facilitating economic growth in sri lankapdf.usaid.gov/pdf_docs/pa00mnsx.pdfa multi-faceted dairy...
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Facilitating Economic Growth in Sri LankaFacilitating Economic Growth in Sri LankaFacilitating Economic Growth in Sri LankaFacilitating Economic Growth in Sri Lanka
Project Final Report
Leader with Associate Agreement: EEM-A-00-04-00002-02
Associate Cooperative Agreement: 383-A-00-09-00507-00
Prepared for the United States Agency for International Development
by International Executive Service Corps
Submitted October 29, 2014
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ContentsContentsContentsContents Acronyms ...................................................................................................................................................... 3
Executive Summary ....................................................................................................................................... 5
Performance Indicators ................................................................................................................................ 7
Targets and Indicators Achieved ............................................................................................................... 7
Budget Information and Cost Share Targets Met ..................................................................................... 8
Outcomes of the FEG Approach by Sector................................................................................................ 8
Geographical Coverage of FEG Project Initiatives................................................................................... 12
Overall FEG Project Approach ..................................................................................................................... 13
Project Strategy ....................................................................................................................................... 13
Leveraging Partner Relationships ........................................................................................................... 14
The Volunteer Expert Model and Its Benefits ......................................................................................... 14
The Young Volunteer Consultant Model – Leveraging VEGA Partnership with the University of
Maryland ................................................................................................................................................. 19
Component 1: Technical Assistance to Sri Lankan Businesses ................................................................... 20
Summary ................................................................................................................................................. 20
Key Achievements ................................................................................................................................... 21
Component 2: Technical Assistance to NGOs, Government, and Other Agencies ..................................... 23
Summary ................................................................................................................................................. 23
Key Achievements ................................................................................................................................... 23
Component 3: Workforce Development .................................................................................................... 28
Summary ................................................................................................................................................. 28
Key Achievements ................................................................................................................................... 29
Component 4: Technical Assistance to USAID Sri Lanka Mission ............................................................... 32
Summary ................................................................................................................................................. 32
Success Stories from FEG Technical Assistance .......................................................................................... 33
Strengthening Technical Capacity of Out Grower-Linked Private Sector Dairy Processing .................... 33
On the Path to Creating Fair Trade Markets for Sri Lankan Handicrafts ................................................ 35
A Multi-Faceted Dairy Sector Improvement Strategy ............................................................................ 37
Combination Targeted Technical Assistance to Develop Sri Lanka’s Aquaculture Sector ...................... 39
The Historic Ceylon Cinnamon Success Story ......................................................................................... 41
Challenges and Lessons Learned................................................................................................................. 42
Opportunities for Scaling Up the FEG Approach..................................................................................... 44
Annexes ....................................................................................................................................................... 45
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AcronymsAcronymsAcronymsAcronyms ANG Aqua and Green (a USAID Public Private Alliance partner)
BIZ+ USAID program in Sri Lanka that provides assistance to small and medium enterprises
BOI Board of Investment of Sri Lanka
CAADDR Center for Aquatic Animal Disease Diagnosis & Research
CIP Clean In Place
CORE Connecting Regional Economies (USAID Program)
DAPH Department of Animal Production and Health
DOA Department of Agriculture
EDB Export Development Board
EG Economic Growth
EMMP Environmental Mitigation and Monitoring Plan
EP Eastern Province
FEG Facilitating Economic Growth in Sri Lanka
FSLGA Federation of Sri Lanka Local Government Authorities
FSMA Food Safety Modernization Act (of 2010)
IAP Integrated Aquaculture Project (a USAID Public Private Alliance project)
ICMA International City/County Management Association
IDB Industrial Development Board
IESC International Executive Service Corps
JWCCIA Jaffna Women’s Chamber of Commerce, Industry and Agriculture
LIBCO Livestock Breeders Cooperative Societies
LKR Sri Lanka Rupees
MBA Masters of Business Administration
MPP Masters of Public Policy
MSIS Masters of Information Systems
NAQDA National Aquaculture Development Agency
NARA National Aquatic Research Center
NGO Non-Governmental Organization
NP Northern Province
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PPA Public-Private Alliance (USAID Program)
SOW Scope of Work
SLFPA Sri Lanka Food Processors Association
SLEDB Sri Lanka Export Development Board
TA Technical Assistance
UMD University of Maryland
USAID United States Agency for International Development
USG United States Government
VE Volunteer Expert
WFTO World Fair Trade Organization
YARLCO Jaffna District Development Co-operative Society Ltd
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ExecutiveExecutiveExecutiveExecutive SummarySummarySummarySummary The Facilitating Economic Growth (FEG) in Sri Lanka project was awarded to the Volunteers for Economic
Growth Alliance (VEGA) and its implementing partner, the International Executive Service Corps (IESC),
on September 11, 2009 under the Leader with Associate Award Number EEM-A-00-04-00002-02, and
obligated funding under Associate Cooperative Agreement Number 383-A-00-09-00507-00. This five-
year program provided technical assistance to Sri Lankan business enterprises, non-governmental
organizations, public sector institutes, provincial governments and to the USAID mission until September
30, 2014, with life-of-program funding totaling $3,221,411 USD.
The FEG project was designed at the end of Sri Lanka’s civil war and shortly after the liberation of the
Eastern Province. Its initial design reflects USAID’s attempt to provide immediate and flexible technical
support to its on-going economic growth (EG) programs to revitalize the post conflict economies. The
Project commenced in September 2009, a few months after the end of the conflict in Sri Lanka. It has
helped support the first five years of the economic growth outcomes of the peace effort. The types of
demand driven technical assistance (TA) the project has provided over the five year period has
reflected the maturing economic development in the post conflict areas. From small immediate
solutions that help support other projects develop livelihoods and encourage private investment, to
sustainable and long-term solutions that have built capacity of government and non-governmental
organizations working on grassroots economy building efforts and of private sector companies. As
designed, the FEG project provides short-term TA, which gives it limited control over project outcomes.
These depend on the implementation capacity of the beneficiary organization. However, over the five
year period the project has achieved substantial success in bringing new technology to Sri Lanka,
building capacity for economic revitalization in the post conflict areas and helping develop new value
chains that have linked small scale farmers to markets.
This final report covers the entire project period of September 2009 to September 2014. Project
activities are reported under four components:
1. Technical assistance to Sri Lankan businesses
2. Technical assistance to NGOs, government and other agencies
3. Workforce development
4. Technical assistance to the USAID Sri Lanka mission
The project completed 109 technical assignments in the five year period: 31 assignments to Sri Lankan
private sector businesses, 39 assignments to NGOs and government agencies, 15 workforce
development initiatives, and 24 assignments to the USAID Sri Lanka mission. A technical needs
assessment as well as a post engagement assessment were also completed. The technical assignments
provided training to more than 1,800 people. The assignments to USAID Sri Lanka mission supported
USAID’s EG office in managing on-going projects, supporting public private alliances (PPA), and accessing
information from the field. The geographic coverage of FEG TA extended to eight of the nine provinces
in Sri Lanka and covered twelve sectors, including some activities at the national level. Details of these
assignments, their qualitative and quantitative outcomes, sectorial and geographic coverage are
discussed in this report. This report also showcases five FEG success stories that illustrate how a TA
project can effectively support a range of economic sectors and actors, and become part of a larger
outcome.
The report discusses the unique approach of VEGA’s Volunteer Consulting Model in which skilled experts
offer their time on a pro bono basis to build capacity of the institutions and people in Sri Lanka. The
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project fielded 29 international volunteer experts who brought in a range of technical knowledge and
imparted it in a pragmatic manner that was adapted to local conditions and realities. It also discusses
the outcomes of FEG’s successful partnership with the University of Maryland (UMD), from where the
project hosted 36 volunteer experts in five cohorts to work in private and public sector organizations
throughout Sri Lanka. It was a unique opportunity for the volunteer consultants to impart their
knowledge and skills, based on their experiences, in a development context. Taken together, volunteer
consultants represented $1,024,963.34 in cost share to the program.
This report also highlights challenges and lessons learned throughout the five-year project. It concludes
that due to its unique characteristics, FEG Project may have additional value as a prototype model for
future USAID and development interventions in Sri Lanka and elsewhere.
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Performance IndicatorPerformance IndicatorPerformance IndicatorPerformance Indicatorssss
Targets and Indicators Targets and Indicators Targets and Indicators Targets and Indicators AchievedAchievedAchievedAchieved1111
Assistance Objective: Increased and More Equitable Economic Growth
Component Program Area Indicator Target2 Achieved During
the Project
Period
TA to Sri
Lankan
Businesses
4.6 Private
Sector
Competitiveness
4.6.2 Private
Sector
Productive
Capacity
4.6.2-9 Number of private sector firms
that have improved management
practices as a result of USG technical
assistance
16 39
4.6.2-12 Number of days of USG
funded technical assistance in private
sector productive capacity provided to
counterparts or stakeholders
160 436
Capacity
development of
Government
and Non-
Government
Organizations
N/A
Number of training and direct
technical assistance programs
delivered to public enterprises, NGOs,
Associations and Central, Provincial
and Local Government bodies.
12 39
Number of days of USG funded
technical assistance provided to public
enterprises, NGOs, Associations and
Central, Provincial and Local
Government bodies.
60 829
Workforce
Development
Support
4.6 Private
Sector
Competitiveness
4.6.3 Workforce
Development
4.6.3-8 Number of workforce
development initiatives completed as
a result of USG participation in public-
private partnerships
4 15
4.6.3-10 Number of days of USG
funded technical assistance in
workforce development provided to
counterparts or stakeholders
40 256
Technical
Assistance to
USAID Sri Lanka
Mission
N/A Number of assignments of direct
technical assistance provided to the
economic growth office of the USAID
Sri Lanka mission
8 24
Number of days of USG funded
technical assistance provided to the
economic growth office of the USAID
Sri Lanka mission
80 764
1 Refer to tables in Annexes for detailed breakdown of all reported figures
2 Targets have been determined only for the last two years of the project, from Sept 2012 to Sept 2014.
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Budget Budget Budget Budget Information aInformation aInformation aInformation and Cost Share Targets Metnd Cost Share Targets Metnd Cost Share Targets Metnd Cost Share Targets Met
Obligated Funds $3,221,411
Total Funds Spent $3,174,661.35*
Donated Services Achieved $1,024,963.34
Original Donated Services Obligation $ 208,176.29
Revised Donated Services Obligation $ 783,999.15
*prior to adjustment for NICRA
Outcomes of the Outcomes of the Outcomes of the Outcomes of the FEG ApproachFEG ApproachFEG ApproachFEG Approach by Sectorby Sectorby Sectorby Sector
Dairy Processing
New Technology /Know-how Introduced • Clean In Place Procedures
• SME Dairy Facility Design protocols
• SME Dairy facility maintenance protocols
Quantitative Outcomes • YARLCO: spoilage decreased 10%; Capacity
increased 60%
• CIC Dairies capacity increased from 2800lt/day
to 10,000lt/day
• CIC Dairies now connected to 4,000 dairy
farmers
Qualitative Outcomes • CIC Dairies achieved ISO 22000:2005
certification
• LIBCO: shuttered factory now preparing for
recommencement; water purification plant
improved
• OXFAM: new technical model for SME dairy
processing assistance
• JWCCIA: new Processing Center Business Plan
developed
Dairy Farm Management
New Technology /Know-how Introduced • Dry Feed Formulation
• Dairy Management
• Fodder feeding
Quantitative Outcomes • Increase in milk yields: 10% - 400%
• 50% trained farmers commenced fodder
cultivation
• 75% trained farmers milk twice daily
Qualitative Outcomes • Increased awareness of dairy farm
management
• New training methodology adopted by vets
and livestock development officers
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Veterinary Training
New Technology /Know-how Introduced • Stress-free animal restraining
• Single-dose treatment
• Advanced pregnancy diagnosis
• Advanced field surgical procedures
Quantitative Outcomes • 100% trained vets and livestock development
officers using new technology
• Lower treatment costs by using single dosage
treatments
• Lower rate of abortions in cattle
Qualitative Outcomes • Better and more humane animal handling
procedures
• Improved medical care for dairy animals
• Increased awareness of technology
training/upgrading benefits
Poultry Hatchery
New Technology /Know-how Introduced • Hatchery Management Protocols
• Sexing of chicks by vent
Quantitative Outcomes • 75-80% success in chick sexing at Vavuniya
• Premium price for sexed females
Qualitative Outcomes • Department of Animal Production and Health
(DAPH) identified need for advanced training
in vent sexing
• DAPH will revise farm planning and
incorporate know-how into new farm plans
• DAPH will revise technical staff selection
criteria
Mango Cultivation
New Technology /Know-how Introduced • Ultra High Density planting (UHD)
• Hard Pruning
• Management for longer fruiting season
Quantitative Outcomes • Expectations of mango yield increase: 10-100%
• 45 new investments in small scale commercial
mango farms using UHD technology
• 854 farmers trained in ongoing technology
dissemination programs
Qualitative Outcomes • Less pest and disease attack
• Improvement in the quality of the fruit,
increases likelihood that buyers more likely to
purchase mango, and therefore increased
access to better markets
• Bigger fruits and consequently higher farm
gate prices
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Grape Cultivation
New Technology /Know-how Introduced • Management for new seedless sweet variety
Quantitative Outcomes • None to date
Qualitative Outcomes • Enhanced understanding of growing conditions
and management of new variety
• Expected access of farmers to new value
added commercial distribution channel
Palmyra Processing
New Technology /Know-how Introduced • Palm sugar
• Natural alternatives to prevent fermentation
of sweet toddy
Quantitative Outcomes • None to date
Qualitative Outcomes • Increased research capacity of Palmyra
Research Institute
Cereal Processing
New Technology /Know-how Introduced • Cereal and grain processing and product
formulation
Quantitative Outcomes • One new product ‘Nisiposha’ in the market
• Cereal purchased from 400 farmers
Qualitative Outcomes • Increased capacity for processing company to
develop geriatric and pediatric nutritional
products
Aquaculture Development
New Technology /Know-how Introduced • Commercial-scale culture of live feed for
freshwater ornamental fish
• Research protocols for vaccine development
• Fish feed production from fish waste
• Breeding of ornamental marine fish
Quantitative Outcomes • 18% reduction in cost of production
• LKR 15 million investment in new wet lab
• 800 freshwater fish breeders to be trained at
new lab
• LKR 5 million investment in marine ornamental
fish breeding center
• Expected Food Agriculture Organization (FAO)
contribution of USD 350,000 for commercial
scale fish feed production
Qualitative Outcomes • Laboratory culture of live feed and ready to
commence commercial culture
• Private sector hatchery set up with brood stock
for marine ornamental fish breeding.
• Training and joint research arrangements
between private sector and NAQDA
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Handicrafts
New Technology /Know-how Introduced • New designs in handloom weaving
• Fair Trade Certification
Quantitative Outcomes • 30 companies trained in Fair Trade certification
• 8 companies prepared to apply for Fair Trade
certification in 2014
• 40 small scale entrepreneurs in Batticaloa
exposed to benefits of Fair Trade markets
Qualitative Outcomes • Increased capacity for SLEDB to assess and
assist companies for Fair Trade Certification
• Increased capacity for Ministry of Industries to
promote designer handloom production and
exports
Local Government Authorities
New Technology /Know-how Introduced • Service provision and revenue collection
• Protocols for drafting by-laws for revenue
collection
Quantitative Outcomes • Revenue increase of up to 70% projected by
Local Authorities when new by-laws are passed
Qualitative Outcomes • Capacity building of new local government
authorities in post conflict areas
National and Provincial Government and Ministries
New Technology /Know-how Introduced • Tourism development strategy
• Investment promotion tools and procedures
Quantitative Outcomes • 2 new private sector investments in fishery
sector
Qualitative Outcomes • Tourism related statutes institutionalized
• Eastern Province Investor Forum January 2014
attended by 200+ people including foreign
investors
• Investor-friendly approach of Eastern Province
Ministry
• Increased exposure of Eastern Region to
international trade missions
• Capacity to present opportunities to trade
delegations and promote FDI – recently with
visiting Vietnamese trade delegation
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• Improving financial management,
accounting systems, and marketing
initiatives for small scale industries
• Technology on Cereal and
grain processing – Trinco and
Ampara
• Technical improvements to
milk processing
• Best Practices in Dairy
Management
• Training and Capacity
Building of Veterinary
Surgeons and LDOs
• Development for Handicrafts
and Handlooms made by
Conflict affected Women
• Solid waste management
• Investment Proposals and
Assistance with ‘Invest In
East’ Investment Forum
• Tourism Promotional
Strategy
• Mango pruning and crop
management
• Diagnostic Study on Promoting Investment in Northern
Province
• Dairy processing for cooperatives
• Best Practices in Dairy Management
• Training and Capacity Building of Veterinary Surgeons
and LDOs
• Hatchery management training for poultry sector
• Development for Handicrafts and Handlooms made by
Conflict affected Women
• Training on mango pruning and crop management
• Strengthening Local Councils to provide local govt.
services for economic development
• Handicrafts – opening up Fair Trade markets
• Ceylon Cinnamon Promotional Strategy and
Implementation plan
• Outline opportunities, constraints, and recommendations
to strengthen the existing National Policy in specific Local
Government Authorities (Ambagamuwa, Ambalangoda,
Negombo)
Strategic Plan for Uva Provincial
Council
National Programs:
• Handicrafts – Opening up Fair Trade
Markets
• Food Fish Aquaculture Hatchery
Development
• Investment Promotion Capacity
Building for BOI and Ministry of
Finance and Planning
• Improving the Environment for Doing
Business in Sri Lanka
• Value Addition of Fish Waste into Fish
Food
• Culturing of Live Feed of Duckweed
and Spirulina
• Awareness Program on Food Security
Modernization Act (FSMA)
• Marine Ornamental Fish Breeding in
Sri Lanka
• Live Feed for Ornamental Fish Industry
• Vaccine Protocol for Ornamental Fish
Industry
• Efficient Energy
Management for
Export oriented
Coconut Based
Industry
• Outline
opportunities,
constraints, and
recommendations
to strengthen the
existing National
Policy in specific
Local Government
Authorities
(Ambagamuwa,
Ambalangoda,
Negombo)
Geographical Coverage of Geographical Coverage of Geographical Coverage of Geographical Coverage of FEG Project InitiativesFEG Project InitiativesFEG Project InitiativesFEG Project Initiatives
13
Overall FEG Project ApproachOverall FEG Project ApproachOverall FEG Project ApproachOverall FEG Project Approach
Project StrategyProject StrategyProject StrategyProject Strategy
Facilitating Economic Growth (FEG) Project began in September 2009 under the Volunteers for
Economic Growth Alliance (VEGA) Leader with Associate award. The International Executive Service
Corps (IESC) was the prime implementer, in partnership with VEGA consortium members ACDI/VOCA,
International City/County Management Association (ICMA) and Land O’Lakes International Development
Fund. Its success lay in its ability to mobilize demand driven technical resources using flexible
procedures to develop tailored and targeted TAs to meet immediate local needs. Implementation was
led by IESC with volunteers, local and international consultants and contractors, drawn from the FEG
project’s partner consortium. During the last five years, direct technical assistance provided by FEG
through the economic growth programs of USAID, private sector partnerships and NGOs contributed to
the economic revitalization of the Eastern and Northern Provinces and to an extensive array of
economic sectors and institutions across Sri Lanka.
The focus of the FEG project design was to
provide specific technical support to post
conflict and conflict affected areas of Sri Lanka
and broad support of USAID’s economic growth
(EG) efforts. The project was designed to
provide direct, targeted assistance to
enterprises, agribusinesses, related
associations, NGOs, USAID and their workforces
covering a wide range of sectors and economic
activities. For reporting purposes, project
activities have been grouped under four
components: (I) Technical assistance to Sri
Lankan businesses; (II) Technical assistance to
NGOs, Government Institutions and other
Agencies; (III) Workforce Development and; (IV)
Technical assistance to USAID Sri Lanka mission.
Practically, the workforce development
component became integrated into the TA
provided under the first two categories as it was
often necessary to build technical capacity of
the workforce in private sector, NGOs,
government agencies and other institutions as
part of the technical solutions provided and to
improve sustainability. In this manner, the
outreach on workforce development has been
extensive.
During the first three years of the project, up to
the time of the Mid -Term Review, USAID’s
focus for the FEG project was to mainly provide direct technical support to USAID’s economic growth EG
objectives through its Public Private Alliance (PPA) program, as well as the other ongoing USAID projects
in Sri Lanka. This strategy enabled the USAID EG office to provide immediate and focused technical
“Provision of technical expertise has been a
targeted mechanism for engaging in a wide
range of economic development activities
and beneficiaries in the country that could
not have been achieved in a single EG
project. . . .Technical outreach has been
provided to a broad spectrum of private
sector companies (both MSME and large
scale) as well as public institutions. The
direct technical assistance has reached
farmers and craftspeople as well as
technical R&D officers, extension officers,
veterinarians, district level planners, and
decision makers. Moreover, due to the
nature of the VEGA-FEG program design,
the beneficiaries have been encouraged to
take ownership of the technical know-how
and formulate their own plans for
disseminating, investing, and otherwise
expanding on the outcomes.”
—FEG Post Engagement Assessment June 2014
14
support that helped launch initiatives and institutions in the context of post-conflict development.
During the last two years of the project, the strategy was changed to provide more latitude for the FEG
project to identify technical assistance needs in post-conflict and other economically vulnerable areas
and develop technical assistance interventions that build capacity, and foster innovative solutions and
partnerships. This change in strategy was a result of a lesser need to support USAID PPAs, as many were
complete. The change in program strategy after the Mid-Term Review was also prompted by the
Country Development Cooperation Strategy (CDCS) for Sri Lanka that was developed after the project
start date.3
Leveraging Partner RelationshipLeveraging Partner RelationshipLeveraging Partner RelationshipLeveraging Partner Relationshipssss The FEG project’s success is in part due to the strength and synergistic expertise of its partners.
Collectively, the unique partnership combines 30 years of development experience in Sri Lanka, and
particularly an understanding of Sri Lanka’s conflict and its impact on economic growth.
The IESC Team consisted of international partners ACDI/VOCA, ICMA International, and Land O' Lakes.
The Financial Services Volunteer Corps (FSVC) was a resource group member.
IESC led the implementing team and provided technical assistance in enterprise/ enterprise
development, information communication technology (ICT), innovation, workforce development, and
finance as it relates to enterprise development and competitiveness. lCMA provided training and
technical assistance to support the public sector in creating an enabling public sector environment for
economic growth, establishing public private partnerships for economic growth and building public
sector capacity for effective economic development strategies and their implementation, and city
competitiveness. ACDI/VOCA provided expertise in non-dairy agricultural production issues, and has
supported Finance and Labor as related to Agriculture. Land O’Lakes provided technical assistance in
dairy, within the agriculture program activities.
Unique to the FEG project was its role in supporting various USAID Sri Lanka projects and initiatives, as
directed by USAID. Through its project life, this included an array of activities such as environmental
impact analyses, recruitment, proposal reviews, pre-award surveys of local organizations, and sector
assessments.
The project was able to work with a diverse set of governmental institutions to enhance their ability to
support economic growth for the country. This includes the Sri Lanka Export Development Board,
Ministry of Commerce, National Aquaculture Development Authority (a government research institute
under Ministry of Fisheries), Federation of Sri Lankan Government Authorities, and Ceylon Chamber of
Commerce.
The Volunteer The Volunteer The Volunteer The Volunteer ExpertExpertExpertExpert Model and Its BenefitsModel and Its BenefitsModel and Its BenefitsModel and Its Benefits With 55 assignments handled by 29 volunteer experts, (just over 50 per cent of all assignments), the
approach of the FEG project in Sri Lanka was to mobilize volunteer technical expertise for many of its TA
efforts. The volunteer expert (VE) model has enabled the mobilization of practical experience directly
into the many facets of the various sectors of the Sri Lankan economy. Especially, in the case of senior
3The CDCS focuses on economic revitalization in the North and East, but also recognizes that activities in other
parts of the country and activities that support USAID directly can contribute both directly and indirectly to
national reconciliation.
15
volunteers, the wealth of practical experience freely shared among beneficiaries – farmers, technical
officers and managers - helped to fast track the economic revitalization process. The post-engagement
assessment conducted in May-June 2014 reported that beneficiaries attribute the following benefits to
the volunteer consultant model:
• Enabled the acquisition of new technology from an overseas expert. Beneficiaries, including
most technical officers, said this was the first technical training they had received since
graduating from their respective educational institutions.
• Enabled a large number of local beneficiaries – technical officers, producers and farmers - to
have directly benefitted from the training and increased their capacity to effectively manage
and disseminate new technical know-how.
• Solutions were tailored to local realities. Since the volunteer expert took time to become
familiar with the local conditions, because of prior study and considerable time in country, the
know-how had been adjusted to local realities and needs, and transferred in a ready-to-use
form. This was essential in order to increase the impact of TA and sustainability of the results.
• Volunteer experts used a pragmatic, hands-on approach to address specific and relevant
problems.
PERSPECTIVEPERSPECTIVEPERSPECTIVEPERSPECTIVE: Helping Veterinarians Help T: Helping Veterinarians Help T: Helping Veterinarians Help T: Helping Veterinarians Help Themselveshemselveshemselveshemselves
Service has always been a part of VEGA volunteer Dr.
Stephen Willson’s life.
An experienced veterinarian with a background in large
animal medicine, he volunteered to set up a veterinary
technical school in Siberia. Later, he went to Lebanon to
improve animal surgery and artificial insemination to breed
goats. When the call came to train veterinarians and animal
technicians in Sri Lanka’s Northern Province, he gladly
answered.
Livestock, particularly dairy livestock, are a vital source of
nutrition and wealth to communities throughout Sri Lanka.
Milk is an important nutritional resource in and of itself, but
it can also be sold and transformed into other dairy products
for re-sale. But this system is challenged when farmers are
unable to get their sick cows treated quickly and effectively,
as is the case in Sri Lanka.
From September 30 to October 9, 2013, Dr. Willson
accompanied his 40 veterinary colleagues on calls and quickly showed them how they could save time.
When he noticed there were no restraints for the large animals, he fashioned a halter on the spot. Not
only did this mean fewer individuals were required to restrain that animal, but also the veterinarians
could examine the animal quickly and effectively. “You can tell a lot about an animal just by feeling the
Volunteer veterinarian teaches Volunteer veterinarian teaches Volunteer veterinarian teaches Volunteer veterinarian teaches
colleagues to be confident in colleagues to be confident in colleagues to be confident in colleagues to be confident in
themselvesthemselvesthemselvesthemselves
16
animal out,” says Dr. Willson. For example, by examining the uterus via the rectum, the vets were taught
how to determine the stage of pregnancy or infections in cows.
Dr. Willson noticed there was significant lag time between assessing the state of the animal, obtaining
needed medication, and then coming back to treat the animal. “When you go on a call and can’t treat
the animal right away, it’s counterproductive. If you have a lot of patients, you need to treat them on
the spot.”
Sri Lankan veterinarians said they often saw cows that were sick with diarrhea, and it required
significant amounts of water to re-hydrate them. Although the farmers recognized this, the cows would
only drink a very small amount of water. Dr. Willson showed the farmers how to create and administer
their own saline solution. The saline triggered the cows to drink many gallons of water, getting them
healthier faster. Dr. Willson also showed the animal specialists how to use everyday items, such as
plastic water bottles, to easily carry and quickly administer the saline solution.
Dr. Willson recalls several memorable moments. In one case, a cow had mastitis, a condition where the
udder swells and becomes full of liquid. When Dr. Willson and his Sri Lankan colleague examined the
udder, they discovered it was full of pus. Dr. Willson quickly lanced and flushed it out. Although the local
veterinarian was concerned about bleeding, Dr. Willson assured him that would be minimal and stop on
its own.
Another time, after a scheduled training, Dr. Willson was whisked off to another village that needed
critical assistance. A woman’s dog had a tumor that required immediate attention. They went to the
pharmacy, but it did not have the proper medication available, so Dr. Willson improvised. Thinking on
his feet, he used the available tranquilizers for anesthesia to remove the tumor.
“You make do, don’t you doctor?” a young veterinarian asked him afterwards. She acknowledged Dr.
Willson’s resourcefulness and ability to find solutions with limited means. She told Dr. Willson that the
same surgery would have taken her or her Sri Lankan colleagues four to six hours, versus the 45 minutes
he needed. She also noted that they would have thought to repurpose medicine in the same way.
“You are the veterinarian,” Dr. Willson remembers saying to the young woman. “The bottle provides
guidance, but as a doctor you are trained to decide how best to use that medication, and in what
circumstances.”
Because he made such a strong impression during his first visit, Dr. Willson was asked to return to Sri
Lanka several months later to deliver the same types of practical, hands-on training in the country’s
Eastern Province. From March 10-21, 2014, he trained 42 veterinarians and livestock development
instructors across the Eastern Province’s three districts.
Dr. Willson continues to be in contact with his veterinary colleagues in Sri Lanka. He recently shipped
them several boxes of disposable needles, an IV hose, and rubber stoppers.
“I learned a lot,” Dr. Willson recalls fondly. “Sri Lankan veterinarians are smart. I was like them when I
first started. I had the training but not a lot of experience. But once you learn by doing, practice, and
think about how to best treat the animal with what you have, you can make animals healthier.”
“And,” he added, “be a better vet.”
17
PPPPERSPECTIVEERSPECTIVEERSPECTIVEERSPECTIVE: : : : NewNewNewNew Networks and Market LNetworks and Market LNetworks and Market LNetworks and Market Linkagesinkagesinkagesinkages in Handicraftsin Handicraftsin Handicraftsin Handicrafts
Even though it was his fourth visit to Sri Lanka in forty
years, VEGA volunteer Paul Myers was excited to
learn something new.
Myers is former president and CEO of Ten Thousand
Villages and the World Fair Trade Organization. He
was enlisted by the USAID Facilitating Economic
Growth Project and the Sri Lankan Export
Development Board (EDB) to assess nine burgeoning
craft companies interested in fair trade certification
and to provide guidance on the fair trade application
process. Artisans are earning $115 a month now, but
with fair trade certification, they are expected to earn
35 percent more. The EDB estimates that this would
benefit 15,000 households nationwide, strengthen
additional export products, and celebrate Sri Lanka’s
diverse craft traditions.
This was the second part of a three-stage initiative launched by the EDB. To assist this process, the
USAID Facilitating Economic Growth Project previously mobilized fair trade volunteer expert Phillis Alvic
to generate awareness of fair trade certification and assess the landscape of organizations capable of
pursuing certification.
“The economic climate in Sri Lanka is positive today. It is also wonderful to see the EDB working,
together with USAID/VEGA, to support craft groups,” said Myers.
Myers took a very thoughtful approach with these craft groups. “I was there to observe, listen, and ask a
few questions because I was getting inside these companies.” He did not immediately offer suggestions
for improvement, but waited until the businesses asked. By developing rapport and credibility with his
local clients, they were more likely to listen to what he had to say. “It wouldn’t have worked as well if
the process was reversed,” Myers notes.
Marketing was one of the biggest challenges with most of the craft groups. Some were greatly affected
by the global economic downturn in 2008. These companies had to cut down on production by as much
as 60 percent as a result. All were looking to regain market share.
While all groups were doing fairly well domestically, access to the export market was another area that
needed more support.
“Early on at Ten Thousand Villages, the most important question for us was, ‘How does my decision
affect the producer?’ Over time, the most important question became, ‘What does the consumer need
and want,’” notes Myers.
Design was another challenge for some.
A former CEO returns to Sri Lanka to A former CEO returns to Sri Lanka to A former CEO returns to Sri Lanka to A former CEO returns to Sri Lanka to
develop fair trade capacity in craft groups.develop fair trade capacity in craft groups.develop fair trade capacity in craft groups.develop fair trade capacity in craft groups.
18
“Design changes constantly. You have to keep up with what the consumer wants. One way to do this is
to meet with buyers visiting Sri Lanka. Another way is meeting with buyers and potential clients at
regional and international trade shows. Being in touch with tourists visiting Sri Lanka also provides a
good pulse on what the consumer wants, and what people in other countries are seeing and buying,”
says Myers.
Myers also leveraged his skills as an executive to work one-on-one with fellow CEOs to improve other
parts of their businesses, including cash flow and financial planning. While it was commendable that
several businesses wanted to distribute much of their dividends to shareholders, it was also vital to think
ahead, and save funds for potentially difficult financial times. Myers was able to connect with these
CEOs on a business and personal level to help them make better decisions.
One commonality Myers found in his travels to Sri Lanka and around the world is that women
everywhere understand the importance of income to provide for the family. As Myers shared a meal
with Dr. W.G.K. Chamilani, founder and president of Pung Craft, she told him that some members of her
village could only afford to eat one meal a day. “This has to change,” Dr. Chamilani said. “Through my
business, I want to do something good for the people in my community. It is my mission.”
“There are brilliant, creative visionaries here who could easily work for someone else making lots of
money,” Myers said. “But to feel, see, and observe a number of social entrepreneurs doing meaningful
work: that was inspirational.”
While in country, Myers assisted groups with their World Fair Trade Organization applications. After
returning home, he continued to aid these organizations by informing the WFTO of his assessment, as
well as the craft groups’ work, and ability to pursue certification.
He has also been in contact with the EDB, recommending that they try to fund local fair trade auditors. It
would reduce the cost of certification for future groups by approximately 33 percent.
“I was reminded that disadvantaged people, especially women, simply need an opportunity. Given that
opportunity, they would run with it. Part of the task is to identify the opportunity that can be useful to
them,” says Myers.
19
The The The The Young Young Young Young VolunteerVolunteerVolunteerVolunteer Consultant Consultant Consultant Consultant Model Model Model Model –––– Leveraging VEGA Partnership with the University Leveraging VEGA Partnership with the University Leveraging VEGA Partnership with the University Leveraging VEGA Partnership with the University
of Marylandof Marylandof Marylandof Maryland
IESC’s collaboration with the University of
Maryland’s Smith School of Business to
provide volunteer consulting services to
USAID Sri Lanka’s EG programs proved to
be an enormous success. 36 graduate
students pursuing Masters of Business
Administration, Masters of Public Policy,
Masters of Finance, and Masters of
Information Systems at the University of
Maryland’s Robert H. Smith School of
Business worked on 20 assignments in Sri
Lanka that helped support a number of Sri
Lankan businesses, NGOs and Government
sector agencies throughout the country.
These young volunteer consultants traveled
to Sri Lanka and worked with an identified group of organizations and provided on-site consulting
services to address various business-related challenges. These volunteers had on average 3-5 years of
experience, and specific technical expertise such as finance and management. The volunteers were from
the UK, India, Thailand, Japan, Czech Republic, and US.
The University of Maryland’s Robert H Smith
School of Business is one of the world's
leading business schools in transforming its
curriculum to reflect the needs of leadership
for a global economy powered by
technology and entrepreneurship. The
partnership with FEG helped the selected
students put their learning into the
perspective of the development assistance
context. While most of these volunteer
consultants are oriented toward careers in
the for-profit private sector, involvement
with the FEG project has instilled a sense of
social responsibility in them, to impart their
expertise directly in communities where
they work. This endeavor has also
empowered several volunteer consultants pursuing international development careers with more
practical experience. Initially, the FEG project coordinated the first cohort of volunteer consultants with
the Business Growth Initiative (BGI), a USAID-funded project. Subsequently, four groups of volunteers
were directly deployed by FEG. Some cohorts also partnered with graduate students from the
Postgraduate Institute of Management, University of Sri Jayawardenepura in Sri Lanka, to tackle client
challenges together.
The first cohort of student volunteers
The final cohort of UMD student volunteers in 2014
20
ComponentComponentComponentComponent 1: 1: 1: 1: Technical Assistance to Sri Lankan BusinessesTechnical Assistance to Sri Lankan BusinessesTechnical Assistance to Sri Lankan BusinessesTechnical Assistance to Sri Lankan Businesses
SummarySummarySummarySummary The FEG Project provided 31 technical assistance assignments that built capacity of 39 Sri Lankan
businesses. The assignments ranged from providing business skills for small and medium scale
companies to the provision of technical and marketing assistance for larger companies many of whom
have supply chain links to out grower networks or home-based workers. Of these assignments, 23 per
cent were conducted by volunteer experts, 41 percent by University of Maryland volunteer experts and
36 percent by paid local and American consultants and consulting companies. Details are available in
Table 1 of the Annexes. The 39 companies were located in various provinces throughout Sri Lanka. 77
percent of the private sector TA was directed to support USAID EG Office projects. Ten TA assignments
were provided to build capacity for firms selected by USAID as public-private alliance partners. Seven TA
assignments were provided to VEGA-BIZ+ grantees that are all micro, small and medium scale
businesses. Thirteen of the TA assignments directed at VEGA-BIZ+ were environmental impact
assessments. The recommendations made by the consultants helped a substantial number of these
businesses to improve their environmental sustainability and succeed in obtaining grants from the
VEGA-BIZ+ program. In total, 436 days of technical assistance was provided to private sector businesses
that included 278 volunteer days.
Summary of Technical Assistance to the Sri Lankan Businesses by Sector
Sector Technical Assistance Assignment
Agriculture –
Horticulture
Increase farmer incomes by minimizing post- harvest losses
Technical know-how and market access for dehydrated tropical fruits to us markets
Mechanized crop management system for mango plantation
Aquaculture
Quality management systems for cage culture fish project – USAID PPA partner
Supply chain management and marketing plan for Aqua Hatcheries
Microfinance training and workforce development support
Brood stock management practices and hatchery facilities for food fish mariculture
Marketing plan for an aquaculture project
Financial reporting of Integrated Aquaculture Project (IAP) to USAID
Cereal
Processing
Product development and machine optimization in cereal grain processing for plant in Ampara
Product development for a cereal breakfast manufacturing plant in Trincomalee
Dairy
Processing
Improve and diversify product line for dairy processing plant in the East
Establishment of an effective milk procurement process
Improving financial management, accounting systems, and marketing initiatives – Himalee Dairy
Education Marketing strategy to promote DynEd program
Business plan and accounting package for IT and language school
Business management and implementation of accounting software
Capacity building on business management
Handicrafts Preparation of 10 selected craft manufacturers and exporters for Fair Trade certification
Manufacturing
Industry
Financial and business plan assessment for Jeyantha Industrial Park (ice factory)
Business process improvement for Kobithan Garments – VEGA BIZ+ grantee
Improving financial management, accounting systems, and marketing initiatives - Livini Furniture
Inventory control system for Sarah industries– VEGA BIZ+ grantee
Many sectors Environmental screening and EMMPS for 13 VEGA BIZ+ grant applicants
Retail Marketing plan for northern farms– VEGA BIZ+ grantee
21
Key AKey AKey AKey Achievementschievementschievementschievements
1. FEG technical support to Sri Lankan businesses increased efficiency, volume, and strengthened
standards of other businesses within the value chain. TA assignments to CIC Dairies plant in
Punani, Eastern Province
strengthened the organizations
capacity to purchase milk from
4,000 small scale dairy farmers by
helping increase plant capacity and
build good milk procurement and
supplier management systems. TA
assignments to Lankem Agro
cereal processing plant in
Kappalthurai, Eastern Province
built product-markets that
enabled them to source raw
materials from over 400 cereal
farmers in the North Central
Province and Eastern Province.
Lankem Agro purchases approximately 1,200 metric tons of soy and 780 metric tons of corn per
season from local suppliers, who have had to upgrade their post-harvest handling techniques in
order to comply with the company’s requirements.
2. FEG has helped drive quality and product-market improvements as well as encourage further
private sector investment. CIC Dairies, which undertook extensive process improvements at its
Punani plant following the TA provided by the project, qualified for ISO 22000:2005 certification
in 2013. The company is investing in
an additional LKR 600 million dairy
processing plant in Dambulla.
Technical assistance to introduce
mechanized mango crop management
at Nelna Farms, a pioneer in
commercial scale mango production
in Sri Lanka, has enabled the Company
to reach global markets. Ted Winston
demonstrated proper tree training to
the field staff and guidelines on how
to reduce nutrition problems through
leaf and soil analysis and knowing
when each nutrient is needed in the
crop cycle. The Consultant, along with the company’s Project Manager, developed a draft
Management Guide based on the Crop Phonological Cycle. This Guide will help plan how to
space mango production over more months of the year and thereby captivating export orders.
The company is currently operating a 650 acre farm and planning to add 500 new acres in the
short-term. The technical assistance has played a significant role in the company’s confidence in
its capacity to manage an expanded acreage. Because of the consultant’s recommendations,
Graham Holdaway (center) discusses the factory improvements with
CIC technical staff at the Poonani dairy processing center
Ted Winston (left) at Nelna Farms in Embilipitiya
22
mango trees yield fruit all year round, which is very important to management of stocks and
price stability. Prior to the TA, the yield was limited to 4-5 months
during the year.
One new product, ‘Nisiposha’, a cereal based breakfast product
for improving nutrition in children, is a direct outcome of the
technical support provided to Lankem, to develop product
formulation. In addition to this product, the TA has built capacity
for the company to develop cereal-based geriatric nutritional
products and special dietary products. These are as yet untapped
markets in Sri Lanka that can cater to the country’s ageing
population.
3. FEG technical assistance to support USAID’s PPA initiative
helped drive large-scale investment, employment opportunities
and economic growth in the post conflict areas. Of the four PPA partners supported through
TA, new technology was provided
for marine aquaculture hatchery
management of food fish and
marine cage culture management.
This is a new area of enterprise for
Sri Lankan businesses.
FEG support to Cargills and Keells
Logistics fresh fruit and vegetable
purchasing has helped improve
post-harvest handling in the
collection and distribution of fresh
produce to supermarkets.
Dr. Govind advises on post-harvest handling of fruits and vegetables in
the supermarket supply chains
23
“The Ministry thanks VEGA-FEG
for encouraging large scale
investments and building
capacity of human resources by
providing technical assistance
since the end of the conflict.”
--Dr. Gnanasekar, Director of
Planning, EP Ministry of
Agriculture, Livestock, Rural
Industries, Fisheries and Tourism
Component 2: Component 2: Component 2: Component 2: TechnicalTechnicalTechnicalTechnical Assistance to NGOs, GovernmentAssistance to NGOs, GovernmentAssistance to NGOs, GovernmentAssistance to NGOs, Government, and , and , and , and OOOOther ther ther ther
AgenciesAgenciesAgenciesAgencies
SummarySummarySummarySummary FEG provided 39 technical assistance assignments to build capacity in NGOs, government and other
agencies over the five year period. 829 days of technical
assistance was provided to this sector which amounts to
36 percent of all TA days, the highest share among all
Program Components. The majority of the TA was
channeled through volunteers and international experts
with VEGA volunteer experts and UMD Volunteer experts
supplying 64 percent of the total TA days. Details are
provided in Table 2 of the Annexes.
The TA reached a wide range of agencies, technical staff,
administrators, planners, local and central government
agencies. Key government agencies benefitting from
capacity building have been:
• Ministry of Agriculture, Livestock Development,
Rural Industries, Fisheries and Tourism—Eastern
Province
• Department of Agriculture—Northern Province and Eastern Province
• National Aquaculture Development Authority
• National Aquatic Resources Research and Development Agency
• Department of Animal Protection and Health—Northern Province and Eastern Province
• Export Development Board
• Board of Investment of Sri Lanka
• Ministry of Industry and Commerce
• Uva Provincial Council
• Palmyra Research Institute
NGOs and other agencies included Regional Chambers Of Commerce in the Northern and Eastern
Provinces; several small local NGOs receiving grants through VEGA BIZ+; Jaffna Women’s Chamber of
Commerce, Industry and Agribusiness (JWCCIA); Livestock Breeders Cooperative (LIBCO) Vavuniya and
Federation of Sri Lanka Local Government Authorities.
Nine of the TA assignments were directed at national-level programs that built capacity for industry
sectors such as aquaculture and food processing, including spices. A significant level of TA was also
directed at improving Sri Lanka’s investment climate to attract Foreign Direct Investment as a post
conflict economic revitalization measure.
Key AchievementsKey AchievementsKey AchievementsKey Achievements 1. Demand driven technical assistance to government agencies has enabled the project to bring
in know-how that was not previously available in Sri Lanka. In addition to training local
technical staff of the relevant agencies, the project also enabled the receiving agency to develop
better linkages with relevant foreign counterparts leading to a network of expert assistance
24
becoming available to Sri Lanka for possible future assistance. The following are some of the
specific types of new knowledge disseminated:
• Development of
commercial supply of
Moina live feed that
reduces the cost of
production of fresh water
ornamental fish for
export by 18 percent.
• Sustainable and low-cost
feed for marine
aquaculture of food fish
that lowers production
costs by 30-40 percent.
• Protocols for
development,
production, and large-
scale application of
ornamental fish
vaccination for fresh
water fish. The
development of the
vaccines is expected to
take a few years. The TA will have an important impact on the sector and particularly on the
SMEs. Breeders are currently exposed to huge losses derived from the lack of available
vaccines. Use of other chemicals have environmentally damaging effects and have not been
successful.
• Sustainable and efficient breeding technologies for marine ornamental fish which are
presently sourced from the wild. The TA has increased capacity for Sri Lanka’s production of
value added breeds and potential to address sustainable markets.
• Research on the production of palm sugar from Palmyra as a dietary supplement
• Introduction of natural alternatives to prevent fermentation of sweet toddy in the
production of Palmyra jaggery.4
• Ultra high density planting and management of mango
2. Wide outreach and potential for replication has been a key characteristic of FEG work
categorized under this component. An assessment of the FEG project in 2014 showed that it is
both effective and efficient to work through government organizations that have the ability to
disseminate the know-how and work directly with the ultimate beneficiaries and direct users of
the know-how.
4 Jaggery is the concentrated product of palm sap.
Dr. Powell (left) talks about vaccine development protocols to Scientists
at CAADDR
25
A good example is how the
limited TA provided on
improving mango yields and
managing mango cultivation
to the Department of
Agriculture in the Northern
Province and Eastern province
has resulted in a regular set of
training programs that are
taken to smaller clusters of
mango growers in different
parts of the province. These
intensive training programs
have adapted the
methodology and training
material of the FEG expert.
Each field officer trains 20
growers at a time in pruning,
fertilizing and managing their
mango home garden crops. Consequently, the training has reached several hundred growers to
date, 854 mango farmers up to June 2014, and will continue for several years more. In Ampara,
the consultant’s notes on pruning have been translated into Sinhala and Tamil for use in the
ongoing field training programs.
Dairy Management TA was supplied
through the DAPH of the Northern
Province and the Eastern Province.
The veterinary district offices are
now training farmers on a regular
basis, applying the consultant’s
recommendations. The Killinochchi
DAPH Office has so far conducted
twelve such programs involving 300
farmers. Moreover, all district DAPH
offices have upgraded their training
methodology, and now use a
practical hands-on approach, similar
to the one provided by the Expert.
As a consequence DAPH EP
estimates that milk yields have
increased in Trincomalee and
Killinochchi by 10 percent and 20
percent, respectively, and in Ampara—the district with the lowest dairy yields—milk yields from
intensive management have increased from 0.5 liters per cow per day to 2 liters per cow per day.
Ted Winston explains mango pruning to field officers of the Northern
Province Department of Agriculture
Archie Devore demonstrates correct milking techniques to farmers
and DAPH Livestock Development Officers
26
3. Improving Sri Lanka’s
capacity and readiness to
attract local and FDI
investment has been the
target of several demand-
driven TA to both national
government agencies and
provincial agencies. At the
inception of the project,
just after the conflict,
several TA assignments to
the Board of Investment in
Sri Lanka (BOI) helped to
assess and improve Sri
Lanka’s investment generation toolset and to restructure management at the BOI to focus on
the new opportunities for investment promotion. The TA assisted BOI to
• Strengthen the investment facilitation role of the BOI by re-establishing the one-stop shop
and a Cabinet-level investment facilitation committee
• Focus the BOI’s time and resources on stimulating strategic investments in Sri Lanka, by
adjusting the incentive system and establishing a simple due diligence and prioritization
scheme for handling prospective investors
• Strengthen the promotion and investor care functions of the BOI, by reorganizing these
functions into sector-focused teams so each team is fully accountable for attracting,
facilitating and retaining investors. Develop proactive promotion campaigns for each target
sector, working in collaboration with the relevant line ministries.
TA was also provided to help Sri Lanka to improve its ‘Doing Business Index’ and to promote
private sector investment in the Northern Province through the Pathfinder organization – a local
citizens’ think tank that helps drive changes in state policies and programs. At provincial level
FEG provided assistance to the Uva Provincial Council to develop a strategic plan to encourage
investment in the Province.
It also provided a series of TA to the
Eastern Province Ministry of Agriculture,
Livestock Development, Rural
Industries, Fisheries and Tourism to
develop its investment readiness. In
2013 FEG helped develop a tourism
development strategy for the Eastern
Province. Although the Province
comprises a larger proportion of Sri
Lanka’s coastline and many places of
touristic interest, the Ministry lacked
the tools to handle the surging interest
in its tourism potential in such a way
that the industry will be sustainable and
beneficial to the regional economic development goals. The TA helped develop a tourism
The Invest in East Forum in January 2014 attracted over 200
local and foreign investors
Dexter Koehl (in white shirt, left) presents the Tourism Promotional Strategy to
the Eastern Provincial Council
27
statute that has been approved and a tourism development strategic plan that is now guiding
the decisions of the provincial Ministry. The Eastern Provincial Ministry is now in discussion with
the Asia Foundation to fund a LKR 5.5 million plan for the development of tourism projects.
The project also helped the Ministry develop 15 business proposals to attract foreign
investment in targeted agri-business and industrial sectors that have potential to connect to a
larger percentage of the region’s economy and drive job creation. In 2014 FEG provided TA to
support the Ministry’s effort to organize an international investor forum that saw around 200
local and foreign investors. The Ministry estimates that at least two investments in the fishery
sector are a direct outcome of the forum. The forum also gave the Ministry exposure to foreign
embassies and has received several business delegations.
4. The project has supported initiatives that have made significant strides for industries that
have included a large number of micro-, small-, and medium-scale businesses that will reap
the benefits of new higher value-added markets. There were four such initiatives supported by
FEG over the life of the project:
• The Ceylon Cinnamon branding initiative through the Spice Council and the SLEDB
• The Sri Lanka Peace Collection (handlooms) through the Ministry of Industry
• The Fair Trade Certification of Sri Lankan handicrafts producers through SLEDB
• Dairy processing at farmer cooperatives YARLCO and LIBCO
28
Component 3: Workforce DevelopmentComponent 3: Workforce DevelopmentComponent 3: Workforce DevelopmentComponent 3: Workforce Development
SummarySummarySummarySummary Fifteen demand driven workforce development initiatives were conducted during the five year period. A
total of 256 TA days were expended on workforce development with a staggering 84 percent coming
from volunteer experts. Refer Table 3 in the Annexes. Nevertheless many more TA assignments have
directly contributed to workforce development. The contribution of the total TA to workforce
development in terms of numbers of people trained is shown below. Programmatically, workforce
development (WFD) has been made an integral part of many more of the TA to help develop capacity to
implement the technical support and recommendations provided. Over 1,800 persons have received
training during the course of FEG project. They represent a mix of technical and administrative staff,
farmers, producers and crafts people in various sectors. The table below captures the range of
workforce development initiatives that has been an integral part of the TA assignments.5
Summary of Workforce Development Assistance from Sept. 2009 to Sept. 2014
Sector Client/partner organization Workforce Development Outcomes
Agriculture –
Horticulture
Dept. of Agriculture Northern and Eastern Provinces –
mango cultivation
99 technical officers
Mango farmers Northern and Eastern Provinces 128 lead farmers
Grape farmers – Northern Province 36 farmers and technical officers
Palmyra processing cooperatives and Palmyra Research
Institute
10 technical officers
members of 2 Cooperatives
Aquaculture
NARA, NAQDA and CAADDR – ornamental fish
aquaculture, fish food
14 technical officers
33 research staff
Aqua N Green – Integrated Aquaculture Project (USAID
PPA)
5 extension staff
4 hatchery staff on breeding
6 hatchery staff on quality systems
No. of aquaculture farmers trained
not available
Provincial &
Local
Government
Local Councils in Northern Province –drafting by-laws for
revenue generation
52 Council members and employees
Trincomalee Urban Council – Solid waste management 15 Council members and employees
Food
Processing
Lankem Agro – cereal processing 5 technical staff
Processed Food Exporters – Food Security Modernization
Act
85 exporters
Dairy
Processing
Dairy cooperatives – YARLCO & LIBCO 13 processing staff
CIC Dairies processing plant and extension officers 5 technical staff
3 extension staff of CIC Dairies
3 DEEP project staff
Dairy Farm
Management
Dairy processing cooperative –JWCCIA 55 dairy farmers
DAPH – Eastern Province and Northern Provinces 141 technical staff
Dairy farmers – Northern and Eastern Provinces 300 dairy farmers
Veterinary
Training
DAPH – Eastern Province and Northern Provinces 180 veterinarians
Education Headway School and Jesuit Academy 4 Headway School staff and 6 Jesuit
5In the first three years of the project very few of these WFD outcomes were recorded as the program design had
limited M&E support. The numbers used here are generated from descriptions of the TA outcomes in the quarterly
reports and from the field data from the Post Engagement Assessment.
29
Academy staff
Poultry
Hatchery
DAPH – Eastern Province and Northern Provinces 8 technical officers
NGOs USAID Development Grants Program (DGP)- Proposal
writing and project management
25 local NGO staff
Handicrafts SLEDB – Fair Trade Certification for handicrafts sector 65 people from 40 handicraft
companies with follow up intensive
coaching for 10 companies
40 handicrafts entrepreneurs in
Batticaloa
3 SLEDB staff trained
Ministry of Industry –product development for handlooms 530 handloom weavers
Total number of persons trained during FEG project 1873+ persons
Key AchievementsKey AchievementsKey AchievementsKey Achievements Some of the achievements discussed under Components 1 & 2 may be attributed to capacity building for
staff of various companies and agencies. Additionally, the following key achievements in Workforce
Development can be noted in the five year period:
1. Agriculture and livestock officers have developed a new training methodology that
incorporates
hands-on practical
training. This
methodology has
been successfully
incorporated into
their existing
training programs.
The FEG project
explicitly ensured
both Northern and
Eastern Animal
Health Department
Staff were trained,
across all of the
districts in both
provinces. The FEG
project asserts that
the number of
individuals trained represents nearly 100 percent of the technical staff that were available to be
trained.
30
2. Dairy processing cooperative has learned
new technical management systems that
have improved product quality, increased
processing capacity and reduced down time.
YARLCO dairy cooperative has developed a
Clean-In-Process system of management that
has increased production capacity by 60
percent and decreased spoilage by 10
percent. LIBCO processing center has five
persons trained in machinery maintenance
and expects to hire six new staff who will be
trained for in process maintenance and
quality management by the trained staff.
Both processing centers have gained new
facility layout protocols and maintenance
system protocols.
3. Two Local Councils in the Northern Province have developed capacity to draft revenue
generation by-laws which will help them meet their service provision targets. TA was provided
in 2014 and the resolutions are in the process of being passed as local laws. They will come into
effect in the last quarter of 2014. Once implemented, they are expected to increase revenue
generation for the councils by up to 70 percent and enable the provision of better rural
roadways, water supply
and solid waste
management.
4. Eight handicraft companies
are ready to apply for Fair
Trade Certification in 2014.
At present there are only 4-
5 Fair Trade certified
handicrafts producers in Sri
Lanka and the lengthy
process of qualifying for
Fair Trade has discouraged
others pursuing
certification. The TA
provided in Year 5 of the
project has built capacity
and confidence for the 10 companies selected by SLEDB to apply for Certification. One of the
companies has already submitted their application. The TA also built capacity for the SLEDB staff
themselves to select and assist companies in Fair Trade certification. As a consequence of the
successful TA, SLEDB is also looking into creating local Fair Trade Auditors in Sri Lanka that will
reduce costs of certification. This will bring in another new set of skills.
Graham Holdaway (center) dismantles a congested milk
processing machine at YARLCO and shows the technical
staff how to clean and maintain the machinery for
improved performance
An audience of handicrafts exporters and
officials listen intently to Phyllis Alvic explain
Fair Trade Certification
31
5. Veterinarians have learned new techniques for caring for livestock. The most talked about
workforce development outcomes in
the dairy management circles in the
North and East Provinces is the
training provided to veterinarians by
Dr. Stephen Willson. Dr. Willson’s
practical approach of following the
veterinarians on their normal field
visits and training them how to
perform each task more effectively has
resulted in better care for Sri Lanka’s
dairy animals in the North and East.
The veterinarians learned to
administer single doses of medications
that effectively managed their time
and efficiency, perform surgeries using
more modern methods, improve
pregnancy diagnosis and a
host of other technical
matters that brought their
knowledge up-to-date with
developments in the
veterinary field. One of the
most important outcomes
was that veterinarians
learned a humane and
effective method for large
animal restraining that was
simple to use in the field. At
the end of the training Dr.
Willson left his equipment for
the veterinarians to use and
later sent more equipment to
Sri Lanka, at his own
expense, to be shared with
the district veterinary offices.
A young veterinarian undertakes surgery on a goat under the
guidance of Dr. Willson (right)
A veterinarian practices a humane and efficient method of restraining large
animals that was introduced to Sri Lanka by Dr. Wilson
32
Component 4: Component 4: Component 4: Component 4: TechnicaTechnicaTechnicaTechnical Al Al Al Assistance to USAID Sri Lanka Missionssistance to USAID Sri Lanka Missionssistance to USAID Sri Lanka Missionssistance to USAID Sri Lanka Mission
SummarySummarySummarySummary
During the five year period, 24 TA assignments were undertaken to support the USAID Sri Lanka mission.
Of the 764 days of TA provided, 32.2 percent consisted of paid expatriate consultancies, and 59.8
percent comprised local consultants. The assignments helped manage mid-term reviews of USAID
projects and PPAs, conduct environment impact assessments, assess training needs, explore and
develop new initiatives and provide a variety of support for accessing field-level information required by
the USAID’s economic growth office. Details of the TA are provided in Table 4 in the Annexes.
Summary of Technical Assistance to USAID Sri Lanka Mission
Year Assignment
1 Organize and Conduct Training program on Project management for USAID
Development Grants Program (DGP)
Pre-award Survey Audit of PPAs
Review and Technical Input on PPA Proposal submitted by Aqua Hatcheries
Local Evaluation Specialist to Assist USAID Evaluation Team to carry out Mid Term
Evaluation of CORE Project
Environmental Assessment of Aqua Hatcheries Integrated Aquaculture Project
2 Environmental Assessment of Dairy Enhancement Project (DEEP)
Impact Assessment of USAID Unlimited Potential Partnership Program
Assessment /Capacity Building of North based Construction Industry
Assessment of Apparel Sector Training Partnership
Construction Industry Job market Assessment
Mid-term Evaluation of farmer beneficiaries of USAID’s PPAs in East – DEEP and SAC
Projects
3 Technical Assistance on Implementation of Recommendations of Mid-Term Financial
Review of USAID’s Public Private Alliances
Analysis Of Human Resource Management Challenges in Post Conflict Businesses in the
North and East of Sri Lanka – Some Lessons from the USAID Public Private Alliances
Sri Lanka Human Security Assessment 2012
Mid-Term Financial Evaluation of USAID’s Public Private Alliances Implemented in the
Eastern and Northern Provinces of Sri Lanka
Final Evaluation of the Performance, Impact, and Lessons Learned under the
Connecting Regional Economies Project
Assessment of the Papaya Plantation Project under the USAID CORE Grants Scheme
Closeout Audit of Chamber of Construction Industries Sri Lanka Project
Environmental Impact Assessment of USAID Public Private Alliances
Assessment of Sri Lanka’s National and Regional Chambers of Commerce
Technical Assistance to VEGA BIZ+ Project on Grants Applications and Concept Paper
Evaluation
Mid Term Evaluation of an Aquaculture project under the USAID’s Public Private
Alliances in the Eastern Province of Sri Lanka
4 Establishment of the Corporate Social Responsibility (CSR) Council
5 Launching of a dedicated TV channel for agriculture in Sri Lanka
33
Success Stories from Success Stories from Success Stories from Success Stories from FEG Technical AssistanceFEG Technical AssistanceFEG Technical AssistanceFEG Technical Assistance
Strengthening Technical Capacity of Strengthening Technical Capacity of Strengthening Technical Capacity of Strengthening Technical Capacity of Out GOut GOut GOut Growerrowerrowerrower----Linked Private Sector Dairy ProcessingLinked Private Sector Dairy ProcessingLinked Private Sector Dairy ProcessingLinked Private Sector Dairy Processing
CIC, an agribusiness giant in Sri
Lanka, took their first steps into
the dairy sector towards the end
of the conflict by revitalizing an
old state-owned farm in Punani
in the Batticaloa District. With
the help of the USAID-funded
DEEP project, they set up an out
grower network and invested in
their first milk processing plant.
FEG provided the technical
expertise of volunteer expert
Graham Holdaway in Oct 2011 to
advise on plant improvements in
relation to increasing capacity
and efficiency, improving
sanitation, better storage, better
water and waste disposal, and
also advise on the equipment
purchase for their proposed new
plant in Dambulla. The volunteer
provided a detailed section-by-
section layout plan and
improvement schedule for the
Punani plant and made
recommendations on equipment
for the Dambulla plant as well.
The consultant also
recommended that in
anticipation of market trends in
the future, the company should undertake consumer surveys and use this information to guide the
development of new products.
An assessment of the TA revealed that most of the suggested improvements were made to the factory
layouts. “The factory is operating at full capacity. Production at the new plant will commence in April
2013 (Dambulla) and the product diversifications suggested by the consultant will be implemented at
the proposed processing plant,’ the assessment said.
CIC Milk CIC Milk CIC Milk CIC Milk Processing Centre at Punani, Eastern Province Processing Centre at Punani, Eastern Province Processing Centre at Punani, Eastern Province Processing Centre at Punani, Eastern Province
Receives ISO 22000 CertificationReceives ISO 22000 CertificationReceives ISO 22000 CertificationReceives ISO 22000 Certification
The Daily Financial Times reported on June 10, 2013: “The Milk
Processing Centre of CIC Dairies Ltd. received ISO 22000:2005
certification for the manufacturing of CIC Yoghurt. CIC Dairies
commenced yoghurt operations last year in a limited capacity
and since then it has made inroads into the yoghurt market.
The company’s Milk Processing Centre is situated in
Siddhapura, Punani, which is on the border of the Eastern-
North Central Province. Milk is collected from dairy farmers in
the province and also from the CIC dairy farms in Siddhapura
and Muthuwella.”
34
During the same period, FEG
volunteer expert Martin Sieber
advised the CIC extension officers on
further developing the out-grower
network. The consultant advised and
trained extension officers on
procurement policy, strengthening
the procurement network,
assessment of milk quality, paying for
milk on quality with specific focus on
bacteriological quality, quality control
of raw milk, strategies to discourage
farmer adulteration of milk or
antibiotic treated milk and
contingency planning in procurement.
An assessment of the TA revealed
that “Testing for antibiotics in milk
commenced as a result of the
consultancy and is now being widely used by the company. There has been an overall improvement in
the quality of the milk purchased as result of the technical knowledge gained through this consultancy.’
At the time when technical assistance was
provided in 2011, the CIC Punani processing
plant was processing approximately 2,800
liters per day of cow and buffalo milk into
yoghurt and a small amount into ice milk
lollies. By October 2012, the production
capacity at Punani had grown to support an
out grower network of 4,000 farmers
supplying 10,000 liters per day which were
processed into 50,000 yoghurts.
The company had also taken the necessary
steps to invest a further LKR 600 million in
the Dambulla plant to meet market
demand.
By June 2013 the CIC Punani plant had
achieved ISO 22000:2005 certification.
Martin Sieber (third from left) discusses milk procurement strategies with CIC
extension staff and DEEP Project staff
Graham Holdaway inspects equipment at CIC dairies
35
“This is a good initiative. This
certification gives us an extra
advantage and helps us to
look better–it differentiates
us from other
manufacturers.”
—Anura Warnakulasooriya,
Midaya Ceramic Managing
Director
“Our Fair Trade Initiative has really
benefited from the support of VEGA-
FEG. We knew very little about the
Fair Trade certification system in the
beginning. Now we are in the process
of assisting 6-8 exporters to get
certified through this initiative that
will reach many rural small scale
entrepreneurs.”
—Ms. Chitranjali Dissanayake, Director,
Industrial Products, Sri Lankan Export
Development Board
On the POn the POn the POn the Path to Creating Fair Trade Markets for Sri Lankan Handicraftsath to Creating Fair Trade Markets for Sri Lankan Handicraftsath to Creating Fair Trade Markets for Sri Lankan Handicraftsath to Creating Fair Trade Markets for Sri Lankan Handicrafts
In 2013 and 2014 FEG helped support Sri Lanka’s first ever Fair Trade initiative. A large number of Sri
Lankan micro- and small-scale industries engage in the production of handicrafts. Many of them involve
home-based workers and provide an ideal platform for
entrepreneurial women who can combine income generation
with child rearing and household chores. In the last few years,
the sector has also provided a good avenue for the economic
advancement of woman-headed households. SLEDB has
identified the craft industry as an important sector for the
economic development of the country and supports the
sector through field programs and coordination with
international marketing networks dedicated to supporting low
income craft manufacturers. According to the SLEDB, the total
lifestyle and craft exports that stood at $78 million in 2011, has increased to $97.3 million in 2013, a 25
percent growth. EDB believes that this niche export sector is
promising when it comes to the premium end of global
accessories and lifestyle markets. The craft industry in Sri
Lanka is comprised mainly of products made from paper,
wood, handloom/textiles, ceramic ornaments, rush, reed and
other fibers, and palmyra.
The level of craftsmanship in Sri Lanka is high and many home
home-based crafts people access export markets through
export buyers. However due to small-scale production, their
cost of production can be high. Fair Trade is considered a
strong marketing tool for approaching the socially conscious
consumer segments looking to purchase diverse craft
products from low-income groups in developing countries.
Fair Trade certification will ensure that the producers receive a premium price for their craft products
produced especially by rural women allowing
them to market directly to this niche consumer-
base.
FEG provided TA of two consultants that
sequentially helped SLEDB and the companies
prepare for Fair Trade certification. Volunteer
expert Ms. Alvic came to Sri Lanka in September
2013 to train around 40 persons on Fair Trade
concepts and regulations. She inspected over 25
craft manufacturers in the Western, Central,
North Central, Wayamba and Southern Provinces,
assessed and graded each operation in terms of
their preparedness to export to the USA. Ms.
Alvic helped SLEDB to identify ten companies that
they should work with on Fair Trade Certification.
Volunteer expert Paul Myers followed this TA in
“The initial preparatory work
on Fair Trade of most
participating companies in
this project has been highly
encouraging”
—Paul Myers, FEG Consultant
36
2014 by providing specific coaching for each of the ten companies to reach Fair Trade Certification
standards. Mr. Myers found that most of the companies have started working on the principles and
information shared by Ms. Alvic. Consequent to this work, Mr. Myers recommends 8 companies that can
apply for certification within the year and has provided recommendations to World Fair Trade
Organization (WFTO) to accept these applications. SLEDB is now following up on the third stage of the
process to have these companies certified through an accredited certification body. The eight
companies that will qualify have over 1,000 employees and home- based workers who will benefit from
the higher value markets and the Fair Trade system.
SLEDB has also opened the
benefit of Fair Trade
certification to the Batticaloa
District that has a high
percentage of woman-headed
households. Myers conducted
a workshop in Batticaloa to
present the benefits of Fair
Trade to Batticaloa’s fledgling
crafts entrepreneurs. SLEDB
will follow up to help at least
some of them achieve
international standards and
provide market access to
many woman-headed
households in the area.
The Fair Trade Certification initiative is good example of how TA support by FEG has been successful
because it has been demand- driven and grounded in the existing programs of Government Agencies
that have identified the needs of the target beneficiaries and have on-going programmatic support. The
Fair Trade activities are not dependent on the project and will go on long after the project closes. The
tiered support has also been a good example of how follow- on TA can have a sustained impact to help
support the assimilation of new knowledge.
Paul Myers (right) visits a handicrafts factory
37
A A A A MultiMultiMultiMulti----Faceted Faceted Faceted Faceted Dairy Sector Dairy Sector Dairy Sector Dairy Sector Improvement StrategyImprovement StrategyImprovement StrategyImprovement Strategy
Dairy management is a smallholder enterprise, especially in the Northern and Eastern Provinces of Sri
Lanka. Although improvements in this sector have the potential to directly benefit thousands of rural
households, persistent traditional
management practices have kept dairy yields
low. Few veterinarians and difficult terrain
have inhibited the provision of timely and
effective veterinary services. Although many
steps have been taken to improve the breed
stock and breeding services, the limited
dissemination of know-how among farmers
and livestock development instructors (LDI)
has inhibited the successful outcomes of these
past endeavors. A series of carefully planned
TA through the FEG project helped launch a
multi-pronged effort to bolster the dairy
sector. TA support has succeeded in building
dairy management capacity, enhancing
veterinary practice, and providing a good
technical base for small-scale dairy products
processing.
These TA was particularly successful due to the combination of meticulous planning by the DAPH of
the Northern Province (a model that was followed by the Eastern Province in a later TA) and a good
match of pragmatic consultants from FEG.
In the case of dairy management, the consultancies were successful by taking the pragmatic approach of
building farmers’ confidence in the outcomes. For example, the volunteer consultant himself financed
the first feed formulation materials that could be prepared on-site. It was an attitude changing moment
for farmers when they perceived that the consultant was willing to put his own money into his
recommendations. The TA was also successful in changing attitudes towards re-investment in dairy by
indirectly showing farmers how much annual income they were actually earning from their dairy farms.
Both farmers and DAPH staff were surprised when the simple calculations showed that farmers earned
James Smith (right) discusses Dairy Management with Dr.
Vasiharan, Provincial Director DAPH Northern Province
Dr. Willson demonstrates an effective pregnancy diagnosis, then has the veterinarians practice
38
“We had never mixed these
drugs before or given such
high dosage slow release
treatment and amazingly it
works.”
—A veterinarian who
participated in the training
program
even more than the veterinarians! This has provided the necessary incentive to maintain farm records
and plan reinvestment, a practice that the DAPH had been struggling to introduce to farmers for years.
The most successful outcome is that DAPH extension workers have now adapted this as a new training
methodology in providing result-oriented extension support
to farmers.
The practical veterinary training provided simple, yet ground-
breaking value, by directly addressing some of weakest
aspects of veterinary care. Large animal handling has been a
major issue and usually veterinarians depend on farmers and
farmhands to manage the animal while they work. This was
not always successful, required more than one person, and
much time was wasted.
Most importantly, the animal was stressed while being
attended to, affecting the success of the treatment. Using a
practical technique not taught in veterinarian school, the
consultant had the veterinarians practice bringing the animal
under control themselves using a small rope in a single deft movement that had the animal tethered
tightly before it could panic. For the veterinarians this was one of the most outstanding rewards of the
veterinary TA. Additionally, since farm to
veterinarian ratio is high in these provinces, the
consultant taught single dose treatment
techniques that saved time for both farmer and
vet.
According to one vet, “We had never mixed
these drugs before or given such high dosage
slow release treatment, and amazingly, it
works.”
Several on-field surgeries have also been
successfully introduced. The TA has opened up
new options for these vets who have never
had any such exposure to new technology
since graduating from veterinary school. The
preparation work by DAPH veterinarians to
identify and focus attention on animals with difficult to treat ailments gave the TA the much needed
impetus to produce effective and relevant results that can be replicated.
The improvement in dairy products processing was envisaged to improve the market-pull for milk and
provide higher incomes to farmers than they would have achieved selling to bulk collecting centers. In
all cases the dairy processing centers were local and farmer cooperative owned. The TA has led to the
development of technical specifications for small-scale dairy processing plants that especially address
the areas of critical in-process maintenance, throughput handling, and hygiene management areas.
These areas have so far been overlooked in donor-funded dairy processing projects which had led to a
series of defunct small scale dairy plants in the North and East.
Graham Holdaway working on machinery at LIBCO in Vavuniya,
Northern Province
39
Combination Combination Combination Combination Targeted Technical Assistance Targeted Technical Assistance Targeted Technical Assistance Targeted Technical Assistance to to to to Develop Sri Lanka’s Aquaculture SectorDevelop Sri Lanka’s Aquaculture SectorDevelop Sri Lanka’s Aquaculture SectorDevelop Sri Lanka’s Aquaculture Sector
The aquaculture sector in Sri Lanka is faced with a series of challenges that handicap its capacity to
compete in international markets. Micro, Small, and Medium Enterprises (MSMEs) are particularly
affected by this situation, as their access to
internationally available technology is constrained
by limited resources and rudimentary know-how.
Through a series of limited and targeted TA
assignments, the FEG project developed a strategic
relationship with National Aquaculture
Development Agency (NAQDA) that may have a far-
reaching combined impact on the national
aquaculture industry.6 Based on a list of priorities
set out by NAQDA, FEG designed four TA
assignments that were complemented by an
additional TA supplied to National Aquatic Research
Center (NARA). Subsequently, as an expected but
relevant outcome, both NAQDA and NARA have
successfully secured the funding required to fully
implement the technical knowledge delivered by the TA assignment.
When fully implemented, the recommendations will have a remarkable aggregated impact on the
sector competitive access to international markets, through:
• A domestic supply of Moina live
feed that will greatly reduce the export price
of fresh water ornamental fish by 18
percent.
• A sustainable and low-cost feed for
food fish that will notably lower production
costs by 30-40 percent.
• Access to locally developed vaccines
that are effective for local conditions and
will reduce the use of environmentally
unfriendly products.
• Sustainable and efficient breeding
technologies of marine ornamental fish and
ability to produce value added breeds.
6No formal partnership has been established, but it has been de facto partnership based on a series of specific TAs,
over several years.
Ehud Brill (left) working to develop marine ornamental fish
breeding in Sri Lanka
Ms. Evangelista helping to develop Moina as live fish feed
for freshwater ornamental fish exports.
40
• Improved compliance with environmental standards and international buyers’ requirements.
It will also have a profound impact on
the livelihood of MSME farmers, as
they will benefit most and more
directly from the outcomes of the TA.
NAQDA has some unique features
critical to this successful approach.
First, it has the internal research
capacity to leverage the technology
acquired. Secondly, as a supplier of
production inputs to local breeders, it
is an efficient dissemination
mechanism for technology upgrades.
Moreover, NAQDA has signed
cooperation agreements with local
universities, research institutions and producers, which are key mediums to disseminate laboratory
results. Additionally, NAQDA is a transmission medium for NARA research outcomes.
Dr. Bledsoe working on developing fish food with fish waste
41
The HistoricThe HistoricThe HistoricThe Historic Ceylon Cinnamon Ceylon Cinnamon Ceylon Cinnamon Ceylon Cinnamon Success StorySuccess StorySuccess StorySuccess Story Sri Lanka produces some of the highest regarded cinnamon in the
world. With 39,000 ha and 350,000 families involved in cinnamon, it
is a smallholder crop that has potential to reap economic benefits for
around 1.5 million people. The unbundling of cinnamon from cassia
and the development of the Ceylon Cinnamon brand are historical
initiatives of the recent past that have helped set this industry on its
way to achieving its true potential for Sri Lanka. The Spice Council7
has garnered support from many projects to help it on its journey. In
2011 it launched the ‘Pure Ceylon Cinnamon’ brand along with its
very own Lion logo, going down in history as marking the second
national brand launched by the state for an agricultural product after
the famed ‘Ceylon Tea’.
The project played a role in this success by providing the services of Harold Handley, a US-based
Volunteer expert in 2011 to assist the Sri Lanka Export Development Board and The Spice Council to
develop a promotional strategy to increase the visibility of the ‘Ceylon Cinnamon’ brand in the US
market and formulate an implementation plan including resource requirements such as funding. The
successful implementation of the promotional strategy has led to the promotion of the country’s image
in the North American markets, increased exports and foreign exchange earnings and sustainability of
profits. Handley also identified that the exporters needed to take steps to comply with the Food Safety
Modernization Act of 2010 (FSMA) which impacts all companies, organizations and personnel having
anything to do with the growing, production, distribution and consumption of food within the U.S.
borders. The Spice Council followed this recommendation by launching United Nations Industrial
Development Organization (UNIDO) assistance to enhance food safety and quality compliance in the
industry.
Later in 2013, FEG provided the technical services of Dr. Barbara Rasco, an internationally recognized
food scientist and prominent attorney with a specialization in food law to assist the industry prepare for
FSMA. Dr. Rasco conducted an awareness program for the Sri Lanka Food Processors’ Association
(SLFPA) and members of the Spice Council, covering the new food safety regulatory developments
associated with the implementation of the FSMA. She also visited processing centers and accreditation
agencies to advise on the new procedures. The TA helped spice exporters to adapt to the FSMA
requirements.
In 2014, the Spice Council secured the support of the National Development Bank to advance the
industry. A long-term strategy, which is likely to be a five-year commitment titled, ‘Cinnamon to the
World’, was rolled out to partner the industry, supporting cinnamon growers, exporters and cinnamon
related product manufacturers in the country, with a vision to stimulate the growth of cinnamon exports
in Sri Lanka. EDB, Spice Council of Sri Lanka and Ceylon Chamber of Commerce became strategic
partners of the initiative. The successful Ceylon Cinnamon story will go on for many more years and FEG
has played its role in this journey.
7 The Spice Council was an initiative of USAID’s The Competiveness Initiative Project
42
Challenges and Lessons LearnedChallenges and Lessons LearnedChallenges and Lessons LearnedChallenges and Lessons Learned
Some of the challenges of the FEG project stem from its original design as a supportive tool to the USAID
Sri Lanka mission. As such, most of the early TA was aimed at supporting PPA partners and projects.
While this strategy had its advantages due to simplicity in administration, outcomes and outreach were
limited. During the last two years, the project broadened its scope and succeeded in extending technical
assistance to more grassroots producers, and the relevant government agencies and private sector
businesses that support them technically. The Project commissioned two technical needs assessments,
in 2013 and 2014, that helped identify and address demand driven technical support. This led to some of
its more successful outcomes.
Another key constraint for the project has been the fact that follow-up on the technical assistance
provided was not built into the project’s original design. The fundamental program design and the
original architecture of each short-term TA assignment precluded the follow-up of additional highly
technical inputs that would have further benefitted the TA receiving entities. For example, in the case of
the highly technical expertise provided to Sri Lanka’s aquaculture sector, the project had no control over
how far and at what pace new technologies would be introduced to the industry. Nevertheless, the 2014
FEG Post-Engagement Assessment indicated that the relevant government agencies have the
enthusiasm, required systems, and plans in place to develop, commercialize, and disseminate the know-
how for the wide benefit of the entities they assist. However, this cannot be said of all agencies and
private sector businesses. In other instances the TA recommendations have been subject to wider issues
that have precluded their implementation. Such was the case with the handloom sector assistance for
which USAID and another donor pledged additional funding based on the successful FEG TA assignment.
Unfortunately, the beneficiary organization did not have adequate capacity to see the recommendations
to fruition. For this reason, the fundamental design of the FEG TA, and the ability of entities that could
immediately receive and carry out recommendations, played a role in successful outcomes.
The FEG Post-Engagement Assessment also uncovered other important lessons. On the aspect of
program design, the assessment showed that:
• Flexible protocol requirements are an important advantage to conduct tailored, direct TA
assignments adequate to beneficiaries’ expectations and mobilize technical resources in a
limited time-frame and;
• Hosting a foreign expert is valued by the beneficiary as an effective and useful means to
improve local technical capacity, and often preferred to training of local experts abroad. It is
also more efficient as it enables the practical training of a large number of local beneficiaries
under local conditions.
The FEG project’s outcomes showed that it is both effective and efficient to work through government
organizations that have the ability to disseminate knowledge and work directly with the ultimate
beneficiaries and direct users of the newly acquired know-how. When supporting large corporations
through TA some minimum criteria should be met, such as, but not limited to:
• TA is provided for a green field investment that creates new jobs or local suppliers.
• TA is provided for a project in a post-conflict region and directly benefits local communities.
• The know-how provided will be disseminated or shared with research institutions or
government agencies.
43
The architecture of successful TA assignments showed that a practical demonstration of the benefits of
the know-how is essential for the beneficiaries to take ownership and directly implement the new
techniques and recommendations. This was manifest in much of the successful TA assignments to the
dairy and horticulture sectors.
Ensuring sufficient knowledge management systems was an important recommendation that came out
of the post engagement assessment. Knowledge management should be built into the TA design.
Although the consultants provide written documents that detail the know-how, for technical, hands-on
training it may be more effective to video record the training and plan for “before and after” pictures
and interviews to support ongoing learning. If the beneficiary’s knowledge management systems were
poor, there is a serious risk that the techniques are imperceptibly modified as they are applied or the
know-how is simply lost.
One of the key features of TA success has been the capacity of the expert to familiarize himself with the
local conditions and adapt the solutions to the beneficiaries’ specific context and actual resources. Most
FEG expatriate volunteers and consultants have shown a tremendous capacity to adapt their knowledge
and build a rapport with their local colleagues. The successful TA assignments have shown that small
and technically rudimentary practical upgrades, such as effectively restraining large animals for
treatment, can have a huge impact when efficiently implemented.
In summary, the project has identified the following attributes that have been conducive to developing
successful TA assignments:
• The beneficiary has done some preparatory work prior to the consultant’s arrival, identifying
priorities and selecting specific requests consistent with the scope of work.
• The expert has had the opportunity to become familiar with the local conditions.
• The expert has provided a practical demonstration of the know-how and new techniques.
• The expert has provided an action plan or detailed instructions to guide the implementation
of the recommendations.
• The recommendations have been adjusted to the local capacities, are consistent with
current technical and financial resources, and therefore easily implementable.
• The technical know-how is immediately acquired and retained by the beneficiary or other
local beneficiaries.
• The know-how can be easily disseminated or replicated by the beneficiary.
• Knowledge management capacity by the beneficiary is adequate and builds resources to
promote broad based learning and create sustainability.
44
Opportunities Opportunities Opportunities Opportunities for for for for Scaling Up the Scaling Up the Scaling Up the Scaling Up the FEG ApproachFEG ApproachFEG ApproachFEG Approach
Due to its unique characteristics, the FEG project may have additional value as a prototype model for
future USAID interventions in both Sri Lanka and elsewhere. Provision of technical assistance has been a
targeted mechanism for engaging in a wide range of economic development activities and beneficiaries
in the country that could not have been achieved in a traditional EG project. For example, the project
has worked in at least 12 economic subsectors and TA has been located in 8 of the 9 Provinces in Sri
Lanka. Many TA has been provided at national level and to address industry-wide issues. This level of
outreach would have been typically difficult to achieve without geographically widespread project
infrastructure. Nevertheless, FEG was coordinated out of a modest office in Colombo with a small staff
of five people.
With a total workforce outreach of over 1800 persons, the project workforce development efforts have
reached over 95 percent of the technical officers in the relevant institutions in the district offices.
Technical outreach has been provided to a broad spectrum of private sector companies (both MSME
and large scale) as well as public institutions. Direct technical assistance has reached farmers and
craftspeople as well as technical research and development officers, extension officers, veterinarians,
district level planners, and decision makers.
Sustainability is the bug bear of many EG programs around the world. However, due to the nature of the
FEG project design, the beneficiaries have been encouraged to take ownership of the technical know-
how and formulate their own plans for disseminating, investing, and otherwise expanding on the
outcomes.
Economic sectors that have particularly benefitted have been agribusiness, dairy, aquaculture (both
ornamental fish and food fish) and handicrafts. All of these sectors are small producer driven industries
in Sri Lanka and the outcomes of FEG can be expected to reach a few thousand beneficiaries and in a
sustainable manner. As an additional outcome, the practical training provided by VEGA volunteer
experts has been voluntarily adopted as a model for enhancing the provision of technical services in
horticulture and animal husbandry in Sri Lanka. This has been far more effective than could have been
achieved through training of trainers programs since the voluntary adoption has been fortuitous and
ensured stakeholder buy-in.