In Sri Lanka, with 'great power competition' comes great headaches for MCC

Saturday, 8 August 2020 00:07 - - {{hitsCtrl.values.hits}}

By Michael Igoe

BURLINGTON, Vt. — A proposed $480 million Millennium Challenge Corporation compact in Sri Lanka has become a key political issue in the country — and a referendum on development cooperation with the U.S. in a strategically important part of the world.
After years of preparation, MCC’s board of directors approved the compact in April 2019. It proposes to upgrade transportation infrastructure in the Colombo metro region and to improve land management through mapping, valuation, and improvements to the country’s land registry.
The proposed compact had the Sri Lankan administration’s support until it was voted out of office in November in favor of a president, Gotabaya Rajapaksa, who is viewed as more nationalist and friendlier toward China. Rejecting the MCC compact — on the basis that it would risk Sri Lanka’s national sovereignty and national security — was a central issue in Rajapaksa’s winning campaign. After taking office, the president in January appointed a review committee to revisit the compact and produce a report detailing its potential costs and benefits.
The full version of this article originally published on Devex can be accessed via https://www.devex.com/news/in-sri-lanka-with-great-power-competition-comes-great-headaches-for-mcc-97844