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Sri Lanka decides not to go ahead with current MCC agreement

Feb 28, 2020 (LBO) – Sri Lanka's Cabinet of Ministers has decided not to go ahead with the current Millennium Challenge Corporation Compact (MCC) agreement.

Prime Minister Mahinda Rajapaksa today handed over the interim report of the 4-member committee appointed to review the MCC agreement to the Cabinet of Ministers.

At the cabinet press briefing today, co-cabinet spokesman Minister Bandula Gunawardhana stressed that they will not go ahead with the current agreement.
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"The interim report contains several factors. First, the agreement has not been signed in a transparent manner," Gunawardhana said.

"Second, the agreement includes paragraphs that violate Sri Lanka's constitution and other laws,"

"Third, the agreement includes paragraphs that adversely affect Sri Lanka's national security, economic and social activities,"

"Fourth, it includes paragraphs that can be problematic with the country's national security, independence, and sovereignty."

Gunawardhana, however, stated that the government is ready to discuss these problematic paragraphs with the United States.

"If the US agrees to change the MCC agreement in a manner aligning with the interests of Sri Lankan people, we are ready to present it to the Parliament for approval."

In December last year, the cabinet appointed an expert committee to study and look into the issues of the MCC compact and report back.

Accordingly, Dr. Lalithasiri Gunaruwan, Architect Nalaka Jayaweera, Former Secretary to the Transport Ministry D S Jayaweera and President’s Counsel Nihal Jayawardhana appointed to this committee.

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