Loan sought from China is the root cause of crisis in Sri Lanka

New Delhi: Indian Foreign Minister S Jaishankar assured that India will stand with the Sri Lankan people through the crisis. Sri Lanka is receiving assurances of assistance from other countries too. But an Indian thinktank pointed out that this will not resolve the Sri Lankan Problems as Sri Lanka is completely trapped under the burden of Chinese debt. Sri Lanka has failed to repay earlier loans taken from China and was forced to hand over the Hambantota port to China for 100 years. Still, Sri Lanka has not been relieved of the Chinese loans. As per experts, this debt will continue to be the major economic problem for Sri Lanka in the coming times.

Moreover, the total outstanding Sri Lankan debt is $50 billion. A major portion of this are loans taken from China at high rates. It is claimed that Sri Lanka borrowed these funds for infrastructure development projects. Although, Sri Lanka took these loans for infrastructure development, Sri Lanka seems to be reeling under this debt instead of benefitting. It is clear that the malpractices and faulty policies of former President Mahinda Rajapaksa are responsible for this state.

If Sri Lanka has to come out of this economic crisis, it will need leadership capable of taking tough decisions. Tough decisions to resolve these economic issues cannot be taken unless Sri Lanka gets a government with massive support from the population. As per analysts, at the same time, Sri Lanka will have to be cautious to stay away from China. At the same time, discussions regarding the Predatory Chinese policies have started around the globe regarding the Sri Lankan situation. China is saying that it is not responsible for the Sri Lankan situation. But Sri Lanka is in this situation only because of the Chinese debt and China has not given up the plan to further entrap Sri Lanka by offering fresh loans.

Other countries borrowing from China are also alarmed, given the Sri Lankan situation. These include Pakistan. Some analysts and journalists are expressing fears that the sequence of events in Sri Lanka may be repeated in Pakistan in the coming times.