As the economy is hit hard by the Corona epidemic, Sri Lanka is struggling to repay its loans to China.
The Sri Lankan government has borrowed about 26 trillion rupees from China. As the corona epidemic paralyzed the tourism industry, Sri Lanka’s economy has plummeted and the prices of essential commodities have risen sharply.
Meanwhile, Chinese Foreign Minister Wang Yi arrived in Colombo and met with President Gotabhaya Rajapaksa. At the time, the Sri Lankan president asked the Chinese minister to change the loan repayments system and that doing so would be a great relief to them, according to a press release issued by the Presidential Palace.
Unable to repay the loan taken for the construction of the Hambantota port, Sri Lanka had to lease the port to China for 99 years. Similarly, the Sri Lankan government has been unable to pay for the oil it bought from Iran and has been dealing with tea exports in return.
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