BASL says Finance Ministry has no authority to sign MCC agreement

The Bar Association of Sri Lanka (BASL) has said that the Finance Ministry has no authority to sign the USD 400 million grant agreement with US-based Millennium Challenge Corporation (MCC).

Issuing a statement, BASL explained that the agreement deals with clauses concerning land and jurisdiction which are outside the purview of the Finance Ministry.

BASL President, Kalinga Indatissa, observed that the agreement “contains many more matters other than a simple agreement to borrow money from the lender”.

He called on the Prime Minister "to honour the undertaking" given this year, that the agreement would not be signed without considering the observations of the Bar.

BASL urged the President to inform MCC and the US government that the agreement, would be "rescinded with immediate effect", if it is signed without being put forward for a debate in Parliament.

The BASL said that it had issued this statement, upon being "reliably informed" that the "Finance Ministry is in the process of making arrangements to sign the MCC today".