Sri Lanka can terminate MCC deal giving 30-days notice

ECONOMYNEXT – SrI Lanka can terminate a Millennium Challenge Corporation agreement giving 30-days notice and so can the US, while there is no time to sign it before elections, officials said.

Finance Minister Mangala Samaraweera said it took several years for the program to be designed and it was also discussed extensively in cabinet before approval, and there was no haste.

The board of the MCC was to meet in December and if cabinet approval was not given now, the next meeting would be next year, he said.

Treasury Secretary R H S Samaratunga said the agreement once signed can terminated at any time, giving 30 days notice.

Samaraweera said false accusations against the MCC was harmful to the country as the projects in the agreement were designed by Sri Lanka on the priorities set by Sri Lankans and only the cost was borne by the US.

The 480 million dollars was free money, which need not be paid back and the projects will bring big benefits in traffic management, land registry digitization and link roads, he said.