Mcc Agreement Sri Lanka Area

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The MCC Agreement in Sri Lanka: What You Need to Know

The Millennium Challenge Corporation (MCC) is a United States foreign aid agency that works to reduce poverty and increase economic growth in developing countries by providing grants for infrastructure projects. In Sri Lanka, the MCC has signed a $480 million agreement with the government to fund a range of projects to improve the country`s transportation and land management.

While the MCC agreement has been hailed as a positive step towards development in Sri Lanka, it has also generated controversy and criticism. In this article, we will take a closer look at the MCC agreement, its goals, and the concerns that have been raised about the project.

What is the MCC Agreement?

The MCC agreement between Sri Lanka and the United States was signed in September 2019. According to the MCC, the goal of the agreement is to “support economic growth and poverty reduction through the development of high-quality, financially sound infrastructure projects.”

The agreement covers two main areas: transportation and land management. In the transportation sector, the MCC will fund projects to improve roads, bridges, and public transport systems, as well as develop new highways and interchanges. The land management component of the agreement aims to improve the country`s land administration and use, with a focus on strengthening property rights and increasing transparency.

Why is the MCC Agreement Controversial?

Despite the MCC`s stated goals, the agreement has faced criticism from various quarters. One of the main concerns is the potential for the agreement to compromise Sri Lanka`s sovereignty. Some argue that the MCC could be a Trojan horse for American interests, and that the projects funded by the MCC could give the United States undue influence over Sri Lanka`s economy and infrastructure.

Another criticism of the MCC agreement is that it has not been subject to sufficient public consultation or scrutiny. Critics argue that the agreement was signed in haste, without proper debate or evaluation of its potential impacts. Some have also claimed that the agreement contains clauses that are detrimental to Sri Lanka`s interests, such as requirements for the country to privatize state-owned enterprises and open up its agriculture sector to foreign investors.

What are the Benefits of the MCC Agreement?

Despite the criticisms, supporters of the MCC agreement argue that it has the potential to bring significant benefits to Sri Lanka. The projects funded by the MCC are expected to create jobs and stimulate economic growth, while also improving the country`s infrastructure and public services. The improvements to land administration and property rights could also help to reduce corruption and improve the business environment in Sri Lanka.

In addition, the MCC is known for its rigorous selection process and high standards for project implementation. This means that the projects funded by the MCC are likely to be of high quality and to deliver lasting benefits to Sri Lanka.


The MCC agreement in Sri Lanka has generated both excitement and controversy. While the projects funded by the MCC have the potential to bring significant benefits to the country, there are also concerns about the potential for the agreement to compromise Sri Lanka`s sovereignty and interests. As the projects move forward, it will be important for the government and civil society to carefully monitor their implementation and to ensure that they are consistent with Sri Lanka`s development priorities and national interests.