Sri Lanka to look for alternatives after Trump freezes USAID funds

By Easwaran Rutnam

Sri Lanka will look for alternatives to fund key projects after US President Donald Trump announced a freeze on USAID funds, Cabinet Spokesman Dr. Nalinda Jayatissa said.

He said that the freeze on USAID funds is a decision taken by the US President and the Sri Lankan Government cannot reverse that.

The Minister said that Sri Lanka will look for alternative funding sources to keep some of the projects going.

Meanwhile, Justice Minister Harshana Nanayakkara said that there is no investigation on USAID in Sri Lanka.

Responding to a statement made by MP Namal Rajapaksa, the Justice Minister said there is no allegation against USAID operations in Sri Lanka in order for there to be an investigation.

In 2022, USAID and Sri Lanka signed a 5-year deal to provide an additional estimated $65 million (more than 23 billion Sri Lankan rupees) in assistance to Sri Lanka.

The funding was addition to over $60 million (21 billion Sri Lankan rupees) of humanitarian and fertilizer assistance that USAID had announced that same year in response to the economic and political crises in Sri Lanka.

USAID is the largest single donor in Sri Lanka and funds hundreds of local NGOs, as well as government programmes.

Trump issued an executive order in January to immediately halt all USAID-funded projects and conduct a 90-day review to determine if ?they are efficient and consistent with US foreign policy under the America First agenda.? A funding freeze was subsequently announced by US Secretary of State Marco Rubio.

On Friday, February 7, 2025, all USAID direct hire personnel will be placed on administrative leave globally, with the exception of designated personnel responsible for mission-critical functions, core leadership and specially designated programs.

For USAID personnel currently posted outside the United States, the Agency, in coordination with missions and the Department of State, is currently preparing a plan, in accordance with all applicable requirements and laws, under which the Agency would arrange and pay for return travel to the United States within 30 days and provide for the termination of PSC and ISC contracts that are not determined to be essential.

The Agency will consider case-by-case exceptions and return travel extensions based on personal or family hardship, mobility or safety concerns, or other reasons.?(Colombo Gazette)