Sri Lanka trapped by Chinese investment? Colombo is looking at the dragon again

Sri Lanka has plunged into the worst economic crisis in seven decades. According to the report, Sri Lankan governments have consistently ignored a number of issues that have led to such a situation. An ANI report suggests that Sri Lanka has surrendered to Chinese foreign investment in the hope of improved infrastructure, higher employment, income, and economic stability, which has raised the living standards of ordinary people. However, he has ignored repeated warnings of China’s unpleasant intentions to keep him indebted and dependent for years.

In January, Sri Lanka sought help from China

Sri Lanka has about $ 7 billion in external debt obligations in 2022, including the prepayment of $ 1 billion in bonds in July 2022. Despite huge Chinese investment in Sri Lanka over the years, the country is going through the worst economic crisis in its history. In light of the major political implications of the current crisis, President Gotabaya Rajapaksa, during a visit to Sri Lanka in January this year, requested Chinese Foreign Minister Wang Yi to restructure debt repayment.

India and Sri Lanka have signed a line of credit

Just days after Colombo secured a িয়ন 1 billion credit from New Delhi, Sri Lanka sought a new $ 2.5 billion loan from China and buyer credit as the island nation struggled with its worst economic downturn. In Rajapaksa, the government is negotiating with the International Monetary Fund for some relief.

Qi Zhenhong, China’s ambassador to Sri Lanka, may have said that China was considering a new request for a $ 1 billion loan and a $ 1.5 billion loan line from Sri Lanka. He says this is in addition to the $ 2.8 billion aid that China has provided to Sri Lanka since the onset of the epidemic.