Basil says US aid cut insignificant

Tuesday, 23 April 2013 00:00 - - {{hitsCtrl.values.hits}}

Economic Development Minister Basil Rajapaksa yesterday dismissed the recently announced 20% cut in aid by the US as being significant since the actual value of the reduction was only $ 2 million whilst two key support programs were nearing completion anyway.

“Though the media harped on the 20% aspect, the reduction meant only $ 2 million to $ 6 million from $ 8 million previously. US aid is also insignificant from an overall country figure. Despite the US move, countries such as Japan, India and China as well as multilateral donors such as the World Bank and ADB have approved or extended financial support with over 100% increases,” Minister Rajapaksa told editors and senior journalists during the breakfast meeting chaired by President Mahinda Rajapaksa at Temple Trees.

He said that the reduction of US aid was also understandable since two of its support programs – World Food Program assistance to IDPs and de-mining – were nearing their successful completion. The balance US support is to private sector initiatives.