 "As such, China does play a larger role in resolving this crisis but India can't be wished away, since it is a leading export destination for Sri Lanka")
All eyes are set on the stance the new Sri Lanka president Anura Kumara Dissanayake may take as his alliance gives an initial impression that he will try to bring his debt-ridden country closer to China.
However, AKD, as he is popularly known, has expressed his desire not to be “sandwiched” between India and China. While India was the largest importer of goods from Sri Lanka after the US in 2023 (UK was ahead of India for some years), compared to a minuscule share of China, the dragon has been a much bigger contributor to the island nation’s foreign sovereign debt.
And it is sovereign debt that is the main issue behind Lanka’s economic crisis. As such, China does play a larger role in resolving this crisis but India can’t be wished away, since it is a leading export destination for Lanka which plays a crucial part in boosting forex reserves of the island nation.
However, AKD, as he is popularly known, has expressed his desire not to be “sandwiched” between India and China. While India was the largest importer of goods from Sri Lanka after the US in 2023 (UK was ahead of India for some years), compared to a minuscule share of China, the dragon has been a much bigger contributor to the island nation’s foreign sovereign debt.
And it is sovereign debt that is the main issue behind Lanka’s economic crisis. As such, China does play a larger role in resolving this crisis but India can’t be wished away, since it is a leading export destination for Lanka which plays a crucial part in boosting forex reserves of the island nation.
