Sri Lanka emerges bloodless from several months of unbearable crisis which saw its people, 80% of whom no longer have enough to eat, overthrowing the Rajapaksa clan, in power since 2005, on July 9. Worse, since its inability to honor a payment of 78 million dollars on May 18, the fate of the country now seems to depend on the goodwill of China, its main creditor which accounts for 10% of its external debt to the tune of approximately 5 billion dollars.
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At the heart of the anger that took power in Sri Lanka
The second world economic power indeed wishes to negotiate only face-to-face with the island located in the south of India, without discussing with the other main creditors (World Bank, IMF, Japan).
Just recently, China offered Sri Lanka $1 billion to help repay its existing loans, as well as an additional $1.5 billion to buy goods.
China wants to supplant other creditors.
Even its loan agreements are very opaque because of the confidentiality clauses it imposes
Torek Farhadi, former adviser at the IMF
China's strategy of talking only with Sri Lanka is proven.
Beijing has always refused to be part of the…
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