{"id":144928,"date":"2022-04-11T11:28:35","date_gmt":"2022-04-11T05:58:35","guid":{"rendered":"https:\/\/www.caravanalive.com\/?p=144928"},"modified":"2022-04-11T11:28:35","modified_gmt":"2022-04-11T05:58:35","slug":"how-china-pushed-sri-lanka-into-a-debt-trap-how-india-can-help","status":"publish","type":"post","link":"https:\/\/www.caravanalive.com\/?p=144928","title":{"rendered":"How China Pushed Sri Lanka Into A Debt Trap, How India Can Help ?"},"content":{"rendered":"<div class=\"2a6a8c3593e6620bd92d71f585bdd19b\" data-index=\"4\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6453632170035383\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- NEW RESPONSIVE -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6453632170035383\"\r\n     data-ad-slot=\"2960496911\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n<p>Indian diplomacy must be more proactive when it involves Sri Lanka. China could leverage its position within the current depression. Sri Lanka\u2019s depression is an emergent phenomenon and has been stewing for an extended time.<\/p>\n<p>What&#8217;s strange about it&#8217;s the dearth of basic planning and foresight by the Rajapaksa government to own gauged its enormity in time and initiate necessary corrective measures. The Rajapaksas themselves were also, in a way, involved in the making of this crisis.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/akm-img-a-in.tosshub.com\/businesstoday\/images\/story\/202204\/sri-lanka-crisis-01-sixteen_nine.jpg?size=1200:675\" alt=\"How Sri Lanka, Pakistan crises affect India - BusinessToday\" \/><\/p>\n<p>The Covid-19 pandemic affected the Democratic Socialist Republic of Sri Lanka badly. Countries closed borders and therefore the movement of individuals came to a standstill. Demand for exports, especially for the products the Democratic Socialist Republic of Sri Lanka sold, also fell.<\/p>\n<p>Even remittances from Sri Lankans working abroad reduced substantially thanks to the economic stress and job losses in those countries.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/akm-img-a-in.tosshub.com\/aajtak\/images\/story\/202203\/srilanka_crisis1_reuters-sixteen_nine.jpg?size=1200:675\" alt=\"Sri Lanka Crisis: \u0907\u0928 5 \u0915\u093e\u0930\u0923\u094b\u0902 \u0938\u0947 '\u0938\u094b\u0928\u0947 \u0915\u0940 \u0932\u0902\u0915\u093e' \u0915\u0902\u0917\u093e\u0932, \u092e\u0939\u0902\u0917\u093e\u0908 \u0932\u0947 \u0930\u0939\u0940 \u0939\u0948 \u091c\u093e\u0928 - Sri Lanka Crisis Latest News Financial debt trap china forex reserve agri policy tuts - AajTak\" \/><\/p>\n<p>Enter Vandana Shiva, propagating a pseudo-scientific and untested theory of organic farming for large-scale commercial plots, advising b\u1ea1n on urea imports to avoid wasting forex.<\/p>\n<p>While organic farming, per se, might not be a nasty idea at an opportune time, its abrupt adoption nationally affected grain production adversely, especially at a time when the Sri Lankan economy was already under serious stress.<\/p>\n<p>The present situation wouldn&#8217;t become so alarming had the Democratic Socialist Republic of Sri Lanka had enough grain to feed its population. In fact, the provision of surplus grain stock within the country offered the most effective response mechanism to the Narendra Modi government to feed its population during the identical time.<\/p>\n<p>While all of this was happening, China was playing a shrewd game \u2014 not only to realize a strategic advantage within the island nation but also to stay its economy hostage. While China is currently involved in additional than 50 projects in the Democratic Socialist Republic of Sri Lanka, their nature and execution are alarming, to mention the smallest amount.<\/p>\n<p>These are Hambantota and Colombo Port City, both of which are given 99 years of lease to China. The Chinese economic support for the state was never meant just for trade and economic considerations. it absolutely was always a way to achieve political and security leverage against India and safeguard its interest within the ocean Rim, through which the majority of China\u2019s energy movement takes place.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/akm-img-a-in.tosshub.com\/businesstoday\/images\/story\/202201\/srilankachina1200-sixteen_nine.jpg?size=1200:675\" alt=\"Sri Lankan President asks China to help restructure debt repayments - BusinessToday\" \/><\/p>\n<p>As far as lending is concerned, China is now the second-largest lender to Sri Lanka. By 2019, it absolutely was holding quite 10 per cent of Sri Lanka\u2019s outstanding foreign debt.<\/p>\n<p>China became the most important investor in Ceylon between 2010 and 2020, displacing India from the position of the biggest importer of Sri Lankan goods despite an adversarial geographic location. What\u2019s worse, India let it happen despite serious stakes associated with security.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/dynaimage.cdn.cnn.com\/cnn\/c_fill,g_auto,w_1200,h_675,ar_16:9\/https%3A%2F%2Fcdn.cnn.com%2Fcnnnext%2Fdam%2Fassets%2F180202192402-billboard-hambantota-leaders.jpg\" alt=\"What Sri Lanka's political crisis means for India and China | CNN\" \/><br \/>\nThe southern coast of the Democratic Socialist Republic of Sri Lanka assists China in addressing its Malacca dilemma to an inexpensive degree, giving it a vantage position.<\/p>\n<p>The Colombo Port City project, with identical conditions, also brings China closer to India. Not only this, Indian projects (East Container Terminal) which are led by India\u2019s Adani Group and Japan were also cancelled by the Sri Lankan government following the impact and proved financially disastrous for both.<\/p>\n<p>There has been some solace with West Container Terminal being given during a 35-year lease to the venture.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/akm-img-a-in.tosshub.com\/businesstoday\/images\/story\/202203\/sri-lanka-1200-sixteen_nine.jpg?size=1200:675\" alt=\"What's happening in Sri Lanka? All you need to know about its economic crisis - BusinessToday\" \/><br \/>\nWhile the meeting of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) in the Democratic Socialist Republic of Sri Lanka and dialogues are positive developments as India has not only offered liberal assistance and goods to mitigate the crisis, it&#8217;s also got projects on these islets within the northern a part of the state which was also promised to China at some point of your time.<\/p>\n<p>A more in-depth involvement with the Sri Lankan people is required to synergise our mutual interest in multiple fields. The creation of a frenzied team for Sri Lankan affairs is maybe the requirement of the hour.<\/p>\n\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>Indian diplomacy must be more proactive when it involves Sri Lanka. China could leverage its position within the current depression. Sri Lanka\u2019s depression is an emergent phenomenon and has been stewing for an extended time. What&#8217;s strange about it&#8217;s the dearth of basic planning and foresight by the Rajapaksa government to own gauged its enormity [&hellip;]<\/p>\n","protected":false},"author":23,"featured_media":144966,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[{"category_id":36,"category_link":"https:\/\/www.caravanalive.com\/?cat=36","category_name":"Article"},{"category_id":1265,"category_link":"https:\/\/www.caravanalive.com\/?cat=1265","category_name":"International"}],"tags":[{"tag_id":4329,"tag_link":"https:\/\/www.caravanalive.com\/?tag=china-role","tag_name":"china role"},{"tag_id":4330,"tag_link":"https:\/\/www.caravanalive.com\/?tag=debt-trap","tag_name":"debt trap"},{"tag_id":4328,"tag_link":"https:\/\/www.caravanalive.com\/?tag=sri-lanka-crisis","tag_name":"sri lanka crisis"},{"tag_id":1805,"tag_link":"https:\/\/www.caravanalive.com\/?tag=xi-jinping","tag_name":"Xi Jinping"}],"class_list":["post-144928","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-article","category-international","tag-china-role","tag-debt-trap","tag-sri-lanka-crisis","tag-xi-jinping"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How China Pushed Sri Lanka Into A Debt Trap, How India Can Help ? - Alive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.caravanalive.com\/?p=144928\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How China Pushed Sri Lanka Into A Debt Trap, How India Can Help ? - Alive\" \/>\n<meta property=\"og:description\" content=\"Indian diplomacy must be more proactive when it involves Sri Lanka. China could leverage its position within the current depression. Sri Lanka\u2019s depression is an emergent phenomenon and has been stewing for an extended time. 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