By Special Correspondent[i]

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Introduction

Sri Lanka has received substantial support from donor-funded development projects aimed at improving the economy and supporting social growth. However, a closer look reveals that many of these projects do not achieve their intended results. The pressing question is: How can Sri Lanka improve its oversight of these projects to better utilize donations?

Current Situation of Development Projects

Many donors, including international banks, have invested billions in Sri Lanka. While the initial results often seem positive—highlighted in reports and on social media—the reality on the ground can be quite different. Many projects struggle with issues like poor performance, misaligned goals, and lack of sustainability, which ultimately limit their effectiveness.

Key Problems in the System

Several common issues weaken the effectiveness of donor-funded projects in Sri Lanka:

1. Excessive Spending on Consultancies: A significant amount of money is spent on international consultants, especially during the closure of projects, which takes important resources away from core needs.
2. Issues with Procurement: The last stages of projects often involve questionable purchasing decisions that benefit personal interests rather than actual project needs.
3. Weak Audit Processes: Current audit systems are often just a formality and do not provide the in-depth analysis needed to ensure proper management or accountability.
4. Lack of Public Engagement: There is limited involvement from the public, and feedback mechanisms are often ineffective, which prevents the projects from reflecting the needs of the community.

Missed Opportunities and Sustainability Issues

Even when projects are successful, they often fail to continue after funding ends due to a lack of follow-up and planning. Without clear strategies for continuation, successful initiatives can disappear, leaving their benefits behind. Addressing sustainability must be a crucial part of project planning from the beginning.

Suggestions for Improvement

To manage donor-funded projects effectively, Sri Lanka needs to make several changes:

1. Strengthen Internal Audits: Create strategic review committees with the authority to act on red flags and set up independent audits that report directly to leadership.
2. Integrate Project Management Units: Incorporate project staff into permanent departments to improve coordination and knowledge sharing.
3. Focus on Outcome-Based Monitoring: Shift measurement from activities completed to real-world outcomes, including direct feedback from the community.
4. Enhance Transparency: Regularly provide clear spending reports, updates on project progress, and ensure that all procurement practices are openly disclosed.
5. Plan for Sustainability from the Start: Develop clear plans for handing projects over to local institutions and integrating successful elements into existing programs right from the beginning.

Immediate Steps for Project Managers

If you are currently managing a donor-funded project, consider these actions:

• Assess how many project components will continue without donor support.
• Create a plan for transferring skills to government staff.
• Form a procurement committee that includes community representatives.
• Set up a feedback system that allows the public to influence project decisions.

Conclusion

As Sri Lanka continues to rely on donor support, it is essential to treat these funds as a national responsibility that requires careful management. Success should not just be measured by the completion of tasks but by the lasting improvements made in people’s lives.

In this new approach, we shift our focus from superficial achievements to genuine, long-lasting benefits.

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[i] The views expressed in this article are solely those of the author and do not necessarily reflect the opinions of any organization or institution. The information presented is based on the author’s analysis and research as of the date of publication. Readers are encouraged to conduct their own research and consult relevant sources for a comprehensive understanding of the topic discussed.