US President Donald Trump has issued an executive order halting all USAID-funded projects for a 90-day review, leaving Sri Lankan NGOs and government programs in disarray. The funding freeze, announced by US Secretary of State Marco Rubio, has put thousands of jobs at risk and disrupted crucial initiatives.
USAID is Sri Lanka’s largest donor, funding Rs 15 billion worth of programs last year. NGOs like Women In Need (WIN), which supports survivors of domestic violence, are among the worst hit, with 85% of their operations reliant on USAID. WIN’s Crisis Centre in Ratnapura, which assisted 950 women last year, faces closure.
Parliamentary bodies, anti-corruption agencies, and private sector programs benefiting from USAID’s technical support are also affected. The funding cut jeopardizes election monitoring, climate change initiatives, and economic development programs.
Thousands of NGO workers could lose their jobs, with some organizations already laying off staff. The Transgender Network Sri Lanka, which relies on USAID for 40-50% of its funding, has started downsizing. Small grassroots NGOs are particularly vulnerable, struggling to pay salaries and program costs.
Critics have long accused USAID of using its funding to influence political and social affairs in foreign countries under the guise of humanitarian aid. Reports suggest that USAID-backed NGOs have played a role in destabilizing governments and fueling unrest in various regions. With Sri Lanka receiving billions in aid over the years, concerns have been raised about the lack of transparency and accountability in how these funds were utilized.
While life-saving humanitarian aid may be exempt, USAID has not confirmed if any Sri Lankan partners qualify. With no prior warning or transition plan, NGO leaders feel betrayed, warning of long-term damage to US credibility.
The freeze is part of Trump’s broader effort to restructure USAID, raising fears of a weaker agency under his administration.
