Close
MyNorthwest
News
Opinion
Sports
Tools
Connect

China becomes wild card in Sri Lanka’s debt crisis

FILE - In this Jan. 2, 2018, file photo, a Chinese construction worker stands on land that was reclaimed from the Indian Ocean for the Colombo Port City project, initiated as part of China's ambitious One Belt One Road initiative, in Colombo, Sri Lanka. 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. (AP Photo/Eranga Jayawardena, File) FILE- Governor of Sri Lankan Central Bank Nandalal Weerasinghe speaks during a media briefing in Colombo, Sri Lanka, Thursday, May 19, 2022. 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. "We have made it very clear," said Nandalal Weerasinghe, "It is not fair to treat one creditor differently to others. Then the others won't come onboard." (AP Photo/Eranga Jayawardena, File) FILE- Chinese ambassador to Sri Lanka Qi Zhenhong attends a media briefing in Colombo, Sri Lanka, Monday, March 21, 2022. Qi told reporters April 25, that negotiating with the IMF would interfere with Beijing's loan offer to Sri Lanka. IMF emergency loans usually require a borrower to work out a deal with all creditors to reduce debts. (AP Photo/Eranga Jayawardena, File) FILE- 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. (AP Photo/Eranga Jayawardena, File) FILE- 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. (AP Photo/Eranga Jayawardena, File) FILE- Sri Lankan auto rickshaw drivers queue up to buy petrol near a fuel station in Colombo, Sri Lanka, Wednesday, April 13, 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. (AP Photo/Eranga Jayawardena, File)
China becomes wild card in Sri Lanka’s debt crisis