February 06, Colombo (LNW): US President Donald Trump’s decision to place all direct personnel of the United States Agency for International Development (USAID) on administrative leave worldwide as of February 07, 2025 has sparked significant concerns regarding the future of humanitarian aid initiatives, with experts fearing a disruption in vital global support efforts.
In response to this development, Sri Lanka’s Cabinet Spokesperson, Minister Dr. Nalinda Jayatissa, reassured the public that the government would continue to support USAID-funded projects within the country, with alternative funding sources being explored.
Speaking at the Cabinet press conference, Dr. Jayatissa addressed questions raised by the media, expressing that the government would adapt to the situation if foreign aid was withdrawn.
“If this were a decision made by our own government, I could have given a different response. Let’s see how this plays out for us. Should they cease funding, we will find other ways to sustain these essential projects,” the Minister said.
Jayatissa further emphasised that Sri Lanka does not solely rely on USAID funds, acknowledging that whilst such aid is appreciated, the country’s development will not be halted if this support is withdrawn. “If USAID can offer us funding, we welcome it. If not, we will continue these projects using resources from alternative sources,” he assured.
USAID, established in 1961, has been a significant player in global humanitarian assistance, providing aid for issues ranging from health and education to trade and human rights.
However, the agency has faced mounting scrutiny under President Donald Trump’s administration.
On his first day back in office, President Trump signed an executive order freezing foreign aid for 90 days, arguing that such spending does not offer good value for American taxpayers.
In line with his administration’s criticism of overseas funding, U.S. officials have confirmed that USAID will be merged with the State Department, leading to substantial workforce reductions. Despite these changes, the agency is set to maintain its humanitarian role.
As part of the restructuring, USAID announced that, effective February 07, 2025, all direct hire personnel would be placed on administrative leave, except for key staff involved in mission-critical roles, core leadership, and specially designated programmes.
The agency also stated that it is working with the State Department to arrange for the return of USAID employees stationed abroad within the next 30 days.
USAID currently employs over 10,000 people, with two-thirds of them deployed internationally. In the fiscal year 2023, the U.S. government disbursed US$ 72 billion in foreign aid, with USAID funds directed towards causes such as women’s health in conflict zones, clean water access, HIV/AIDS treatments, energy security, and anti-corruption efforts.
Over the years, USAID has invested billions of dollars into Sri Lanka’s agriculture, health, education, business development, trade, and governance sectors. The suspension of personnel and potential cuts to operations, however, will undoubtedly have a significant impact on these ongoing projects, particularly as Sri Lanka has relied heavily on USAID’s contributions for critical development work.
Whilst the suspension of USAID staff creates uncertainty, Sri Lanka is now exploring alternative funding mechanisms to ensure that the progress made in key sectors continues uninterrupted.
