You are here: Home » International » News » Economy
Business Standard

China to provide 300 mn yuan loan to Sri Lanka amid economic crisis

China has decided to provide a loan of 300 million yuan to Sri Lanka amidst the unprecedented economic crisis in the island nation.

China economy | sri lanka | Economic Crisis


China has decided to provide a loan of 300 million yuan to amidst the unprecedented in the island nation.

The total amount of emergency grants provided by China has increased to 500 million Chinese Yuan, which is USD 76 million.

The Chinese Embassy in Sri Lanka, in a tweet, said that to "support Sri Lankan people at this trying times, China has decided to provide another 300 million RMB of aid to for the urgently needed drugs, food and fuels etc., which increases the total emergency grant from China to 500 million RMB (approximately 76 million USD)."

Currently, is grappling with food and electricity shortages, affecting many people. Such an has forced Sri Lanka to seek help from its neighboring countries to provide them with basic amenities.

While Sri Lanka faces its worst since independence, many believe that China's "debt-trap diplomacy" is behind the crisis.

China has always kept its interests at the forefront and used the small nations as its pawn, be it Sri Lanka or the Maldives. Beijing is known for selling a dream of a fast-growing and then trapping these countries into debt diplomacy, according to reports.

Writing in Channel News Asia (CNA), R Ramakumar, a Professor of Economics at Tata Institute of Social Sciences, highlighted that China's "debt-trap" policy is singularly responsible for the dire economic situation of Sri Lanka.

Sri Lanka is now experiencing its greatest economic crisis since independence from British rule in 1948. The slump is blamed on currency shortages caused by the travel ban imposed during the COVID-19 epidemic.

This has resulted in the nation's inability to purchase sufficient fuel, resulting in an extreme shortage of food and essential commodities such as heating fuel and gas.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, May 03 2022. 20:00 IST