The Board of Directors of the Millennium Challenge Corporation has approved a five-year, $480 million Compact with the Government of Sri Lanka aimed at reducing poverty through economic growth. The Compact seeks to assist the Sri Lanka Government in addressing two of the country’s binding constraints to economic growth: (1) inadequate transport logistics infrastructure and planning; and (2) lack of access to land for agriculture, the services sector, and industrial investors.
The Compact will be composed of two projects: a Transport Project and a Land Project. The Transport Project aims to increase the relative efficiency and capacity of the road network and bus system in the Colombo Metropolitan Region and to reduce the cost of transporting passengers and goods between the central region of the country and ports and markets in the rest of the country. The goal of the Land Project is to increase the availability of information on private land and underutilized state lands or all land in Sri Lanka to which the Government is lawfully entitled or which may be disposed of by the Government (“State Lands”) in order to increase land market activity. The Land Project would increase tenure security and tradability of land for smallholders, women, and firms through policy and legal reforms.
Milestones in Compact Development
|Board Approval||April 25, 2019||
MCC Board approves five-year Sri Lanka Compact.
|CN on Intent to Negotiate||August 13, 2018||
MCC has delivered to the U.S. Congress a congressional notification (CN) of its intent to negotiate a Millennium Challenge Compact with the Government of Sri Lanka.
|Eligibility Notification||December 19, 2017||
MCC Board reselects Sri Lanka to continue developing a compact.
|Constraints Analysis||September 20, 2017||
The Government of Sri Lanka has completed a study to identify the most binding constraints that prevent private-sector led growth in Sri Lanka.
|Eligibility Notification||December 13, 2016||
MCC Board of Directors selected Sri Lanka as eligible to develop a compact.
As of April 26, 2019