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Sri Lanka, eligible for the MCA each year since its inception in 2004, was selected as eligible in the 2007 selection round but was not eligible in the 2008 selection round.
MCA Status
Sri Lanka's compact was close to finalizing due diligence when MCC put further compact development activities with Sri Lanka on hold in May 2007. The decision was based on escalating violence between the Government of Sri Lanka and the Liberation Tigers of Tamil Eelam. In the 2008 selection round, Sri Lanka was not deemed eligible for compact funding.
Country Compact
Sri Lanka's MCC compact proposal is publicly available (pdf)
Sri Lanka's Poverty Reduction Strategy Paper (PRSP) outlines reforms aimed at trade liberalization and deregulation in domestic markets; improving higher education to increase economic competitiveness; expanding infrastructure for communications, distribution, and other economic activity in order to enhance market access; and deepening and broadening human development investments and anti-poverty social protection networks.
Sri Lanka's PRSP(pdf)
Joint Staff Assessment (JSA) of the PRSP (pdf)
Country Eligibility
In the FY 2008 selection process, Sri Lanka scored above the median on all six "ruling justly" indicators, three of five "investing in people" indicators, and four of six "economic freedom" indicators. Sri Lanka was again selected as eligible despite not passing the “investing in people” category.
Sri Lanka’s performance (pdf) on the FY 2008 selection indicators
Review Sri Lanka’s performance (pdf) on the FY 2007 selection indicators
Review Sri Lanka's performance (pdf) on the FY 2006 selection indicators
Learn more about the MCC's country selection process
Country Facts
Data are for 2006 (or most recent year available)
| Per capita income(GNI, current US$) | $1,300 |
| Poverty rate ($2 a day) | 42% |
| Average economic growth, 1996-2005 | 4.4% |
| Population | 19,771,320 |
| Percent population rural | 85% |
| Life expectancy | 75 yrs |
| Literacy Rate | 91% |
Source: World Development Indicators 2007
Sri Lanka at a Glance from the World Bank (PDF)
Other U.S. Policies
Development Assistance: USAID requested about $16 million for FY 2006 to finance programs in Sri Lanka. Much of this support, sourced primarily from the Economic Support and Development Assistance Funds, is intended to promote economic growth and strengthen democratic governance.
Review the USAID strategy in Sri Lanka
In addition to its core programs in Sri Lanka, as of April 1 2005, USAID has provided nearly $61.4 million to the country in emergency assistance in the aftermath of the December 2004 tsunami disaster.
Read more about USAID's disaster assistance
Trade In 2004, the U.S. imported $1.9 billion in Sri Lankan goods, significantly more than the amount imported from the other MCA-eligible countries (except for Honduras). The bulk ($1.6 billion) was apparel. Other goods include tea, rubber, and machinery.
See a spreadsheet of U.S. imports from Sri Lanka
Other Donors
The top three donors to Sri Lanka in 2005 were:
| Donor |
ODA/OA* Disbursement 2005 |
| Japan | 312.91 |
|
Asian Development Fund |
125.14 |
|
World Bank IDA |
114.3 |
Source: Development Assistance Committee Database
Organization for Economic Cooperation and Development (OECD)
*ODA/OA is Official Development Assistance and Overseas Aid
www.oecd.org/dac/stats/idsonline
World Bank Involvement
Over the past half century, the World Bank has provided $2.9 billion in support of development in Sri Lanka. The portfolio of active projects, valued at over half a billion dollars (before the Tsunami disaster), focuses on the rural sector, education and health, and private sector development.
World Bank projects in Sri Lanka
Other Resources
Compendium of food and agriculture indicators from the UN's Food and Agriculture Organization (FAO) - (pdf)
Department of State country profile providing background on Sri Lanka's history and U.S.-Sri Lanka relations