US and Sri Lanka partner for growth through Millennium Challenge Corporation

Representatives from the Millennium Challenge Corporation (MCC), an independent U.S. development agency, visited Sri Lanka in March to begin a partnership to address key challenges to economic growth and poverty reduction.

The delegation met with Sri Lankan President Maithripala Sirisena, Prime Minister Wickremesinghe, and other top cabinet ministers, along with a cross-section of industry, civil society, development partners, and local government officials to launch the development of a threshold program, according to a report by Voice of America.

“The MCC has the potential to play a major role in advancing Sri Lanka’s economic future in a transparent and sustainable way,” said U.S. Ambassador Atul Keshap. “The goal is to complement Sri Lanka-led efforts to invest in its people and create a business-friendly environment that spurs entrepreneurs and attracts foreign investors.”

In December last year, at a meeting of the Board of Directors of the MCC held in Washington DC, Sri Lanka was selected as an eligible country for assistance from fiscal year 2016.

Created by the U.S. Congress in 2004 with strong bipartisan support, the MCC is an innovative U.S. foreign assistance agency that operates on the principle of delivering assistance on the basis of a long-term consultative partnership with individual countries. The criteria for consideration in entering a partnership include a country’s commitment to good governance, economic freedom and investment in citizens. Many countries have gone on to become MCC compact partners after succeeding at the threshold stage.

Over the coming months, MCC and the Government of Sri Lanka will jointly identify the country’s greatest constraints to economic growth, opportunities for private investment, and social barriers to poverty reduction. The results of this assessment will help to define the policy and institutional reforms that the new threshold program will support. The program’s development will include a consultative process, engaging the Sri Lankan private sector and civil society, the VOA report said.

“We are here because Sri Lanka has made tremendous progress over the past year to reinvigorate democratic institutions, improve governance, and restore protection of human rights,” said Beth Tritter, MCC Vice President for Policy and Evaluation. “A threshold program partnership recognizes this progress and encourages the government’s ongoing commitment to these principles.”