Sri Lankan Economic

Crisis

By Aaftab and Aditya

 t h e
ac t ed r i
i mp o f S
this p eo p le
h as th e
How my an d
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Inflation
The Domino Effect
Shortage of basic
necessities
(947) WION Dispatch | Sri Lanka Crisis & Chaos: Sri Lankans using firewood for c
ooking purposes - YouTube
 Political Issues
The Sri Lanka Podujana Peramuna which is the Sri Lanka People’s front is the political
party that came into power in 2019 led by former Prime minister mahinda rajapaksa.
Riots
● An MP from the ruling party of sri
lanka was found dead. The
incident took place hours after the
PM Mahinda rajapaksa resigned
from his post.
● Sri Lankan troops opened fire at a
fuel station , the cause being
stones being pelted on an army
truck by angry residents. Four
civilians and three soldiers were
injured.
Other issues
● Central bank not being able to keep the exchange rate within the fixed
limit of 230 in terms of the US dollar .
● No , Petrol 15 hour power cuts.
China

● Relying too much on a single

country has been proven harmful
kindly learn .
 Economic Security
● Sri Lanka has total outstanding debt of more than $50 billion by May
2022
● Port City legislations which encourages more FDIs

$15 billion
 Political Security
China has supported to vote against the UNHRC resolution to investigate into human
rights violations by SL army during the civil war.
Hambantota Port

● The port was handed over to

Chinese entity for a 99 year lease
in 2017
● China did not change the terms of
debt for Sri Lanka
● Sri Lanka still has to pay debt
● The Port gets only 400 vessels
annually

China Harbour Engineering Company and

China Merchant Port Company
Colombo Port City
Sri Lanka’s China-backed
Colombo Port City could add
12 billion US dollars to the
island’s annual gross
domestic product when in
full operation and 4.5 billion
dollars in initial years.
-State Minister of Money and Capital
Markets, Nivard Cabraal
China Communications Construction Company
Why not USA or UN
● US House Foreign Affairs Committee (HFAC) had passed a resolution on Sri
Lanka HR violations.
● The EU Parliament has also adopted a resolution to withdraw the Generalised
scheme of preferences (GSP+)
The White House
FACT SHEET: Executive Order Addressing the Threat from Securities Investments
that Finance Certain Companies of the People's Republic of China | The White H
ouse
.
The Indian Perspective
● Given the dynamics of India-China relations, Sri Lanka should not expect
that India will shut its eyes over the developments in the Colombo Port
City,which is just 290 km away from its mainland,even though unlike the
US,it has not raised any official concern.
● The domestic decision to favor china and lose its foreign policy balance
will significantly impact India-Sri Lanka relations.

Dr Gulbin Sultana is an Associate Fellow with the South Asia Centre in the Manohar Parrikar Institute for Defence Studies
and Analyses (MP-IDSA), New Delhi
The Chinese debt trap
Is Sri Lanka a victim of Chinese 'debt traps'? - BBC Newsnight