MCC grant offer withdrawn from Sri Lanka

The US Millennium Challenge Corporation (MCC) board on Wednesday decided to discontinue the proposed Rs. 89 billion (US$480 million) MCC development assistance grant to Sri Lanka due to “lack of partner country engagement”, the US Embassy in Colombo said on Thursday.  
“The Rs. 89 billion approved for Sri Lanka will (now) 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,” it said.  
The current government has been dilly-dallying on approving the proposal after publicly saying during the parliamentary election campaign that it would not approve it due to various reasons including provisions detrimental to national security.
“Country ownership, transparency, and accountability for grant results are fundamental to MCC’s development model. 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,” the embassy said.
However it said that the US remains a friend and partner to Sri Lanka and will continue to assist Sri Lanka in responding to COVID and building its economy.