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US puts on hold discussions over SL’s participation in MCC

30 November 2018 04:16 pm - 16     - {{hitsCtrl.values.hits}}

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The US has put on hold its discussions with Sri Lanka on its potential participation in an American aid initiative on poverty reduction due to the disruption in the country's democratic process following the ouster of Prime Minister Ranil Wickremesinghe, a senior official has said.

Sri Lanka plunged into a political crisis after President Maithripala Sirisena dismissed Wickremesinghe and replaced him with former strongman Mahinda Rajapaksa.

Rajapaksa has failed to muster the support of the majority in the Parliament.

"Because of this disruption to Sri Lanka's democratic process, we have put on hold discussions about Sri Lanka's potential participation in Millennium Challenge Corporation (MCC) programmes," the senior Trump administration official told PTI when asked about the relationship with Colombo and the Trump Administration.

The latest move by the Trump Administration could be seen as a setback for Sri Lanka, which was expecting a major investment from the US in the island nations transport and land sectors.

The proposed MCC Sri Lanka Compact was designed to spur economic growth and investment by the private sector to reduce poverty and increase economic opportunities for its people, according to MCC Chief Operating Officer Jonathan Nash who visited Sri Lanka in September this year for talks with Sri Lankan authorities.

The United States believes that the steps taken by President Sirisena were unconstitutional and wants the country to get back to its democratic process at the earliest. The proposed MCC Sri Lanka Compact was designed to spur economic growth and investment by the private sector to reduce poverty and increase economic opportunities for its people, according to MCC Chief Operating Officer Jonathan Nash who visited Sri Lanka in September this year for talks with Sri Lankan authorities.

The United States believes that the steps taken by President Sirisena were unconstitutional and wants the country to get back to its democratic process at the earliest.

Just before Sirisena dismissed the Wickremesinghe government, Sri Lanka and the US were in the final stage of the discussions. The MCC was to fund the compact entirely through grants which do not need to be repaid rather than loans.

Discussions on the MCC would now resume only after the constitutional crisis in Sri Lanka is restored through democratic means.

"We are concerned about the extra-constitutional steps that President Sirisena has taken," the senior administration official told PTI.

"The longer the situation continues, the greater the risk of ethnic turmoil and violence," warned the official.


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  Comments - 16

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  • Wise Donkey Friday, 30 November 2018 04:46 PM

    President is trying his best to make Sri Lanka 'the Zimbabwe' of Asia. No country in the world has accepted this illegal government so far. Isn't this a dangerous situation?

    Joseph Friday, 30 November 2018 05:06 PM

    This is not true, Our new "PM" says that the country is not affected by the current political crisis . he has been travailing across the country and everything is mooing as usual

    Fiverams Friday, 30 November 2018 05:12 PM

    As this major investment is a grant from us we don't mind lossing it , China will give a bigger loan with high interest and the best of commissions.

    sach Friday, 30 November 2018 09:35 PM

    This is not an investment. USA gives this for its puppets. This is a pittance. Infact the country is affected badly by US meddling

    Peter Friday, 30 November 2018 10:39 PM

    Yes, you are right... China will give you all the high interest loans you want... oh, wait...Hambantota comes to mind...

    Gemunu Friday, 30 November 2018 05:20 PM

    Sira/MARA group are ruining the country and its reputation.

    Sara Friday, 30 November 2018 05:20 PM

    No worries, Arjuna Mahendran will bring money for us.

    RAJAPAKSHA HYPOCRITES Friday, 30 November 2018 10:03 PM

    Also don't forget two Rajapaksa's are also Americans.

    Arjuna Friday, 30 November 2018 05:28 PM

    Thank God that China is with us

    valavanpuvitharan@gmail.com Friday, 30 November 2018 05:42 PM

    USA is trying to stir problems by creating ethnic tension. How would an ethnic tension arise if a government changes, seriously USA has no proper reasoning. The last sentence of that article says that USA is worried about ethnic tensions. Why? It's completely unrelated

    Pedro Friday, 30 November 2018 07:11 PM

    USA isn't the country that had a 30-year civil war. Don't bite the hand that feeds you!

    666 Friday, 30 November 2018 05:51 PM

    Sirisena has been bragging about the recognition

    333 Friday, 30 November 2018 07:04 PM

    He remains as American award winner

    Gayan Friday, 30 November 2018 06:46 PM

    Who cares. China gave 32m dollars yesterday.

    Perdo Friday, 30 November 2018 10:33 PM

    And America $34,000,000 to your Navy last month!

    Charlie brown Saturday, 01 December 2018 05:33 PM

    How dare they withold our rightful money ...typical west want us to beg like dogs for a bone ...surely they know the money will be well spent ,on foreign holidays ,sorry fact finding trips , essential political transport ,you can't expect our politicians to use public transport like they do in other countries and monuments to our great leaders ,who saved us in the war you know !!!


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