Monday, February 19, 2018 08:36:52 PM

Report: Sri Lanka’s debt woes with China a warning

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PETALING JAYA: Sri Lanka has become the first Asian country to fall into what is called “China’s debt trap”, having previously received billions of dollars in investments into huge infrastructure projects, based on China’s guidance and promises, The Independent Singapore reported.

Sri Lanka is now facing the consequences of the vast investments, owing China US$8 billion out of the total US$64 billion overall debt that has arisen from the various projects.

As a result, most of the South Asian nation’s revenue is being directed towards debt settlement instead of towards much-needed development for the country which came out of a 25-year civil war in 2009.

Now, the news portal says, there is growing concern over the investment from the world superpower in Cambodia, Malaysia and even Indonesia.

“Experts asked questions about China’s sudden interest in Malaysia with the government of Prime Minister Najib Razak opening its arms and everything else to Beijing’s promises of massive loans….

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