CHINA-SRI LANKA: POPULAR CHINESE PORTAL PUBLISHES ARTICLE HIGHLIGHTING SRI LANKA'S ACUTE FINANCIAL DISTRESS

An article posted on the popular Chinese portal NetEase (January 3) said that half a million people in Sri Lanka have been thrown into poverty since the outbreak, and rising costs have forced many to cut back on food. The country is now facing a deepening financial and humanitarian crisis, with fears it could go bankrupt in 2022 as inflation rises to record levels, food prices soar and state coffers dry up. It quoted Britain's "Guardian" as saying "Sri Lanka faces many pressing problems, one of which is the huge external debt burden, especially to China. It owes China more than 5 billion US dollars (about 31.7 billion yuan) in debt. It has secured a $1 billion loan to help it deal with the severe financial crisis, which is currently being repaid in amortizations.” The article added that the situation was so dire that there were long queues at passports as one in four Sri Lankans, mostly young and educated, said they wanted to leave the country. For older citizens, it's reminiscent of the early 1970s, when import controls and low domestic production led to severe shortages of basic goods and long queues for bread, milk, and rice. It quoted WA Wijewardena, the former Deputy Governor of Sri Lanka's central bank, as warning that the struggles of ordinary people will exacerbate the financial crisis, which in turn will make their lives more difficult. He said, “When the economic crisis worsens to the point of no return, there will inevitably also be a financial crisis in the country. Both will reduce production and will be unable to import due to a shortage of foreign exchange, thereby reducing food security. At that time, this will It's a humanitarian crisis."





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