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…
By Ranmalee Nanayakkara The current economic crisis is an unprecedented one – but nevertheless, it is a crisis that has been in the making for