AG finds MCC Compact inconsistent with the Constitution

AG finds MCC Compact inconsistent with the Constitution

The Attorney General has declared the Millennium Challenge Corporation (MCC) Compact to be inconsistent with the Constitution of Sri Lanka.

According to State Counsel Nishara Jayaratne, the Coordinating Officer of the Attorney General, the Attorney General has advised the Secretary to the President on the matter.

The Attorney General has found that the MCC Compact and the Program Implementation Agreement (PIA) and Articles of Association of MCA are inconsistent with the written laws and the Constitution.

On the request of former PM Ranil Wickremesinghe, the MCC had conducted an evaluation in terms of their investment criteria and selected Sri Lanka as a qualified country to receive grant funding under their Compact Investment Program.

Under the grant, MCC had agreed to kick off a USD 350 million transport project and a USD 67 million land project in Sri Lanka. The remaining USD 63 million was to be allocated to support technical assistance, feasibility and design studies, project administration, and monitoring and evaluation.

However, the proposed grant assistance agreement was met with strong disapproval from various parties citing that it adversely affects the sovereignty of the country as it would pave way for defense deals with the US.

An Experts’ Committee was appointed by President Gotabaya Rajapaksa to review the proposed MCC Compact MCC and its final report submitted to the government in June 2020, urges the government to reject the agreement. 

Subsequently, MCC decided to discontinue the proposed compact of USD 480 million with Sri Lanka last December.