News

Sri Lanka loses $480 million MCC grant

The Millennium Challenge Corporation (MCC) Board which met yesterday (15) in Washington DC has decided to discontinue the proposed $480 million MCC grant with Sri Lanka.

The MCC Board of Directors met at the US Department of State from 1:00 pm to 3:00 pm (Washington DC time) and the MCC said the event was closed to the public.

A release issued by the MCC later today announced the decisions the Board has taken.

Harry S Truman Building in Washington DC is the headquarters of the US State Department

“As part of the annual selection process, MCC’s Board of Directors re-selected Benin, Burkina Faso, Côte d’Ivoire, and Niger as eligible for concurrent compact programs for regional integration; Malawi, Mozambique, Timor-Leste, and Tunisia for compact development; and Ethiopia, Kenya, and The Gambia for threshold programme development. The Board also reaffirmed its support for continuing compact development in Indonesia, Kosovo, and Lesotho. The Board discontinued the proposed compact with Sri Lanka,” it said.

At its quarterly meeting on December 15, the Millennium Challenge Corporation (MCC) Board of Directors selected new countries as eligible for US Government grant assistance.

The Board unanimously selected Sierra Leone for a new compact—MCC’s five-year grant program—to reduce poverty through targeted investments that increase economic growth. The Board also unanimously selected Kiribati for an MCC threshold program—the agency’s smaller grant program focused on policy and institutional reform.

MCC Chief Executive Officer Sean Cairncross  said he was pleased to announce MCC’s new compact partnership with Sierra Leone and new threshold partnership with Kiribati.

“Sierra Leone has been a strong threshold program partner; Kiribati has demonstrated a commitment to MCC’s eligibility criteria. We look forward to working with all of our government partners to achieve sustainable economic growth supported by country ownership and accountability to improve the lives of their citizens,” he said.