CHINA'S BRI DEBT TRAP: SRI LANKAN ECONOMY IN COLLAPSE

How the collapse of Sri Lankan economy is turning into a political crisis? What is it that has led to the current collapse of Sri Lankan economy? In what way is China's Belt & Road Debt Trap (BRDT) connected with it? What are the possible solutions to the economic crisis that resulted in political crisis? In what way, if any, could India be of help to Sri Lanka, if only to overcome the current multiple crises? VIJAY KUMAR KAUL answers

- VIJAY KUMAR KAUL

How does one explain the recent happenings in Sri Lanka, not just an immediate Southern neighbour of India, but a strategically located island country in the Indian Ocean? Ominously worrying crises have engulfed it in a surprisingly short period of last few months, i.e., from February to April 2022. Consider the symptomatic fact that Sri Lanka applied to the IMF for a bailout of $4 billion, amidst the continuing public protests against the government, demanding the resignation of the President. Notice the rampant street protests against the declaration of curfew and emergency. Also notice how within a short span time, curfew and emergency were imposed and later on withdrawn. On top of that, government has fallen, following the resignations by all the ministers except the Prime Minister. The President's invitation to the opposition to join the government is by no means normal either (on April 18 President constituted a new ministry with 17 members).

India is seriously concerned about these crises-situations enveloping Sri Lanka. Any persistent instability in India's neighbourhood hurts the security environment in the region as a whole, not just India alone.

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