Sri Lanka Agricultural Research Project, supported by Credit 1776
for US$18.6 million, was approved in FY86. The credit was closed on
December 31, 1996, as planned. A total of US$3.7 million was canceled
in November 1995, due to under-spending on contract research and
incremental staff costs, and an undisbursed sum of US$0.6 million was
canceled on May 15, 1997. Cofinancing of US$3.2 million was provided
by Germany’s GTZ. The Implementation Completion Report (ICR) was
prepared by the South Asia Regional Office. The borrower’s and
cofinancier’s contributions are included as appendices.

     The project objective was to raise farmers’ incomes by increasing
agricultural production through the development of improved crop
varieties and improved husbandry practices and farming systems. The
project had eight components: (i) establishment of a Council for
Agricultural Research Policy (CARP) with authority to formulate a
National Agricultural Research Plan (NARP); (ii) provision of
infrastructure and equipment to research institutions; (iii) staff
development and technical assistance; (iv) the introduction of a
contract research program; (v) establishment of a research planning
cell and project management unit; (vi) provision for incremental staff
and operating costs; (vii) introduction of research planning and
evaluation procedures; and (viii) improvement of research-extension
linkages.

     The project was partially successful in meeting its objectives.
The physical targets were substantially met, but there was less
success with institutional development. CARP was established with
statutory authority to formulate the NARP. However, a number of
institutional and functional issues prevent CARP from being able to
seriously influence the focus or the resource allocation of the
National Agricultural Research System. By 1996 it was able to produce
only a draft NARP, an important early priority. Virtually all civil
works have been completed, although with delays, to satisfactory
design and construction standards. The staff training program exceeded
its targets for M.Sc./M.Phil. fellowships and short-term training,
creating a cadre of capable researchers with significant potential
payoffs in the long run. The technical assistance was directed mainly
at assisting in the establishment of CARP and strengthening the
research institutes. It also helped support the development of
management tools for research priority setting and planning, and the
production of NARP. The contract research program also faced
considerable delays, with problems including poor research
prioritization, the mixed quality of research, and, until recently,
the lack of a monitoring and evaluation system. The project funded
incremental staff at research institutes and stations. All positions
were filled, albeit with delays, but with recurring problems in
filling positions for agricultural economists. Research-extension
linkages remain poor. Socioeconomic studies were not conducted for
lack of agricultural economists and the adaptive research program was
only partially implemented due to limited training and use of contract
research funds.

     In agreement with the ICR, OED rates outcome as marginally
satisfactory, institutional development as modest, sustainability as
uncertain, and Bank performance as satisfactory.

     The ICR draws some familiar lessons of which the most important
are: economic analysis should be introduced for research projects;
national research systems should institute performance indicators and
evaluation systems that track resource allocation, monitor progress
against research objectives, and identify impact on national policy
objectives; to strengthen research-extension linkages, adequate
staffing, training, and procedures for needs identification,
beneficiary participation and monitoring and evaluation are required.

The ICR is satisfactory. No audit is planned.