Tecnology in sri lanka

South Asia Conference on Technologies for Poverty Reduction, New Delhi,
10 – 11 October, 2003
Dasanayake, Sarath, University of Moratuwa, 2003 1
TECHNOLOGY, POVERTY AND THE ROLE OF NEW
TECHNOLOGIES IN ERADICATION OF POVERTY: THE CASE OF
SRI LANKA
BY
Dr Sarath Dasanayaka
Head/Dept. of Management of Technology
Faculty of Engineering, University of Moratuwa
Sri Lanka
1. Introduction
Technology, innovation and Research and Development (R&D) are widely recognized as
the most important factors in eradication of poverty which is the prime objective of
economic growth and development in any developing country. It has been documented
that long-term poverty eradication programs and strategies should be designed by
incorporating the technology, innovation and R&D aspects. Many developed countries
had achieved their economic growth, development and industry competitiveness by
paying due attention to technology, innovation and R&D aspects while formulating
development strategies. This paper discusses various aspects of technology development
and its interaction with poverty from a Sri Lankan perspective by giving more emphasis
to the role of new technologies.
2. Brief History of Science and Technology Development and its Interaction with
Poverty in Sri Lanka
Sri Lankan technological history can be divided into a number of periods. Technologies
in different sectors were developed in these periods and evidence was not available about
its exact contribution to reduce poverty. However technology contributed in many ways
to improve economic growth and development which ultimately reduces poverty.
However, in reaching the present status of technology and eradication of poverty, we can
find two major periods: pre-independence period (before colonial and after colonial) and
post-independence period (before and after 1977 policy reforms).
2.1 Pre-Independence Period
The Sri Lankan technology level before the 16th
Century was comparable to most
societies of the time. It is believed that in ancient times high knowledge of trigonometry,
some practical geometry and astronomy were well known to Sri Lanka. Spinning jenny
was used in traditional weaving industry even in the 16th
Century and a Portuguese writer

10 – 11 October, 2003
reported that Sri Lankan guns were the best in the world at that time. In the health sector,
a number of hospitals were built by many Kings (Parakramabahu and Dutugemunu) and
therefore, most writers reported that Sri Lanka was very advanced with respect to
contemporary Ayurveda medicine technology. On top of that, Sri Lankans were excellent
in irrigation technology including many trans-basin diversions, multi-purpose irrigation,
drainage, flood control and conservation. Some writers reported that Sri Lankan 12th
Century ancient irrigation technology was unique and such technology could not be seen
in the rest of the world till 17th
Century (Goonathilake.S, 1976; Needham.J, 1956;
Mendis. D, 1974).
With the Colonial incursion from the 16th
Century, Sri Lanka was increasingly exposed to
Western technology. This western technology was introduced as a package without any
interaction with the existing indigenous technology. Portuguese did not introduce that
much technology into Sri Lanka but the Dutch introduced some technology with respect
to construction of water canals, buildings, roads and harbors. But the modern technology
era began in Sri Lanka in the 19th
Century with the British colonization of the country.
The British idea was to develop Sri Lanka as an agricultural base for them and market for
their industrial products. Therefore, they identified tea, rubber and coconut as main
produces from Sri Lanka to the world market. In order to facilitate these, they developed
major rail and road networks and the Colombo seaport as well as associated engineering
departments such as Ceylon Government Railways (CGR), and Public Works
Department (PWD), Government Factory, Colombo Port Workshop and private sector
owned Walker Sons & Co. Ltd, Walker & Greig, Brown and Co. Ltd and Colombo
Commercial Company. At the beginning all the key positions of these organizations were
manned by the British and later to train technical people for these organizations, the
Ceylon Technical College was founded in 1893, but in 1950 this was elevated to the
status of Faculty of Engineering under the University of Ceylon. In order to eradicate
tropical diseases and to improve the health of the settlers, the British established a
Bacteriological Institute which is now known as Sri Lanka Medical Research Institute,
Ceylon Medical College in 1870 and Nurses Training School in 1939. In addition to this,
a number of hospitals, clinics, and dispensaries were established and due to all these
measures substantial advances were made in health sector. This had created various
implications for demography in Sri Lanka. In the field of agriculture, the Department of
Agriculture, Tea Research Institute, Rubber Research Institute, and Coconut Research
Institutes was set up in the 1930s, but little attention was paid to the Research &
development of rice, subsidiary crops and spices. The British later attempted the
restoration of major ancient irrigation works mainly due to pressure from Sri Lankan
representation in legislature. The Gal-oya multi-purpose project, the first modern
irrigation work started with the assistance of USA Consultants. Irrigation Department
developed and repaired most of the irrigation works by using Indian and other war
displaced nationality engineers. Irrigation Department works mainly used local
technology talents with labor intensive methods. In the industrial sector the British
pioneered the establishment of several factories such as coir (1937), steel-rolling (1937),
plywood (1941), leather (1941), acetic acid (1942), paper (1942), glass (1944) and
ceramics (1944) due to war situation. During this period, the Industrial Research

10 – 11 October, 2003
Laboratory was established in the Department of Commerce and Industries to serve the
industry. Some technology achievements were made in hydropower electricity
generation, transport and telecommunication & broadcasting fields during the British
occupation of Sri Lanka.
2.2 Post-Independence Period
After political independence in 1948, a number of R&D institutions were established in
order to develop Science & Technology in Sri Lanka. Ceylon Institute of Scientific and
Industrial Research (CISIR) was the first of such kind. But this institution failed to
deliver its objectives as reported by many publications (Wijesekera, 1976; APCTT, 1986)
due to inadequate staff, lack of research groups and expertise in different fields and too
wide area coverage and lack of linkages with industry. In 1966, the Industrial
Development Board (IDB) was set up to provide various technical services to Small and
Medium scale Industries (SMI). Its principal functions were preparation of the feasibility
reports, technical services, surveys on industries, documentation and publications, loan
arrangements, management information and advice to SMI. It is expected that IDB will
inform other R&D organizations about the technology needs and capabilities of other
industries. But this does not happen and a significant contribution did not happen in
indigenous technology development of the country. In 1956, a Ten year Plan was
developed by the Planning Secretariat with the help of famous Economists by ignoring
the R&D community to develop S&T in Sri Lanka (APCTT, 1986). In 1965, the National
Science Council was set up after intense lobbying by the S&T community in Sri Lanka.
At the beginning, NSC was trying to formulate a national science policy for Sri Lanka
which still could not be completed. In 1974, the National Engineering Research and
Development Centre (NERDC) was set up to carry out and promote research and
innovation and commercialization. Research and development was carried out
successfully, but commercialization was not very successful. In 1976, an UNCTAD
mission came to Sri Lanka and they reported that Sri Lanka has the machinery for
screening imported technology but it is incomplete and considerable R&D sector
development is required. This mission recommended that a Centre for Transfer and
Development of Technology be established as a focal point to link R&D institutions with
national economic planning apparatus. But so far no action has been taken on this front.
R&D efforts in the private sector are confined to local subsidiaries of multi-nationals and
their joint ventures and some Sri Lankan companies. Some specialized R&D works are
carryout by some state corporations such as ceramics, tyres, mineral and sands. During
1960 – 1977 periods, much R&D work did not take place in the private sector due to
heavy state involvements in the economy. During this period, most of the technology
transfers occurred as donations from the Soviet block as mega factory setting up. Most of
these industries are import substitutions and they showed inefficiencies at the outset and
later political involvements almost wiped out the competitiveness of these industries and
became a burden for the public.
After 1977 policy reforms, private sector was given a leading role in the economy.
Thereafter private R&D activities showed positive growth in some industry and firm
levels. Technology transfer and R&D works happened in sectors such as infrastructure,

10 – 11 October, 2003
construction (housing and dams, etc), garments, communication, ceramics, rubber
products and information technology through sub-contracting, out sourcing or own R&D
works. From 1983 escalation of the ethnic conflict meant that government expenditure
was mainly diverted to war rather than to industrial development. Furthermore, foreign or
local private sector did not invest as expected. Therefore it is obvious that much
development in S&T did not happen after 1983.
As the above brief historical note shows Sri Lankan R&D history was not that much
successful. Prior to independence it is obvious that the state deliberately ignored
technology issues which are not the domain in plantation agriculture. But after the
independence, the most significant reason for the failure was lack of high level political
commitment and support for the R&D activities. Furthermore, the need to develop
technology and skilled and motivated S&T community within the country, lack of
recognition and lack of active liaison with the international S&T community and S&T
developments elsewhere in the world are the other reasons for this gloomy picture.
Overall, a well defined technology policy should be in place at national, sectoral and firm
level to put Sri Lanka in to the world technology map.
Non-existence of the industrial capital class may be another key reason for the low
industrial base in the country. During the past century, involvement of a majority of Sri
Lankan capital class was limited to plantation and service sector based activities.
Presently, their main involvement can be observed in the financial sector such as
banking, leasing, insurance, etc. and trading where not much technology progression is
taking place.
3. Poverty – A definition
Absolute poverty can be defined as the degree of poverty below which the minimal
requirements for survival are not being met. This is a fixed measure in terms of a
minimum calorific requirement plus essential non-food components. While absolute
poverty is often used interchangeably with extreme poverty, the meaning of the latter
may vary, depending on local interpretations or calculations.
Close to 900 million of the worlds poor, i.e. those who survive on less than $1 a day, live
in the Asian and Pacific region.
South Asia, one of the poorest sub regions in the world, has more than half a billion poor
people, of whom 450 million are in India.
Sustainable growth and social development are key elements for reducing poverty.
Successful achievement of either element requires sound macroeconomic management
and good governance.
The quality of good governance is critical for poverty reduction. Good governance
facilitates participatory, pro-poor policies as well as sound macroeconomic management.

10 – 11 October, 2003
It ensures the transparent use of public funds, encourages growth of the private sector,
promotes effective delivery of public services and helps to establish the rule of law.
Population in Absolute Poverty in Sri Lanka (%)
Source: Bhalla (1985) Table 16a, Marga Institute (1978) Table 13, Anand (1985) Table
4.1, Edirisinghe (1990) Table 2, World Bank (1994) Table 1.4.
Sector 1969/70 1973 1978/79 1980/81 1981/82 1985/86 1986/87 1990/91
Urban 4.9 3.7 24.4 16.9 19.6 16.4 12.2 18.3
Rural 12.8 17.6 31.6 25.9 23.2 31.7 32.8 24.4
Estate 11.1 0.5 8.1 25.0 13.8 14.3 13.5 12.6
Total 11.2 13.1 22.7 24.1 21.9 27.3 27.6 22.4
0
5
10
15
20
25
30
35
1969/70 1973 1978/79 1980/81 1981/82 1985/86 1986/87 1990/91
Urban
Rural
Estate
Total
Incidence of Poverty %
Lower Poverty Line Higher Poverty Line
1985/86 1990/91 1995/96 1985/86 1990/91 1995/96
Sri Lanka 27 22 21 41 35 33
Rural
Sector
32 24 23 45 38 35

10 – 11 October, 2003
Urban
Sector
16 18 12 27 28 21
Estate
Sector
14 13 12 31 28 27
Source: Data for 1985/86 and 1990/91 are from World Bank (1995); data for 1995/95
from Aturupane and Gunewardena (1998). All estimates are based on data for the first
quarter from the Household Income and Expenditure Surveys of 1985/86, 1990/91 and
1995/96.
Depth of Poverty %
Lower Poverty Line Higher Poverty Line
1985/86 1990/91 1995/96 1985/86 1990/91 1995/96
Sri Lanka 7 5 4 11 9 8
Rural
Sector
8 5 5 13 10 9
Urban
Sector
3 4 2 7 7 5
Estate
Sector
4 2 2 8 5 5
Source: Data for 1985/86 and 1990/91 are from World Bank (1995); data for 1995/96
from Aturupane and Gunewardena (1998). All estimates are based on data for the first
quarter from the Household Income and Expenditure Surveys of 1985/86, 1990/91 and
1995/96.
3.1 Persistence of Poverty in Sri Lanka
Poverty in Sri Lanka has been found to be concentrated in the following economic
activities such as landless agricultural workers, small land-owning peasants cultivating
food crops using family labour, fishing and animal husbandry, workers in small scale
rural industries, small traders and self employed persons such as individually operating
craftsmen such as masons and carpenters.
The main reasons behind the persistence of poverty in Sri Lanka are inadequate capital
formation and social exclusion.
Inadequacy of capital formation is one of the factors that led to the persistence of poverty
in Sri Lanka during the post 1977 era. In spite of the radical program of policy reforms

10 – 11 October, 2003
implemented since 1977 with the intention of creating export oriented conditions that will
promote growth, various conditions have prevented the process of rapid growth in Sri
Lanka. These constraints stem from the global as well as the domestic environment.
The constraints emanating from the global environment relate to volatility in the global
economy, increased protectionism in major markets, high degree of competition among
countries for export markets as well as to attract foreign capital and the limited linkages
created by the foreign investors that are attracted.
Low domestic savings, the slow growth of the national industrial class, policy
inconsistencies, inadequate business confidence, poor infrastructure facilities and the
fragmented nature of the country’s industrial sector are the constraints that affect the
domestic environment.
Social exclusion/marginalization is also a major factor that affected the persistence of
poverty in Sri Lanka. It is important to note that certain groups in society were
systematically excluded from remunerative jobs and marginalized from other
opportunities due to language and other social networks.
4. The use of Technology to eliminate Poverty
4.1 The use of technology in agriculture
The Rice Research and Development Institute (RRDI) continues to play a major role in
the country’s rice sector by releasing new high yielding rice varieties and introducing
improved rice production and protection technologies to help farmers realize the yield
potentials of the varieties that they grow.
The research and development programs at RRDI focus on increasing farm productivity
from the current 3.6 t/ha to 4.5 t/ha within the next five years, reducing cost of production
and improving grain quality of rice.
Efforts are being made to develop techniques that will help increase rice plants nutrient
use efficiency. A need based fertilizer application method is being tested. This would
help maximize effectiveness of fertilizers applied and reduce cost of production.
The hybrid rice research program was further strengthened by financial and technical
assistance from the International Rice Research Institute (IRRI), Asian Development
Bank (ADB) and technical assistance from the Government of China.
In an effort to attain a quantum jump in rice yields, breeding programs were initiated to
develop rice varieties with a few tillers, sturdy culm and heavy panicles-plant architecture
designated as the new-plant type. Both traditional varieties like Bandara Hethhava and
introduced lines from IRRI were used in the breeding program.
A ten fold increase in rice production and a five and a half fold increase in average yields
were seen over the last five years as a result of this program. (Source:

10 – 11 October, 2003
www.agridept.gov.lk/RRDI/Rrdiindex.htm) The focus has been on the development of
technology for obtaining high yield with excellent quality.
At present, the country produces 96% of the required amount of rice. However, to meet
the growing needs of the population in the face of a shortage of land for cultivation,
RRDI is seeking to strengthen the R&D activities to improve soil fertility and
sustainability, pest, disease and weed management, post harvest and grain quality and
production technologies.
Variety improvement programs have been launched by the Rice Research Development
Institute to incorporate new plant types into new varieties. The traditional variety Suduru
Samba has a highly preferred quality grain. Therefore, efforts were made to shorten the
plant through mutation.
RRDI has also identified the line Bg 1816 (120 d) for immediate release as it’s superior
to the present standard variety and therefore will be recommended for island wide
cultivation. Bg 305, Bg 358, Bg 359 and Bg360 were released for commercial cultivation
and it is expected that these varieties will give farmers an opportunity of more varietal
options for their paddy lands. The yield potential and adaptability of these varieties are
better than the present recommended ones.
Efforts are also being made to produce seeds of some of the promising F1 hybrids by
Isolation Free Method and Artificial Barrier Isolation method. Through this method
0.75-1 t/ha seed yield was obtained.
Continuous farming on same land causes degradation of soil. The fallowing of such land
is a widely adopted practice for many years. However, soil amelioration by fallowing the
land is a lengthy process. Therefore, it is necessary to find methods to accelerate this
process. Studies were in initiated in this respect by using Citronella and Sunnhemp as
vegetation. Results show that the adoption of grass with 7 seasons increases the dry and
wet aggregate stability by 12 and 17%, soil available water at 0.l bar suction by 21%,
exchangeable K by 45% and OM by 25%. Adoption of Sunnhemp increases the dry and
wet aggregate stability by 8% and 10% and exchangeable K by 44%.
These studies have improved the productivity of farmed land in general.
The Field Crop Research & Development Center conducts experiments on Maize,
Sorghum and Finger millet. Experiments have revealed that hybrid maize and variety
Pacific 11 showed significant yield increase to added nitrogen.
Utilization of sorghum in different foods and in industry is successfully studied. Potential
of the variety for feed purpose, both seed and fodder is tried at several farms in the
country.
A new finger millet variety “Ravana” was released in 2002 which has given 5-15% yield
increase compared to the earlier recommended variety “Ravi”.

10 – 11 October, 2003
The major production constraint in Kurakkan is fungal diseases during the Maha season.
The present variety “Ravi” is highly susceptible to fungal diseases. Thus, three promising
cultivators Ac#108, Ac#152, Ac#1201 were introduced and these give over 4 t/ha which
is significantly higher than the yield obtained by “Ravi”.
Tomatoe is one of the most important and popular vegetable crops in Sri Lanka.
Cultivation during the dry period is restricted due to high temperature. Out of the ten heat
tolerant lines tested, four were selected for further evaluation.
Four new post emergence herbicides were evaluated to assess their weed controlling
ability. Among the tested herbicides pyanchlor (pyribenzoxion 500 ml/ha) could be
identified as a broad spectrum herbicide while SETOFF (Cinosalfuron 100g/ha) and AIM
(Curfentrazone 62.5 g/ha) could be identified for controlling broad leaves and sedges in
wet seeded rice under dry conditions.
The Field Crop Research & Development Center conducted a study to find a method for
rapid decomposing of straw using Trichoderma harzianum fungus. It was found that the
decomposition of straw becomes faster with the application of Trichoderma harzianum
than application of urea to straw and normal straw decomposition.
The Field Crop Research & Development Center also conducts soil testing programs for
the benefit of farmers. The analytical reports with fertilizer recommendations and
necessary instructions are sent to the farmers for carrying out their cultivations. This
service is mainly helpful for farmers for farming economically and long-term land
improvement.
With regard to irrigation problems technologies related to drip irrigation, such as micro
irrigation systems have been used to cultivate coconut, banana, pineapple and a variety of
other products specifically in the dry zone. These have been very successful and have
yielded a five to six fold increase in production.
4.1.1 Farmers’ Forum
Twelve forums were conducted to make farmers know about new technologies developed
in the Out Field Crops, vegetable and fruit sectors in 2002. For these, 302 farmers
participated.
During the year 2002, Field Crop Research & Development Center produced and issued
breeder’s seeds of 18 Out Field Crops and 2 vegetables.
Amount issued (Kg)Crop Variety Requirement(Kg)
Maha
2001/2002
Yala
2002
Total
40.0 40.0
25.0 25.0

10 – 11 October, 2003
Tissa 40 20.0 20.0
Maize Aruna 10 9.0 9.0
Ruwan 10 9.0 9.0
Finger Ravi 02 2.6 20.0
Millet Ravana 0.5 0.5
Greengram MI-5 15 14.85 4.5 19.35
Harsha 6 3.0 5.0 8.0
Ari 10 10.0 - 10.0
Blackgram MI-1 10 10.0 - 10.0
Cowpea MI-35 05 5.0 - 5.0
The Dry Zone Agricultural Development Project (DZADP) aims to increase the
agricultural productivity of 16,000 farm households in the 'dry zone' districts of Northern
Kurunegala/Anuradhapura, Polonnaruwa, Hambanthota and Moneragala. DZADP will
improve farming, irrigation, harvesting, storage and marketing of rice paddy cultivation
and support agencies to respond to the needs of farmers and provide farmers with quality
services.
The use of nanotechnology in agriculture has the potential to reduce crop waste, and has
the ability to monitor crops more effectively than before as well as fundamentally
redesigning the DNA structure in plants. The implications of nanotechnology for
developing countries are that the geographic location of raw materials becomes relatively
irrelevant for the world. As most raw materials are imported from developing countries to
the developed world, the impact on the developing world is detrimental.
Nanotechnology has not been adopted in Sri Lanka and there are no plans to use it in the
future either.
In the coconut sector several advances have been made such as treatment system for
desiccated coconut effluent (coconut water). An Anaerobic granular bacterial treatment
system has been introduced to treat the above and the by-products such as biogas can be
used as a boiler fuel.
Instead of manual de-shelling, a motor operated mechanical de-sheller has been installed.
This has improved the efficiency of the process of de-shelling coconuts in large estates.
The introduction of steam operated , vibrating type modern dryers instead of
conventional desiccators has ensured better quality products as there is no direct
contamination of the product with flue gas.
In conventional dryers, hot air is generated by using air to air heat exchanges where flue
gas is passing through one side. Therefore, the possibility of contamination is very high.
In the new dryer, hot air is generated by using steam to air heat exchanges and drying
temperature is electronically controlled to achieve better product quality.

10 – 11 October, 2003
The Tea Research Institute has been instrumental for the development of various types of
new varieties of that have high yields and are resistant to pests and harsh weather
conditions.
4.2 The use of technology in education
Information and communication technologies can be used to facilitate education among
the rural poor, who often do not have access to education. The Central Bank Report for
2002 reveals that the number of schools in rural areas has dwindled compared to 2001.
In this context, distance learning based education can fill the gap created by the lack of
formal education. Technology can be a very useful tool, as it is to able facilitate distance
learning and this method has been used by several non-government organisations to reach
children and women in rural areas. The transfer a great deal of information across various
geographies to different types of people at the same time is a very distinct advantage. The
crucial factor would be whether rural people have access to these technologies and can
afford them.
4.3 The use of technology to improve sanitation
Safe drinking water at both community and household level can be provided through the
deepening of existing wells and the installation of additional hand pumps in each area.
Sanitation and refuse disposal should be improved to reduce water contamination.
4.4 The use of technology in irrigation
Agriculture in these communities is dependent on sustainable ground water supplies.
Through repairing existing reservoirs, improvements in water conservation have been
possible. Water-harvesting systems have been able to minimize wastage of water.
4.5 The use of technology in transport
The lack of a developed road network is evident in the rural areas of Sri Lanka. The
bicycle is the main mode of transport for communities living in these areas. Simple
innovations such as a cart to the bicycle can improve the livelihood of these people
4.6 The use of technology in rural areas of Sri Lanka
The Kothmale Community Radio Internet Project is an attempt to extend the benefits of
information and communication technology (ICT) to some of the remote areas of Sri
Lanka through the innovative convergence of two media, the radio and the Internet.
Most of the radio broadcasts use information collected by browsing the Internet; this
information is then discussed with listeners on the air. The Internet access points
established in the community enable direct computer access and respond to the

10 – 11 October, 2003
information needs of various groups in the community which consists of 60 villages and
3 rural towns.
An online database of information requests is maintained, and a web page in local
languages enables active community participation in the operation of the radio.
Easy and free access to information has been effectively used by community members for
business, educational, recreational and other purposes. More than 30 web pages have
been created by community youths. In addition, an Internet club and a listeners club have
been formed. The radio station has become an integral part of the community, with
people actively participating in interactive programs, contributing compact disks and
songs to the station, and using the information aired on various programs to upgrade their
businesses or learn more skills.
However, the operational and financial sustainability of the project needs more attention
and consideration needs to be given to better utilization of technical capacities for
increasing revenue. In addition, the project has reached a point where staff-management
coordination requires review and remedial action.
The following table presents some economic, social and digital indicators with respect to
four provinces in the island carried out by the Consumer Finances and Socio Economic
Survey- Central Bank of Sri Lanka 1996/1997.
Indicator Western North
Central
Uva North
Western
Average of
seven
provinces
Average Income per
month per spending
unit in Rs.
12,712 6,434 6,096 7,095
Availability of
electricity (percentage
of households)
76.8% 40.3% 48.7% 40.5% 56.8%
Literacy Rate 96.4% 91.4% 86.8% 93.1% 91.8%
Availability of
Telephone/Mobile
phone (percentage of
households)
10.3% 1.8% 2.1% 1.1% 4.5%
Availability of personal
computers
0.9% 0.0% 0.0% 0.1% 0.4%
Source: The Island, Friday 25th
July,2003, page 16.
Studies conducted by SLT have revealed that 87% of Internet traffic could be attributed
to exchanges in Colombo district. Kandy came next with a mere 2%. The rest of the
country contributed only 11% of Internet traffic.

10 – 11 October, 2003
The rural Internet penetration is low due to several key reasons. They can be summarized
as follows.
In a survey conducted by a Business Consultant at Asia Soft Solutions, a reputed
software company, it was revealed that among 244 Internet users in Anuradhapura,
Polonnaruwa, Puttalam, Matale and Hambanthota districts, 25% found the surfing
charges very high, while 66% called them high.
Low level of computer literacy in the country is a major drawback. Unlike in India,
where vernacular languages constitute a large percentage of the local web content, in Sri
Lanka still English holds sway. Not even many of the local government organizations
have bothered to present their content in Sinhala and Tamil. This creates an unbridgeable
gap between technology and the users given the comparatively low level of English
particularly among the rural folk.
Attitude problems especially among the older generation who feel that the Internet is not
for them have also proved to be a barrier in the proliferation of the Internet. The above
survey also revealed that only 15% of the respondents were above 45 years of age and
most of the users were those in their twenties and thirties.
Technical issues such as difficulties in obtaining computer maintenance services, user
support services etc at the village level have also caused problems for rural folk.
In this context, the introduction of Information and communication technologies in rural
areas should be prioritized as the proliferation into rural areas has been rather
insignificant in terms of volume. The fact that a majority of the poor population living in
the country are in rural areas should also be considered.
Another interesting point is that the rural user has to pay more than his urban counterpart
does to use Internet facilities. This is because in many cases an outstation user has to dial
a server in Colombo paying national telecommunication charges, while the Colombo
users pay only local charges. Some telecommunication service providers have taken steps
to address this situation by specifying local charges for Internet users irrespective of the
location from where they dial-in, but that solution has still failed to overcome the issue
completely.
The government has taken several steps to overcome this situation. Approximately one
fourth of the installation cost of a payphone booth, that is installed in a rural area are
being subsidized by the government. The scheme was introduced in the latter part of
1999.
License conditions of Wire Less Loop operators have been modified to facilitate
incentives to those who give new connections to rural areas.

10 – 11 October, 2003
PC's per 100 inhabitants Vs Internet users '00
0
0.2
0.4
0.6
0.8
1
1.2
Bhutan
IndiaIndonesia
PakistanSriLanka
Vietnam
PC'eper100
inhabitants 0
1000
2000
3000
4000
5000
6000
Numberof
InternetUsers
Pcs/100
Users (k)
4.7 Technology as a means of promoting feedback from the poor
Feedback is essential in order to gauge the impact of poverty reduction strategies on the
poor. Technology facilitates such feedback through means such as e-mail. However, the
point remains whether the rural community will be able to make effective use of such
means as they are unaccustomed to technology.
In other countries in the West in particular, senior citizens are provided the opportunity of
communicating with their respective governments, government departments and also
with senior members who hold office such as even the president through e-mail. However
in Sri Lanka technology has not been used for such purposes. This could be because
technology penetration has been quite low and senior citizens in particular in Sri Lanka
think that technology is not for them.
5. Government Recognition and Commitment for Technology Development
Government recognition of the importance of technology and commitment to technology
development are very important factors in technology development of a country. Turning
back to the recent history of Sri Lanka, following initiatives and events taken by different
governments highly influenced the technology development of the country.
• 1978 elected President J.R. Jayewardene was the pioneer in understanding the
importance of S&T and R&D for Sri Lankan economic growth and development.
• In 1982 June the National Science Council was taken under his direct purview
and the main role of this body is to advice the President on S&T issues.
• In 1984 May the President requested to formulate a National Science Policy Plan
and Implementation Document. This was done in 1985 April. This Committee
was headed by Prof Cyril Ponnamperuma and they formulated S&T policies for
eight economic sectors.
• From 1984 onwards various science and technology agreements were signed with
various governments and various bodies such as CINTEC and Arthur C Clarke
Centre, etc were set up.
• In 1994 Cabinet level Ministry of Science and Technology was established giving
due recognition to importance of S&T.

10 – 11 October, 2003
• The Ministry of Science and Technology has focused on ten identified thrust areas
of industry in which Sri Lanka has the potential to become competitive in the
world market. An ADB funded project (ADB/STPDP covering 7 universities and
5 R&D institutes was initiated in 1998 to train S&T personnel in these trust areas.
The creation of a technology watch is also part of this project.
• The National Science and Technology Commission (NASTEC) was formed by an
Act of Parliament, and came into operation in August 1998. It has been designed
as the Apex Policy Formulating and Advisory body to the Government of Sri
Lanka on Science and Technology matters.
• Present government has taken initiatives to develop SMI through various policy
measures and incentives. Number of foreign funded programmes is on going with
respect to this SMI technology capacity building.
Among the on going activities of S&T development, the Science and Technology
Personnel Development Project under the Ministry of Science and Technology and
activities of the Ministry of Enterprise, Industrial Development for the development of
SMI are important milestones.
Even though successive Sri Lankan governments have taken various steps in technology
development there is much more to do to bring our technological status to some satisfied
level. One of the major drawbacks is the lack of a proper technology policy framework
integrated with an industrial development framework. First, the government should try to
improve the macroeconomic policies to encourage faster innovation. They can introduce
tax and other incentives for innovation, with special emphasis on speeding up the
innovation in response to foreign challenges. APCTT report (1986) explains three major
types of instruments which can be used to formulate effective technology policy; these
are Legal Instruments, Financial Instruments and Fiscal Instruments. Parallel
development of industry and technology is a must for the sustainability of both. It is
worthwhile to consider the framework developed by Gunawardane (2000), which stresses
the need of Centre for Transfer and Development of Technology (recommended by
UNCTAD mission in 1976) and Industrial Development Bank.
It is also important to educate the public and business enterprises about the technological
and marketing forces/changes and necessary structural changes in response to them.
Presently part of this requirement is fulfilled by the Technology Watch Centre of the
National Science Foundation by providing the information on Technology Development
in other parts of the world.
S&T community should be given the due recognition to build Sri Lanka’s own Science
and Technology capability. The working and living conditions of S&T personnel have to
be improved. Allowances and perks such as housing, transport and schooling for their
children should be provided.
Creation of a Science and Technology culture is another important role that the
government should take necessary initiatives. Programs can be started at both school
level and national level. Government rural lab program, media (television, radio and

10 – 11 October, 2003
newspapers) publication (books, journal, web) are some of the means which can be used
to create the S&T culture in the country.
Representation of the Science and Technology Ministry in the Cabinet is very important.
Non representation of S&T ministry in the cabinet will directly affect the future
development of the technology since all the key decisions are taken by the cabinet.
Technology development is mainly influenced by the country’s education and industry.
These subjects are governed by the various administrative bodies and thus continuous
dialogue at the ministerial level is essential for proper progression of technology.
5.1 Human Resource Aspects
There are four major ways of getting human resources for S&T. These are:
• Technical Institutes
• Universities
• Migration of qualified people to the country
• Use of foreign technical personnel and consultancy services
According to the statistical Abstract of Sri Lanka, more than 20,000 are enrolled for
middle level technical courses and about 30,000 are enrolled for vocational training
programs directly related to technology. Sri Lankan universities have produced only
about 1000 graduates in natural science and about 650 graduates in engineering in 2001.
Even though the Sri Lankan education system produces only a limited amount of human
resources for S&T, the Sri Lankan industry is not capable of providing satisfactory jobs
in the S&T discipline. Due to the reduced demand for the S&T disciplines in Sri Lanka,
many graduates from technical colleges and universities leave the country for foreign
employment while some are employed in non-technical disciplines. Unattractiveness of
employment in S&T disciplines is evidenced by the inclination of S&T students
following Professional Management and Business courses like CIMA and CIM. (For
example, about 30% of engineering undergraduates of the University of Moratuwa follow
CIMA or other Professional Management course). The most sympathetic situation is that
almost all the brilliant students (top 10% of the batch) are enrolled in professional
management courses in addition to their regular degree program and will be employed in
management, business and banking disciplines after graduation without giving much
technology input for the progression of the country.
The status of the scientists and technologists is poor compared to professionals in other
disciplines and S&T professionals suffer because of the following problems.
• Poor income standards and living conditions
• Inadequate facilities to do research
• Constraints to update their knowledge
• The tendency to devalue the importance of our S&T personnel by relying excessively
on foreign experts.
• Relatively low social status in comparison with other professions.
• S&T personnel are not given due place in decision-making.

10 – 11 October, 2003
This situation results in high mobility of the S&T professionals from Sri Lanka to
developed countries. In the long run, such asymmetric mobility is likely to widen the gap
between rich and poor nations, offsetting all efforts to bridge the disparity in S&T
capacities between developed and developing countries. A study conducted by the
Committee on Science and Technology in Developing Countries (COSTED) of the
International Council for Science (ICSU) involving three Asian countries, Bangladesh,
India and Sri Lanka revealed that out migration of S&T professionals is a serious issue in
Sri Lanka and Bangladesh for many reasons. Government funding of education up to the
Bachelor’s degree in Sri Lanka results in significant loss to the government as a result of
out-migration. This study gives the following recommendation for solving the problem.
• Mobility cannot and should not be arrested;
• There is a need to keep a systematic global watch on trends in the movement of S&T
Professionals, that may help developing countries to evolve their national framework
of human resource development;
• Mechanisms be created for retaining and making the best use of exceptional talents
within the country;
• Favourable environment should be created for attracting resources for world-class
education and research institutions in developing countries to retain talented
professionals;
• Measures and programs to attract nationals overseas either temporarily or
permanently should be formulated.
5.2 R&D and Technology Capabilities
5.2.1 R&D Expenditure
According to the National Science Foundation (NSF) survey the total R&D expenditure
in the country was Rs 1492 m in the year 2000 compared to Rs 1410 m in 1996. Hence,
the GERD/GDP ratio for the year shows a fall to 0.17%. However, this figure needs
adjustments to accommodate under presentation of figures in certain areas/sectors in the
national S&T system. With these adjustments, the total expenditure on R&D can be
estimated as Rs 1810 m, which is 0.19 % of the GDP in the year 2000. From these
figures, it can be seen that Sri Lanka is still struggling to achieve the GERD/GDP ratio of
0.2%, which is far below the recommended figure of 1% from the national GDP for the
developing countries.
The R&D expenditure according to the type of expenditure shows that more than 69%
was spent as recurrent expenditure. The R&D institutions, which contribute to more than
67% of total R&D expenditure in Sri Lanka, shows that more than 67 % of recurrent
expenditure is spent on salaries and wages. From these figures one can categorize that the
R&D in Sri Lanka, as a labor intensive research based one.
Table 1: R&D Expenditure – by nature of research activity

10 – 11 October, 2003
Year 1984 1996 2000
Nature of activity Amount Rs.M
(Per cent)
Amount Rs.M
(Per cent)
Amount Rs.M
(Per cent)
Basic Research 24.75
(10.0 %)
446.30
(32.0 %)
363.6
24.0 %
Applied Research 185.16
(72.0 %)
867.30
(61.0 %)
743.9
50.0 %
Experimental Development 46.89
(18.0 %)
96.00
(7.0 %)
385.2
26.0 %
TOTAL 256.80
(100 %)
1409.60
(100 %)
1492.6
100 %
(Source: Science and Technology Statistical Handbook 1996 & NSF unpublished report))
It can be seen that the R&D activities in the year 2000 were more oriented towards
experimental development activities (from 7% in 1996 to 26% in 2000) than in 1996. The
above change in nature of R&D activities can be considered as a reflection of the
economic policies of the country towards industrialization and the response of the public
sector research institutions to these industrialization policies by expanding their R&D
activities at the cost of basic and applied research.
Table 2: R&D expenditure (Rs. M) - discipline and type
Discipline 1984 1996 2000
Natural Sciences 30.70
(12.00 %)
318.30
(22.60 %)
441.9
(30.0 %)
Agriculture 153.40
(59.80 %)
669.20
(47.4 %)
341.1
(28.0 %)
Engineering 32.80
(12.80 %)
164.30
(11.60 %)
255.9
(17.0 %)
Medical Sciences 13.30
(5.20 %)
136.60
(9.70 %)
159.8
(11.0 %)
Social Sciences 26.5
(10.20 %)
121.20
(8.60 %)
238.1
(16.0 %)
TOTAL 256.70
100 %
1409.60
100 %
1492.6
100 %
(Source: Science and Technology Statistical Handbook 1996 & NSF unpublished report)

10 – 11 October, 2003
According to the Table 2, it can be seen that % R&D expenditure drops in Agriculture
sector and increases in Natural Science. The above changes are due to the significant
changes in R&D expenditure by the private sector industrial organizations carrying out
research in natural sciences and Engineering & Technological research are the major
reasons for the above.
5.2.2 Patents in Sri Lanka
According to the NSF survey (Amaradasa, et al., 2002), a total of 461 patents had been
registered with the National Intellectual Property Office of Sri Lanka (see Table 3). The
growth trend of a patent is a clear indication of the rising interest of innovators in
protecting intellectual property. A significant conclusion of the NSF study was that the
smaller contribution of patents both by commercial organizations (22%) and by public
research institutes (6%), as compared to the contribution of 72% by individual inventors,
was a reflection of the weak innovative character of the organized sector. It could be
observed comparatively higher amount of patents in dryers and dehydration technologies,
food and beverage processing, agricultural systems and energy saving.
Table 3: Distribution of patents according to NSF classification
No. of patents grantedNSF
classification 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 Total
Dryers/Dehydration
Technologies
3 1 2 1 2 1 4 1 3 2 20
Food & Beverage
Process Technology
2 1 1 2 5 2 2 4 4 1 24
Rubber Production
& Processing
Technology
3 1 3 3 6 2 1 1 1 1 1 2 25
Agricultural
Systems &
Development
1 2 1 3 1 4 2 2 1 4 1 1 6 6 35
Construction
Technology &
Materials
3 3 1 1 1 2 2 1 2 2 3 21
Packaging &
Packing Materials
2 2 1 1 2 1 3 4 1 3 3 1 1 25
1Energy
Saving/Generating
Devices
1 1 3 1 3 2 2 2 9 2 4 3 8 7 8 2 58
Process
Technology-
Manufacturing
Sector
2 2 1 1 3 2 2 1 1 5 3 7 30
Process
Technology-
Miscellaneous
1 1 3 3 1 5 1 1 3 6 3 3 4 6 5 46
Innovations- 1 1 1 2 2 1 1 2 2 5 3 2 12 3 1 39

10 – 11 October, 2003
Domestic
Appliances/Utilities
Innovations-
Miscellaneous
4 2 3 5 3 1 1 5 4 2 4 3 3 17 9 13 79
Product
Development
4 1 1 3 4 4 1 4 1 3 10 8 12 3 59
Total 13 9 13 18 17 29 16 26 20 30 19 25 29 33 65 55 44 461
(Source: Amaradasa et al., 2002)
5.2.3 Future Directions of R & D
Majority of the R&D activities related to traditional industries are limited to improve the
existing technologies to improve the productivity and diversification or improvement of
the quality of existing products. There are limited R&D for developing innovative value
added products. For example, R&D related to tea industry mainly concentrates on new
machinery and new flavors even though there are possibilities for cosmetic applications
such as perfumes and facials.
Utilization of local raw materials is essential for industrial development of a country. Sri
Lanka is rich with natural resources (e.g. industrial minerals, plants, animal products,
seawater). All these natural resources can be exploited to obtain valuable commercial
products (e.g. silica and quartz mineral for electronic grade silicon, seawater for
chemicals). Most of the natural resources are non-renewable. Thus, the present practice
of exporting these resources without value addition should be prohibited and the
maximum benefit has to be obtained from these resources. Product and process
technologies should be developed to give maximum value addition to local raw materials.
Harvests are wasted because produce cannot be stored or processed. Under this situation,
R&D for high yield is useless. Parallel development of technologies for high yield and
post harvest food processing, packaging and transport should be carried out. This
situation is not different even in the other sectors. Therefore the coordination between
technology development activities is essential.
Fig 1: Technology development directions
FD I
Interest
T extile an d
A pparel
Low value added lab or
intensive Industries
Low
equilibrium
trap
A ssem b ly
M od erate skills
and value add ed
Ind ustries
E lectron ic
H igh skills and
value add ed
Ind ustries
B io-
T ech nology
Soph isticated
and know led ge
based Industry
Level of
T ech nology
T im e

10 – 11 October, 2003
People need not only jobs, but high quality industrial jobs that enable people to learn
new, adaptable technological skills. However, presently the majority of the industries in
Sri Lanka do not use much advanced technologies while adding low value to the product.
Most of the foreign direct investment target these industries and provide just jobs without
much enhancement of the quality of life. Non availability of adequate technological
capabilities is one of the major reasons for the Sri Lankan industries being in this low
equilibrium trap. Thus future technology development activities should be targeted to
attract the industries like automobile assembly, electronics and biotechnology.
Inter-firm relationship in technology development activities is at a very low level in Sri
Lanka. Cooperated R&D activities will help to reduce the high level of risk and R&D
expenditure. Technology Management literature shows three levels of cooperation as
follows:
i. Research and development cooperation
Cooperative activities can be carried out in the pre-competitive stage in different form:
University based cooperation research financed by associated firm, Government-industry
co-operative R&D projects with universities and public research institute, R&D
cooperation on a private joint-venture basis.
ii. Technological cooperation
Cooperate agreement can be formed to transfer and share the technology between firms
in the competitive stage. Corporate venture capital in small high tech. firms is another
form of cooperation.
iii. Manufacturing cooperation
Firm can build up the partnership for manufacture the end product.
Availability of S&T indicators is important to measure the S&T capability of the country.
National Science Foundation (NSF) does a fairly good job by tabulating such data. NSF
work should be extended to provide a comprehensive analysis and to set a benchmark by
looking at the performance of organizations of other countries. This will help R&D
organizations to set their target and measure their performance.
5.3 Universities R&D Institutes in Technology Development
R&D activities of universities and R&D institutes provide a major contribution to the
technology development of country. In addition to R&D activities, universities contribute
to technology development by producing the required human resource base.
5.3.1 Contribution of Universities for Technology Development
Even though Sri Lankan universities provide valuable human capital for country’s
technology development, contribution is at a lower level compared to develop and other
newly industrial countries. Only three Sri Lankan universities have Engineering Faculties

10 – 11 October, 2003
(excluding Open University). According to statistics of University Grant Commission
about 60% graduates are from non science/technical disciplines.
Major emphasis of Sri Lankan universities is on undergraduate teaching while less
priority is given for research. Majority of the postgraduate courses are part time taught
courses which do not produce valuable research output. Even though there are some
research activities carried out in the universities, R&D output is at a very low level. This
situation is evidenced by the universities’ share of the patent which had been less than
1%. In order to bring the university research to acceptable levels, universities should
successfully face the following challenges.
• Difficulty in retaining and recruiting best graduates in the academic staff
• Doctoral degree holders from west do not return back (Brain drain)
• Red tapes, Bureaucratic hurdles
• Lack of research funding
• Less opportunities for publications
Table 4: Graduate output of Sri Lankan universities by academic stream
Faculty / Academic Stream
UNIVERSITY
Year
Arts
Management
Commerce
Law
Science
Medicine
Dental
VeterinaryMedicine
Agriculture
Engineering
Architecture&
QuantitySurveying
ComputerScience&
IT
Total
TOTAL
Graduate
Output
1995
2000
2001
1590
3656
3256
62
1646
1601
285
802
766
140
173
182
844
1264
1052
442
904
801
66
77
71
37
70
226
249
365
458
548
653
56
55
79 _
4206
9374
8896
(Source: Sri Lanka University Statistics, University Grant Commission, 2002)
Course of Study University Number
MSc in Computer Studies UCSC, UOK 200
MSc in IT UCSC 100
BSc sp. UCSC 120
BSc IT Honours UCSC 40
BSc IT UOM 50
BIT UCSC 5000
BSc General with Computer
Studies
All universities 1000

10 – 11 October, 2003
Abbreviations: University of Colombo School of Computing [UCSC], University of
Kelaniya [UOK], University of Moratuwa [UOM], University of Peradeniya [UOP],
University of Colombo [UOC], University of Sri Jayawardenapura [UJP].
Until the recent past there has not been much interaction between the universities and
industry. This may be one of the reasons for low level of research in the universities.
During past few years some initiatives have been taken to build up the relationship
between universities and industry. Some of the examples are:
• University Industry Interaction Cell, University of Moratuwa
• Design Centers (University of Moratuwa, University of Peradeniya)
• Ruhuna Business Incubator (Collaboration with University of Ruhuna)
• Faculty/department – industry consultative boards
Presently, these bodies are at their infant stage and mainly provide existing knowledge of
the university academics to industry in the form of solutions for some industrial problems
and continuous education rather than developing new technologies for the industry. By
recognizing the importance of university-industry interaction, Science and Technology
Personnel development project funded by ADB has funded many of these university-
industry interaction bodies. In addition to above forms of university-industry partnership
we to give serious thought for a Science/Technology Park in the near future.
5.3.2 Technology Management Education
Improper management of technology is one of the key reasons for retarding the
technology management of any country. Neither engineering education nor management
education recognized the importance of technology management until 1998 in Sri Lanka.
In 1998, University of Moratuwa under the Department of Management of Technology
(MOT) took an initiative to train future technology managers of the country.
Management of Technology has been introduced as a subject at undergraduate level. A
specialized MBA degree program in Management of Technology has been started in
2001 and now this program has two batches. This program comprises of a number of
Technology Management subjects such as Technology Transfer, R&D and Innovation
Management, R&D Commercialization, Technology Policy and Social Shaping of
Technology. Research degree programs (MSc, MPhil and Ph.D) in Technology
Management, short courses and executive diploma (proposed) are some of the activities
carried out by the Dept. of Management of Technology, University of Moratuwa to
disseminate the knowledge in Technology Management.
5.3.3 Contribution of R&D Institutions for Technology Development
There are about 20 R&D Institutions in Sri Lanka according to the National Science
Foundation listing in Sri Lanka. In addition to these R&D institutions, about 10
professional and S&T support institutions are operating in the country. Even though these
professional and S&T support institution are not directly involved with the R&D

10 – 11 October, 2003
activities, they make a valuable contribution by providing research funding and operating
S&T journals for the publication of research outcomes.
About one quarter of the R&D institutions are mainly dedicated to agriculture based
industries. Only a few research institutions are dedicated to engineering and modern
technologies. During 1994-1997 periods, there were 94 international publications from
Sri Lankan R&D institutions (NSF statistics). 45 out of 94 were published by the
Industrial Technology Institute (ITI – former CISIR). Public funded research institutes
own only 6% of the patents registered at NIPO 1980-1998. Again it could be noticed that
the majority of the patents are owned by ITI (Amaradasa, et al., 2002). The Rubber
Research Institute of Sri Lanka (RRISL) is another contributor of innovations for rubber
production and processing technologies. The World Intellectual Property Organization
has awarded the “Scientist of the Year 2000” Gold Medal to Director of RRISL in the
recognition of the number of implementable patents produced by himself and his
colleagues. Looking at the R&D performance of the institutions, it could be noted that
few organizations are dominating. Lack of commercialization is another weak area of the
local R&D institutions.
The following common problems can be identified as the major factors which degrade
the performance of local R&D institutions.
Factors hindering local R&D activities
Limited funds for R&D
Poor access to knowledge (lack of IT facilities)
Non-empowerment of researchers
Factors hindering commercialization
No clear commercialization policies
Lack of information about market signals
Slow response due to bureaucratic structure and rigid policies
Lack of commitment of top management
Poor relationship with industry
5.3.4 Initiatives to promote technology among school children
The Ministry of Human Resources, Education and Cultural Affairs has planned to
provide computer laboratories in 800 schools, many in the rural areas.
Both the Government and the private sector have launched a number of programs in
computer and information technology field through which the usage of IT has been
widespread in many crucial sectors.
Computers have been introduced to schools and computer education facilities are
available in both public and private sector educational institutions. The Internet usage is
becoming popular by day and Internet service providers are looking forward to a
competitive and lucrative market.

10 – 11 October, 2003
Education reforms presently being implemented emphasize on the importance of school
libraries and also on inculcating information skills among school children. The market
economy demands youth with high IT skills. Rural electrification schemes enable new
technology to reach all parts of the country.
6. Implications of the use of Technology to eradicate Poverty
In the era of globalization, new technologies are rapidly reshaping the livelihoods of
people throughout the world. The pace of technical change is increasing and it is beyond
the capacity of society to understand and manage its impact.
Technical change has helped people in their daily battle for survival. New and improved
technologies can help people living in poverty improve their livelihood options, increase
productivity and incomes, improve the quality of goods and services that they use, and
enhance the quality of their lives if technologies are used in ways that are appropriate to
their context and needs.
Despite the potential of new technologies to change the livelihoods of people living in
poverty they have limited access to appropriate technologies as well as information and
knowledge about technical options.
From a long-term perspective, people living in poverty need to be able to adapt and select
and use the technology that suits them according to their own discretion.
The president of India, Abdul Kalam once said, “I will drive away poverty with the help
of technology”.
Technology innovation is vital for growth and poverty reduction in developing countries.
Many of the technologies most important for the needs of the poor do exist, but they are
not accessible to them.
6.1 The implications of technology transfer on poverty reduction
International technology transfer through Foreign Direct Investment (FDI) or trade does
not necessarily have a poverty reduction impact. If the technology is not used effectively,
without analyzing the context and the needs of the people, then this form of technology
transfer has little bearing on the technology needs of poor men and women.

10 – 11 October, 2003
To enable the development of technological capabilities that will meet the needs of the
poor, public support for pro-poor R&D and the regulation of trade and investment is
essential.
To facilitate these measures, efforts should be taken to provide financial and technical
assistance to developing countries, support for building R&D capacities in developing
countries and by ensuring that international and national regulatory frameworks including
the regulation of trade, investment and intellectual property rights regimes, enable the
development of technological skills in developing countries.
6.2 Constraints on technology transfer
Foreign Direct Investment (FDI) and International trade are the main modes of
technology transfer. Technology transfer in the form of Foreign Direct Investment (FDI)
increases the capital stock within a country and spreads new technical knowledge to other
firms.
Though there has been a massive increase in the levels of Foreign Direct Investment
(FDI) and expansion in international trade in recent years, the evidence that as a form of
technology transfer they have beneficial effects for local firms and poverty reduction is
far from conclusive.
Foreign Direct Investment (FDI) is limited to select regions in the world such as Asia and
Latin America and therefore the assumption that a majority of developing countries
would benefit is remote.
The legal environments that exist in developed countries don’t facilitate the transfer of
technology to the developing world.
Evidence has suggested that technology transfer does not diffuse to other firms in the
recipient country but rather payments were made from subsidiaries to their parent
companies according to a report by UNCTAD in 1997.
6.3 Technology transfer and poverty reduction
Technology is recognized as a major determinant of economic growth. Yet, the evidence
is at best inconclusive on whether technology transfer contributes to growth and poverty
reduction.
Poverty continues to be the experience of billions of men and women who are excluded
from old and new technologies alike. 2 billion people do not have access to modern, safe
forms of energy supply, 1.5 billion people live in inadequate shelter, 1 billion people still

10 – 11 October, 2003
have no access to safe water, 2.4 billion people have no access to sanitation and 800
million remain chronically undernourished.
The irony is that the technologies to meet these needs are available in developing
countries, but they are not accessible to the people who need them most.
The fact that international technology transfer has no direct link to poverty reduction
stems from the reality that most poor people do not depend on employment in the formal
sector, where Foreign Direct Investment (FDI) is directed. The livelihoods of the great
majority of the poor people in developing countries depend on micro and small scale
enterprises.
An understanding of the relationship between capability and human development is
critical to making technology transfers applicable to poverty reduction. A certain
capability to absorb, select and adapt technologies to local settings and to develop new
technologies through local innovation must be present for effective technology transfer
across all levels, household and national levels. At the house hold level this means a
thorough knowledge of information systems and integrated social networks as well as
local knowledge. At the national level, this involves a national framework that considers
innovative systems accommodating a range of institutions and policies.
The key focus should be on integrating national technology policies and innovation
systems with poverty reduction strategies.
Participatory technology development has shown to be effective as a means of choosing
the most appropriate technology.
Enabling access to new technologies consists of making more productive technologies
available through technology transfer and providing an environment which includes
institutional and financial support to marginalized people.
The vital factor is not just bringing new technologies to the door step of the people but
addressing their organisational, management and marketing skills, opening new channels
of information and knowledge and making credit and markets more accessible.
6.4 Implications for policy makers
Policy makers should recognize the importance of technology as a means of reducing
poverty, but should always focus on the fact that in itself technology cannot eliminate
poverty.
Technology should be adopted after analyzing the specific needs of communities, the
level of acceptability on the part of the community to use technology and by targeting it
specifically towards the pro-poor population in order to eliminate poverty.

10 – 11 October, 2003
The impact of technologies on the poor can be explained in different ways. Technologies
can foster economic growth if they are directly relevant to the lives and needs of the poor
in their communities.
Technologies on the other hand, could marginalize the poor because of the latter
unfamiliar ness with the technology. Recent research has revealed that Internet access is
widely spread in the Western Province in Sri Lanka compared to other provinces where
computer use is not very popular.
Policy makers should particularly note the fact that in order to effectively combat poverty
through means of technology an analysis of the particular needs of the poor is essential.
Technology can only address the information and communication needs of the poor.
However, poverty exists because of a wide range of factors, of which lack of relevant
information and facilities to communicate are but one. Thus, the effective use of
technology will not completely eradicate poverty. However, it might help to reduce
poverty to a certain extent depending on the ability of the technology used to address the
particular information and communication needs of the poor.
Importance should be placed not on technology in itself, but on the specific user and their
particular needs. Technology should be implemented in any context by taking these into
consideration.
6.5 Implications of technology change for people
Poor people have limited assets and are particularly vulnerable to social, political or
environmental factors. They may have limited access to markets. The use of technology
increases production, so there is no point in introducing technology if they have limited
access to markets. There is little point in providing electricity if user charges are going to
be unaffordable.
Technology change at the micro level undoubtedly can contribute to poverty reduction,
whether through poverty increases or quality of life changes. However, a one-off change
in technology is not enough. The need to enable men and women to continue to adapt and
develop technology in response to the changing circumstances that they live in is of
paramount significance.
Adoption of new technologies should also focus on upgrading the skill and capabilities of
the user. This will enable poor people to make the choices that they want to.
The relationship between the capability to make technological change and human
development is the key to understanding how technology can be made to contribute to
poverty reduction.

10 – 11 October, 2003
6.6 Framework
The above framework identifies the factors that influence poverty reduction.
Needs of the poor
Poverty
reduction
Context Technology
Economic
growth
New
Technologies
Government
Policies

10 – 11 October, 2003
New technologies have a significant impact on economic growth which in turn leads to
poverty reduction. Though economic growth prompts gradual elimination of poverty,
other factors if not addressed at the outset will halt the progress made to eradicate
poverty.
These factors include the context within which the poor are based, their specific needs,
government policies such as macroeconomic management and the proper management of
the technology that is introduced as a measure of poverty reduction.
The needs of the poor and the contexts within which they live are different across
countries and even within the same country. The factors that propel them towards poverty
are also significantly different. Thus, the necessity to consider these factors in the
adoption of technology is crucial.
Maintenance and training the poor to make vital decisions about the use of technology are
important to ensure that technology is used effectively. This will mean that technology is
adapted to the specific contexts of the poor and will give greater benefits to them in the
long-run.
6.7 Concluding remarks
• Sri Lankan history in Technology Development was not so successful. Prior to
independence it is obvious that the state deliberately ignored technology issues which
are not the domain in plantation agriculture. But after independence, the most
significant reason for the failure was a lack of high level political commitment and
support for the R&D activities.
• After the 1977 economic reforms the government has taken considerable effort to
develop the country as a newly industrialized country based on S&T. Due to matters
such as lack of improvement of the conditions of S&T community, non development
of proper S&T policy framework, lack of a S&T culture and uncertainties brought
about by the ethnic conflict, the effort for S&T development was not very successful.
• Sri Lanka R&D expenditure is well below the recommended value for developing
countries; R&D is much labour intensive.
• There is a growing interest in obtaining patents. Organized sectors are weak in
obtaining patents.
• Due to the poor living condition of the S&T community, many graduates from S&T
disciplines seek employment in other fields and qualified S&T professionals leave the
country.
• Still the majority of the university graduates are in non-S&T disciplines. Less
emphasis is given for research at university level. In the recent past some initiatives
have been taken for university industry interaction.
• In terms of Technology indicators some R&D institutions are dominating others.
Lack of commercialization of R&D is a major problem in all the institutions.
• Despite the fact that technology can be used to eliminate poverty, other means should
also be analyzed before technology is adapted to any context.

10 – 11 October, 2003
• The disadvantages of using the technology should be taken into consideration before
it is implemented. The implications of factors such as costs should be closely
analyzed as the target group are living in poverty and the consequences of ignoring
crucial factors such as these could be severe.
• The particular needs of the people, what knowledge is needed to use it, as well as how
to maintain technical systems should be addressed before implementation.
• Technology should be implemented in such a way that it will not serve to be a barrier
to the day to day lives of people living in rural communities.
• Sri Lanka should develop the acquisition, adaptive, operative and innovative
capabilities in line with the country’s factor and resource endowments. While
acquiring the technology all the components of technology such as techno ware
(machine embodied form of technology), human ware (human embodied form), info
ware (information embodied form) and orgaware (organization embodied form)
should be obtained to gain maximum benefits and to create national technology
capabilities.
•
•
6.8 References
1. Amaradasa, R.M.W., De Silva, M.A.T., and Pathirage, R.P. (2002) Patents in a Small
Developing Economy: A Case Study of Sri Lanka, Journal of Intellectual Property
Rights, Vol. 7. 395-404.
2. APCTT (1986) – Technology Policies and Planning Sri Lanka, Asian and Pacifica
Centre for Transfer of Technology.
3. Goonalitake, S., (1976) Technology and the Societal Context, Engineer, March, 30-
40
4. Gunawardane, R.P., (2000) Master Plan for Industrial Development – a welcome
move, Daily News, January 28, 2000
5. Mendis, D.L.O., (1974) Technology of Development and the Underdevelopment of
Technology in Sri Lanka, Proceeding of the 31st
Annual Sessions of the Sri Lanka
Association for the Advancement of Science.
6. Needham, J., (1956) Mathematics and Science in China and the West, Science and
Society, Vol. 20.
7. NSF Unpublished Reports
8. Science and Technology Statistical Handbook, 1996
9. Sri Lanka University Statistics, University Grant Commission, 2002
10. Wijesekera, R.O.B., (1976) Scientific Research in a Small Developing Nation – Sri
Lanka, Economic Review, Vol.2, 9-13.
Web sources
www.poverty.worldbank.org/library/view/14651
www.poverty.worldbank.org/library/view/14696

10 – 11 October, 2003
www.agridept.gov.lk/RRDI/Rrdi index.htm
www.careinternational.org.uk/cres-work/what/health/general/index.htm

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