The US Government’s Millennium Challenge Corporation (MCC) expects to invest in projects proposed by the Sri Lankan Government in the transport and land sectors, the US Embassy today said.
In a statement issued over the visit of US MCC Managing Director for Europe, Asia, Pacific and Latin America, Caroline Nguyen, the Embassy said MCC expects to invest in transport and land sectors based on an analysis of Sri Lanka’s economy and the constraints that are holding back private investment and growth.
“The proposed programme seeks to reduce urban traffic congestion, improve inter-regional movement of goods and people and support government initiatives to strengthen land administration,” it said.
In December 2016, MCC’s Board of Directors selected Sri Lanka to develop a compact. Sri Lanka became eligible for assistance after passing 13 out of 20 indicators on MCC’s policy scorecard.
Ms. Nguyen visited Sri Lanka from June 11 to 13 to advance the development of the proposed MCC compact – a large-scale five-year grant programme.
During the visit, Ms. Nguyen joined US Embassy Deputy Chief of Mission Robert Hilton at the Finance Ministry to sign an agreement to provide an additional Rs.413 million grant to finalize compact development.
“This amount supplements the Rs.1.2 billion that MCC provided last July to support feasibility studies needed to develop a high-quality, evidence-based and sustainable programme, and is in addition to the final grant amount that MCC will provide for the compact,” the statement said.
Ms.Nguyen said they were pleased to partner with Sri Lanka on a programme that will reduce poverty through economic growth and improve lives in the country.
“This additional funding will support the final stage of compact development and help ensure that the programme will have the transformative impact that MCC and the government collectively seek,”she said.
Meanwhile, Deputy Chief of Mission Robert Hilton said the MCC compact is an important part of the US government’s commitment to work as partners with the people of Sri Lanka to support sustainable development.