The US government’s decision to freeze USAID funding has placed Sri Lanka’s NGO sector in crisis, jeopardizing over 1,000 jobs, according to reports.
Several organizations focused on democracy, human rights, and governance are struggling to sustain their programs following the funding halt. A significant number of Sri Lankan NGOs working on human rights, good governance, and women’s and LGBTQ rights operate with USAID support.
The move aligns with President Donald Trump’s push to cut foreign aid under his “America First” policy, prioritizing domestic spending over international development projects.
“This decision has blindsided us. We’ve had to let go of staff, and if the freeze continues, many programs will collapse,” an official from an affected NGO said.
The funding suspension comes amid controversy involving billionaire Elon Musk, who was appointed by Trump to lead the Department of Government Efficiency (DOGE). Musk called USAID a “criminal organization” and said it was “time for it to die” after reports that security officials at the agency denied his representatives access to classified materials.
The agency has since seen mass layoffs and furloughs, with nearly 60 USAID senior leaders sidelined and US foreign missions disrupted.
USAID managed over half of the $72 billion in foreign aid the US distributed to nearly 180 countries in 2023. (Newswire)