Executive Director of Institute of Policy Studies Dr. Saman Kelegama says that the proposed 20 percent American aid cut to Colombo is insignificant, since US aid only given to Sri Lanka's non-governmental organizations (NGOs) and civil society sector and not to the government.
Dr. Kelegama made these remarks at Friday's launch of the annual report of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) 2013 titled "Economic and Social Survey of the Asia and the Pacific".
The US Secretary of State John Kerry in the Department's budgetary request for FY2014 submitted to the Congress has requested 20 percent less aid to Colombo from last year since Sri Lanka's economy is viable at mid-level.
The ESCAP report indicates that the economy of Sri Lanka expanded on average more than 8.0 percent annually during 2010 and 2011 and the GDP grew by 6.2 percent for 2012 as a whole.
The report has forecast Sri Lanka's economy to grow by 6.5 percent this year, lower than the 7.5 percent estimated by the Central Bank.