Local non-governmental organizations (NGOs) fear that funding for human rights, gender equality, and diversity-related initiatives could be significantly impacted following the United States’ decision to halt USAID funding. The National NGO Secretariat has requested a meeting with USAID to discuss the possible repercussions for NGOs operating in Sri Lanka, as well as the potential impact on public institutions.
Currently, approximately Rs. 15 billion worth of USAID-funded projects are active in Sri Lanka. However, the recent policy shift by the US administration has raised concerns about the future of these initiatives. Civil society activists warn that the suspension of USAID funding will create substantial challenges for projects centered on human rights, inclusivity, and gender and sexual diversity.
Philip Dissanayake, Co-Convenor of the Civil Society Organisations and Non-Governmental Organisations Collective and Executive Director of Right to Life, emphasized that this decision comes at a time when several major international donors have already withdrawn or reduced financial support to Sri Lanka. According to Dissanayake, USAID and the US State Department had been filling this funding gap, making the current situation even more concerning.
In light of this development, NGOs relying on USAID funding have been instructed to temporarily halt operations for three months, from January 24 to April 23. While there is hope for a resolution by the end of this period, there are currently no signs of immediate relief.
Commenting on the sectors most likely to be affected, Dissanayake pointed out that projects related to gender rights, particularly those supporting the LGBTQ+ community, as well as broader human rights and inclusivity efforts, are at the highest risk. He noted that while no official statement has been issued regarding the changes, structural adjustments within USAID are expected, and until new appointments are finalized, the full extent of the funding impact remains uncertain.
Public institutions working alongside USAID are also expected to experience disruptions due to these funding changes. Several NGOs have voiced their concerns to the National NGO Secretariat regarding the financial uncertainties ahead. Sanjeewa Wimalagunarathna, Director General of the Secretariat, confirmed that these concerns were taken into account when requesting discussions with USAID to address the challenges NGOs may face moving forward.