What led to Sri Lanka economy issues? Sir Lanka on verge of bankruptcy ?

bssunilreddy said:
Chinese tried to meddle with the following nations since the past 6 years.
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Not denying it just pointing out that there is more going on here

bssunilreddy said:
We need to help others who got affected by them and there by help each other in the process. This is the way to attain sustainable coordinated development by our neighbors with India.
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We get played by all the neiighbours who try to extract the most from us & China. This is normal.
bssunilreddy said:
That's why they offered help to nations around us to encircle us but this isn't going to happen in the end because big brothers always watches.

I hope they will keep China in check.
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The games continue. Ups and downs.

But the region is getting more unstable. The Paks, SL & Burma right now are in a tail spin.
 
blr_p said:
Not denying it just pointing out that there is more going on here


We get played by all the neiighbours who try to extract the most from us & China. This is normal.

The games continue. Ups and downs.

But the region is getting more unstable. The Paks, SL & Burma right now are in a tail spin.
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6 years ago when China try to intrude into Bhutan then we defended them because they are being protected by us both Bhutan & Burma.
 
chinese loans are ~10% of SL's debt but this doesn't count institutional loans and the interest rates are bonkers.
of $4.8 billion in chinese debt $1 billion is at 2% but the remaining $3.8 billion is at 6% interest.
6% of $3.8 bill = $228 mill p.a. in interest alone = ~$624,000 per day in interest.
looks more and more like a loan shark operation
 
Crapmypants said:
chinese loans are ~10% of SL's debt but this doesn't count institutional loans and the interest rates are bonkers.
of $4.8 billion in chinese debt $1 billion is at 2% but the remaining $3.8 billion is at 6% interest.
6% of $3.8 bill = $228 mill p.a. in interest alone = ~$624,000 per day in interest.
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Were you able to read that article i linked to ?

It's not what caused the crisis. Those loans aren't due for a few years more.

If the rates were high and this was made clear at the start then why did SL take them. Who made that decision ?

SL approached India for loans before going to China and we made it clear to them there was no return for such projects.
Crapmypants said:
looks more and more like a loan shark operation
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It's a good risk from the Chinese pov because any defaults will attract even higher lending rates from the global market to defaulter countries.

These people are crazy to accept loans at such high interest rates. The Japanese rates are a fraction of a per cent.

Rajapaksas needed something to show to their people and there is corruption with people skimming. All white elephant projects.
 
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