On Tuesday, the US pledged extra support for cash-strapped Sri Lanka of more than USD 5 million to help those who are most affected by the island nation’s economic crisis. This additional grant funding from the US Agency for International Development (USAID) builds on the announcements made last week of USD 6 million in grants through USAID and USD 120 million in new loans through the Development Finance Corporation (DFC) to meet the needs of Sri Lankans during the economic crisis.
The economic crisis that Sri Lanka is currently experiencing is the worst since it gained independence from Britain in 1948. Tuesday saw the US government announcing the third round of fresh funds to help those in Sri Lanka most in need of it.
According to a statement from the US embassy in Sri Lanka, this humanitarian help, worth USD 5.75 million, would directly satisfy the fundamental needs of crisis-affected people by offering monetary assistance, temporary jobs, and agricultural supplies including seeds. According to Julie Chung, the US ambassador to Sri Lanka, the recent United Nations appeal to international donors warned of an evolving, multifaceted food security problem in Sri Lanka.
Some of those intricate problems will be addressed by the new support we’re offering today. We’re working hard to make sure that these money get to the Sri Lankans who have been hit the hardest by the disaster. Additionally, the financing announced will assist microbusinesses in areas with historically high rates of poverty that are particularly affected by the crisis.
Additionally, it would make provision for neighbourhood disaster management committees to aid in crisis prevention, response, and eventual recovery, according to the release.
The United States intends to increase its sizeable continuing contributions and aid projects in Sri Lanka that assist the local population in meeting their short- and long-term requirements over the next months. These initiatives build on the six decades and more than USD 2 billion in foreign aid provided by the American people, which has bolstered Sri Lanka’s tourism industry, small companies, renewable energy sector, climate adaption, and civil society. Sri Lanka is in discussions with the IMF for an economic programme that may be supported by the international lender’s lending arrangement for the nation, which is looking for USD 6 billion to keep it afloat for the next six months. But in order to approve a bailout deal, the IMF has set forth a number of requirements.
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