Sri Lanka Cabinet approves US$480mn US Millennium Challenge Corp grant
ECONOMYNEXT – Sri Lanka’s Cabinet of ministers has approved a 480 million US dollar grant from the United States government’s Millennium Challenge Corporation, government officials said.
The agreement between MCC and Sri Lanka is to be signed before the December deadline for the grant offer to expire.
Projects under the MCC grant are to be implemented from January 2020, officials said.
Money from the grant is to be used improve weak transport infrastructure and weak land administration identified as among the main constrains to Sri Lanka’s economic growth.
The Millennium Challenge Corporation (MCC), a U.S. foreign assistance agency that helps combat global poverty, works by forming partnerships with developing countries and disbursing grants on a competitive selection.
The MCC grant was approved by Sri Lanka’s government after months of wavering following opposition from different quarters over fears it would enable too much American influence over the island.
Sri Lanka’s President Maithripala Sirisena had reportedly raised objections to the signing of the MCC agreement.
(COLOMBO, 29 October 2019)