The cabinet has decided Sri Lanka will not sign the US Millennium Challenge Corporation (MCC) agreement in its current form.
Cabinet spokesman Bandula Gunawardena said that a committee appointed by the Government to review the agreement had submitted its recommendations, which was presented to the cabinet.
He said that Prime Minister Mahinda Rajapaksa submitted the interim report of the committee to cabinet.
Gunawardena said that the committee had found that some clauses in the agreement are harmful to Sri Lanka’s Constitution and National security.
The committee has proposed that the agreement not be signed in its current form and instead be amended and submitted to the public and Parliament for it to be considered.
Accordingly, the cabinet has decided not to sign the agreement and instead further negotiate the proposed deal with the US.
“This agreement is not one proposed by the US but by the former Government. So we are willing to renegotiate it. At this time we are open to accept funds from any friendly country as long as it does not harm our country,” the cabinet spokesman said.
He said that if the US is willing to draft a new agreement which is not harmful to Sri Lanka then the Government will consider it and sign with the approval of Parliament. (Colombo Gazette)