Now Sri Lanka has also taken down the China card, making this demand to India

Colombo, Ta. 1 July 2020, Wednesday

Amid tensions in Ladakh, Sri Lanka has now also drawn the China card against India. The government of Sri Lankan Prime Minister Mahinda Rajapaksa has started taking loans internationally, taking charge of the country's economy. Experts fear that Sri Lanka may once again turn to China for a loan after a rift with the US. Sri Lanka is already mired in billions of rupees in Chinese debt.

Modi sought time from the government to repay the debt

In the midst of all this, Mahinda Rajapaksa has asked India for extra time to repay the debt due to poor economic conditions. India has given a loan of 96 960 million to Sri Lanka. Talks are underway between India and Sri Lanka to repay the debt. However, India has not yet given any assurance on the matter.

Demand for currency exchange with India

The Sri Lankan government has demanded a currency swap with India. Sri Lanka is owed 2.9 billion globally, so the Sri Lankan government has twice asked the Indian government for a currency exchange. According to a statement from the Sri Lankan PM's office, the government has requested all lenders to extend the payment deadline.

China ready to lend 50 500 million

The loan was discussed between Chinese President Xi Jinping and Sri Lankan President Gotabhaya Rajapaksa last May. In it, China offered to provide a loan of Rs 50 crore to Sri Lanka to meet its immediate needs.

Sri Lanka has a total debt of 55 55 billion

Sri Lanka has borrowed a total of 55 55 billion from countries around the world. According to a report, this amount is 80 percent of the total GDP of Sri Lanka. Most of the debt is from China and the Asian Development Bank. It is followed by Japan and the World Bank. India has lent about two per cent of Sri Lanka's GDP.

China capturing Sri Lanka through donation diplomacy

Sri Lanka received a consignment of face masks and medical devices made in China in mid-June to combat the corona virus. The incident is proof that Sri Lanka is an important part of Beijing's foreign policy and donation diplomacy. After weakening Sri Lanka economically, China is now treating itself by spreading the virus.

Sri Lanka is the center of China's territory in the Indian Ocean

China has also included Sri Lanka in China's Indo-Pacific Expansion and Belt and Road Initiative (BRE). Unable to repay China's debt, Sri Lanka leased its port of Hambantota to China's Merchant Port Holdings Limited in 2017 for વર્ષ 1.12 billion for 99 years. However now Sri Lanka wants to get that port back.

Sri Lanka cut ties with the US

Prior to 2017 there were close ties between the US and Sri Lanka. At the time, pro-US Sirisena-Vikram Singh extended the administration's Acquisition and Cross-Servicing Agreement (ACSA) with the US for the next 10 years. This provided the United States with logistical support, refueling, and halting facilities for its operations in the Indian Ocean region. But now the Gottbaya administration has cut ties with its own America.

Mahinda Rajapaksa's tenure grew closer to China

During Mahinda Rajapaksa's tenure, there has been a lot of closeness between Sri Lanka and China. Sri Lanka has borrowed heavily from China in the name of development. But now that it is time to pay it off, Sri Lanka has nothing to lose. This forced Sri Lanka to cede 15,000 acres of land at the Hamban Tata port to China for an industrial zone. China is also expected to use the land as a naval base to continue its activities in the Indian Ocean.