The Millennium Challenge Corporation has approved Sri Lanka as eligible for the body's "threshold" programme, which will release around $30mn worth of funding, providing assistance to the government's efforts to enact reforms in areas which constrict economic growth.
"Sri Lanka has embarked on a remarkable effort over the past year to reinvigorate its democratic institutions, improve governance, and restore protection of human rights," a statement by the MCC said.
The MCC, an independent US government agency working to reduce global poverty through economic growth. allocates budgets depending on how countries score on specific indicators. According to the MCC website, threshold programmes "assist countries to become compact eligible by supporting their efforts to implement key policy and institutional reforms and thereby demonstrate their commitment to MCC’s eligibility criteria" and if implemented successfully will "reduce constraints to faster economic growth and provide MCC critical information about a candidate country’s political will and capacity to undertake the types of reforms that would have the greatest impact in compacts".