Sri Lanka denies it will sign MCC deal after the elections; contradicts recent reports

ECONOMYNEXT – Sri Lanka is denying reports that it will sign a controversial grant agreement with the United States Millennium Challenge Corporation after the August Parliamentary General Election.

Media Minister Bandula Gunewardena said reports that have appeared in the local media are untrue.

Opposition to the agreement known as the Millennium Challenge Compact (MCC) was a vital plank in the political campaign the Sri Lanka Podujana Peramuna ran in getting its candidate Gotabaya Rajapaksa elected in November 2019.

Rajapaksa’s supporters said at the time that the then United National Party government was about to sign away the sovereignty of the country and give the US a swathe of territory cutting across the North Central part of the country.

“If that happens we would have to get visas to go on pilgrimage to the Holy Sites (in Anuradhapura and Polonnaruwa),” they said.