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2025-03-10

US President’s aid freeze results in end of USAID projects in Sri Lanka

Sri Lanka was one of the nations impacted by the US President, Donald Trump administration's decision to freeze and ultimately terminate all current foreign assistance while also halting new aid initiatives.

According to foreign media reports, U.S. Secretary of State Marco Rubio communicated this decision to all U.S. diplomatic missions through a cable, which jeopardized billions of dollars in funding from the State Department and the U.S. Agency for International Development (USAID) for global programs.

Shortly after assuming office, President Donald Trump issued an executive order that temporarily suspended all U.S. foreign assistance programs for 90 days. Following this, the State Department initiated a comprehensive review of all foreign assistance, which was to be completed within 85 days to ensure alignment with President Trump's foreign policy objectives. However, after 6 weeks of review, this process ultimately resulted in the termination of 90 percent of the suspended programs globally, including all USAID-supported initiatives in Sri Lanka. Since 1956, the United States has contributed over $2 billion (approximately Rs. 720 billion) in assistance to Sri Lanka, as reported by the U.S. Embassy in Colombo.

The U.S.-funded programs are designed to encourage market-driven growth, enhance environmental sustainability and resilience, and promote effective governance practices. These funds are allocated to various sectors, including government agencies, non-governmental organizations, and civil society.

Sri Lanka may have to find alternatives to the USAID-funded projects that have given positive changes.