MCC, MCA inconsistent with Constitution | Daily News
AG writes to Presidential Secretary

MCC, MCA inconsistent with Constitution

Views of relevant stakeholders taken into account

Attorney General Dappula De Livera has yesterday advised the Secretary to the President that the US Millennium Challenge Corporation (MCC) Compact and Programme Implementation Agreement and Articles of Association of the MCC are inconsistent with the Written Laws and the Constitution of Sri Lanka.

Coordinating Officer to the Attorney General State Counsel Nishara Jayaratne said that after considering all the observations made by the relevant Government agencies and the relevant ministries and the report of the Committee appointed by Prime Minister Mahinda Rajapaksa, a series of 20 pages of instructions and observations were given in writing to the Secretary to the President Dr. P.B. Jayasundera by the Attorney General.

Prior to that, the new Government also put on hold a Cabinet Decision taken by the former Yahapalana government to sign the MCC Compact Agreement. President Gotabaya Rajapaksa assured that the Government will safeguard the country’s sovereignty and declared that the MCC agreement will not be signed by his administration under any circumstances.

On December 18, 2020, the United States Embassy in Colombo announced that the MCC has withdrawn the proposed Rs. 89 billion (US$ 480 million) grant assistance to Sri Lanka and the Rs. 89 billion approved for Sri Lanka will be made available to other eligible partner countries in need of grant funding to pursue their economic development priorities, reduce poverty and grow their economies.

The Board of Directors of the MCC approved the five-year, US$ 480 million compact with the Government of Sri Lanka in April 2019. Its funding was to assist to overcome inadequate transport logistics infrastructure and planning and lack of access to land for agriculture, the service sector and industrial investors. There was wide opposition to the terms and conditions of the MCC Agreement across the political spectrum. Many media and social commentators had also decried the MCC Agreement.