Key Points:

• On July 1, Sri Lankan Cabinet Spokesperson Minister Bandula Gunawardene publicly acknowledged that the Government of Sri Lanka has entered into a Status of Forces Agreement with the United States
• The takeaways from the draft US-Sri Lanka SOFA clearly indicate that the Government of Sri Lanka is considerably restricted and handicapped from oversight into US military activities on its soil.
• If the Millennium Challenge Corporation Compact Grant for Sri Lanka is approved by the country’s parliament, it would pave the way for US interference in Sri Lanka’s development sectors in a direct competition with China leading to political consequences for the Rajapaksa administration.
• Signing of the SOFA could indicate the Rajapaksas’ eagerness to mend relations with the US Government as quid pro quo in exchange for increased political patronage leading to a decline in insinuations of human rights violations.