The Cabinet has approved the Millennium Challenge Corporation (MCC) grant of US$ 480 million.
Finance Minister Mangala Samaraweera had submitted a proposal on the grant to the cabinet today and it was approved.
Earlier, President Maithripala Sirisena had said that he will not approve the deal after the main opposition had raised concerns over the agreement.
There had been concerns that under the proposed MCC deal the US will gain control over land in Sri Lanka. The US rejected the claims.
The Compact funding, if signed, will support economic growth in Sri Lanka through assistance in the transport and land sectors.
On a request made by Prime Minister Ranil Wickremesinghe, the MCC had conducted an evaluation in terms of their investment criteria and selected Sri Lanka as a qualified country to receive grant funding under their Compact Investment Program.
Under this grant, Sri Lanka will receive USD 480 million for 03 main projects to be completed within a period of 5 years i.e. a special Transport Development Program covering the Colombo Metropolitan area to reduce the traffic congestion by improving flow rate, reduce travel time, reduce traffic emission and reduce accidents combined with the Bus Transport Service Modernization program including private and public sector transport service.
Under transport development, improving 131 KM road network on the Central Ring Road connecting Sabaragamuwa, Uva, Eastern, North Central and Wayamba Provinces to the Colombo markets and export hubs.
Further, improvement of Land Administration process also will be done in 08 districts, improving the land valuation system, upgrading 10 Land Registries and preparation of Parcel Fabric Map of all state and private land to facilitate the activities of the Survey Department. (Colombo Gazette)