Sri Lanka is grappling with one of its worst economic crises in seven decades. According to reports, the Sri Lankan governments have consistently ignored many issues, due to which such situations have happened. An ANI report suggests that Sri Lanka has succumbed to Chinese foreign investment with the hope of better infrastructure, higher employment, income, economic stability, which has increased the standard of living of the common people. However, he has ignored repeated warnings of China’s ulterior motives to keep him indebted and dependent for years.
Sri Lanka had sought help from China in January
Sri Lanka has an external debt obligation of around $7 billion in 2022, including a prepayment of $1 billion in bonds in July 2021. Despite huge Chinese investments in Sri Lanka over the years, the country is going through the worst economic crisis in its history. Given the major political repercussions of the current crisis, President Gotabaya Rajapaksa during his visit to Sri Lanka in January this year requested Chinese Foreign Minister Wang Yi to restructure the loan repayments.
India and Sri Lanka have signed a credit line
Days after Colombo secured a billion-dollar line of credit from New Delhi, Sri Lanka has sought a fresh $2.5 billion loan and buyer’s credit from China as the island nation struggles to deal with its worst economic slowdown. Is. The Rajapakse government is also in talks with the International Monetary Fund for some relief.
Chinese Ambassador to Sri Lanka Qi Zhenhong may have said that China is considering a new request from Sri Lanka for a loan of $1 billion and a line of credit of $1.5 billion. He has said that this is in addition to the $ 2.8 billion in aid that China has given to Sri Lanka since the outbreak of the epidemic.