Cabinet approves US$ 480 million MCC grant

On a proposal made by the Minister of Finance Mangala Samaraweera, the Cabinet of Ministers today (29) approved the implementation of the Millenium Challenge Corporation's (MCC) US$ 480 Million grant.

According to Samaraweera, the funding is granted for three main projects to be completed within a period of five years.

“A special transport development program covering the Colombo metropolitan area to reduce the traffic congestion by reduced travel time, traffic emissions, and accidents combined with the bus transportation service modernisation programme including private and public sector transportation service,” he said.
Samaraweera also said under transport development, a 131 kilometre road network on Central wing road connecting Sabaragamuwa, East, North Central, Central and Wayaba provinces to Colombo markets and export hub will be developed.  

Further, he said improvement on land administration process also will be done in eight districts.

“This will include the land valuation system, upgrading 10 land registries and preparations of parcel fabric map of all State and private land to facilitate the activities of Survey Department,” he noted.

These compact programmes to be funded by this project have been developed by the Sri Lankan officials of the relevant line ministries and departments based on the needs of the country. The Sri Lankan government has the option of amending the identified projects even after the signing of the agreement, spokesperson of the Ministry of Finance said.     

Sri Lanka is the 37th recipient of such grant funds from the people of the United States of America. The Minister of Finance will sign the agreement in the near future as it was confirmed by the Cabinet today and the  implementation will begin in early 2020, the spokesperson added.

This is a great victory for the government and augurs well for the future. Sri Lanka began negotiations with the MCC in 2001 at the direction of Ranil Wickremesinghe, the then Prime Minister. MCC negotiations were led by the Ministry of Finance and the MCC compact was developed and finalized by the Compact Development Team of the Prime Minister’s Office.