Sri Lanka sinks deeper into China’s grasp as debt woes spiral

 

That Sri Lanka sits right off of the coast of one of China’s chief global rivals, India, and also is a key point along China’s “String of Pearls” (a group of bases stretching from the Middle East back to the Chinese mainland) is purely a coincidence of course.

Debt can be a highly effective weapon and China, the Ultimate Crony Capitalists State and debt pusher on an Asian scale, understands this all too well. Sorry Sri Lanka. It looks like you may have traded your unending civil war for debt peonage.*

(From The Nikkei Asian Review)

Sri Lanka has again turned to China for a fresh injection of cash, which will come during the final quarter of 2018, as it prepares for a crippling debt repayment cycle that will begin in 2019. But the $1.25 billion in loans will push Sri Lanka deeper into Beijing’s grasp.

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