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MP Namal Rajapaksa has urged the government to launch an investigation into USAID-funded projects and grants in Sri Lanka, citing concerns over transparency and accountability.
In a post published on ‘X’, Rajapaksa highlighted recent allegations in Western media that USAID funds have been used to cause instability in various countries under the guise of humanitarian aid. He noted that Sri Lanka has received millions of dollars from USAID in recent years, with over 100 NGOs, as well as politicians and media figures, benefiting from these funds.
“I call upon the govt. to conduct a probe on these projects and grants operated under USAID and present a detailed report to Parliament. A detailed account on these NGOs who benefitted from them must also be submitted,” he said.
Rajapaksa stressed that despite USAID’s involvement in multiple sectors, there has been no clear accounting of how these funds were utilized. He called on the government to present a detailed report to Parliament, listing the NGOs that received USAID funding. He also urged the government to introduce long-pending regulations on NGO financing.
“Regulations for financing NGOs have been on the cards for many years but it has not yet been done. I request the govt. to bring in these regulations to maintain transparency,” he added.
USAID’s Controversial Role in Sri Lanka
The United States, through USAID, has been actively involved in Sri Lanka’s development since 1956, providing over $2 billion in assistance. The agency has funded projects in economic development, humanitarian aid, democratic governance, and social services. However, concerns over its role in Sri Lanka have grown in recent years.
One of the major controversies surrounding USAID has been its alleged interference in the country’s internal politics. U.S. Ambassador to Sri Lanka, Julie Chung, has faced criticism for engaging with Sri Lanka’s Election Commission and commenting on legislative matters, which some have interpreted as undue influence. Her meetings with election officials in 2024 sparked accusations of foreign meddling, although officials denied any wrongdoing.
Additionally, reports have surfaced alleging that USAID funding has influenced local NGOs and political actors. Critics claim that some of these funds have been directed towards organizations that play an active role in shaping political narratives, rather than purely humanitarian efforts. The recent freeze in U.S. funding has also impacted Sri Lankan NGOs, raising further questions about the allocation of these resources.
During Sri Lanka’s political crises, Ambassador Chung and other U.S. officials have been accused of exerting pressure on key political figures. While no direct evidence has been presented, the allegations have fueled concerns over external influence in domestic governance.
Calls for Greater Scrutiny
Namal Rajapaksa’s demand for an investigation comes amid broader debates on foreign funding and its impact on national sovereignty. With USAID’s footprint deeply embedded in multiple sectors, calls for transparency in its financial operations have gained traction. If the government agrees to a probe, it could lead to significant changes in how international aid is managed in Sri Lanka.
As discussions on NGO regulations continue, Rajapaksa’s proposal could serve as a catalyst for long-awaited reforms in the country’s financial oversight of foreign aid. Whether the government takes immediate action remains to be seen, but the issue is likely to remain in the political spotlight in the coming months.
Previously Namal Rajapaksa was denied entry to the US from Russia.
