Sri Lanka defaults on entire $51 billion external debt

[troubled soul]

Sri Lanka defaults on entire $51 billion external debt​

Sri Lanka defaults on entire $51 billion external debt

The island nation is grappling with its worst economic downturn since independence

gulfnews.com

 

[VESTANON]

Sad indeed, Such Loan Volumes only amount to neo financial slavery,as well as perpetual debt..

signatories of such debts are unaffected, whilst the low tier and ordinary citizens feel the pinch and ramifications of such actions...

 

[troubled soul]

Sri Lanka Is Not on its Knees Anymore, Now Sri Lanka is Completely Flat on the Ground​

 

[JohnnyDoe]

China continues its expansion…

 

[Martin Everson]

Who knows what will happen here. Lot of speculation surrounding this all.

Sri Lanka: Debt Crisis, Neocolonialism and Geopolitical Rivalry

Sri Lanka is in the throes of an unprecedented economic crisis. Faced with a shortage of foreign exchange and defaulting on its foreign debt repayment, the country is unable to pay for its food, fuel, medicine, and other basic necessities. Notwithstanding the austerities that would be entailed...

www.ipsnews.net

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Debt Crisis and Geopolitical Rivalry

Economic crises create opportunities for external powers to expand economic exploitation and geopolitical control. In Sri Lanka’s context, this means India, the US and China.

Sri Lanka’s big neighbor India has extended a $1 billion credit line to provide essential food and medicine. The Sri Lankan government has stated that there are no conditions attached to the Indian loans. However, Sri Lankan analysts believe that agreements have been made giving Indian companies exclusive access to investments on the island.

Sri Lanka is strategically located in the sea lanes of the Indian Ocean. Over 80% of the global seaborne oil trade is estimated to pass through the choke points of the Indian Ocean. Although bizarrely overlooked by the global media, a Cold War is already in place between China and the Quadrilateral Alliance (United States, Japan, Australia and India) over the control of Sri Lanka and the Indian Ocean.

Sri Lanka is part of China’s $1 trillion Belt and Road Initiative, which includes the island’s Hambantota Port and Port City. The United States, on the other hand, signed an open-ended Acquisition and Cross Services Agreement (ACSA) with Sri Lanka on August 4, 2017, facilitating military logistic support.

The US is also seeking to sign a Status of Forces Agreement (SOFA), which would effectively turn Sri Lanka into a US military base. While the proposed United States Millennium Challenge Corporation Compact has not been signed due to local protests, the pact’s objective – US control over the land, transportation and communication infrastructure in Sri Lanka – continues unabated.

In this context of Sri Lanka as a tense theater of geopolitical rivalry, the Sri Lankan debt crisis cannot be understood simply as an economic crisis. Could it, in fact, be a ‘staged default’ designed to push Sri Lanka into an IMF bailout which would complete the island’s subservience to the US dominated economic and political agenda?

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