A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management

Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2001

Following the speedy growth Development of global economy, Sri Lanka has to accelerate its growth rate and maintain a high level rate investment to improve the economic and community development. Still the country economy heavily depends on foreign assistance for public capital investment. Unfortunately the Official Development Assistance to Sri Lanka has decreasing trend in past years. The study examine the foreign aid management process and institutional arrangement in this sector to find the problem I the management process and the weakness in the institutional arrangement and develop alternatives to improve the trend in foreign resources inflows . . Initially, the study concentrates on available information on this sector generally and then specifically related to S1i Lanka. The policy documents, reports issues from project program monitoring & evaluations and practical issues from discussions are covered to gather the information from both donor and the government. From the existing information, the study analyses the gab between policy and practice on the view of donors as well as the government. In this, it examines the country's economic and external conditions, Policy, priority, procedure and practice in the aid management process. Then, the study try to find the Policy implication, implementation problem and the weaknesses in the process and overall set up of institutions in the sector. Finally, From the finding, the studies develop alternatives for existing problem and propose suitable recommendation to improve the trend of ODA and external sector of the country economy