Economist and UNP MP, Dr. Harsha de Silva, yesterday described as 'unfortunate' the proposal by US Secretary of State, John Kerry, for a 20% cut in aid to Colombo, especially as the USA is important to Sri Lanka and was crucial in helping the government overcome the Liberation Tigers of Tamil Eelam (LTTE). "The Government of Sri Lanka said it doesn't matter much, because the amounts cut off are very small. But it is the thinking which matters – it doesn't matter whether the amount is big or smalless.
It is the US who dried up the LTTE's global funding by banning the organization. They also shared their military intelligence with us, which helped us win the war," he told Ceylon Today.
Dr. de Silva also pointed out that the USA is Sri Lanka's most important trade partner, as it purchases 40% of the apparels produced by the country. "We have to look at the USA as a friend of Sri Lanka," he said, adding that whether we like it or not, there is American influence in most of Sri Lanka- from carbonated drinks to iPhones and iPads.
He also stressed the importance of needing to build bridges between the two countries, and for Sri Lanka to have a coherent foreign policy.
John Kerry's proposal to impose a 20 per cent cut in aid to Colombo, is seen as a move that reflects the unease in the US-Sri Lanka ties over issues related to human rights, reconstruction and political integration in Sri Lanka after the end of the civil war.
The Press Trust of India reported: In actual term, Kerry has proposed a US$ 11 million in aid to Sri Lanka, which, according to a senior State Department official, is a "drop of 20%" from the actual spending in the 2012 fiscal.
"This reflects both the fact that we had a difficult time in programming a lot of our money in Sri Lanka. We tried to do a lot in the North to help the IDPs and get back to their normal life and support reconstruction efforts there. But in several cases we had programmes that we were trying to support, to which the government - the military - got quite involved in them and so we were not able to pursue those programmes," a senior State Department official told PTI.
"So we made a decision that Sri Lanka as a middle income country, and in a country where we are having difficulty in programming, is a place where we should probably cut a lot of own resources," the official told requesting anonymity as he was not authorized to speak to the press.
While the actual US development assistance to Sri Lanka in 2012 was US$ 8 million, Kerry has proposed about US$ 6 million for 2014. He has proposed similar amount of development assistance to Bangladesh from US$ 81.6 million in 2012 to US$ 80.9 million in 2014.
Kerry has proposed substantial increase in US aid to Maldives - Sri Lanka's neighbour.
Majority of the US fund to Sri Lanka would go into key projects related to judicial reform, and increasing Maldives counter-terrorism efforts.
"India and the US are working closely on Maldives," the official said.
Noth Deputy Minister of Finance and Planning, Dr. Sarath Amunugama and Mass Media and Information Minister, Keheliya Rambukwella, were unavailable for comment even though Ceylon Today called several times.
Tuesday, 16 April 2013
A senior Sri Lankan official commenting on the US aid cut to Sri Lanka said that it had no bearing on the country’s economy as Sri Lanka has already attained the status of middle income economy with per capita economy.
A High ranking Sri Lankan senior official who wish to be anonymous said that US aid reduction to Sri Lanka and India reflects the continued economic trends in the US and it has no impact on the US $ 59 billion Sri Lankan economy as its Per Capita income has doubled to US Dollar 2,836 in 2012.
US Secretary of State John Kerry has proposed a 20 per cent cut in the American aid to Colombo In actual term, Kerry has proposed a USD 11 million in aid to Sri Lanka, which, according to a senior State Department official, is a "drop of 20 per cent" from the actual spending in the 2012 fiscal.
US Secretary of State John Kerry had also proposed a 16 per cent cut in the American aid to India. In 2010, the United States aid to India was $126.7 million, which drooped to $121.6 million in 2011 and $108 million in 2012 and was proposed to $98.3 million in the current fiscal of 2013, which ends on September 30.
"This reflects both the fact that we had difficult time in programming a lot of our money in Sri Lanka” foreign media reported quoting US sources.
“Yes US is having its own problems to solve as it has to tackle the terrorism in its own soil” quipped the Govt official referring to the Two explosions ripped through the Boston Marathon's crowded finish line Monday afternoon, killing at least three people and injuring more than 141.
Speaking from the White House, a somber President Obama said people should not speculate over who was responsible.
"We still don't know who did this or why. People should not jump to conclusions before we have all the facts. But make no mistake. We will get to the bottom of this. We will find out who did this. We will find out why they did this. Any individual or responsible groups will feel the full weight of justice."
"So we made a decision that Sri Lanka as a middle income country, and that is a place where we should probably cut that have a lot of own resources," the official told requesting anonymity as he was not authorized to speak to the press.
While the actual US development assistance to Sri Lanka in 2012 was USD 8 million, Kerry has proposed about USD 6 million for 2014. Kerry has proposed similar amount of development assistance to Bangladesh from USD 81.6 million in 2012 to USD 80.9 million in 2014.
Majority of the US fund to Sri Lanka would go into key projects related to judicial reform -hsn
