Friend Or Foe? Before $2.5 Billion 'Help', China Had Rejected Sri Lanka's Loan Rescheduling Appeal
Here's why they reconsidered:
"In the face of the deepening foreign exchange crisis, Sri Lanka President Gotabaya Rajapaksa sought China’s help in December 2021 as he requested a debt restructuring in a meeting with China Foreign Minister Wang Yi. However, Beijing had reportedly shown Colombo the door.
After Announcing $2.5 Billion Assistance, China’s Refusal To Sri Lanka
This comes amidst the news that China has shed some crocodile tears over the economy of Sri Lanka getting caught in a quagmire after hobnobbing with the BRI projects of China: record inflation, soaring food prices and the sufferings of the people, as per a media report.
The report added “The key concern, however, is how such a negative situation would impact the attitude of Colombo towards borrowings from China, and what it would mean for the ultimate relation between China and Sri Lanka. There is concern that the experience of Sri Lanka is prompting countries like Myanmar, Malaysia and Nepal to suspend Chinese investment projects”
My question has been answered.
Apparently no one is going to default on debt owed China.
Hard to believe that Borrowing and Spending your way to prosperity isn’t working out?
Their signs are truthful and relevant to the USA also.
I wonder what the collateral was that China will soon own?
Wow, I just read today that Sri Lanka was voted Best Place to Retire On the Beach... I guess not right now!
Sri Lanka is bigger than the state of West Virginia.