By Thisuri Rojie Ekanayake In the months since Sri Lanka was officially recognized as a country in default, surging prices, shortages and looming uncertainties have
From project financing to debt restructuring: China’s role in Sri Lanka’s debt situation
While Sri Lanka’s debt obligations to China have often been misinterpreted, the fact remains that China is Sri Lanka’s largest bi-lateral creditor. For this very reason, China plays a key role in Sri Lanka’s debt restructuring process. A review of Chinese lending history in the country, particularly its recent offering of direct budgetary financing in 2018 and during the pandemic, also demonstrates China’s understanding of Sri Lanka’s situation and its potential to intervene as a major creditor.
Since the 1990s, successive Sri Lankan governments committed three cardinal sins, which may be forgivable on their own, but together form an unholy trinity of economic disaster…
Reforms have been sidestepped so far by successive governments due to their political ideologies and fears of upsetting the status quo, creating the explosive crisis that is currently threatening the wellbeing of their citizens.
“Mismanagement of the government budget over the last 70 years is the major cause of Sri Lanka’s economic woes” – Dr. Indrajit Coomaraswamy
By Ranmalee Nanayakkara The current economic crisis is an unprecedented one – but nevertheless, it is a crisis that has been in the making for
On 12 April 2022, for the first time in its history, Sri Lanka defaulted on its sovereign debt. There are many reasons as to why