US government’s Millennium Challenge Corporation delegation visit Sri Lanka to discuss large scale grant programme
A delegation from the US Government’s Millennium Challenge Corporation (MCC) led by Managing Director for Europe, Asia, Pacific, and Latin America Caroline Nguyen and Managing Director for Selection, Eligibility, and Policy Performance Daniel Barnes has reportedly visited Sri Lanka last week to gather information and assess the current situation.
Over the last two years, MCC and the Sri Lankan government have worked to develop the proposed MCC Sri Lanka Compact – a large-scale five-year grant programme designed to promote economic growth.
The grant is expected to be about US$ 480 million and concentrate on a range of projects including transport.
The grant was expected to be given in December but was suspended following the Constitutional crisis in Sri Lanka at the time.
Negotiations to resume the grant programme were restarted after resolving the crisis situation.
The MCC Board of Directors selected Sri Lanka for a new MCC compact in December 2016 to encourage economic growth and reduce poverty.
“MCC has been monitoring developments in Sri Lanka over the last few months. This visit is an opportunity to engage with senior Government officials, the private sector and civil society to understand their perspectives about the current situation and Sri Lanka’s commitment to the proposed MCC compact and to MCC’s eligibility criteria,” Nguyen has been quoted as saying. “Our conversations will inform deliberations by the MCC Board of Directors.”
Before the proposed compact can move forward, MCC’s Board of Directors must review and approve the programme, as it does with all compacts.
According to reports, the proposed MCC Sri Lanka Compact is designed to spur economic growth and would invest in projects in the transport and land sectors.
OSL take:
The discussion between the US MCC officials and officials from the Sri Lankan government on a large scale grant for Sri Lanka to cover a range of development programmes is an encouraging sign for foreign businesses/investors to explore business/investment opportunities in Sri Lanka. Sri Lanka’s eligibility to discuss with the US MCC on a large scale grant package also indicates the island nation’s economic stability that gives confidence to foreign lending agencies to extend funds to the country.
| Article Code : | VBS/AT/20190305/Z_2 |