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Sri Lanka: Plantation Development Project

sector: Agriculture, Natural Resources, and Rural Development, Finance, Industry and Trade | country: Sri Lanka

Some useful lessons identified in the project completion report (PCR) include (i) the expectation that the regional plantation companies (RPCs) would meet 50% of social development costs was unrealistic given the financial position of the companies; (ii) the project design was unduly complex; (iii) the inclusion of additional inputs for the development of the Tea Authority of Sri Lanka, marketing alliances, and demand-based public research were not client-driven, and they lacked appreciation of the commercial and proprietary rights attached to market relationships; and (iv) there was inadequate consideration of sector financial risks, including wage inflation, and political risks relating to price escalation in the sector.

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