LNP – Sri Lanka ready to continue USAID-funded projects with alternative funding: Minister

The Trump administration announced that all USAID direct hire personnel will be placed on administrative leave globally with effect from the 07 February 2025. The announcement raised concerns that this action will significantly affect humanitarian aid initiatives worldwide.

Meanwhile, expressing views in this regard, Cabinet Spokesperson, Minister Dr. Nalinda Jayatissa vowed that government will continue USAID-funded projects in Sri Lanka with alternative sources of funding.

Responding to a question raised by a journalist during the Cabinet press conference, Dr. Jayatissa noted: “If our government had made this decision, I could have responded. Let’s see how this works out for us. We will have to find alternatives if they withdraw foreign aid.”

“Sri Lanka does not operate on the funds received from USAID. It is good if they can grant funds to us. However, if not, we will continue these beneficial projects through the funds obtained through other sources”, the Minister added.

Established in 1961, the United States Agency for International Development (USAID) is an independent establishment put in place to administer humanitarian aid programs around the world on behalf of the U.S. government.

However, on the first day of his second term in office, U.S. President Donald Trump signed an executive order freezing foreign aid for at least 90 days.

Trump, who is a long-term critic of overseas spending, has said it does not represent value for money for American taxpayers.

Against this backdrop, U.S. officials revealed that USAID will be merged with the State Department and will have significant cuts in the workforce but will remain a humanitarian aid entity.

Meanwhile, USAID announced yesterday (06) that all USAID direct hire personnel will be placed on administrative leave globally with effect from Friday, the 7th of February, with the exception of designated personnel responsible for mission-critical functions, core leadership, and specially designated programs.

The notice further stated that the agency is working with the State Department on a plan to arrange and pay for USAID personnel stationed abroad to return to the United States within 30 days.

USAID employs more than 10,000 people, about two-thirds of whom are stationed overseas.

In the 2023 fiscal year, the United States disbursed 72 billion U.S. dollars of aid worldwide for causes ranging from women’s health in conflict zones to access to clean water, HIV/AIDS treatments, energy security and anti-corruption work.

USAID has spent billions of dollars on the development of agriculture, health, education, business development, trade, human rights and good governance in Sri Lanka during the past decades.

However, the move to shut it down will have a profound impact on USAID projects in Sri Lanka.