By Trump’s Policy Shifts Leave USAID Projects in Limbo in Colombo
U.S. President Donald Trump’s sweeping policy changes have sent shockwaves through international aid and diplomacy, with immediate consequences felt in Sri Lanka’s capital. Several USAID project workers in Colombo have been asked to suspend their activities as funding uncertainties loom, and project managers express growing confusion about their programs’ futures.
The decision follows a series of executive actions by Trump since his second inauguration on January 20, 2025, which include the U.S. withdrawal from the World Health Organization (WHO), the United Nations Human Rights Council (UNHRC), and the Paris Climate Agreement—all moves reminiscent of his first term in office. The most recent order, expected to be formalized on Tuesday, extends the U.S. freeze on funding for the United Nations Relief and Works Agency (UNRWA), a move that has already stirred international controversy.
Uncertainty in Colombo
USAID has long supported economic development, disaster relief, and public health programs in Sri Lanka. However, with Trump’s latest directives, project managers are left scrambling for clarity. A senior official from one USAID-funded initiative, speaking on condition of anonymity, confirmed that teams in Colombo, Jaffna, and Galle had been instructed to pause non-essential activities until further notice.
“We received a memo advising us to put project expansions on hold. There’s real concern about budget cuts that could affect ongoing initiatives in agriculture, education, and health,” the official stated.
Trump’s Global Aid Retrenchment
This disruption in Sri Lanka is part of a broader pattern. Trump’s renewed withdrawal from global institutions has upended long-standing diplomatic commitments:
WHO Exit: The U.S. halted funding and withdrew from the WHO, citing concerns over its handling of global health crises.
UNHRC Departure: The administration officially cut ties with the UNHRC, reaffirming accusations of anti-Israel bias.
UNRWA Funding Halt: Trump has extended a freeze on contributions to UNRWA, following Israeli accusations that some UNRWA employees had ties to Hamas.
Paris Climate Agreement Exit: Reversing Biden’s reentry into the accord, Trump declared the deal unfair to U.S. economic interests.
International and Local Reactions
Israel has strongly backed the U.S. moves, particularly regarding UNRWA, with Israeli Ambassador Danny Danon stating, “Trump’s actions reaffirm his commitment to holding corrupt institutions accountable.” Meanwhile, UNRWA Commissioner-General Philippe Lazzarini denounced the decision, warning that Palestinian refugee populations could face severe humanitarian consequences.
In Sri Lanka, where the U.S. has historically been a major development partner, government officials have expressed concern over the unpredictability of American aid. “We have relied on USAID for years to support critical infrastructure and social programs. These sudden shifts make long-term planning difficult,” said a senior Sri Lankan diplomat.
As of now, USAID’s future in Sri Lanka remains uncertain. While existing projects may continue in the short term, Trump’s broader re-evaluation of U.S. foreign aid could lead to deeper cuts, leaving both local and international stakeholders in a state of uncertainty.
