Ministry of Economic Development Macro Action Plan 2011-2015

1. Ministry of Economic DevelopmentMacro Action Plan 2011-2015 Presented by P B Jayasundera Secretary, Ministry of Economic Development Under the guidance of Hon. Basil RajapaksaMinister of Economic Development 1

2. Making the Vision a Reality 2

3. Interfacing Development Self Reliant Household Economy Divi neguma • Backyard cultivation • Cottage industries, Animal husbandry • Medium and long term crops Empowered Community (Villages) Gama neguma • Access to Electricity, Water, Irrigation, Sanitation, Primary Health and Education • Livelihood support and Community based economy Puraneguma • Community friendly local authority • Clean environment • Business friendly systems and procedures Developed Townships Regional Growth centers • Connectivity through critical infrastructure development • Connecting townships • Setting up flagship market centers and community facilities Shared Development Strategic Initiatives Emerging Economy • National Botanical and Zoological Gardens network • Tourism Economy • Private Sector development 3

4. Divineguma – Self Reliant Household Economic Units • Servicing million home economies to empowerback yard economic activities- Agriculture, Fisheries and Live stock , Small family enterprises etc by • Provision of seeds and planting material • Development of green houses , seed farms, poly tunnels, promotional nurseries, agro wells, organic fertilizer etc. • Encouraging to plant and cultivate at least three coconut plants or other trees of commercial value in each home garden • Development of cottage industries, handicrafts, artistic work , handloom enterprises and floriculture villages • Promotion of self employment 4

5. Phase I - Agriculture & Food production – Food security Phase II- Fisheries & Livestock- Nutritionally balanced consumption Phase III- Small Enterprises – Value added Economy to sustain Phases I & II Objectives of Divineguma- A three phase graduation 5

6. Divineguma - Implementation Mechanism Cabinet Level Steering Committee (policy guidance) headed by Senior Ministers Operational Working Group headed by the Minister District Development Committee (participation of district political representatives and officials) District Operation and Review headed by the District Secretary Divisional Development Committees Divisional Development Committees headed by the Divisional Secretary Operational Services(Grama Niladari, Samurdhi Niladari, Govi Niladari and Family Health Officer) 6

7. Divineguma – Million Household Economic Units • This initiative was proposed by H.E the president in the 2011 Budget, targeting one million household economies in all Grama Niladari divisions in the country • 09 Public awareness meetings at national level and 38 district and divisional level meetings were conducted by the Hon Minister with the participation of Ministers and Secretaries of Line Ministries, provincial representatives and other stake holders • Initial supply of seed, guidelines, hand books etc were provided by the Ministry • As of now 1,455,187 home economic units under divineguma are functional with predominant engagement in food production Inauguration of Divi Neguma Programme 7

8. Divineguma – Million Household Economic Units Home Garden - Valachchenai Poultry Farming - Horana • There are 1,356,594 home garden units and 94,011 livestock farming units functioning under divineguma across the whole country • Retired public servants, civil society organisations and women have taken active interest in divineguma 8

9. Divineguma – Million Household Economic Units Self Employment Support Program • Under self employment support program various sectors have been identified • Mobile shops concept was introduced in urban centers by providing leasing schemes. 162 vehicles have been distributed initially in Colombo. This will be popularised in other major townships based on the demand • Pavement businesses have been re-arranged in Pettah, Nugegoda and Galle 9

10. Divineguma – Million Household Economic Units Divineguma- Initial Push • The first stage concentrated heavily on agriculture, livestock and planting for home gardens. • Divineguma program will be extended to cover cottage industries promoting local production of gift items, local textiles, handicrafts, artistic creations, spices, bricks , clay and cement based building material etc to meet the increased demand arising from the development of various industries such as tourism , apparel , construction Industries. • Technology transfer through the initiatives of the Ministry of Technology and Research. 10

11. 25 Households 50 Households 25 Households Deserving Households Family Health Officer Technical and extension services Grama Niladari Samurdhi Development Assistant Agriculture Research & Productivity Assistant 100 Household community Services at door step EMPOWERED FAMILY 11

12. Gamaneguma – Empowering Each Village • Provision of rural infrastructure to have access to Electricity, Water, Sanitation , Communication, Roads, Minor irrigation • Filling gaps – Maternity and Health Care Centers, Pre-schools, Market places, storages etc on a need basis • Livelihood development – One Village-One Crop, Agriculture, Livestock, Fisheries, Trade, Self employment • Restoration of abandoned/substandard projects 12

13. Gamaneguma- Operational Arrangements Overall National Program –Ministry of Economic Development District Development Committees(Need assessment and prioritisation) Divisional Development Committees (Identification of projects, programs and budget) Community Level Identification Implementation by Community Participation 13

14. Gamaneguma 2006-2011 14

15. Gamaneguma – Total Solution RESOURCEFULL VILLAGE • Access to roads • Access to electricity • Access to safe drinking water and sanitation • Access to small irrigation • Quality health and education • Livelihood development 15

16. Gamaneguma-Empowering each VillageSmall Irrigation • During 2006- 2011 period 4,699 such small irrigation projects with a cost of Rs 1737.5 Mn have been completed in various villages scattered around Sri Lanka. • 716,438 farmers got access to water to cultivate 187,960 acres. • Benefits expanded to environment and fauna and flora. Ussana Irrigation scheme, Matale District Gonawa wewa, Anuradapura District 16

17. Gamaneguma-Empowering each Village Electricity • 7,785 rural electrification projects have been implemented with a cost of Rs 2,370 Mn • These schemes have provided access to electricity to 400,467 households • It has benefited rural schools, hospitals, religious places and access to IT and computers in rural Sri Lanka • Electricity has promoted rural investment, storages, small industries and agricultural processing Matale- Bogahalanda Electricity Project 17

18. Gamaneguma-Empowering each Village- Access to quality road • 61, 226 projects consisting of concrete roads, small bridges and improvement to rural and agricultural roads have been completed with a cost of Rs 26,124 Mn • A population of about 700,000 have gained access to such roads Karandeniya – Thewaththa Bridge 18 Addaragoda - Kandegoda Road

19. Gamaneguma-Empowering each Village- Community water • 2,864 projects with each project having capacity of 5000 liters have been completed with a cost of Rs 1,133.3 Mn • A population of 504,200 have gained access to quality drinking water • Access to quality drinking water has improved health standard of the rural community Water Supply Scheme - Adampan Karamba Drinking water project - Kalpitiya 19

20. Gamaneguma-Empowering each Village- Quality housing for the poor Built House Old House • 18,950 houses have been built through Diriya Piyasa (Samurdhi Housing) at a cost of Rs 1,201 Mn • Toilets ,and basic facilities (access to quality water) have been provided to improve low income households • Cadjan thatched and temporary houses are being converted to quality houses 20

21. Gamaneguma-Empowering each Village- Livelihood Development • 14,341 livelihood projects targeting agricultural processing , livestock , handicraft, building material, light engineering, carpentry etc have been promoted. • This has contributed to high income and new employment for 2,83,876 people. • A number of households have emerged as entrepreneurs. • MOED proposes to form Samurdhi Entrepreneurs Chamber (SEC) to harness an enterprising society in villages. Cinnamon chopping- Ratnapura 21

22. Addressing substandard work • Some of the projects demonstrate substandard quality, incomplete work and inappropriate projects • Regardless of who is responsible, economic development requires correction of those and put those projects right to give the full benefits to the people Playground in Welgala Nena Sala in Ibbagamuwa Road in Mutthettugala 22

23. Distribution of resources under Gamaneguma 2006-2011 Sanitation Water 23

24. Access to Basic Services 24

25. Achievements – country witnessed a marked reduction in poverty in 5 years Poverty Reduction 25

26. The reduction in poverty is reflected in the number of Samurdi beneficiaries.Despite the reduction in beneficiaries, expenditure on Samurdhi is maintained to provide enhanced assistance to deserving people.Even if we assume doubled the poverty head count at 17.2%the no of people receiving benefits account for 32.4% Samurdhi Expenditure (Rs Mn) 26

27. The strength • Samurdhi allowance scheme has generated compulsory savings of Rs 17 Bn of which, Rs 3 Bn is on reserve • It has promoted 1043 functioning Samurdhi Banking Societies and generated voluntary savings of Rs 15 Bn • Savings habits have promoted leasing and other financing instruments supporting Samurdhi livelihood activities and enterprises • Divineguma and Gamaneguma have created the opportunities for them to move out of poverty trap 27

28. Delivering commitment “fid÷re njska, fifkyiska yd fi!kao¾hfhka msreKq .u ms<sn| ud olsk isyskh “.u keÕ=u” f,i h:d¾:hla njg m;a lrus' miq.sh oYl .Kkdj ;=< wfma oEia bosrsmsgoS u msrsySug ,la jq .u mqk¾cSjkh lrus'” Mahinda Chintana- Vision for the Future-2005 28

29. Pura Neguma- Empowering Local Authorities- Two initiatives to finance from ADB credit facility • Local Authority Empowerment Program –Uthuru Wasanthaya and Nagenahira Navodaya – • Local Authority Empowerment Program – Local Government & Provincial Council Ministry (proposed for the pradesheeya sabhas) 29

30. Pura Neguma- Northern sector Canal System Mosque Houses Community & Health Centre Children s’ Park 30

31. Pura Neguma – Operational Arrangements National Steering Committee- co chaired by Minister of Provincial Council & Local Govt. and Minister of Economic Development Funding and Supervision- Ministry of Provincial Council & Local Govt. and Ministry of Economic Development Implementation - by eligible Pradesheeya Sabhas (committed to simplified systems and procedures, clean environment and community infrastructure, Sathi pola and basic needs improvement) 31

32. Implementation of 2011 Budget proposal- Sathi pola • 2011 Budget proposed to modernise sathi pola, three wheel stations, mobile shops, small boutiques around religious and common places to add value to small timers at least cost • These initiatives will also provide openings for direct market access to producers and consumers without intermediaries • Does not involve heavy overheads and expenditure 32

33. Balanced Regional Development –Interfacing by Ministry of Economic Development • Priorities – • 3,000 km Intra Provincial Road Rehabilitation Program • 30,000 Minor Tanks and Irrigation Rehabilitation Program • Flagship common facilities- Galle Bus Stand Construction of shops for pavement hawkers Relocation facilities for displaced markets • Selected Economic Development Initiatives- Dutch Canal Rehabilitation to support Tourism corridor- from Wattala to Negombo (old tourism resort area) Small townships 33

34. Intra Provincial Roads • Three year program has been designed to restore intra provincial roads to fill gaps in road network development program implemented by RDA , Provincial councils and District secretariats • All 25 districts and 324 divisional secretariat areas will be reached simultaneously in three phases Phase I- 30,000 km of roads - 2011 Phase II- 45,000 km of roads - 2012 Phase III- 60,000 km of roads- 2013 • All roads will be carpeted with concreting supports, drainage and culverts and natural water ways 34

35. Intra Provincial Roads Dambagalla Medagama Road (14.440km)Madagama DSD in Monaragala DistrictExpenditure Rs. 6,191,154.52 Warakagoda Frosester Ferry Road (3km) Bulathsinghala in Kaluthara District Project Cost Rs. 30 Mn Bonagala Rukgahawila Road (3.8km) Attanagalla DSD in Gampaha District Project Cost Rs. 38 Mn 35

36. Minor Tanks and Irrigation • Three year program has been designed to restore rural irrigation systems and abandoned systems to fill gaps in irrigation network development program implemented by the Department of Irrigation , Provincial Authorities and Agrarian Service Department • Agricultural areas will be reached simultaneously in three phases during off cultivation periods Phase I - 12,000 systems - 2011 Phase II- 13,000 systems - 2012 Phase III- 15,000 systems - 2013 • All irrigation system development projects will be implemented with community participation 36

37. Rehabilitation of Irrigation systems Ampara Baticaloa Trincomalee Polonnaruwa 37

38. Flagship Interventions • Development by various agencies have created gapsby not addressing critical common facilities (maternity clinics, bus stations, market for displaced small businesses, drainage systems ) required to maximise full benefits of Economic Development 38

39. Flagship Interventions The Galle bus stand which was damaged by tsunami and neglected thereafter has been restored at a cost of Rs 414.7 Mn with facilities for shopping and rest areas Model maternity clinics are being promoted with private sector support With the urban modernisation programs,small traders occupying un authorised areas are being provided with modern facilities for their self employment activities. Two such facilities in Pettah, Nugegoda have been completed at a cost of Rs 41.0 mn 39

40. Need Assessment outcome (in consultation of Members of Parliament-09.08.2011 and 17.08.2011) Need assessment carried out in consultation with Members of Parliament gave higher priority for unattended roads and irrigation 40

41. Regional Growth Initiatives • Ruhunu Udanaya • Uthuru Wasanthaya • Nagenahira Navodaya • Sabaragamu Arunalokaya • Kandurata Udanaya • Wayamba Pubuduwa • Rajarata Navodaya • Pubudamu Wellassa • Batahira Ran Aruna 41

42. Ruhunu Udanaya- Galle, Matara and Hambantota Districts 42

43. Ruhunu Udanaya- Interfacing with Line Agencies and Provincial Council to integrate Ruhuna Economy with following • Promote Economic Activities revolving around Magampura port city (air port, port ) Develop connectivity between Katunayake – Hambantota corridor to benefit the surrounding Rural Economy • Promote resort development for tourism and construction of Galle Port as a Tourism Port • Support Tea and Cinnamon cultivation and promote value added industrial activities 43

44. Ruhunu Udanaya- contd.. • Transform Koggala Export Processing Zone to an Industrial Township • Assist Ruhuna University to drive Knowledge Based Economic Activities with emphasis on Medicine/Engineering • Develop International sports facilities 44

45. Ruhunu Udanaya – selected outcomes Carpeting of Mamandala- Malpettawa Road Palatuwa Gunarathana Vidyalaya 45

46. Uthuru Wasnthaya- Jaffna, Kilinochchi, Mullativu, Mannar & Vavuniya Districts 46

47. Demining Activities in North & East Status as at 30 June 2011 Totally Cleared Area 1,571 SqKm To be cleared 443 SqKm 47

48. Demining Activities in North & East Area Cleared Expenditure in 2009/2010 48

49. Uthuru Wasanthaya-Activity PlanInterfacing with Line Agencies and Provincial Council to integrate Northern Economy with following • De-mining program • Resettlement and Livelihood development • Restoring public service delivery – Health Education Rehabilitation and Skills Development Civil administration and Judicial services • Strengthening the community – Local Government Services Co-operatives Religious places Samurdhi • Restoration of Banking , Financial Institutions and Trade and Commerce 49

50. Uthuru Wasanthaya- contd.. • Rehabilitation of Rural and Provincial infrastructure – Electricity Irrigation Roads Community Water Supply • Reconstruction of Highways Railways Ports Fishery harbours Major irrigation Water supply and Drainage systems Common facilities and Townships National schools Hospitals Universities • Investment promotion to attract Private Investment in Agriculture Manufacturing Tourism and services 50