Instead of mistakenly going to the IMF, Prime Minister Mahinda Rajapaksa went straight to Beijing and started taking out a loan.
new Delhi: China, which has faced criticism from all sides, is now testing the power of the rupees to determine global terms. China is harboring a major conspiracy to trap Sri Lanka. As Sri Lanka is currently seeking immediate financial help due to the poor economy, China is attracting it. Instead of going to the IMF, Prime Minister Mahinda Rajapaksa made a mistake and went straight to Beijing and started taking out a loan. Not only that, he was greeted by the President of Sri Lanka when the high Chinese diplomat Yang Jae-che visited Colombo.
Loan requested from China for the third time in a year
According to a report, Sri Lanka needs more than billions in loans. Negotiations are underway between Sri Lanka and China for a loan of 700 million dollars. This is Colombo’s third loan request this year from Beijing. Previously, China traveled to Sri Lanka to fight COVID – 19,500 received a million dollar loan. By May, Sri Lankan Government 105 wanted to borrow another million dollars to improve roads up to kilometers .
Three billion dollar debt is pending
Under these conditions, it appears that China has become the sole lender for Sri Lanka. According to an estimate, Sri Lanka has an outstanding debt of approximately three billion dollars this year. 2018 Sri Lanka had taken a total debt of five billion dollars from China. Sri Lanka 55 in the last 55 Rescue at the IMF. Sri Lanka has only completed 9 of the 16 IMF programs.
Sri Lankan economy devastated after the Crown
According to another report, the Bank of China agreed to give a billion dollar loan to Colombo last year. The outbreak of COVID – 19 has eroded the revenues of the Sri Lankan government. Credit rating agencies downgraded Sri Lanka. Sri Lanka is borrowing more money to repay the debt of existing lenders. If Colombo continues on this path, his conditions could be similar to Pakistan. It is a conspiracy of China for China to get another pawn like Pakistan in South Asia.