Sri Lanka not to sign MCC agreement with the US without parliamentary approval

The Sri Lankan government has decided not sign the MCC agreement with the US without Parliamentary approval after a special panel appointed by President Gotabaya Rajapaksa found the deal could open the island nation to security threats and undermine its sovereignty.

Under the agreement, the MCC, a bilateral United States foreign aid agency which partners with developing countries, would grant Sri Lanka USD 480 million to upgrade its transportation infrastructure and improve land management system.

The special panel, in its interim report to Prime Minister Mahinda Rajapaksa, said, "There were clauses and conditions that would negatively affect national goals/objectives, sovereignty as well as the national security along with sections and provisions that would be unfavourable for the constitution of Sri Lanka and the legal frame work of the country."