Sri Lanka China Debt Crisis

Sri Lanka’s opposition party members shout anti-government slogans during a protest rally against the economic crisis in Colombo, Sri Lanka, Tuesday, April 19, 2022. China says its initiative to build ports and other infrastructure paid for with Chinese loans across Asia and Africa will boost trade. But in a cautionary tale for other borrowers, Sri Lanka’s debt to Beijing threatens to hold back efforts to resolve a financial crisis so severe that this Indian Ocean nation cannot import food or gasoline.

Sri Lankan President Mahinda Rajapaksa, in white, walks with Chinese President Xi Jinping after officially launching a project to construct a $1.4 billion port city being built on an artificial island off Colombo, Sri Lanka, Wednesday, Sept. 17, 2014. China says its initiative to build ports and other infrastructure across Asia and Africa, paid for with Chinese loans, will boost trade. But in a cautionary tale for borrowers, Sri Lanka’s multibillion-dollar debt to Beijing is hindering efforts to resolve a financial crisis so severe that the Indian Ocean nation cannot afford imports of food or gasoline.