Sri Lanka demands financial assistance of $1 billion from India -

Colombo: – Sri Lanka, trapped in an economic crisis, has demanded additional assistance of $1 billion from India. The demand coming from this country just after the visit of the Chinese Foreign Minister to the country becomes significant. China has expressed willingness to extend major economic assistance to Sri Lanka. But the Sri Lankan leadership has demanded a restructuring of repayment for the old debts instead of availing another loan from China. Agitated with this, China warned India not to intervene in its bilateral issues with Sri Lanka.

Recently, Chinese Foreign Minister Wang Yi visited Sri Lanka, which is passing through a major economic crisis. Thus, taking advantage of the situation, China had prepared to entrap Sri Lanka in another debt noose. But at this time, Sri Lankan President Gotabaya Rajapaksa demanded a restructuring of old debts instead of a fresh borrowing from China. This has rocked China. According to China, India is behind this Sri Lankan stand and the statements made by Wang Yi during the visit only go to endorse this view.

The Chinese Foreign Minister expressed his simmering anger. He said, ‘China and Sri Lanka benefit from the bilateral cooperation. This cooperation is not against any other country. There is no reason for a third country to interfere in this relationship in this situation.’ Sri Lanka had permitted China to build a solar power project on its islands near Tamil Nadu. But the project has been cancelled and an Indian company is likely to bag the contract. China feels that this is due to pressures from India. At the same time, Sri Lanka is withdrawing from cooperation with China on many other fronts. Chinese media are accusing this is all the handiwork of India.

Against this background, the reaction of the Chinese Foreign Minister becomes noteworthy. But as per analysts, the predatory Chinese economic policies, and not India, are responsible for the changing Sri Lankan policies. China acquired the Hambantota port for 99 years by giving an unserviceable loan to Sri Lanka. Moreover, China dumped certain substandard fertilisers in Sri Lanka and made Sri Lanka pay for them. Both these developments harmed the bilateral relations.

In this scenario, Sri Lanka has demanded financial assistance of $1 billion from India. Sri Lanka has clarified that these funds will be utilised to purchase food, grain and other products. This makes it clear that this country is unwilling to stick its neck again in the noose of Chinese debt.