US says will continue partnering SL economy

Friday, 18 December 2020 00:17 - - {{hitsCtrl.values.hits}}

Confirms MCC decision to withdraw $ 480 m grant

The US Embassy yesterday said it would continue partnering Sri Lanka to build its economy after the Millennium Challenge Corporation (MCC) decided to withdraw its $ 480 million grant offer.

As exclusively reported by Daily FT on Wednesday, the MCC Board decided to discontinue the proposed Rs. 89 billion MCC development assistance grant to Sri Lanka due to lack of partner country engagement.

“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 a statement.

The United States remains a friend and partner to Sri Lanka and will continue to assist Sri Lanka in responding to COVID-19 and building its economy, it added.

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, totalling nearly $ 13.5 billion. These grants have lifted millions of people from poverty by catalysing local and domestic investment.