LIFELINE UNDER SERIOUS THREAT?

Dr. Jehan Perera assesses the impact of the USAID suspension on Sri Lanka

The sudden suspension of the US government’s multibillion dollar foreign aid programme administered through the United States Agency for International Development (USAID) has sent shockwaves across multiple sectors, not only in the United States but also in countries that are heavily reliant on American aid.

In the US, the suspension has triggered widespread job losses in the aid sector, often with little or no prior notice. In many parts of the world where USAID was playing a crucial role in alleviating famine, responding to war induced crises and supporting governance structures, the consequences have been catastrophic and put countless lives at risk.

The Trump administration has justified the aid suspension by citing concerns over inefficiency, misuse of funds and a perceived misalignment with US national interests.

In Sri Lanka however, the focus of the debate on the suspension has taken a different turn. This justification has been seized upon by Sri Lankan politicians – particularly those who held power in previous administrations, and are now facing allegations of corruption and mismanagement.

They are attempting to shift public attention away from themselves by claiming that USAID funded NGOs were instrumental in their removal from office rather than acknowledging the widespread economic misgovernance and corruption that led to their downfall.

It was obvious that the aragalaya protest movement gained momentum due to the severe economic hardships that Sri Lankans were facing at the time. Many of those who joined the street protests believed that those in power had exacerbated the economic collapse by siphoning off the nation’s wealth.

The bankruptcy of the state meant that the government couldn’t afford to import essential commodities, which in turn led to long queues for fuel, gas and essential medicines. Some people even collapsed and died while waiting for extremely long hours in those lengthy queues.

Ironically, many of the politicians calling for investigations into USAID funds were in power when the agency was actively funding projects in Sri Lanka. The National Secretariat for Non-Governmental Organizations, which is cited as the appropriate body to oversee investigations, was already in place and performing its monitoring role during their tenure.

Meanwhile, the freezing of USAID funds has had repercussions beyond financial hardship.

Many of the civil society organisations were engaged in critical work such as enhancing the legal system, promoting inclusive governance, fostering inter-ethnic business cooperation and advocating for greater citizen engagement with government services.

Data from the Department of External Resources indicates that since 2019, USAID has provided Sri Lanka with financial assistance to the tune of Rs. 31 billion. This aid had been granted across multiple administrations, irrespective of their political affiliations.

During the last year of former president Maithripala Sirisena’s government in 2019, the United States Agency for International Development disbursed US$ 20.4 million. Under ex-president Gotabaya Rajapaksa, the figure rose to 41.9 million dollars. And former president Ranil Wickremesinghe’s tenure saw USAID providing US$ 26 million. The agency had granted more than 18 million dollars under President Anura Kumara Dissanayake when the suspension took effect.

One of the reasons NGOs frequently face scrutiny is because they often take on challenging and unpopular tasks that don’t necessarily garner mass appeal, but are crucial for a just and inclusive society. Whether working in child welfare, public health, economic development or peace building, they focus on ensuring that no individual or community is left behind.

This commitment to inclusivity aligns with the philosophy of activists such as Mahatma Gandhi, who championed the idea of sarvodaya (the wellbeing of all). It also drew inspiration from thinkers such as John Ruskin, who believed that a society’s moral progress is measured by how it treats its most vulnerable members.

The sudden suspension of USAID funding has placed Sri Lankan NGOs in a precarious position. Since it was the single largest donor agency supporting development efforts in the country, its abrupt withdrawal has forced many organisations to downsize or cease operations altogether.

This move signals a shift in the global order, where national interests are increasingly prioritised over international cooperation and humanitarian principles. Wealthier countries are focussing on their own economic and security concerns over global development goals.

When individuals or countries act solely in their own self-interest at the expense of the common good, they risk harming everyone in the long run.