MAPS APPROACH SUPPORTING SDG IMPLEMENTATION

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MAPS APPROACHSUPPORTING SDGIMPLEMENTATIONIN SRI LANKA

MAPS APPROACH SUPPORTING SDG IMPLEMENTATIONIN SRI LANKA GOVERNMENT OF SRI LANKA AND UN COUNTRY TEAMIN SRI LANKA, JANUARY 2018This report is the result of an inter-agency UN missionconducted under the aegis of the MAPS* led by UNDP,UNFPA and UNESCAP in Sri Lanka in 2017 at the requestof the Government. In close collaboration with theSri Lankan Government authorities and the UN CountryTeam, the UN MAPS mission team aimed to provideintegrated policy support and to conduct consultationsto inform the development of a SDG Roadmap.The following Government offices are acknowledged for theirguidance in the process and for actively participating in theconsultations: The Ministry of National Policies and EconomicAffairs, in particular the Department of National Planningand the Department of Census and Statistics; the Ministryof Sustainable Development and Wildlife; the Expert Panelon SDG Implementation at the President’s Office; and theParliamentary Select Committee on the SDGs.* MAPS is a common approach by the UN DevelopmentAgencies, endorsed by the UN Development Group,to deliver joint and integrated support to countriesto achieve the SDGs.ART DIRECTION, DESIGN & INFOGRAPHICSCamilo J. Salomón, www.cjsalomon.comPRODUCTIONUnited Nations Development Programme

CONTENTSABBREVIATIONS1I. EXECUTIVE SUMMARY2Addressing inequalities3Bridging the development and peace gap4Investing on the blue and green economy4Increasing local capacity for service delivery4Strengthening quality data and statistical coherence4Way forward: capitalizing on the renewed impetus for SDG implementation5II. OVERVIEW OF SRI LANKA DEVELOPMENT CONTEXT62.1 Summary72.2 Sri Lanka’s performance in achieving the MDGs82.3 Sri Lanka – Overview of the post-conflict political situation since 2009102.4 Sri Lanka’s economic growth132.4.1 Poverty and exclusion132.4.2 Unemployment142.4.3 Gender gap in employment152.5 The social sectors162.5.1 Education162.5.2 Health162.5.3 Gender inequality162.5.4 Youth182.5.5 Other disadvantaged population groups182.6 The environment192.6.1 Increasing vulnerability to natural disasters and climate change202.6.2 Greenhouse gas emissions242.6.3 Pollution242.6.4 Access to energy252.6.5 Agriculture26III. ACCELERATING PROGRESS ON THE SDGS283.1. Addressing inequalities: reaching the last mile as an accelerator303.1.1. Interventions to increase the political and economic empowerment of women313.1.2. Investments in education and services for youth32MAPS: SUPPORTING SDG IMPLEMENTATION IN SRI LANKA I I

3.1.3. Multisectoral response for women-headed households323.1.4. Increased investments in social protections and universal health coverage323.1.5. Ensuring equal opportunity and non-discrimination333.2. Bridging the development peace gap: restoring trust and social cohesion as an accelerator343.3. Capitalizing on the blue and green economy for Sri Lanka as an accelerator363.4. Localizing the SDGs: Increasing the capacity of local authorities for service delivery as an accelerator393.5. Data and statistics433.5.1. Importance of data to the mainstreaming of SDGs433.5.2. Institutional set-up to address data issues443.5.3. Progress made on identifying data requirements and addressing data gaps443.5.4. Establishment of an SDG data task team443.5.5. Harmonizing the SDG indicator framework with existing plans453.5.6. Mechanisms for assisting the process45IV. DEVELOPING AN SDG ROADMAP FOR SRI LANKA464.1. Defining an SDG institutional coordination framework for Sri Lanka484.1.1. Expert panel on SDG implementation at the President’s Office484.1.2. The Ministry of National Policies and Economic Affairs494.1.3. The Ministry of Sustainable Development and Wildlife494.1.4. The Parliamentary Select Committee on SDGs504.1.5 Ministerial SDG Sub-Committee504.1.6. Office of Strategic Development Evaluation504.1.7. SDG coordination of sectoral ministries50Recommendations504.2. SDG alignment: Assessing national priorities524.3. Identifying and prioritizing SDG accelerators554.4. SDG-based planning and budgeting564.4.1. Planning, programming and budgeting at the national level564.4.2. Integrated planning and budgeting at the subnational level574.4.3. Gender responsive budgeting584.5. Financing for development in Sri Lanka594.5.1. Domestic resource mobilization: Fiscal space594.5.2. Alternative financing for development mechanisms59V – WAY FORWARD: CAPITALIZING ON THE RENEWED IMPETUS FOR SDG IMPLEMENTATION62Annex I. MAPS mission objectives65Annex II. The Sustainable Development Act, No.19 of 201766II I MAPS: SUPPORTING SDG IMPLEMENTATION IN SRI LANKA

ABBREVIATIONSBPPSBureau for Policy and Programme SupportCSOCivil society organizationDCSDepartment of Census and StatisticsESCAPRegional Economic and Social Commission for Asia PacificFDIForeign Direct InvestmentGDPGross Domestic ProductMDGsMillennium Development GoalsHDIHuman Development IndexHRCHuman Rights Council (UN)IDPsInternally displaced personsMMRMaternal Mortality RatioMPAMarine Protected AreaNCDNon-communicable diseaseNSSNational Statistical SystemPIPPublic Investment ProgrammePPPPeacebuilding Priority PlanRIARapid Impact AssessmentSCRMSecretariat for Coordination of Reconciliation and MechanismsSGBVSexual and gender-based violenceUNCTUnited Nations Country TeamWHOWorld Health OrganizationMAPS: SUPPORTING SDG IMPLEMENTATION IN SRI LANKA I 1

I. EXECUTIVE SUMMARYSri Lanka has a strong track record of human development achievements comparedto other South Asian and comparable economies. An island nation that is oneof the most densely populated nations in the world, it achieved the MillenniumDevelopment Goal target of halving poverty seven years ahead of the 2015 deadline.It stands at 72 out of 188 countries on the Human Development Index, despite30 years of armed conflict.Sri Lanka's Stilt Fisherman. Photo by Jankovoy.2 I MAPS: SUPPORTING SDG IMPLEMENTATION IN SRI LANKA

However, there are remaining pockets of poor humandevelopment in certain geographic areas, ethnic communitiesand by gender and age, and rising inequality compoundedby declining social sector expenditures. The country is highlyvulnerable to environmental and economic shocks and hasbeen experiencing extreme weather conditions in the lastdecade, increasing droughts and floods in certain parts of thecountry. In the social sphere, unemployment remains highamong women and youth, and marginalized groups where thepoverty rate is the highest. Education is uneven in quality andover a third of youth do not study beyond the upper secondarylevel. Non-communicable diseases are on the rise. Sri Lanka hasamong the highest wasting prevalence in the world and is oneof the few countries with wasting higher than stunting. Genderinequality and violence against women remains an issue.When working towards fulfilling the SDGs, two considerationsare key: first, the SDGs cannot be met one hundred percent.Second, not all goals can be pursued equally and at the sametime, which is why accelerators are central to success, beingactions that have the maximum impact across different goals.A country should prioritize its actions in four ways: identifynational priorities; identify goals that lag the furthest; accelerategoals that are within reach; and accelerate goals that will mostaddress the country’s challenges and yield spill over effectsacross different SDG targets.Accelerators will need to focus on these core issues: (1)Addressing inequalities; (2) Bridging the development andpeace gap; (3) Investing in the blue and green economy;(4) Increasing local capacity for service delivery; and (5)Strengthening quality data and statistical coherence.ADDRESSING INEQUALITIESFor Sri Lanka, strong GDP growth has been accompanied byrising inequality and disparities in access to the benefits ofdevelopment. This can undermine the progress made to dateand is thus an immediate priority for the Government. Not justeconomic inequality but the multiple and intersecting forms ofinequality should be addressed.Women and youth constitute the largest segments of thepopulation who are underrepresented in both the economic andthe political sphere. The gender ratio of the population has morefemales than males, yet women’s economic participation remainsat a very low 35 percent. Other than being a concern in its ownright for women themselves, it puts a damper on productivityand competitiveness of the economy as a whole. Addressingthis gender barrier requires action on other fronts: discriminatorylaws including those involving inheritance, separation, andwidowhood; support for the high volume of unpaid care workthat women do; parental leave expansion; and gender basedviolence and sexual harassment on public transport.The high rate of youth unemployment affects the future of SriLanka’s 4.4 million young people, particularly young women.National expenditure on education is under two percent of theGDP. At the same time, sexual and reproductive health servicesfor the young population are inadequate: teenage pregnancyrates are rising and awareness of contraception is low. Youngpeople report discrimination on grounds of income, ethnicityand sex which affects their employment opportunities. Othergroups that are disadvantaged are the 700,000 displaced byconflict, those employed in the estate sector (who have thehighest poverty rates) and the rising population of the elderly.FIGURE 1: SRI LANKA'S POTENTIAL ACCELERATORS FOR A SDG ROADMAP AT A GLANCEADDRESSINGINEQUALITIESBRIDGING THEDEVELOPMENTAND PEACEGAPINVESTINGIN THE BLUEAND GREENECONOMYINCREASINGLOCAL CAPACITYFOR SERVICEDELIVERYSTRENGTHENINGQUALITY DATAAND STATISTICALCOHERENCEWomen EconomicEmpowermentParticipation indecision-makingPromote an inclusive andsustainable growth modelMainstream the SDGsin local plansImprove data capacitiesFocus on youth at riskStrengthening ruleof lawSustainable use of oceansand costal areasCapacity for integratedplanning and budgetingDefine data standardsand parametersPromote Jobs and livelihoodsSupporting oversightmechanismsMarine protectedarea systemMechanisms for bettertargeting of excluded groupsDefine data standardsand parametersEntrepreneurship integratedin educationReconciliation and preventionRegulatory effectivenessand enforcementArea-Based DevelopmentFoster global cooperation)e.g. South-South(MAPS: SUPPORTING SDG IMPLEMENTATION IN SRI LANKA I 3

To tackle this persistent discrimination and marginalization, jobcreation and skill development needs to be targeted at thesegroups. Market linkages and entrepreneurship opportunitiesshould be made available to them. Public institutions shouldemphasize diversity, including through temporary measuressuch as quotas. An independent national human rightscommission was established in 1996, but it needs to besupported by strong legal mechanisms for accountability andprotection, and a strong national action plan on human rights.BRIDGING THE DEVELOPMENTAND PEACE GAPby recognizing the oceans and marine and coastal ecosystemsas great asset for an island country, which needs to bepreserved and sustainably harvested. These are the first lineof defence from natural disasters and the source of livelihoodsfor millions. Focus areas for action include the following:investing in renewal energy; improving water quality; makingwaste management systems eco-efficient through technologytransfers and a recovery and recycling process; developingfood value chains on the supply and demand side; expanding,managing and protecting Marine Protected Areas; andincreasing private financing for climate through measureslike low carbon lending.Peacebuilding since the conflict touches directly on theseefforts. While it is making progress it is on a separate andparallel stream from the efforts on sustainable development,although they mutually depend on each other. With regardto peacebuilding, countrywide reconciliation needs moreinclusive democratic governance and rebuilding of thecountry’s heavily politicized justice and policing system.To unlock the value of Sri Lanka’s ocean resources sustainably,the Government has launched a Blue-Green Strategy whichwill require continued political championship, and publicand private investments.The country has committed to progress although the road maybe slow. The present coalition government has supported acomprehensive reform agenda to build an institutional culturethat would address the legacies of the conflict and bring aboutpost-conflict reconciliation and social stability, including a newconstitution that reflects a more pluralist vision of the state.Localizing the SDGs is an important accelerator because it isat the local level that the SDGs will be delivered. Localizationallows local governing bodies to actively engage with thecentral government. It enables the long-term transformationalvision of the SDGs through the reform of governance andservice delivery systems, transferring more functions andresources to the local level. Going local reduces the urban-ruraldivide and reaches vulnerable groups (minority groups, peoplewith disabilities, the elderly, etc.) more inclusively, tackling theissue of persistent pockets of poverty.Bridging the development and peace gap, including preventiveefforts to avoid social tensions and violence; a greater voice forthe marginalized (women, youth, ethnic groups) in decisionmaking; strengthening transitional justice mechanisms thatdraw on broad consultations with all groups in society willbe key to moving to a sustainable pathway. Strong focus onreconciliation is necessary. This also includes the return ofland to their rightful owners; strong oversight mechanismand access to information as an important vehicle forcitizen activism; adopting zero tolerance towards corruptionand enforcing the capacities of anti-corruption agencies;addressing sexual and gender-based violence which includesthe conflict-affected areas; and engaging the community involuntary activities to rebuild trust and resilience, with theinvolvement of mediators such as the elderly, teachers andreligious leaders.INVESTING ON THE BLUEAND GREEN ECONOMYSustainable development for Sri Lanka means investing ina ‘blue and green’ economy. Green refers to a low carbon,resource efficient growth that includes vulnerable populations.It invests in greenhouse gas reductions and cleaner energyinvestments. The blue economy complements these efforts4 I MAPS: SUPPORTING SDG IMPLEMENTATION IN SRI LANKAINCREASING LOCAL CAPACITYFOR SERVICE DELIVERYSTRENGTHENING QUALITY DATAAND STATISTICAL COHERENCEThe scope of the 2030 Agenda calls for strong nationalstatistics capacity. Sri Lanka’s data capacity requires substantialimprovements in quality and frequency to direct resources andprioritize investments effectively. National indicators are neededto plan how to incorporate the SDG targets into nationalplanning processes and development strategies. Duringstakeholder meetings, the need for a centralized structure fordata was recognized, and other country examples were seenas possible templates. The Department of Census and Statistics,that has led most of the progress in identifying data needs, hasbeen assessing SDG indicators and line ministries have begundoing the same for areas under their purview. Establishing anSDG data task team would be extremely useful in overseeingthe crucial activity of coordinating data requirements of theSDGs. Working groups could be established under this taskteam to either work on each goal separately or grouping goalsinto common themes.

WAY FORWARD: CAPITALIZING ONTHE RENEWED IMPETUS FOR SDGIMPLEMENTATIONThe establishment of the Sustainable Development Council,though the adoption of the Sustainable Development Act,could significantly improve the much needed coordinationfor SDG implementation at national and provincial levels. Thereis strong support for the SDGs emanating from the President’sOffice, key line ministries that have been enlisted to becomeofficial members of the Council, the Parliament and theProvincial Councils.The Government of Sri Lanka has volunteered to take partin the Voluntary National Review at the High-Level PoliticalForum (HLPF) to be held in New York in July 2018. The HLPFprocess could provide additional impetus for Sri Lanka to bettercoordinate SDG implementation efforts.This report provides elements that could inform the preparationof an SDG Roadmap, structured around five critical areas: (1)Defining an institutional coordination framework; (2) Assessingnational priorities through SDG alignment; (3) Identifyingand prioritizing SDG accelerators; (4) Preparing SDG-basedplanning and budgeting; and (5) Identifying alternativemodalities for financing for development. A Roadmap for SDGimplementation in Sri Lanka could be a critical instrument toinform the preparation and support the implementation of afuture National Policy Strategy on Sustainable Development.As the Sustainable Development Council embarks in theplanning process to develop the National Policy and Strategyon Sustainable Development that will provide the vision fordevelopment for Sri Lanka to 2030, it is important to ensurethat SDG planning has to encompass not just national andsubnational governments but also a diverse set of otherstakeholders, including civil society organizations (CSOs),academic institutions and the private sector, and groups normallyunder-represented, such as women’s and youth’s groups.For this purpose, the planning process must be inclusive,participatory and transparent from the outset. Applying a‘whole-of-society’ approach will be key to building a foundationfor broad-based participation and enhancing the legitimacy ofboth the national vision and the resulting development strategy.Man Painting a Mask. Photo by Tatiana Tolstykh.MAPS: SUPPORTING SDG IMPLEMENTATION IN SRI LANKA I 5

II. OVERVIEW OF SRI LANKADEVELOPMENT CONTEXTColombo seafront at sunset. Photo by Asian Dream.6 I MAPS: SUPPORTING SDG IMPLEMENTATION IN SRI LANKA

2.1 SUMMARYSri Lanka is a lower-middle-income country of 21.4 million1people with a growing economy and ambitions of becominga higher-middle-income country within 15 years.2 Economicgrowth has averaged over 4.7 percent in the past five years,3driven largely by rehabilitation in the North and East provincesafter almost 30 years of armed conflict, and accompanied bya structural shift toward services and industry.An island nation of 66,000 square miles, Sri Lanka is one ofthe most densely populated countries in the world. The mainethnic groups include the Sinhalese, Sri Lankan Tamils, IndianTamils, Moors or Muslims, Burghers and Malays. To understandthe context of its development successes and challenges, thepolitical economy of the Sri Lankan internal conflict needs to beunderstood in its demographic, economic and political context.Sri Lanka has a track record of strong human developmentachievements compared to other South Asian and comparableeconomies. The country achieved the overarching MillenniumDevelopment Goals (MDGs) target of halving poverty at thenational level seven years before the 2015 MDG deadline, andbetween 2002 and 2012–2013 alone reduced poverty from13.2 to 3.2 percent of people living on less than 1.25 a day.4A long tradition, dating back to post-independence, ofextensive investment in education, health and povertyalleviation programmes, coupled with economic growthaveraging 6–7 percent a year over the past decade explainSri Lanka’ development success.Today, Sri Lanka’s human development indicators for 2015reflect a Human Development Index (HDI) value of 0.766,indicating ‘high human development’, positioning the countryat 72 out of 188 countries.5 Sri Lanka graduated to MiddleIncome Country status in 2010, following the end of its nearly30 years of armed conflict.Despite these overall positive rankings there are significantdisparities in income, infrastructure and access to basic servicesacross the country. A large proportion of people in S

II. OVERVIEW OF SRI LANKA DEVELOPMENT CONTEXT 6 2.1 Summary 7 2.2 Sri Lanka’s performance in achieving the MDGs 8 2.3 Sri Lanka – Overview of the post-conflict political situation since 2009 10 2.4 Sri Lanka’s economic growth 13 2.4.1 Poverty and exclusion 13 2.4.2 Unemployment 14 2.

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