How Trump’s Policy is Affecting USAID Operations and Development Work in Sri Lanka
The United States Agency for International Development (USAID) has been supporting Sri Lanka for over 60 years, funding projects in healthcare, education, agriculture, environmental protection, and local governance. However, a recent policy shift under former U.S. President Donald Trump is now putting many of these projects at risk.
Trump’s “America First” policy aims to reduce U.S. spending on foreign aid. As a result, USAID has suspended funding for several projects in Sri Lanka for at least 90 days. This sudden cut has left many non-governmental organizations (NGOs) and government-backed programs struggling to continue their work.
Job Losses and Project Shutdowns

One major consequence of these cuts is job losses. Many Sri Lankans working on USAID-funded projects are now uncertain about their future. According to Sandun Thudugala, Director of Law and Social Welfare Programs, thousands of employees could lose their jobs if funding does not resume. USAID has even suspended its online portal, making it difficult for organizations to access project funds.
Bhumi Harendran, Chairperson of the Transitional Foundation, which helps marginalized communities, said that her organization has already been forced to let go of some staff members. “We didn’t want to, but without funding, we had no choice. Many services we provided to the community are now affected,” she said.
Impact on Rural Development
The funding cut is particularly damaging for rural communities that rely on USAID programs. These projects have helped improve livelihoods, provide skills training, and support post-war recovery efforts.
Dr. Aminda Methsila Perera, an economics professor at Wayamba University, explained that foreign aid plays a crucial role in Sri Lanka’s development. “With the current economic crisis, we depend heavily on international funding. USAID has supported government and private projects, but now that support is at risk,” he said.
He added that similar funding cuts could affect other countries as well. “This is not just about Sri Lanka. Many developing nations that rely on U.S. aid will suffer,” he warned.
An Uncertain Future
With the suspension of USAID funding, many projects may be delayed or shut down completely. Experts believe that without alternative funding sources, rural communities and marginalized groups will suffer the most.
For now, NGOs and government programs in Sri Lanka are hoping that the funding will resume soon. Until then, the future of thousands of workers and development initiatives remains uncertain







