strategic There is limited and ad hoc employer engagement in directions for the development of a competent setting WfD priorities, training delivery, and training workforcewithskillsthatarerelevanttotheneedsofthe design, which makes the TVET system supplyͲdriven labor market. Major reforms that emanated from the rather than demandͲdriven. The employers themselves policydocumentsweretheintroductionofcompetencyͲ have taken certain initiatives for skills upgrading of based training and the establishment of the NVQ employees and training of school leavers; however, Framework. The National Human Resources and mechanisms for stimulating the skills upgrading of Employment Policy (2012) has taken a comprehensive employees by industry employers, such as training levy interͲsectoral approach, although it is yet to be systems, are absent. Government incentives to industry implemented. in the form of training for employees, skills testing, and certification (etc.) are not comprehensive. In addition, ‘Ž‹…› ‘ƒŽʹǣ ‘•–‡”‹‰ƒ‡ƒ†ǦŽ‡†’’”‘ƒ…Š boththegovernment’smonitoringofsuchprogramsand Effective advocacy for WfD requires credible its dialogue with employers for upgrading workforce assessments of the demand for skills, engagement of skillsareweak. employers in shaping the country’s WfD agenda, and incentives for employers to support skills development. ‘Ž‹…› ‘ƒŽ͵ǣ–”‡‰–Š‡‹‰”‹–‹…ƒŽ‘‘”†‹ƒ–‹‘ˆ‘” Policy Goal 2 incorporates these ideas and benchmarks ’Ž‡‡–ƒ–‹‘ thesystemaccordingtotheextenttowhichpoliciesand Ensuring that the efforts of multiple stakeholders institutional arrangements are in place to: (i) establish involved in WfD are aligned with the country’s key clarity on the demand for skills and areas of critical socioeconomicprioritiesisanimportantgoalofstrategic constraint; and (ii) engage employers in setting WfD coordination. Such coordination typically requires prioritiesandinenhancingskillsupgradingforworkers. leadership at a sufficiently high level to overcome  barrierstocrossͲsectororcrossͲministerialcooperation. Sri Lanka scores at the Emerging level for Policy Goal 2 Policy Goal 3 examines the extent to which policies and (2.2). It has taken some positive steps to foster a institutionalarrangementsareinplacetoformalizeroles demandͲled approach to WfD, but these consist mainly and responsibilities for coordinated action on strategic of occasional donorͲsupported assessments of national priorities. economic prospects and skills and ad hoc incentives for skillsupgradingintheinformalsector. Sri Lanka scores at the Established level for this policy goal(2.7).GovernmentministriesandagenciesandnonͲ Sri Lanka’s strategy for WfD encompasses both initial government stakeholders have legally defined roles and vocational education and training (IVET) and continuing responsibilities. Critical coordination for the vocationaleducationandtraining(CVET).Themainfocus implementation of WfD programs has been greatly has been on IVET for postͲsecondary students, with improved by bringing most of the training institutions student enrollment in public and private training underoneministry—MYASD.However,specializedareas institutions in 2011 being 98,000 and 53,000, of TVET operate under other ministries, so interͲ respectively. Institutions have been established for ministerial coordination, which is yet to be established, diploma and degree level learning, but access to CVET isvitaltoachievetheWfDobjectivesofthegovernment. among the existing workforce in formal and informal Furthermore, coordination among the relevant industry has not been considered a priority. Therefore, ministries, as well as with training institutions and WfD interventions are not well integrated with the industry,isadhocandneedstobestrengthened. economyͲwide development agenda. As part of this strategy, the government established the Ministry of The Central Bank of Sri Lanka and the Department of VocationalandTechnicalTrainingin2004(whichin2010 National Planning conduct analyses of different was renamed the Ministry of Youth Affairs and Skills economic sectors and the implications for workforce Development—MYASD) as a separate ministry for skills development, with further data and analysis being development. This ministry has facilitated strategic provided by the Department of Census and Statistics. development and coordination of the TVET sector. MYSAD coordinates 70 percent of the training activity, However, monitoring mechanisms of the policy agenda making it the focal point for government provision of are weak, with no clear milestones and benchmarks or training. TVEC prepares vocational education and institutionalizedstakeholderengagement. trainingplansandconductslabormarketsurveys,which  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 18 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  supporttheassessmentofoverallWfDneeds.However, 4. ImprovesectorͲwidecoordination.Institutionalized TVEC does not yet regularly ascertain the industry mechanisms for coordination and review of WfD sectors’demandforskillsatnationalandregionallevels, implementation at all levels—institutional, and coordination among the Department of National ministerial, interͲministerial, and government– Planning, TVEC, and the Department of Census and nongovernment—would assist in realizing WfD Statistics is not institutionalized. Coordination between policies and in mainstreaming the successful MYASD and the training institutions under its purview features. also needs strengthening by way of effective regulating and monitoring mechanisms to achieve the intended   training targets. Coordination with the nonͲgovernment training providers for improvement of quality and relevance is mostly limited to the registering of institutions and the voluntary accreditation of courses. Employer participation on the governing boards of training institutions helps to address the needs of industryinTVETprovision,butindustrycoordinationfor implementing training programs at the training center level and the monitoring of such coordination both require improvement. Thus, WfD roles are not adequately defined to ensure coordinated action on strategicpriorities. DirectionsforPolicyDevelopment 1. Strengthen mechanisms to ensure effective implementation of strategic decisions. Visible champions provide sustained advocacy and strategic directionforWfD,andseveralpolicydocumentswith this aim exist, including the National Human Resources and Employment Policy (2012), which has taken a comprehensive interͲsectoral approach. However, implementing these policies through routine and institutionalized monitoring and review processes needs to be strengthened in order to ensuretherealizationoftheWfDgoals. 2. Strengthen collection and monitoring of labor market information. As an essential element of its planningprocess,TVECshouldregularlyascertainthe skills demand of the industry sectors at the national andregionallevels.Inaddition,cooperationwiththe Department of National Planning should be institutionalized so as to provide TVEC with reliable dataonthecountry’sWfDneeds. 3. Encourageemployerparticipationin WfD.Employer participationinWfDpolicyformulationanddesign,as wellasinthedeliveryofTVETprograms,wouldmake the TVET system demandͲdriven rather than supplyͲ driven, thereby improving the productivity and labor marketoutcomesoftheworkforce.  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 19 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  5.GoverningtheSystemforWorkforce conduct TVET programs at present. The Tertiary and VocationalEducationCommission(TVEC)istheplanning, Development regulatory, and quality assurance body for the TVET Three important functions of workforce development sector. (WfD) authorities are to foster efficient and equitable  funding of investments in WfD; to facilitate effective Private sector training institutes are to be registered at skillsacquisitionbyindividuals;andtoenableemployers TVEC in keeping with the provisions of the Tertiary and to meet their demand for skilled workers in a timely Vocational Education Act No. 20 of 1990. Private sector manner. The objective is to minimize systemic institutes are mainly operated as forͲprofits, and impedimentstoskillsacquisitionandmismatchesinskills institutes operated by NGOs are funded by charities. An supply and demand. This section begins with a brief Accredited Training Providers Association, which description of how the WfD system in Sri Lanka is representsprivatesectorproviders,wasformedin2007 organized and governed before presenting the detailed and has established links with TVEC for making quality SABERͲWfDfindingsonSystemOversightandtheirpolicy improvementstoprivatesectorcourses. implications.  OverallInstitutionalLandscape Figure13.OrganizationalStructureofTVET ”‰ƒ‹œƒ–‹‘ƒŽ–”—…–—”‡• As explained earlier in this report (see Section 2), the Ministry of Youth Affairs and Skills Development (MYASD) is the main ministry responsible for workforce development in Sri Lanka, and several training agencies come under its purview. The Department of Technical Education and Training (DTET), the National Apprenticeship and Industrial Training Authority (NAITA),theVocationalTrainingAuthority(VTA),andthe National Youth Services Council (NYSC) are the major networks providing training courses at the certificate level. 15 DTET is a government department, and the others are statutory boards reporting to MYSAD, each Source:Author’sconstruction. governed by a board of directors but receiving annual budgets from the Ministry of Finance. The University of ‡˜‡Ž•ƒ†ƒ––‡”•‘ˆ —†‹‰ VocationalTechnologyisthespecializeduniversityinthe Annual budget allocations for general education, higher technical and vocational education and training (TVET) education, and technical and vocational education are sector, outside of the Ministry of Higher Education, and given in Figure 14. The budget for technical and under the purview of MYASD. The Sri Lanka Institute of vocational education is the allocation for MYASD. Advanced Technological Education network, which Recurrent fund allocation for all three sectors of operates under the Ministry of Higher Education, offers education has continuously increased over the years. Higher National Diplomas for GCE Advanced Level However, capital fund allocations have varied; the TVET qualified students. Ministries such as Agriculture, sectorallocationfollowed adownward trendfrom2007 Irrigation, Power, and Energy operate training institutes to 2009 and an increasing trend from 2009 onwards, intheirspecializedareas.TheMinistryofLabordoesnot  15 ThemajorfunctionsoftheDTETaretodirect,supervise,andcoordinate ThemainresponsibilityofNAITAisplacingstudentsintoapprenticeship thedeliveryoftechnicaleducationprograms.Itoperates29Technical programs.ItsmaintaskistoimpartjobskillsthroughindustryͲbasedtraining. Collegesand9CollegesofTechnology,oneineachprovince.TheDTETalso ItarrangesonͲtheͲjobtrainingforuniversityengineeringundergraduates, operatesfiveoftheSriLankaInstituteofAdvancedTechnologicalEducation issuesNationalVocationalQualifications(NVQ)certificatesthroughRPLfor advancedtechnologicalinstitutes.TheVTAwasestablishedin1995to informallyskilledandtrainedcraftsman,conductsentrepreneurship facilitateselfͲemploymentandsupplylastͲmileskills,particularlyforthe developmentprograms,interactswithindustrytodrawupcurricula,andsets informalsector,throughemploymentͲorientedshortcourses.VTAconsistsof nationalcompetencystandardsforvocationaltraining. sixnationaltraininginstitutes,22districtvocationaltrainingcenters,and237 ruralvocationaltrainingcenters. OriginallywithintheMYASDbeforetherestructuring,theNYSCoffersbasic andsemiͲskilledcoursesforcraftspeople,bothurbanandrural.  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 20 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  whereas in the higher education sector there is a Based on data collected by the SABERͲWfD downwardtrendfrom2009to2011. questionnaire,Sri Lankareceivesanoverallratingof2.4  (Emerging) for system oversight (see Figure 15).  This The TVET sector has been provided with development score is the average of the ratings for the underlying funding of about US$100 million for externally funded policy goals: ensuring efficiency and equity of funding projectsduringthepastdecade.16IndividualswithTVET (2.3); assuring relevant and reliable standards (2.8); and andapprenticeshiptrainingaremorelikelytoparticipate diversifying pathways for skills acquisition (2.2). The in the labor force than those without it. Individual explanation for these ratings and their implications traineeshavereceivedconsiderableeconomicandsocial followbelow. benefits such as improved housing, nutrition, and social acceptance. Overall, it appears that TVET is a good Figure 15. SABERͲWfD Ratings of the System Oversight Dimension investment for Sri Lanka: It improves workers’ earnings andequipsthemwithskillsrelevanttothelabormarket (STEPHouseholdSurvey).  Figure 14. Investment in Education by Level, Amount, and Percentage,2005–11 Note:SeeFigure2foranexplanationofthescaleonthehorizontalaxis. Source: Based on analysis of the data collected using the SABERͲWfD questionnaire. ‘Ž‹…› ‘ƒŽͶǣ•—”‹‰ˆˆ‹…‹‡…›ƒ†“—‹–›‹ —†‹‰ WfDrequiresasignificantinvestmentofresourcesbythe government,households,andemployers.Toensurethat these resources are effectively used it is important to examine the extent to which policies and institutional arrangements are in place to: (i) ensure stable funding foreffectiveprogramsininitial,continuing,andtargeted vocationaleducationandtraining;(ii)monitorandassess equity in funding; and (iii) foster partnerships with Source:DepartmentofNationalBudgetͲMFPAnnualReportͲ2011. employersforfundingWfD. SABERǦWfDRatingsonOversightoftheWfD SriLankascoresattheEmerginglevel(2.3)forthispolicy System goal.Fundingforinitialvocationaleducationandtraining The SABERͲWfD framework identifies three pertinent (IVET) and continuing vocational education and training policy goals corresponding to oversight mechanisms for (CVET)isassured,althoughIVETreceivesthebulkofthe influencingthechoicesofindividuals,trainingproviders, funds. Budgeting for both IVET and CVET is done and employers: (i) ensuring efficiency and equity in primarily based on previous years’ budgets. Some funding;(ii)assuringrelevantandreliablestandards;and attention has been paid to determining how funding (iii) diversifying pathways for skills acquisition. This modalities can be used to improve outcomes and chapter begins with a brief overview of the institutional promoteequity,butthesehavebeenlimited. landscape for governance of the WfD system, then presentsthedetailedSABERͲWfDresults,andconcludes TVET programs in public training institutions are mostly with a discussion of the policy implications of these funded through general taxation, although there have results. beeninstancesofprojectsfundedthroughdonorgrants inthepast.Whilesomeinstitutionsdonotchargecourse  16 DonorsincludetheAsianDevelopmentBank(ADB),US$66million(in CooperationAgency(JICA),US$5million;andKoreaInternational total);GTZ,€10million;USAID,US$13million;JapanInternational CooperationAgency(KOICA),US$3million.  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 21 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  fees, others, such as the VTA, charge fees at subsidized advisory committees with input from training providers rates. Recurrent funding for IVET and CVET are mainly and the respective industry, and these standards form basedonthepreviousyear’sbudget,thoughsomeeffort thebasisofthecurriculataughtbythemajorityofpublic hasbeenmadetochanneladditionalfundingtosupport and private institutes. With TVEC providing appropriate priority industries, and only government officials are oversight,trainingprovisionismaintainedatahighlevel. involved in the budgeting process. MYSAD, in consultation with the Ministry of Finance, is the central Sri Lanka formally launched the NVQ Framework and agency for funding decisions for IVET, CVET and Active competencyͲbased training in 2004. The NVQ Labor Market Programs (ALMPs).  The main focus of Framework consists of four certificate levels, two fundingisIVET,withlittle emphasisbeingother training diploma levels, and the bachelor’s degree level. One modalities. No recent review of CVET has been hundredandfourteencompetencystandardshavebeen conducted, but the impact of funding for IVET was developed at the certificate level and 17 at the diploma reviewed in 2008, under the Asian Development BankͲ level for major occupations with strong industry assisted Technical Education Development Project. The participation and in keeping with international best review (i) assessed the efficiency of government and practices.Theyareexpectedtobereviewedeverythree nonͲgovernment TVET provision; (ii) quantified the years.Atthecertificatelevelthesestandardshavebeen economic and social benefits contributed by the TVET developedforoccupationssuchaselectrician,machinist, sector; (iii) examined the costing methodology and cost and beautician, and at the diploma level for such recoverymechanismtoensurefinancialsustainabilityfor occupations asautomotivetechnology andconstruction TVETpublicsectorprograms;and(iv)conductedatracer technology. Each competency standard identifies the studyoftheemploymentofvocationalpassͲouts.Some units and elements of competence, together with of the 2008 review’s recommendations were performance criteria, a range statement, an assessment implemented. guide, and underpinning knowledge. The development of these standards is done by the National Industry MYSAD is responsible for all ALMP activities. Only a Training Advisory Committees appointed for each program for entrepreneurship training and a loan industry subsector with representation from industry, scheme for selfͲemployment for TVET graduates were professional or trade bodies, training providers, and the considered successful, and so additional funding was MinistryofLabor. provided by the government. Partnerships between Most training institutions under MYASD base their training providers and employers exist, mainly in NAITA training on the above competency standards and and VTA networks, through initiatives from the head curricula. A substantial proportion of private institutes office level, and different models of partnership are and other public institutes also choose to offer courses benefitingbothparties.However,thesepartnershipsare according to the competency standards leading to notveryextensiveoreffective. national certification. Competency assessment of ‘Ž‹…› ‘ƒŽͷǣ••—”‹‰‡Ž‡˜ƒ–ƒ†‡Ž‹ƒ„Ž‡ traineesisperformedbytrainedandcertifiedassessors. –ƒ†ƒ”†• In2011,16,572NVQcertificateswereissuedtotrainees, which means that less than 10 percent of all TVET The WfD system comprises a wide range of training graduates received certificates. The NVQ certificate is providers, offering courses at various levels in diverse gaining recognition among employers, and the fields.Aneffectivesystemofstandardsandaccreditation governmenthasrecognizeditforrecruitmenttospecific enables students to document what they have learned gradesinthepublicservice;however,thecertificatehas and employers to identify workers with the relevant not yet gained the same level of recognition among skills.ForPolicyGoal5itisthereforeimportanttoassess employers. the status of policies and institutions to: (i) set reliable competency standards; (ii) assure the credibility of skills TVEChasestablishedasystemofcourseaccreditationto testing and certification; and (iii) develop and enforce ensure compliance with competency standards and the accreditation standards for maintaining the quality of qualityofcoursedeliveryandassessments.Accreditation trainingprovision. standards have been set in accordance with the manual and the respective competency standards, and are Sri Lanka scores at the Emerging level (2.8) for Policy reviewedperiodically.Bytheendof2011,theTVEChad Goal5.Competencystandardsaredevelopedbytraining  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 22 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  accredited652coursesinthepublicsectorand303inthe careeradvancementtodiplomaanddegreelevels.NonͲ private sector, even though accreditation is not NVQ holders, whose qualifications have been assessed mandatory for courses operating outside MYASD. TVEC against the NVQ, have the opportunity to enter the provides technical assistance and limited funding for qualificationupgradingpathways. course accreditation at public and private institutes. Through the development and enforcement of The NVQ Framework is mapped to the National accreditationstandards,thequalityoftrainingprovision Qualification Framework (NQF). Public perception of canbemaintainedatahighlevel. TVETisbeingimprovedbyofferingindustryͲrelevantand highͲquality training programs and conducting social ‘Ž‹…› ‘ƒŽ͸ǣ‹˜‡”•‹ˆ›‹‰ƒ–Š™ƒ›•ˆ‘”‹ŽŽ• marketing activities. However, publicly sponsored …“—‹•‹–‹‘ occupational and career development services are In dynamic economic environments, workers need to limited. TVET is yet to be considered a preferred option acquirenewskillsandcompetenciesaswellaskeeptheir by the majority of students and, therefore, promoting skillsupͲtoͲdatethroughouttheirworkinglives.Theyare education progression and permeability through best served by a system of initial and continuing multiple pathways is achieving limited results. educationandtrainingthatpromoteslifelonglearningby Recognition of prior learning (RPL) allows employees offering clear and flexible pathways for transfers across whohaveacquiredcompetenciesthroughworkpractice courses, progression to higher levels of training, and in industry to have their competencies assessed and access to programs in other fields. For those already in certified, thus providing avenues for further learning. theworkforce,schemesforrecognitionofpriorlearning Although 1,996 RPL certificates were issued in 2011, are essential to allow individuals to efficiently upgrade major impediments remain; these include a lack of their skills and learn new ones. Policy Goal 6 therefore awareness of the RPL system among the general public, evaluates the extent to which policies and institutions inadequate competency assessment facilities and are in place to: (i) enable progression through multiple coordinating mechanisms, and the inability or lack of learning pathways, including for students in TVET willingnessofindividualstopaycompetencyassessment streams; (ii) facilitate the recognition of prior learning; fees. and (iii) provide targeted support services, particularly amongthedisadvantaged. DirectionsforPolicyDevelopment 1. EnsuringEfficiencyandEquityinFunding SriLankascoresattheEmerginglevel(2.2)forthisPolicy x EnsuresufficientfundingfortheTVETsystemand Goal. The NVQ hasincreased therange ofopportunities improve the efficiency of resource allocation. fortraineesandemployeestoreceivefurthertrainingto ExpansionofaccesstoTVETforagreaternumber upgradetheirqualifications,andthereisevidencethata of trainees and enhancement of the quality of substantial number of them have done so. However, existing programs will require substantial capital assistance for career development remains limited, and and recurrent funding and efficient systems of since the University of Vocational Technology has only budgetingtoachievetheintendedoutcomes. recently been established, the benefits are yet to be  seen. 2. AssuringRelevantandReliableStandards x Improve the NVQ system and strengthen its Learning pathways are provided for TVET through implementation. Sri Lanka is at the advanced government networks and private institutes for postͲ stage in establishing the NVQ Framework and in secondarystudents,withincreasingattentionbeingpaid setting competency standards, but continuous to the disadvantaged. MiddleͲlevel technical improvement of the system and processes in qualificationsareofferedbyCollegesofTechnology,the keeping with international best practices will Sri Lanka Institute of Advanced Technological Education greatlyassistworkforcedevelopmentinSriLanka network, and other individual institutes; the specialized and will strengthen the confidence of the public university that has been established for the TVET sector andemployersinthesystem. (University of Vocational Technology) is in the initial stages. The establishment of the NVQ Framework has x Strengthensystemassessment.Theavailabilityof provided qualification upgrading pathways for trainees trained and certified assessors islandͲwide, receiving initial vocational training to continue their coveringthefullrangeoftradesandoccupations,  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 23 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  will enable timely assessment of trainees and employees. x Improve instructor quality and institutional capacity. Trained instructors and workshops equippedwiththenecessaryequipmentandtools arebasicnecessitiesfordeliveringqualitytraining and maintaining course accreditation. Thus, policy level intervention may be required to facilitate such services to both the public and privatesectors. x Encourage course accreditation for private and public sector providers that are not under the MYASD umbrella. Course accreditation is voluntary for private sector institutes and public institutes outside MYASD; the situation may be reviewed to ensure the relevance and quality of thetrainingreceivedbyalltrainees. 3. DiversifyingPathwaysforSkillsAcquisition x Encourage training for the informal sector. Measures to promote selfͲemployment of TVET graduateshaveenjoyedgreatsuccess,andhence further promotion of entrepreneurship training, enhanced funding for loans, and institutionalization of the coordination and mentoringprocessesareworthwhileinvestments thatwillhelptomainstreamtheprocess. x Strengthen RPL. Widespread availability of RPL testing and career advancement services will assist in upgrading the skills of workers and in improvingworkersatisfactionandproductivity. x Raise awareness about TVET as a career path. Public perceptions of TVET and awareness of the ways education can progress through multiple pathways are both low. Institutionalized career guidanceandsocialmarketingtargetingstudents in secondary education, teachers, parents, workers, and employers may help to overcome thisshortcoming. x Introduce mechanisms to broaden the paths for lifeͲtimelearning.Mechanismsforstimulatingthe skills upgrading of employees in industry by employers, such as a training levy system, have workedwellinsomecountries(suchasMalaysia) andareworthexploring.  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 24 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  6.ManagingServiceDeliveryforResultson –ƒ–‡”‘˜‹†‡”• Major TVET networks operate under the Ministry of theGround Youth Affairs and Skills Development (MYASD). The Training providers, both nonͲstate and government, are Department of Technical Education and Training (DTET) the main channels through which the country’s policies is the oldest network, with its first institute established in workforce development (WfD) are translated into in 1893 in Colombo. There are nine Colleges of resultsontheground.Thischapterthereforeprovidesa Technology and 29 Technical Colleges operating under brief overview of the composition of providers and the the department, headed by a Director General. types of services available in the system before Regulations applicable to government departments in presenting the detailed SABERͲWfD findings on service general apply to DTET, which has no governing board. deliveryandtheirpolicyimplications. The National Apprenticeship and Industrial Training Authority (NAITA), Vocational Training Authority (VTA), OverviewoftheDeliveryofTrainingServices andNationalYouthServicesCouncil(NYSC)arestatutory ‘Ǧ–ƒ–‡”‘˜‹†‡”• bodies, each governed by an executive chairperson and All nonͲstate training providers are expected to register agoverningboard. with the Tertiary and Vocational Education Commission  (TVEC);however,somecentersarenotregisteredordid NAITA has the mandate to offer industryͲbased not renew their registration after it expired. NonͲstate apprenticeship training and to conduct skills testing providersregisteredwiththeTVECcanbecategorizedas leading to recognition of prior learning (RPL) follows: (i) forͲprofit private institutions, (ii) nonͲprofit certification. VTA and NYSC offer institutionͲbased NGO training providers, (iii) companies that provide trainingcoveringallgeographicalareas,andtraineesare training in their field of expertise on a feeͲlevying basis, provided with onͲtheͲjob training on completion of the (iv) professional or paraͲprofessional institutions, (v) institutionͲbased training component. The University of chambersofcommerce,and(vi)industry. VocationalTechnologyisthespecializeduniversityinthe  TVET sector, established in 2008 and currently offering Private forͲprofit training providers must attract a Bachelor of Technology degrees in technical education, sufficient number of students for their sustainable building services, manufacturing, mechatronics and operation, so courses offered by nonͲstate training information technology related fields. The National providersaremostlyinsubjectswithhighsocialdemand InstituteofBusinessManagementisaselfͲfundedpublic but frequently low market demand, such as computing institute offering management and information and information technology, finance and management, technology courses, including degree programs. Finally, personal development (including beautician and the Ceylon German Technical Training Institute is a hairdressing), hotel and tourism, apparel and textiles, specialized training institute for automobile technology healthcare, preͲschool teacher training, and light training. engineering. SABERǦWfDratingsonservicedelivery  A large number of training providers are in the Western The Policy Goals for this Dimension in the SABERͲWfD Province, where economic activities and population framework focus on the following three aspects of density are high. Although the need for course service delivery: (i) enabling diversity and excellence in accreditation has not been made mandatory for nonͲ training provision; (ii) fostering relevance in public state training providers, 140 institutes have accredited training programs; and (iii) enhancing evidenceͲbased courses. An Accredited Training Providers Association accountability for results. The ratings for these three (privatesector)withtheparticipationofallcategoriesof Policy Goals are presented below and are followed by a training providers has been functioning since 2007; it reflectionontheirimplicationsforpolicydialogue. promotes greater involvement of the private sector in Based on data collected by the SABERͲWfD technical and vocational education and training (TVET) questionnaire,Sri Lankareceivesanoverallratingof1.9 provision and course accreditation and the award of (Emerging)fortheServiceDeliverydimensionseeFigure National Vocational Qualifications (NVQs), and engages 16.  This score is the average of the ratings for the incareerguidanceactivities. underlying Policy Goals: (i) enabling diversity and  excellence in training provision (2.1); (ii) fostering  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 25 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  relevance in public training programs (1.8); and (iii) NonͲstate training provision is recognized by the enhancing evidenceͲbased accountability for results government, and a regulatory mechanism has been (1.7). The explanation for these ratings and their establishedundertheTertiaryandVocationalEducation implicationsfollowbelow. (TVE) Act to register institutes and to address quality assurance issues. However, implementation of the Figure 16. SABERͲWfD Ratings of the Service Delivery registration of institutes has shortcomings; private Dimension providers are mandated to register but TVET lacks enforcement authority, making implementation challenging. As a result, the number of institutes registered with the TVEC is approximately 80 percent of thetotalnumberofinstitutes,accordingtotheestimates of TVEC. This is mainly because the legal provisions to enforce registration are lacking in the existing TVE Act. During the registration process, institutes are provided with technical guidance by TVEC with regard to physical Note:SeeFigure2foranexplanationofthescaleonthehorizontalaxis. facilities, course curricula, instructors’ qualifications, Source: Based on analysis of the data collected using the SABERͲWfD competency assessments and record keeping. The TVEC questionnaire. provides further technical assistance and smallͲscale ‘Ž‹…› ‘ƒŽ͹ǣƒ„Ž‹‰‹˜‡”•‹–›ƒ†š…‡ŽŽ‡…‡‹ financialsupporttopurchaseequipmentforthepurpose ”ƒ‹‹‰”‘˜‹•‹‘ of course accreditation, and it permits the issuance of NVQ. However, the level of incentives provided to nonͲ Because the demand for skills is impossible to predict statetrainingproviders,bothforͲprofitandnonͲprofit,is withprecision,havingadiversityofprovidersisafeature low.ThegovernmenthasyettomakemajorpolicyͲlevel of strong WfD systems. Among nonͲstate providers the interventionstofacilitateexpansionofnonͲstatetraining challenge is to temper the profit motive or other provision. program agendas with appropriate regulation to assure quality and relevance. Among state providers, a key The government has made the expansion of public concern is their responsiveness to the demand for skills trainingprovisionapriority,andpublictraininginstitutes from employers and students. Striking the right balance are given targets for overall enrollment of trainees and between institutional autonomy and accountability is approximatenumberstobetrainedindifferentfieldsof oneapproachtoaddressthisconcern.PolicyGoal7takes study or occupations. However, trainee output targets these ideas into account and benchmarks the system arenotgenerallygiven,andavailabledatarevealthatthe according to the extent to which policies and overall dropout rate of trainees is approximately 25 institutional arrangements are in place to: (i) encourage percent. Examination pass rates, job placement rates, and regulate nonͲstate provision of training and (ii) employer satisfaction, and trainee satisfaction are not foster excellence in public training provision by generally considered in performance assessments, combiningincentivesandautonomyinthemanagement althoughtheseareassessedinadhocsurveys.Thereare ofpublicinstitutions. no reward systems for better performing public  institutes, although there are commendations for SriLankascoresattheEmerginglevel(2.1)forthisPolicy individualofficersandinstructors.Atpresentthereisno Goal. There is a wide range of state and nonͲstate institutionalized mechanism for closing training training providers but, due to implementation programs that are unproductive and fail to achieve weaknesses, 20 percent of the latter are not registered. targets,althoughtraining programsareclosedbasedon Inaddition,publictraininginstitutesfocusonenrollment adhocreviews. numbers, since they are given targets to meet and are not assessed on the basis of other performance criteria Public institutions have the authority to spend the linked to trainee success and satisfaction. Despite allocated budgets, but they cannot set the number of receiving an annual allocated budget, public training staff positions and the level of remuneration for staff, institutions continue to face restrictions that limit their which require the approval of the Ministry of Finance. financialandmanagementautonomy. The institutes may generate funds from regular courses  (except DTET) or extension courses offered on a partͲ  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 26 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  time basis, and they may pay the staff for work outside competentstafftomanageandteachinTVETinstitutes. of assigned duties. This allows the staff to receive Initial training for new recruits and further professional additionalincome,butthenetincomegeneratedcannot development are carried out in an ad hoc manner, and beretainedbytheinstitute. the need for systematic professional development of headsofinstitutesandinstructorshasbeenidentifiedas ‘Ž‹…› ‘ƒŽͺǣ ‘•–‡”‹‰‡Ž‡˜ƒ…‡‹—„Ž‹…”ƒ‹‹‰ apriority. ”‘‰”ƒ• Public training institutions need reliable information on ‘Ž‹…› ‘ƒŽͻǣŠƒ…‹‰˜‹†‡…‡Ǧ„ƒ•‡† current and emerging skills demands in order to keep ……‘—–ƒ„‹Ž‹–›ˆ‘”‡•—Ž–• theirprogramofferingsrelevanttomarketconditions.It Systematicmonitoringandevaluationofservicedelivery is therefore desirable for public training institutions to are important for both quality assurance and system establish and maintain relationships with employers, improvement. Accomplishing this function requires industry associations, and research institutions. Such gathering and analyzing data from a variety of sources. partners are a source of both information about skills The reporting of institution level data enables the competencies and expertise and advice on curriculum relevant authorities to ensure that providers are design and technical specifications for training facilities deliveringonexpectedoutcomes.Suchdataalsoenable andequipment. Theycan alsohelpcreateopportunities theseauthoritiestoidentifygapsorchallengesintraining for workplace training for students and continuing provisionorareasofgoodpractice.Additionally,periodic professional development for instructors and surveys and evaluations of major programs generate administrators. Policy Goal 8 considers the extent to complementary information that can help enhance the which arrangements are in place for public training relevanceandefficiencyofthesystemasawhole.Policy providersto:(i)benefitfromindustryandexpertinputin Goal9considerstheseideaswhenassessingthesystem’s thedesignofprogramsand(ii)recruitadministratorsand arrangements for collecting and using data to focus instructorswithrelevantqualificationsandsupporttheir attention on training outcomes, efficiency, and professionaldevelopment. innovationinservicedelivery. SriLankascoresattheEmerginglevel(1.8)forthisPolicy Sri Lanka scores at the Latent level (1.7) for this Policy Goal. Ad hoc links between training institutions and Goal. Public training institutions, as well as nonͲstate industry exist, but in practice industry has little training providers, are failing to provide adequate data involvement in important activities such as improving thatwouldprovidetheTVECwiththenecessarybasisfor the quality and relevance of courses by setting designing new policies and making system competencystandards,endorsingcoursecurricula,being improvements. represented on governing boards and advisory bodies, assessing labor market needs, carrying out industry ThetrainingͲrelated datareported bypublic institutesis training for instructors and trainees, collaborating on mostly confined to data on enrollment and completion training programs, and providing partͲtime trainers. of training. Client feedback, job placements, and Moreover, there is no significant industry role in setting earnings of graduates are rarely reported. All statutory facility standards of institutes and no formal links with bodies are expected to have a Corporate Plan covering independent research institutes. Research conducted in the next five years, and this is updated every year. A thesectoraimedatimprovingtheoperationalefficiency detailed Annual Activity Plan needs to be prepared ofinstitutes and coursesiscoordinatedby the Research before the start of the year and forwarded to the CellofTVEC,andthefindingsarepresentedatanannual Ministry of Finance; the output of each institute is seminar. monitored based on this annual plan. All public training institutesunderMYASDreporttheirtraineeenrollments Recruitment of heads and instructors of public training and completions to the ministry and to TVEC. institutes is based on criteria approved by the Competency assessment results of trainees are Department of Management Services of the Ministry of forwardedonlinefromheadofficesoftraininginstitutes Finance; these include academic and vocational toTVECforthepurposeofissuingNVQcertificates. qualifications, industry experience, and teaching experience.However,thelowlevelofsalariespaidinthe A computer based Management Information System publicsectordoesnotattractthebestqualifiedandmost (MIS) has been installed in public training institutions,  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 27 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  but data are not regularly fed into the system.  As a 2. FosteringRelevanceinPublicTrainingPrograms result,specialsurveyshavebeenconductedbytheTVEC x Strengthen the relevance of public training to collect accurate data from public training providers programs through increased industry under MYASD. NonͲstate training providers report data participation and more extensive research and on enrollment and completion to the TVEC – 286 analysis.Eventhoughadhoclinksexistbetween institutesreporteddatain2011,whichrepresentedonly training institutes and industry for setting about 30 percent of registered training institutes. Since competency standards and curriculum TVET has no enforcement authority, nonͲstate training development, in practice there is currently little providers, although mandated, only report data at the industry involvement in TVET design, delivery, time of registration. Training institutes and donorͲ and setting of facility standards. In addition, the funded projects have conducted surveys on special researchandsurveyactivitiesoftheTVETsector topics aimed at policy level interventions, and some of need to be strengthened, and links with therecommendationshavebeenimplemented. Overall, reputable research institutes need to be useofdatatomonitorandimproveprogramandsystem established, so that strategic decisions on performanceislimited,andnosignificantimprovements workforce development can be based on wellͲ haverecentlybeenmadebasedondata. foundedresearchfindings. x Strengthen opportunities for the professional DirectionsforPolicyDevelopment development of instructors. The systematic 1. Enabling Diversity and Excellence in Training professional development of instructors and Provision heads of training centers is vital for improving x Take steps to enforce the registration of nonͲ the quality and efficiency of training provision. state training providers. A wellͲfunctioning and Thiscouldbeachievedbysettingupinstitutions comprehensiveregistrationprocesswillenhance andprogramsdedicatedtothispurpose. the quality assurance process of nonͲstate  training providers and could minimize current 3. Enhancing EvidenceͲbased Accountability for shortcomings. Results x Broaden the incentives for nonͲstate training x Strengthenthemanagementinformationsystem providers. Only limited incentives and technical (MIS)andthemonitoringandevaluationsystem. assistance are currently being provided to nonͲ Reporting of public sector trainingͲrelated data state training providers, but a significant isincompleteanddoesnoteffectivelycontribute enhancement of the incentives may build to the analysis of operational aspects and capacity and diversity in nonͲstate training for decisionmaking.TheMISneedstobeenhanced workforcedevelopment. sothatitcangatherreliableandcomprehensive x Strengthen the management and financial data.Giventheinadequatereportingoftraining autonomy of training providers. Giving greater data by the nonͲstate sector, monitoring and management and financial autonomy to public evaluation of these training providers requires traininginstituteswithintheoverallobjectivesof significantimprovement. theinstituteswillenhanceoperationalflexibility  andefficiency.  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 28 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  Annex1:Acronyms  ALMP ActiveLaborMarketProgram COT CollegeofTechnology CVET ContinuingVocationalEducationandTraining DTET DepartmentofTechnicalEducationandTraining ICT InformationandCommunicationsTechnology IVET InitialVocationalEducationandTraining MIS Managementinformationsystem MYASD MinistryofYouthAffairsandSkillsDevelopment NAITA NationalApprenticeandIndustrialTrainingAuthority NGO nonͲgovernmentalorganization NVQ NationalVocationalQualifications NYSC NationalYouthServicesCouncil RPL RecognitionofPriorLearning SABER SystemsApproachforBetterEducationResults TVEC TertiaryandVocationalEducationCommission TVET TechnicalandVocationalEducationandTraining UVT UniversityofVocationalTechnology VET VocationalEducationandTraining VTA VocationalTrainingAuthorityofSriLanka WfD workforcedevelopment  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 29 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  Annex2:StructureoftheSABERͲWfDFramework    PolicyGoal PolicyAction Topic Settinga G1_T1 AdvocacyforWfDtoSupportEconomicDevelopment G1 ProvidesustainedadvocacyforWfDat Strategic thetopleadershiplevel StrategicFramework Direction G1_T2 StrategicFocusandDecisionsbytheWfDChampions Establishclarityonthedemandforskills G2_T1 OverallAssessmentofEconomicProspectsandSkillsImplications Dimension1 andareasofcriticalconstraint G2_T2 CriticalSkillsConstraintsinPriorityEconomicSectors Fosteringa G2 DemandͲLed G2_T3 RoleofEmployersandIndustry EngageemployersinsettingWfD Approach prioritiesandinenhancingskillsͲ G2_T4 SkillsͲUpgradingIncentivesforEmployers upgradingforworkers G2_T5 MonitoringoftheIncentivePrograms G3_T1 RolesofGovernmentMinistriesandAgencies Strengthening FormalizekeyWfDrolesfor G3 Critical coordinatedactiononstrategic G3_T2 RolesofNonͲGovernmentWfDStakeholders Coordination priorities G3_T3 CoordinationfortheImplementationofStrategicWfDMeasures G4_T1 Overviewof FundingforWfD Providestablefundingforeffective G4_T2 RecurrentFundingforInitialVocationalEducationandTraining(IVET) programsininitial,continuingand RecurrentFundingforContinuingVocationalEducationandTrainingPrograms targetedvocationaleducationand G4_T3 Ensuring (CVET) training G4 Efficiencyand G4_T4 RecurrentFundingforTrainingͲrelatedActiveLaborMarketPrograms(ALMPs) Equityin Monitorandenhanceequityinfunding G4_T5 EquityinFundingforTrainingPrograms Funding fortraining Facilitatesustainedpartnerships betweentraininginstitutionsand G4_T6 PartnershipsbetweenTrainingProvidersandEmployers employers SystemOversight Broadenthescopeofcompetency G5_T1 CompetencyStandardsandNationalQualificationsFrameworks Dimension2 standardsasabasisfordeveloping qualificationsframeworks G5_T2 CompetencyStandardsforMajorOccupations Assuring Establishprotocolsforassuringthe G5_T3 OccupationalSkillsTesting G5 Relevantand credibilityofskillstestingand G5_T4 SkillsTestingandCertification Reliable certification G5_T5 SkillsTestingforMajorOccupations Standards G5_T6 GovernmentOversightofAccreditation Developandenforceaccreditation G5_T7 EstablishmentofAccreditationStandards standardsformaintainingthequalityof G5_T8 AccreditationRequirementsandEnforcementofAccreditationStandards trainingprovision G5_T9 IncentivesandSupportforAccreditation Promoteeducationalprogressionand G6_T1 LearningPathways permeabilitythroughmultiple G6_T2 PublicPerceptionofPathwaysforTVET pathways,includingforTVETstudents Diversifying FacilitatelifeͲlonglearningthrough G6_T3 ArticulationofSkillsCertification G6 Pathwaysfor articulationofskillscertificationand Skills G6_T4 RecognitionofPriorLearning recognitionofpriorlearning Acquisition Providesupportservicesforskills G6_T5 SupportforFurtherOccupationalandCareerDevelopment acquisitionbyworkers,jobͲseekersand G6_T6 TrainingͲrelatedProvisionofServicesfortheDisadvantaged thedisadvantaged G7_T1 ScopeandFormalityofNonͲStateTrainingProvision Enabling EncourageandregulatenonͲstate G7_T2 IncentivesforNonͲStateProviders Diversityand provisionoftraining G7_T3 QualityAssuranceofNonͲStateTrainingProvision G7 Excellencein G7_T4 ReviewofPoliciestowardsNonͲStateTrainingProvision Training Combineincentivesandautonomyin G7_T5 TargetsandIncentivesforPublicTrainingInstitutions ServiceDelivery Provision themanagementofpublictraining G7_T6 AutonomyandAccountabilityofPublicTrainingInstitutions Dimension3 institutions G7_T7 IntroductionandClosureofPublicTrainingPrograms G8_T1 LinksbetweenTrainingInstitutionsandIndustry Integrateindustryandexpertinputinto G8_T2 IndustryRoleintheDesignofProgramCurricula Fostering thedesignanddeliveryofpublic G8_T3 IndustryRoleintheSpecificationofFacilityStandards G8 Relevancein trainingprograms G8_T4 LinksbetweenTrainingandResearchInstitutions PublicTraining Programs Recruitandsupportadministratorsand G8_T5 RecruitmentandInͲServiceTrainingofHeadsofPublicTrainingInstitutions instructorsforenhancingthemarketͲ G8_T6 RecruitmentandInͲServiceTrainingofInstructorsofPublicTrainingInstitutions relevanceofpublictrainingprograms Enhancing Expandtheavailabilityanduseof G9_T1 AdministrativeDatafromTrainingProviders G9 EvidenceͲbased policyͲrelevantdataforfocusing G9_T2 SurveyandOtherData Accountability providers'attentionontraining G9_T3 UseofDatatoMonitorandImproveProgramandSystemPerformance forResults outcomes,efficiencyandinnovation  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 30 SRILANKAۣWORKFORCEDEVELOPMENT     SABERCOUNTRYREPORT|2014  Annex3:RubricsforScoringtheData  Functional Dimension 1: Strategic Framework Policy Level of Development Goal Latent Emerging Established Advanced Visible champions for WfD are either Some visible champions provide ad hoc Government leaders exercise Both government and non-government absent or take no specific action to advocacy for WfD and have acted on a sustained advocacy for WfD with leaders exercise sustained advocacy for advance strategic WfD priorities. few interventions to advance strategic occasional, ad hoc participation from WfD, and rely on routine, institutionalized WfD priorities; no arrangements exist to non-government leaders; their processes to collaborate on well-integrated monitor and review implementation advocacy focuses on selected interventions to advance a strategic, progress. industries or economic sectors and economy-wide WfD policy agenda; manifests itself through a range of implementation progress is monitored and specific interventions; implementation reviewed through routine, institutionalized progress is monitored, albeit through processes. Direction for WfD ad hoc reviews. G1: Setting a Strategic                         SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 31 SRILANKAۣWORKFORCEDEVELOPMENT     SABERCOUNTRYREPORT|2014    Functional Dimension 1: Strategic Framework Policy Level of Development Goal Latent Emerging Established Advanced There is no assessment of the country's Some ad hoc assessments exist on the Routine assessments based on A rich array of routine and robust economic prospects and their country's economic prospects and their multiple data sources exist on the assessments by multiple stakeholders implications for skills; industry and implications for skills; some measures are country's economic prospects and their exists on the country's economic prospects employers have a limited or no role in taken to address critical skills constraints implications for skills; a wide range of and their implications for skills; the defining strategic WfD priorities and (e.g., incentives for skills upgrading by measures with broad coverage are information provides a basis for a wide receive limited support from the employers); the government makes taken to address critical skills range of measures with broad coverage government for skills upgrading. limited efforts to engage employers as constraints; the government recognizes that address critical skills constraints; the strategic partners in WfD. employers as strategic partners in government recognizes employers as WfD, formalizes their role, and strategic partners in WfD, formalizes their provides support for skills upgrading role, and provides support for skills through incentive schemes that are upgrading through incentives, including Approach to WfD reviewed and adjusted. some form of a levy-grant scheme, that are systematically reviewed for impact and G2: Fostering a Demand-Led adjusted accordingly.              SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 32 SRILANKAۣWORKFORCEDEVELOPMENT     SABERCOUNTRYREPORT|2014  Functional Dimension 1: Strategic Framework Policy Level of Development Goal Latent Emerging Established Advanced Industry/employers have a limited or Industry/employers help define WfD Industry/employers help define WfD Industry/employers help define WfD no role in defining strategic WfD priorities on an ad hoc basis and make priorities on a routine basis and make priorities on a routine basis and make priorities; the government either limited contributions to address skills some contributions in selected areas to significant contributions in multiple areas provides no incentives to encourage implications of major policy/investment address the skills implications of major to address the skills implications of major skills upgrading by employers or decisions; the government provides some policy/investment decisions; the policy/investment decisions; the government conducts no reviews of such incentive incentives for skills upgrading for formal government provides a range of provides a range of incentives for skills programs. and informal sector employers; if a levy- incentives for skills upgrading for all upgrading for all employers; a levy-grant grant scheme exists its coverage is employers; a levy-grant scheme with scheme with comprehensive coverage of limited; incentive programs are not broad coverage of formal sector formal sector employers exists; incentive systematically reviewed for impact. employers exists; incentive programs programs to encourage skills upgrading are are systematically reviewed and systematically reviewed for impact on adjusted; an annual report on the levy- skills and productivity and are adjusted grant scheme is published with a time accordingly; an annual report on the levy- Implementation lag. grant scheme is published in a timely fashion. G3: Strengthening Critical Coordination for    SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 33 SRILANKAۣWORKFORCEDEVELOPMENT     SABERCOUNTRYREPORT|2014     Functional Dimension 2: System Oversight Policy Level of Development Goal Latent Emerging Established Advanced The government funds IVET, The government funds IVET, CVET The government funds IVET, CVET The government funds IVET, CVET (including CVET and ALMPs (but not OJT (including OJT in SMEs) and ALMPs; (including OJT in SMEs) and ALMPs; OJT in SMEs) and ALMPs; funding for IVET is in SMEs) based on ad hoc funding for IVET and CVET follows funding for IVET is routine and based on routine and based on comprehensive criteria, budgeting processes, but takes no routine budgeting processes involving multiple criteria, including evidence of including evidence of program effectiveness, that action to facilitate formal only government officials with program effectiveness; recurrent funding are routinely reviewed and adjusted; recurrent partnerships between training allocations determined largely by the for CVET relies on formal processes funding for CVET relies on formal processes providers and employers; the previous year's budget; funding for with input from key stakeholders and with input from key stakeholders and timely impact of funding on the ALMPs is decided by government annual reporting with a lag; funding for annual reporting; funding for ALMPs is beneficiaries of training programs officials on an ad hoc basis and targets ALMPs is determined through a determined through a systematic process with has not been recently reviewed. select population groups through various systematic process with input from key input from key stakeholders; ALMPs target channels; the government takes some stakeholders; ALMPs target diverse diverse population groups through various action to facilitate formal partnerships population groups through various channels and are reviewed for impact and between individual training providers channels and are reviewed for impact but adjusted accordingly; the government takes and employers; recent reviews follow-up is limited; the government action to facilitate formal partnerships between considered the impact of funding on takes action to facilitate formal training providers and employers at all levels only training-related indicators (e.g. partnerships between training providers (institutional and systemic); recent reviews enrollment, completion), which and employers at multiple levels considered the impact of funding on a full range stimulated dialogue among some WfD (institutional and systemic); recent of training-related indicators and labor market stakeholders. reviews considered the impact of funding outcomes; the reviews stimulated broad-based on both training-related indicators and dialogue among WfD stakeholders and key labor market outcomes; the reviews recommendations were implemented. stimulated dialogue among WfD G4: Ensuring Efficiency and Equity in Funding stakeholders and some recommendations were implemented.    SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 34 SRILANKAۣWORKFORCEDEVELOPMENT     SABERCOUNTRYREPORT|2014   Functional Dimension 2: System Oversight Policy Level of Development Goal Latent Emerging Established Advanced Policy dialogue on competency A few stakeholders engage in ad hoc Numerous stakeholders engage in policy All key stakeholders engage in policy standards and/or the NQF occurs policy dialogue on competency standards dialogue on competency standards and/or dialogue on competency standards and/or the on an ad hoc basis with limited and/or the NQF; competency standards the NQF through institutionalized NQF through institutionalized processes; engagement of key stakeholders; exist for a few occupations and are used processes; competency standards exist for competency standards exist for most competency standards have not by some training providers in their most occupations and are used by some occupations and are used by training been defined; skills testing for programs; skills testing is competency- training providers in their programs; the providers in their programs; the NQF, if in major occupations is mainly based for a few occupations but for the NQF, if in place, covers some occupations place, covers most occupations and a wide theory-based and certificates most part is mainly theory-based; and a range of skill levels; skills testing for range of skill levels; skills testing for most awarded are recognized by certificates are recognized by public and most occupations follows standard occupations follows standard procedures, is public sector employers only some private sector employers but have procedures, is competency-based and competency-based and assesses both and have little impact on little impact on employment and assesses both theoretical knowledge and theoretical knowledge and practical skills; employment and earnings; no earnings; the accreditation of training practical skills; certificates are recognized robust protocols, including random audits, system is in place to establish providers is supervised by a dedicated by both public and private sector ensure the credibility of certification; accreditation standards. office in the relevant ministry; private employers and may impact employment certificates are valued by most employers providers are required to be accredited, and earnings; the accreditation of training and consistently improve employment however accreditation standards are not providers is supervised by a dedicated prospects and earnings; the accreditation of consistently publicized or enforced; agency in the relevant ministry; the agency training providers is supervised by a providers are offered some incentives to is responsible for defining accreditation dedicated agency in the relevant ministry; seek and retain accreditation. standards with stakeholder input; the agency is responsible for defining standards are reviewed on an ad hoc basis accreditation standards in consultation with and are publicized or enforced to some stakeholders; standards are reviewed extent; all providers receiving public following established protocols and are funding must be accredited; providers are publicized and routinely enforced; all G5: Assuring Relevant and Reliable Standards offered incentives and limited support to training providers are required as well as seek and retain accreditation. offered incentives and support to seek and retain accreditation.    SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 35 SRILANKAۣWORKFORCEDEVELOPMENT     SABERCOUNTRYREPORT|2014   Functional Dimension 2: System Oversight Policy Level of Development Goal Latent Emerging Established Advanced Students in technical and vocational Students in technical and vocational Students in technical and vocational Students in technical and vocational education have few or no options for education can only progress to education can progress to vocationally- education can progress to academically or further formal skills acquisition beyond vocationally-oriented, non-university oriented programs, including at the vocationally-oriented programs, the secondary level and the government programs; the government takes limited university level; the government takes including at the university level; the takes no action to improve public action to improve public perception of some action to improve public government takes coherent action on perception of TVET; certificates for TVET (e.g. diversifying learning perception of TVET (e.g. diversifying multiple fronts to improve public technical and vocational programs are pathways); some certificates for technical learning pathways and improving perception of TVET (e.g. diversifying not recognized in the NQF; and vocational programs are recognized program quality) and reviews the impact learning pathways and improving program qualifications certified by non- in the NQF; few qualifications certified of such efforts on an ad hoc basis; most quality and relevance, with the support of a Education ministries are not recognized by non-Education ministries are certificates for technical and vocational media campaign) and routinely reviews by formal programs under the Ministry recognized by formal programs under the programs are recognized in the NQF; a and adjusts such efforts to maximize their of Education; recognition of prior Ministry of Education; policymakers pay large number of qualifications certified impact; most certificates for technical and learning receives limited attention; the some attention to the recognition of prior by non-Education ministries are vocational programs are recognized in the government provides practically no learning and provide the public with recognized by formal programs under NQF; a large number of qualifications support for further occupational and some information on the subject; the the Ministry of Education, albeit certified by non-Education ministries are career development, or training government offers limited services for without the granting of credits; recognized and granted credits by formal programs for disadvantaged further occupational and career policymakers give some attention to the programs under the Ministry of Education; populations. development through stand-alone local recognition of prior learning and policymakers give sustained attention to service centers that are not integrated provide the public with some the recognition of prior learning and into a system; training programs for information on the subject; a formal provide the public with comprehensive disadvantaged populations receive ad hoc association of stakeholders provides information on the subject; a national support. dedicated attention to adult learning organization of stakeholders provides issues; the government offers limited dedicated attention to adult learning services for further occupational and issues; the government offers a career development, which are available comprehensive menu of services for through an integrated network of further occupational and career G6: Diversifying Pathways for Skills Acquisition centers; training programs for development, including online resources, disadvantaged populations receive which are available through an integrated systematic support and are reviewed for network of centers; training programs for impact on an ad hoc basis. disadvantaged populations receive systematic support with multi-year budgets and are routinely reviewed for impact and adjusted accordingly.  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 36 SRILANKAۣWORKFORCEDEVELOPMENT     SABERCOUNTRYREPORT|2014       Functional Dimension 3: Service Delivery Policy Level of Development Goal Latent Emerging Established Advanced There is no diversity of There is some diversity in training There is diversity in training provision; non- There is broad diversity in training provision; training provision as the provision; non-state providers operate state training providers, some registered and non-state training providers, most registered system is largely comprised of with limited government incentives and licensed, operate within a range of and licensed, operate with comprehensive public providers with limited governance over registration, licensing government incentives, systematic quality government incentives, systematic quality or no autonomy; training and quality assurance; public training is assurance measures and routine reviews of assurance measures and routine review and provision is not informed by provided by institutions with some government policies toward non-state training adjustment of government policies toward formal assessment, autonomy and informed by some providers; public providers, mostly governed non-state training providers; public providers, stakeholder input or assessment of implementation by management boards, have some autonomy; mostly governed by management boards, have performance targets. constraints, stakeholder input and basic training provision is informed by formal significant autonomy; decisions about training targets. analysis of implementation constraints, provision are time-bound and informed by stakeholder input and basic targets; lagging formal assessment of implementation providers receive support and exemplary constraints; stakeholder input and use of a institutions are rewarded. variety of measures to incentivize G7: Enabling Diversity and performance include support, rewards and Excellence in Training Provision performance-based funding.               SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 37 SRILANKAۣWORKFORCEDEVELOPMENT     SABERCOUNTRYREPORT|2014   Functional Dimension 3: Service Delivery Policy Level of Development Goal Latent Emerging Established Advanced There are few or no attempts Relevance of public training is enhanced Relevance of public training is enhanced Relevance of public training is enhanced to foster relevance in public through informal links between some through formal links between some training through formal links between most training training programs through training institutions, industry and institutions, industry and research institutions, institutions, industry and research institutions, encouraging links between research institutions, including input leading to collaboration in several areas leading to significant collaboration in a wide training institutions, industry into the design of curricula and facility including but not limited to the design of range of areas; heads and instructors are and research institutions or standards; heads and instructors are curricula and facility standards; heads and recruited on the basis of minimum academic through setting standards for recruited on the basis of minimum instructors are recruited on the basis of and professional standards and have regular the recruitment and training of academic standards and have limited minimum academic and professional access to diverse opportunities for professional heads and instructors in opportunities for professional standards and have regular access to development, including industry attachments training institutions. development. opportunities for professional development. for instructors. Public Training Programs G8: Fostering Relevance in                    SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 38 SRILANKAۣWORKFORCEDEVELOPMENT     SABERCOUNTRYREPORT|2014   Functional Dimension 3: Service Delivery Policy Level of Development Goal Latent Emerging Established Advanced There are no specific data collection Training providers collect and report Training providers collect and report Training providers collect and report and reporting requirements, but training administrative data and there are administrative and other data (e.g., job administrative and other data (e.g., job providers maintain their own significant gaps in reporting by non-state placement statistics, earnings of placement statistics, earnings of databases; the government does not providers; some public providers issue graduates) and there are some gaps in graduates) and there are few gaps in conduct or sponsor skills-related annual reports and the government reporting by non-state providers; most reporting by non-state providers; most surveys or impact evaluations and occasionally sponsors or conducts skills- public providers issue internal annual public providers issue publicly available rarely uses data to monitor and improve related surveys; the government does not reports and the government routinely annual reports and the government system performance. consolidate data in a system-wide sponsors skills-related surveys; the routinely sponsors or conducts skills- database and uses mostly administrative government consolidates data in a related surveys and impact evaluations; data to monitor and improve system system-wide database and uses the government consolidates data in a performance; the government publishes administrative data and information system-wide, up to date database and information on graduate labor market from surveys to monitor and improve uses administrative data, information for Results outcomes for some training programs. system performance; the government from surveys and impact evaluations to publishes information on graduate labor monitor and improve system market outcomes for numerous training performance; the government publishes programs. information on graduate labor market outcomes for most training programs online. G9: Enhancing Evidence-based Accountability  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 39 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  Annex4:ReferencesandInformants References CentralBankofSriLanka.2012.“AnnualReport–CentralBankofSriLanka,2011.”Colombo. Dundar,Halil,BenoîtMillot,YevgeniyaSavchenko,T.A.Piyasiri,andHarshaAturupane.2013.“BuildingtheSkillsfor EconomicGrowthandCompetitivenessinSriLanka.”Washington,DC:WorldBank. Filmer,DeonandKinnonScott.2008."Assessingassetindices,"PolicyResearchWorkingPaperSeries,4605.Washington, DC:TheWorldBank.Gunatilaka,Ramani,MarkusMayer,andMilanVodopivec.2010.“TheChallengeofYouth EmploymentinSriLanka.”Washington,DC:WorldBank. Ranathunga,SeethaP.B.2011.“ImpactofRuraltoUrbanLabourMigrationandtheRemittancesonSendingHousehold Welfare:ASriLankanCaseStudy.”MunichPersonalRePEcArchive,MPRAPaperNo.35943.http://mpra.ub.uniͲ muenchen.de/35943/(accessedonMarch19,2013). SriLanka,BureauofForeignEmployment.2010.“AnnualStatisticalReportofForeignEmployment2010.”Colombo. SriLanka,DepartmentofCensusandStatistics(DCS).2011a.“HouseholdIncomeandExpenditureSurvey2009/10:Final Report.”Colombo:DepartmentofCensusandStatistics. SriLanka,DepartmentofCensusandStatistics(DCS).2011b.“LabourForceSurvey2011:AnnualReport.”Colombo: DepartmentofCensusandStatistics. SriLanka,DepartmentofNationalBudget.Ͳ2011.“MinistryofFinanceandPlanningAnnualReport.”Colombo: DepartmentofNationalBudget.SriLanka,MinistryofFinanceandNationalPlanning.2010.“MahindaChintana ͲͲVisionfortheFuture:TheDevelopmentPolicyFramework,GovernmentofSriLanka.” http://www.treasury.gov.lk/publications/mahindaChintanaVisionͲ2010fullͲeng.pdf. MinistryofVocationalTrainingandRuralIndustries.1997.“PresidentialTaskForceonTVETReforms:Technical EducationandVocationalTrainingReforms,Policies,StrategiesandActionProgram.”Colombo:Ministryof VocationalTrainingandRuralIndustries. SriLanka,SecretariatforSeniorMinisters.2012.“TheNationalHumanResourcesandEmploymentPolicy(NHREP)forSri Lanka.”Colombo.http://www.nhrep.gov.lk/images/pdf/nhrep_final.pdf Tan,H.2012.“SriLanka:Education,TrainingandLaborMarketOutcomes.”BackgroundpaperforSriLankaSkills DevelopmentReport,WorldBank,Washington,DC. Tan,JeeͲPeng,KiongHockLee,AlexandriaValerio,andRobertMcGough.2013.“WhatMattersforWorkforce Development:AFrameworkandToolforAnalysis.”SABERWorkingPaperSeries,No.6.WashingtonDC:World Bank. http://wbgfiles.worldbank.org/documents/hdn/ed/saber/supporting_doc/Background/WFD/Framework_SABER ͲWfD.pdf TertiaryandVocationalEducationCommission(TVEC).2011.LaborMarketInformationBulletin.Colombo. ———.2012.“CorporatePlan2012–16.”Colombo.http://www.tvec.gov.lk/pr/images/Corporate_Plan%202012Ͳ2016Ͳ edited.pdf.  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 40 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  Annex5:TableofSABERͲWfDScores   PolicyGoal PolicyAction  Topic G1_T1 3 G1 3.0 ProvidesustainedadvocacyforWfDatthetopleadershiplevel 3.0 G1_T2 3 G2_T1 3 Establishclarityonthedemandforskillsandareasofcriticalconstraint 3.0 Dimension1 G2_T2 3 G2 2.2 G2_T3 2 2.6 EngageemployersinsettingWfDprioritiesandinenhancingskillsͲupgradingfor 1.7 G2_T4 2 workers G2_T5 1 G3_T1 2 G3 2.7 FormalizekeyWfDrolesforcoordinatedactiononstrategicpriorities 2.7 G3_T2 3 G3_T3 3 G4_T1 info Providestablefundingforeffectiveprogramsininitial,continuingandtargeted G4_T2 2 2.3 vocationaleducationandtraining G4_T3 2 G4_T4 3 G4 2.3 G4_T5_IVET 3 Monitorandenhanceequityinfundingfortraining 2.0 G4_T5_CVET 1 G4_T5_ALMP 2 Facilitatesustainedpartnershipsbetweentraininginstitutionsandemployers 3.0 G4_T6 3 Broadenthescopeofcompetencystandardsasabasisfordevelopingqualifications G5_T1 3 4.0 frameworks G5_T2 3 Dimension2 G5_T3 2 2.4 Establishprotocolsforassuringthecredibilityofskillstestingandcertification 3.0 G5_T4 2 G5 2.8 G5_T5 3 G5_T6 info Developandenforceaccreditationstandardsformaintainingthequalityoftraining G5_T7 3 3.0 provision G5_T8 3 G5_T9 3 Promoteeducationalprogressionandpermeabilitythroughmultiplepathways, G6_T1 2 2.0 includingforTVETstudents G6_T2 2 G6_T3 2 G6 2.2 Strengthenthesystemforskillscertificationandrecognition 2.0 G6_T4 2 Enhancesupportforskillsacquisitionbyworkers,jobͲseekersandthe G6_T5 2 2.5 disadvantaged G6_T6 3 G7_T1 2 G7_T2 3 EncourageandregulatenonͲstateprovisionoftraining 2.3 G7_T3 3 G7 2.8 G7_T4 1 G7_T5 2 Combineincentivesandautonomyinthemanagementofpublictraining 2.0 G7_T6 2 institutions Dimension3 G7_T7 2 G8_T1 2 1.9 Integrateindustryandexpertinputintothedesignanddeliveryofpublictraining G8_T2 3 1.8 programs G8_T3 1 G8 1.8 G8_T4 1 RecruitandsupportadministratorsandinstructorsforenhancingthemarketͲ G8_T5 2 2.0 relevanceofpublictrainingprograms G8_T6 2 G9_T1 2 ExpandtheavailabilityanduseofpolicyͲrelevantdataforfocusingproviders' G9 1.7 1.7 G9_T2 2 attentionontrainingoutcomes,efficiencyandinnovation G9_T3 1  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 41 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  Annex6:AuthorshipandAcknowledgements  ThisreportistheproductofcollaborationbetweenDr.TilkaratneA.PiyasiriandstaffattheWorldBankcomprisingHalil Dundar and Yevgeniya Savchenko, members of the South Asia Region, as well as JeeͲPeng Tan, Sankalpa Dashrath, and RyanFlynnoftheSABERͲWfDteambasedintheEducationGlobalPracticeoffice.Dr.Piyasiricollectedthedatausingthe SABERͲWfDdatacollectioninstrumentandpreparedinitialdraftsofthereport;theregionalteamfromtheBankfinalized the report; and the SABERͲWfD team scored the data, designed the template for the report, and made substantive contributions to the final writeͲup. Graham ColinͲJones provided excellent editorial support and contributed to the final textofthereport. The research team acknowledges the support of all who have contributed to the report and its findings, including informants, survey respondents, participants at various consultation workshops, and other members of the SABERͲWfD team at the World Bank: Rita Costa, Viviana Gomez, Rijak Grover, Kiong Hock Lee, Francisco Marmolejo, Joy YooͲJeung Nam,BrentParton,andAlexandriaValerio.Theresearchteamgratefullyacknowledgesthegenerousfinancialsupportof theGovernmentoftheUnitedKingdomthroughitsDepartmentofInternationalDevelopment’sPartnershipforEducation Developmentwiththe WorldBankwhichmakesitpossibleforthe SABERͲWfDteamtoprovide technical support tothe principalinvestigatorintheformofstandardizedtoolsforandguidanceondatacollection,analysis,andreporting.  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 42 SRILANKAۣWORKFORCEDEVELOPMENT  SABERCOUNTRYREPORT|2014  www.worldbank.org/education/saber The Systems Approach for Better Education Results (SABER) initiative produces comparative data and knowledge on education policies and institutions,withtheaimofhelpingcountriessystematicallystrengthen their education systems. SABER evaluates the quality of education policies against evidenceͲbased global standards, using new diagnostic toolsanddetailedpolicydata.TheSABERcountryreportsgiveallparties with a stake in educational results—from administrators, teachers, and parents to policymakers and business people—an accessible, objective snapshot showing how well the policies of their country's education systemareorientedtowardensuringthatallchildrenandyouthlearn.  This report focuses specifically on policies in the area of Workforce Development. This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerningthelegalstatusofanyterritoryortheendorsementoracceptanceofsuchboundaries.  SYSTEMSAPPROACHFORBETTEREDUCATIONRESULTS 43