AmCham urges Sri Lanka to consider MCC grant
View(s):The American Chamber of Commerce in Sri Lanka (AmCham) has urged the Government of Sri Lanka to consider approving the Millennium Challenge Corporation (MCC) Compact.
This US$480 million grant focuses on two key constraints to Sri Lanka’s economic growth identified by Harvard University’s Centre for International Development: weak transport infrastructure and weak land administration practices. All of the projects and activities in the programme were proposed by the Government years ago, in extensive consultation with line ministries and departments, business chambers and over a hundred individual firms, civil society organisations, non-governmental organisations, think tanks, banks and local entrepreneurs, Amcham said in a media statement on Tuesday.
“The transport project, if implemented, has an estimated economic rate of return of 19 per cent, while the land project has an estimated economic rate of return of 26 per cent. Both these projects have a further intangible social impact. The transport project will reduce traffic congestion in and out of Colombo; create safer, more reliable public transportation through modernising the bus service; and lower the transport costs required to connect people and goods with markets through upgrades to existing interprovincial roads in the Central, Uva, and Sabaragamuwa Provinces. The land project will support existing, historically under-resourced state initiatives to help the Government create an inventory of state lands; strengthen the land valuation department; increase tenure security for smallholders, women, and firms by scaling up Bim Saviya; and digitise deeds records so that they are less vulnerable to damage, theft, and loss,” it said.
Together, the two projects are projected to benefit 11.3 million people, which accounts for 54 per cent of Sri Lanka’s population.
AmCham Sri Lanka said it was strongly committed towards uplifting the country’s economy and aiding such development that will benefit its membership and the larger business community. “In this light, we call upon the Government to approve this grant, consider the advantageous impact the MCC will have on the country’s economy, and make this a priority before MCC’s Board of Directors meets on September 18,” the release said.