Mcc Agreement In Sri Lanka

The opposition`s argument that the agreement should be suspended until after the elections also carries serious risks of losing the entire subsidy due to Sri Lanka`s recentgradation to higher middle income status. Late last month, Sri Lanka`s Cabinet of Ministers approved, in a major step forward, the implementation of the $480 million Millennium Challenge Corporation (MCC) grant and published the final draft grant agreement to the public for review. « This agreement was drawn up by the United National Party (UNP) at its whim, regardless of the interests of the country. We have warned against elections… Gunawardena said. The report was delivered to Prime Minister Mahinda Rajapaksa`s office on Thursday, after which the decision not to sign the agreement was made, he said. The agreement, which included a $480 million grant, was to reduce congestion, improve public transportation in Colombo, upgrade provincial roads and expand existing initiatives to improve land management. This is a standard protection, characteristic of international aid agreements that are used to ensure that subsidies are used exclusively to achieve the pact`s objectives and do not fall into the wrong hands. In Sri Lanka, a presidential committee examining the Millennium Challenge Corporation`s (MCC) draft agreement with the U.S. government expressed reservations that certain clauses could not be implemented legally. But since then, the agreement has been frozen.

Since the organization traditionally only funds low- and low-middle-income countries, Sri Lanka`s recent middle-income status has jeopardized the eligibility of the MCC grant, unless the agreement is signed before 2020, as the country is not on the organization`s 2020 scorecard. The second argument is that the GCC agreement is an attempt to undermine Sri Lanka`s national security. While both allegations have been disputed by MCC country director Jenner Edelman, there remains a suspicion. Colombo, February 29 (IANS) The Sri Lankan government has decided not to sign the Millennium Challenge Corporation`s (MCC) $480 million agreement with the United States, taking into account the recommendations of a committee that found that some of its features threaten the national security and well-being of the island state, he said. « We are open to discussions with the U.S. government, but it will be done with full transparency. If an agreement is signed, it will be concluded with the agreement of the cabinet, with the agreement of Parliament and the public, » he added.