U.S. assures to assist Sri Lanka to build economy despite decision to withdraw MCC compact

(COLOMBO, LANKAPUVATH) – The United States assured to assist Sri Lanka to build the island nation’s economy despite the decision taken by the Millennium Challenge Corporation (MCC) to withdraw from its compact.

The U.S. Embassy in a statement announced that the Millennium Challenge Corporation (MCC) board on December 15 decided to discontinue the proposed Rs. 89 billion MCC development assistance grant to Sri Lanka due to lack of partner country engagement.

The MCC Board of Directors, at its quarterly meeting held on December 15 in Washington, DC, has decided to discontinue the proposed US$ 480 million compact with Sri Lanka and selected new countries as eligible for U.S. Government grant assistance.

“The Rs. 89 billion approved for Sri Lanka will be made available to other eligible partner countries in need of grant funding to pursue their economic development priorities, reduce poverty, and grow their economies,” the Embassy said in its statement.

The statement noted that Country ownership, transparency, and accountability for grant results are fundamental to MCC’s development model and MCC has successfully partnered with nearly 30 countries worldwide on 38 grant agreements, totaling nearly $13.5 billion. “These grants have lifted millions of people from poverty by catalyzing local and domestic investment,” it added.

The statement added that the United States remains a friend and partner to Sri Lanka and will continue to assist Sri Lanka in responding to COVID and building its economy.

 

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