Document of
                The World Bank


                                                 Report No:




            RESTRUCTURING PAPER

                     ON A

       PROPOSED PROJECT RESTRUCTURING

                     FOR

       E-SRI LANKA DEVELOPMENT PROJECT

    BOARD APPROVAL DATE SEPTEMBER 21, 2004


                    TO THE

DEMOCRATIC AND SOCILAIST REPUBLIC OF SRI LANKA


                December 2, 2011
                     ABBREVIATIONS AND ACRONYMS


ICT Information and Communication
    Technology
ISR Implementation Status Report
NRI Network Readiness Index
PDO Project Development Objectives




             Regional Vice President:        Isabel M. Guerrero
                    Country Director:        Diarietou Gaye
            Sector Manager / Director:       Ivan Rossignol
                   Task Team Leader:         Henry K. Bagazonzya




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                SRI LANKA — E- SRI LANKA DEVELOPMENT (P081771)

                                      CREDIT NO 39860-CE

                                        Restructuring Paper


1.     The closing date for E-Sri Lanka Development Project, Credit No. 39860-CE, will
be extended from December 31, 2011 to March 31, 2012.

2.      The project has achieved some major results over its lifetime. Over 620
telecenters have been established, used by over 72,000 citizens monthly, increasing the
ICT literacy in rural areas and linking poor people around the country with markets and
information essential to their livelihoods. It has improved access and use of ICT in target
areas as measured by number of beneficiaries in target communities using telecentres on
a regular basis to improve their communication opportunities and access to services in
health, education, employment and government services. Currently 33,818 against a
target of 5,000 are using telecenters for the above specific services while the remaining
users go for ICT training, social networking, preparation of documents etc. There has
been increase in utilization and satisfaction levels with applications developed under the
e-society grants scheme, some of which had won international awards. Currently 5.78
million people are conducting transactions with and obtaining on line information from
government institutions against a target of 5 million people. Further over the past 6 years,
over 35,000 private sector workers have been trained to incorporate ICT in their business.
Several key laws were adopted, creating a much-needed ICT legal framework. The
above improvements have resulted in the country achieving a 4.6 score on the business
usage subscale of the Network Readiness index (NRI)1 from a baseline of 3.46.

3.     As of December 1, 2011, 88.86 % of project funds or US$ 41,087,236.80 had
been disbursed, with a remaining undisbursed balance of US$ 5,151,933.58.

4.      In the last Implementation Status Report (ISR), the Progress towards achievement
of PDO is rated “Satisfactory�, while overall implementation progress is rated
“Satisfactory�.

5.     The proposed extension is necessary to complete activities and roll out successful
applications developed under the project. This period will also allow the additional
financing as requested by Government to be prepared. The Implementing Agency has
provided a credible work plan, including a procurement plan to complete the project.

6.     This will be the second extension of the project. The project had earlier been
extended for a period of 24 months.



1
    Measures ICT developments in a country.



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