What Is The Mcc Agreement In Sri Lanka

October 15th, 2021 7:18 pm

Despite this recent experience, the country does not seem to view the US as a purely benign alternative to China. Instead, Sri Lanka could be an early example of what happens when geopolitical competition intensifies and world powers force countries to choose between themselves. The agreement will also not enter into force until it has been submitted to and adopted by the Sri Lankan Parliament and will provide full guarantees to ensure that all relevant stakeholders are involved in the approval process. Concerns about not submitting the deal to Parliament before it was signed were deemed inappropriate by Finance Minister Mangala Samaraweera, who said Parliament could not debate an unsigned document. On the recommendation of the special committee chaired by Professor Lalithsiri Gunaruwan of the University of Colombo, the government decided to “unconditionally reject” the agreement. The main points of contention focus on the question: where does the money go and what does this funding mean? According to the publicly available draft agreement, MCC is providing this subsidy to address two of Sri Lanka`s “constraining constraints” on economic growth: (a) inadequate infrastructure and transport logistics planning, and (b) lack of access to land for agriculture, services and industrial investors. Country ownership, transparency and accountability of grant results are fundamental to MCC`s development model. MCC has successfully joined forces with nearly 30 countries worldwide on 38 grant agreements totaling nearly $13.5 billion. These subsidies have lifted millions of people out of poverty by catalyzing local and national investment. Where is the MCC going in 2020? Devex asks CEO Sean Cairncross what the agency will focus on and what he has learned in his first six months of work. Other concerns regarding the construction of a physical economic corridor, links to the SOFA and ACSA agreements, the acquisition of Sri Lankan land by the US government, undervalued land deals, the establishment of US settlements and/or military bases, the construction of electric fences and the destruction of the local environment were also confirmed as unfounded in the review of the agreement.

In recent months, China has made significant and highly visible efforts to support Sri Lanka`s – and many other countries` – response to the COVID-19 pandemic, including a $500 million concessional loan agreement signed in March. The opposition`s argument that the agreement should be put on hold until after the elections also carries serious risks of losing the subsidy altogether, as Sri Lanka has recently been admitted to upper-middle-income status. Even after the signing of the agreement, Sri Lanka still has the possibility to amend the agreement, provided that these changes do not exceed the support allocation or extend the subsidy period by five years. This is a standard guarantee characteristic of international aid agreements that ensure that grant money is used exclusively to achieve the objectives of the Pact and does not fall into the wrong hands. Asked if the government would reconsider two other agreements signed with the U.S. government — the Status of Forces Agreement (SOFA) and the Acquisition and Cross-Services Agreement (ACSA) — Gunawardena said the government would not cancel any agreements already signed. Under President Donald Trump`s administration, the United States` commitment to development is increasingly tied to America`s geopolitical and economic competition with China. .

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