Despite going through the worst crisis in the history of this country, the mindset of the vast majority of the people still have not changed. I doubt if this country is going anywhere.
😂The West broke Sri Lanka. But they blame China 😂😂😂😂 Gotta love that Americans and Europeans live in their own fake reality, powered by western media and government propaganda. They do not want to admit China's contribution to developing poorer countries and also developing Xinjiang. They make up fake "human rights abuses" in order to topple a government, just like they did to Iran in the 70s when Iran was nationalizing its oil industry and the west stopped making a profit. They quickly use media propaganda to brainwash the population. This trick will not work again.
As a Sri Lankan, we borrowed too much and wasted it on unnecessary imports, imported food rather growing, so many subsidies, massive public sector and pensions. Sadly we won’t be able to pay any local and international debt. Politicians and public servants stole some money but we public are mostly to blame keep on voting the corrupt.
when you spend wisely you may never need debt outside your country..by developing domestic potential when corrupt leaders had it they spending billions for themself
All small states who were once part of undivided india are having same fate. We all need to have a consensus to be part of an undivided india. Its a quite matured democracy and economy
Awakening people in Srilanka will do everything to live and spend their lives without any paying. They grow plant , feed chicken for egg.. etc Srilanka is good choice for retirement, I love Srilanka. Women can take care home for service and earn everyday.
you run away from any debt but not Chinese debt china will give you more and more without restructuring 😢😢😢it’s a big debt trap having principles balance paying only interest next 10 years you won’t go no where it’s just come back to square one where you started 😢😢it’s crazy whole world in economic crisis 😮everyone is spending very little 😢
Precisely the problem. Lousy team of financial planners at top leadership level. Could also be corrupted politicians? Eventually the whole country suffers. So sad. Hope Sri Lanka can go through this pain for a while and wisely manage finance to get out of the bad state in a few years time. Manage your budget well and get outta debt.
How did the politicians ended up so bad? That’s because you guys gave your votes to the wrong people. You guys sway towards populist votes. Citizens all vote for the party giving the most rice subsidies, tax cuts etc. don’t solely blame the government, blame the greedy citizens.
Well , sri lanka works on majoritism and I was shocked when I heard about Sri Lanka crisis . I mean , as a neighbour and as an Indian we still have internal disputes and tensions due to diversity but don't understand the story of sri Lanka . Why they have become a failure in the end ? , politics become major reason for their failure. And I don't think they are going to be fine any soon now .
This is a great work of journalism, an impartial investigation of the root causes of the issues and also searching for real solutions. While the debts from Chinese was mainly for infrastructure, (some were necessary, while others were white elephants) where did the funds from the International Bonds go ? There is nothing to show for the $12.5 billion. Wasted by idiotic politicians elected by even more idiotic people. Now we all pay the price of idiocy. The external debts of $44 billion is hopelessly unrealistic to be repaid. As for the International Bonds, 30% haircut or nothing. Those International Bonds should not have been issued in the first place. From being the third richest country in Asia at Independence we have become the sick man of Asia during 75 years of so-called democracy.
guia, It was NOT a great work of journalism, as it didn't even cover one of the main problems. The Sri Lankan govt. was convinced to go all organic in its farming. So they banned import of fertilizer and pesticides. The farmers couldn't produce as before, and the country soon spiraled out of of control.
The West broke Sri Lanka. But they blame China 😂😂😂😂 Gotta love that Americans and Europeans live in their own fake reality, powered by western media and government propaganda. They do not want to admit China's contribution to developing poorer countries and also developing Xinjiang. They make up fake "human rights abuses" in order to topple a government, just like they did to Iran in the 70s when Iran was nationalizing its oil industry and the west stopped making a profit. They quickly use media propaganda to brainwash the population. This trick will not work again.
@@johnathonbobley4696 I am not in politics nor in Government, the political system in Sri Lanka has been taken by unqualified incompetent corrupt goons. Smart, qualified and honest citizens are kept out of the political system and Government.
When government gave them fuel subsidies and reduced tax rates on large scale Lankans were happy...But when their government exchequer collapsed because of tax cuts and subsidies they started rioting saying that all politicians are bad...
That's plain to see. The problem is the public keeps voting in individuals or groups who keep this scheme going, vs someone trying to do real reform. Creating a fertilizer ban which tanks 40% of the rice crops in one hand... and then offering subsidies that cost's over half their government's budget doesn't make sense (except for the rice farmers who get paid twice... once by the gov't, and then a second time by the public on inflated rice prices).
As a Sri Lankan I really appreciate that You talking about International Sovereign Bonds which accounts for largest portion of our debt instead of blabbering about Chinese loans.
U PPL need to blame ur politicians about loans than any other foreign entities... Why to take loans which are unnecessary for such infrastructure projects??
China's debt composition in Sri Lanka moved from 0.3 percent to 16 percent between 2000 and 2016. By the end of 2022, China's debt stock in Sri Lanka had reached some US$7.3 billion, amounting to 19.6 percent of Colombo's public external debt. China knew that Sri Lanka will fail to service the terms but still loaned the money. Official data from Sri Lanka's Finance Ministry shows China accounting for only about 10% of the country's $35.1 billion in external debt at the end of April 2021. This figure covers only government-to-government. A report released by Sri Lankan economists, based on information requested from the Finance Ministry, provides a better picture. Looking at public and publicly guaranteed debt -- which includes commercial lending to the government and loans to Sri Lankan state-owned enterprises the China's share totaled 20% at the end of 2020 China lended despite knowing Sri Lanka cannot service the debt. Between 2000 and 2020, it extended close to $12 billion in loans to the Sri Lankan government, largely for a slate of major infrastructure projects that turned into white elephants - including a costly port facility in the Rajapaksas’ hometown of Hambantota, which was effectively ceded to Chinese control half a decade ago after Sri Lankan authorities recognized they could no longer pay off the loans. So primarily Sri Lankan political party and government are to be blamed. But China is also partially responsible.
CHINA HAS GIVEN WAY TOO MUCH LOANS THAN SRI LANKA CAN PAY KNOWING SRI LANKAN ECONOMY WILL COLAPSE AND THEN THEY CAN TAKE OVER SRI LANKA FOR THEIR SILK BELT ROUTE. RAJAPAKSHE CLAN AWARDED PROJECTS INFLATED AT OR ABOVE 200% AND RECEIVING THE INFLATED QUOTE DIRECTLY INTO THEIR BANKS FROM CHINA. BASIL RAJAPAKSHE'S DAUGHTER NOW LIVES IN A LAVISH LIFESTYLE IN WOODLANDHILLS IN HOUSTON TX. WHERE DID THEY GET THIS MONEY?
Money wasted for building useless port and infrastructure. would have developed what have already. country suffered with a civil war . Later found politicians created war to be in power . whole country suffer consequences of debt trap while corrupted politicians still stay relaxed.
The West broke Sri Lanka. But they blame China 😂😂😂😂 Gotta love that Americans and Europeans live in their own fake reality, powered by western media and government propaganda. They do not want to admit China's contribution to developing poorer countries and also developing Xinjiang. They make up fake "human rights abuses" in order to topple a government, just like they did to Iran in the 70s when Iran was nationalizing its oil industry and the west stopped making a profit. They quickly use media propaganda to brainwash the population. This trick will not work again.
As a person who has extensively studied Ramayan I wish to visit SL for sure This video reminds me so deeply of my poor extremely abusive thrashed insulted demeaned strangulated dead failed past
i hope things better sense will prevail and situation will improve for the common citizens. Rich folks will just take money to western countries and leave, poor people always suffer
Few point CNA had miss out, this port build was suggest by who and initial tender to who and later who build it? In the breakdown debt by country it did not show duration load repayment and loan rate been apply. Why it dint show loan from private finance like Blackrock, UBS, HSBC and others.
Propaganda series. Assets swap comes with a limited period of lease. Also Russia is bankrolling Srilanka nuclear power plant that will enable cheap abundant clean energy
@@ssuwandi3240The West broke Sri Lanka. But they blame China 😂😂😂😂 Gotta love that Americans and Europeans live in their own fake reality, powered by western media and government propaganda. They do not want to admit China's contribution to developing poorer countries and also developing Xinjiang. They make up fake "human rights abuses" in order to topple a government, just like they did to Iran in the 70s when Iran was nationalizing its oil industry and the west stopped making a profit. They quickly use media propaganda to brainwash the population. This trick will not work again.
When nations refuse to live within their means for a long time this is what happens. And getting tangled up with China makes things worse. Pakistan, Venezuela, Argentina, much of Europe and if we keep going the way we are Australia and NZ will join these failed and no longer truly independent states.
@@rajnikantsharma Chinese loan comes with the following problems which is not associated with IMF or World Bank loans: 1. It's rate of interest is much higher with a repayment period much lower, basically forcing a debt crisis, unless the nation has strong economic growth. 2. Most places where Chinese invest do not have such economic backbone to such such loans, hence it it's termed as debt trap. When IMF or World Bank loans to such nation, it comes with a sustainable plan to open up their economy, not push them to a debt crisis. 3. IMF/World Bank loans are transparent. Everything can be found on papers and can be openly discussed (both the good and bad). Chinese loans are not. Ask any Pakistani how much pakistan owes to the Chinese and you will get dubious answer. 4. No other nation uses debt as an instrument to take over sovereign assets of another nation (like what Chinese did to hambantota). Surely IMF or World Bank never does that and I have never heard of any western nation in the w1st century doing this. This only reminds me of the colonial period where britishers used to take over sovereign indian kingdoms in the name of taxation. If after knowing all this, you still support China, you are nothing but an wumao.
@@rajnikantsharmaThe West broke Sri Lanka. But they blame China 😂😂😂😂 Gotta love that Americans and Europeans live in their own fake reality, powered by western media and government propaganda. They do not want to admit China's contribution to developing poorer countries and also developing Xinjiang. They make up fake "human rights abuses" in order to topple a government, just like they did to Iran in the 70s when Iran was nationalizing its oil industry and the west stopped making a profit. They quickly use media propaganda to brainwash the population. This trick will not work again.
We suffered also like this in the Philippines, BUT, not in this kind of MAGNITUDE, it was in the 1980s, because of the political turmoil, and instability, but, LUCKILY, we escaped that economic woes, lucky for the Philippines, our economic managers handled the situation prudently, slowly, paying our DEBTs to the IMF-WB. In the 2000 to 2010, we slowly PAID of our debts to the WB-IMF, once we finished paying out, GMA kicked out the WB-IMF in the Philippines. Now, as we learned from that PAINFUL lessons in the 1980s, our Legislative Body have putting a BUDGET every year, to PAID our Foreign Debts, luckily for the Philippines now, our DEBT is more on LOCAL banks which is 70%, while Foreign debt is 30% only, and the Philippines right now is sitting in a MASSIVE Foreign Exchange Reserves of 120 Billion USD.
A lot of patriotism in the economic discussion leads to ignorance. If you are indebted to a foreign creditor and cannot pay the debt, then you and the creditor share the same fate, but if you are indebted to the domestic market from domestic banks, then you are in a bigger problem. Why? Well, because the bank borrowed money from the local population that keeps it in the bank. Money did not fall from the sky. In that case the whole economy goes down. Not only the state, but the population that was left without their money
when the guy said they didn't like that the loans are harder to get with all the restrictions lol and went and got it from someone who didn't put restrictions, reminds me of the loan sharks lmao
We don’t want “any restrictions “ on how to use the loan money . So we go with China . I just have to LOL 😂 All loan has a restriction to ensure you can pay it back . That’s a prudent things to do . Loan shark however don’t have restrictions on how their loan is used.
For india the only neighbour we trust in indian subcontinent is Bhutan . Bhutan have relation with china but it never tried to compromise India's security concern in the northeast for china unlike our other neighbours.
Who is to blame? Why its the people of SL ofc. They VOTED in the Rajapaksas not once, not twice, but THRICE. By willingly wading into the tried and succeeded indentity politics. For the sinhalese race and Buddhism to "save the country" they VOTED in by a landslide the Rajapaksas. Karma is real
the fact that china literally lent 200% (2% vs 20%~) than the IMF is astounding alone. Literally China basically owns Sri Lanka . As a poor person, it really confuses me when new ways of life come out and people blend trends for why their business fails during times of change. Like, were you just lazily profiting off of basic flow of humans, or was it really a knack for anticipating human trends and finding a marketable niche? Because I don't understand how you stop reselling other peoples things because people stopped walking by your store. The producers didn't stop manufacturing? You could've been better business men actually paying attention and then maybe anticipate a new thing to resell? Not stick with overhead costs and no business -.-
The West broke Sri Lanka. But they blame China 😂😂😂😂 Gotta love that Americans and Europeans live in their own fake reality, powered by western media and government propaganda. They do not want to admit China's contribution to developing poorer countries and also developing Xinjiang. They make up fake "human rights abuses" in order to topple a government, just like they did to Iran in the 70s when Iran was nationalizing its oil industry and the west stopped making a profit. They quickly use media propaganda to brainwash the population. This trick will not work again.😂
Populatin growth shows that everything is fine. If you think that the loan interest payments are too high then don't take such a loan. This is just unbelievable how Sri Lankan "experts" try to justify not paying back debts.
China's debt composition in Sri Lanka moved from 0.3 percent to 16 percent between 2000 and 2016. By the end of 2022, China's debt stock in Sri Lanka had reached some US$7.3 billion, amounting to 19.6 percent of Colombo's public external debt. China knew that Sri Lanka will fail to service the terms but still loaned the money. Official data from Sri Lanka's Finance Ministry shows China accounting for only about 10% of the country's $35.1 billion in external debt at the end of April 2021. This figure covers only government-to-government. A report released by Sri Lankan economists, based on information requested from the Finance Ministry, provides a better picture. Looking at public and publicly guaranteed debt -- which includes commercial lending to the government and loans to Sri Lankan state-owned enterprises the China's share totaled 20% at the end of 2020 China lended despite knowing Sri Lanka cannot service the debt. Between 2000 and 2020, it extended close to $12 billion in loans to the Sri Lankan government, largely for a slate of major infrastructure projects that turned into white elephants - including a costly port facility in the Rajapaksas’ hometown of Hambantota, which was effectively ceded to Chinese control half a decade ago after Sri Lankan authorities recognized they could no longer pay off the loans. So primarily Sri Lankan political party and government are to be blamed. But China is also partially responsible.
China is very little responsible, Srilanka became bankrupt not because of Chinese loan repayment, instead China provided them with another 1.2 billion dollars to stabilise srilankan economy. Sovereign bonds bearing 6% interest and only 10 year repayment period was responsible, this bond accounted for 28% of Srilankas total foreign debt. I know indians bots like u will never understand such things because ur thinking is full of propaganda.
The West broke Sri Lanka. But they blame China 😂😂😂😂 Gotta love that Americans and Europeans live in their own fake reality, powered by western media and government propaganda. They do not want to admit China's contribution to developing poorer countries and also developing Xinjiang. They make up fake "human rights abuses" in order to topple a government, just like they did to Iran in the 70s when Iran was nationalizing its oil industry and the west stopped making a profit. They quickly use media propaganda to brainwash the population. This trick will not work again.😂😂
If China knew they would fail to repay, why loan? The answer is simple, Sri lanka decided to get the loan and nobody force them to take it. Why blame China for giving the money when you dont ask who asked for it? Clueless and ignorant
After the Invision of Tibet China became ambitious and working to control south and southeast Asia by controlling the water of Tibet and trade of Indian and pacific ocean and beyond by the name of BRI with debt trap loans. Hambontota port 99 years leased to China is the best example.
The West broke Sri Lanka. But they blame China 😂😂😂😂 Gotta love that Americans and Europeans live in their own fake reality, powered by western media and government propaganda. They do not want to admit China's contribution to developing poorer countries and also developing Xinjiang. They make up fake "human rights abuses" in order to topple a government, just like they did to Iran in the 70s when Iran was nationalizing its oil industry and the west stopped making a profit. They quickly use media propaganda to brainwash the population. This trick will not work again.
We can't be like Sri Lanka. It's a small country that even imports basic food. We're paying our debts painfully and foreign exchange from the diaspora and tourism keeps coming. We've also stopped these mega projects...
The Sri Lankan people are the ones to be blamed for this crisis. Rajapaksa and gang didn't just appear out of thin air. They were voted in by the Sri Lankan people not once but multiple times.
For the common man in the streets, there are laws and regulations to ensure that banks and other financial institutions do not lend to people who can't afford the loan and that the loan is used for the stated purpose. Only illegal money lenders tout loans to those who can't afford it and not caring what it is used for. At the state level, one needs to ask why loan was allowed to be made to build a port that is not commercial feasible. If responsible lending guidelines were followed, such a loan would not have been allowed.
Lolz ports not commercially viably is builders’ fault? Wow, the same teacher gave lesson to all. Some went on to become ministers while some whine everyday about not enough money. So it’s the teachers’ fault???
@@benpang1396 LOL. You obviously don't know the concept of responsible lending. There is a reason why there is a difference between banks, financial institutions and illegal money lenders. Do the banks in your countries tout credit cards to those underaged?
@@benpang1396really missed the point here. Not builder's fault. Lender's fault. At the individual level when you want to take a bank loan for a business, you will need to prepare and prove to the bank that your business would be viable, why? Because the lender's main priority is getting their money back plus interest. If this port was already known to be not commercially viable why would the lender lend the money to build it? If not motivated by getting your money back and profit. What's the motivation?
@@DjKagamine lolz ya lender charging 7% interest or more, disagreed to restructure loan, and sue the already bankrupted country for full repayment. I agree it’s their fault. Totally agree with you if you are referring to these lenders. Ops
Chinese debt have significant role for Sri Lankan economy.... Also thier also lacking competency.....They seeks political vote to remian in power instead long term growths 📈....Lets hope the situation will improve because Sri Lankan are good people
Strange Crisis in a country that is a major producer of the most important goods, crude oil, refined oil , rubber,tea,gems, sugar, coconut oil and so on
@@Jkl62200 He is telling the truth though. It was China's ploy to get business for its state enterprises. That supposed "loan" just went from a Chinese bank to another Chinese company. All the building materials, vehicles, and labourers came from China. In other words, China managed to monetize its over capacity by these supposed "loans".
@@jarjarbinks3193 so you think highly educated SriLankan elites are dumb eh? You've been going around TH-cam trolling, envious AF about China and the impotence of India. Lousy try.
@@Jkl62200doesn't matter if he is Vietnamese. What he said is true. If all the loans are paid back to China's workers and construction companies, that means the economy is not circulating within the country. The loans go back indirectly to China's government through those workers and companies.
They need learn lessons from them suffer. Really impressed with that man from northern province Jaffna. He is absolutely right. They need to boost local economy
Sad truth is those problem makers still rule the country. Thise who went to IMF 16 times still trying to develop country.. Current president Ranil Rajapakse nearly 50 years in parliament .. 6 time PM.. Real joke is he need more time to develop country.we know that gonna never happen. He just trying to protect himself and Rajapaksa thieves. No elections.. 😢
We should be investing in wind and solar energy so we don’t need to import electricity. Why are we importing food, we should grow so much that we can send to other countries, not just cinnamon. Like wheat, corn etc. Also instead fancy bridges, spend money on things that will return value like more internet access so people can learn from internet.
This is for the Wumao bots who make up fake statistics! This video at @11:15 has the actual debt breakup of Sri Lanka. China - $8.7b - 20% Japan - $2.6b - 6% India - $2.3b - 5% IMF - 1b - 2% World Bank - 3.9b - 9% ADB - 5.9b - 13% Others - 7.6b - 17% ISB (International Sovereign Bonds) - 12.5b - 28% (These are issued by Sri Lanka to raise money).
The country should Stop having new kids till the crisis comes down. Then less pressure.. Maybe 5 years down the line, start again. Population control + economic reprieve. And much needed population gap for future jobs.
I blame the people for always seeking for freebies. Excess freebies will kill any country if not careful. I hope other countries will learn something from their story. Also depending on foreign countries to bail them, well, they trusted china to rescue them but look what happened. The people must stop having the subsidy mentality for everything.
Borrowing from countries like China at low interest for infrastructure development is not a problem because we can negotiate with them. It’s not the same with so called sovereign bond sharks. The persistent problem is we have one government servants for every seven citizens and increase their salaries without productivity
If the loan is built with local help it mkae sense because it create jobs but taking loan and using chinese workers leave the local with a infrastructure that is not usable because the lodal are still poor
Sure . Take the Chinese loan , pay the Chinese construction company , pay the Chinese worker , then sign over the port to Chinese government. 🤣 How about Chinese loan to build the world loneliest airport ? Pure Chinese gold
@@malalachernobyl5594 that's why China not able continue loan to Philippines.. becuz Philippines have man power to build infastructure.. China want to loan money and build infastrature by using their own chinese companies and workers so that money will back to china. and china use their chinese materials to build those infastructure. making profits by building infastructures, making profits from interest loan and money loan will back to china..
Corrupted Rajapaksa and regime are still alive.and after them, wickramasingha started new era for protect thieves then strategic planning for corruption 😢 we are suffering up to change the system but no more hopes. yes there is a way to change this stupid system forever.. 😠😠😠😠😠😠😠😠😠😠😠
If their politicians use those loans properly for the country development, they will never be in this situation. BLAME THEIR OWNSELVES FOR ALLOWING POLITICIANS POCKETING THO SE MONEY.
90% of Sri Lanka loans are to the IMF and western banks. Hambantota port construction started in 2008 and 5 years before the start of the BRI project in 2013
We told Sri Lanka, Model your economy like ours then we can grow together. But no, Sri Lanka wanted a Scandinavian model of development. Here is the result.
Wow... if they've defaulted seven times within one politician's lifetime, and he's still in office... that debt should be radioactive. Someone would prob be looking for 75% interest rate or more to loan that country any money, unless it's has a first lien collateralized on some hard asset (land). It was unclear why there was a fertilizer ban which cratored the rice crop yields. Even with sportatic electricity, I would thin the co-ops would want to invest in some basic solar power & batteries just for refrigeration to keep goods from spoiling overnight (fish, dairy) allowing them to get a better price for their products.
The “debt-trap” theory is concocted by Brahma Chellaney, an Indian geopolitical strategist. The “debt-trap” theory is concocted by Indians, and popularized by Americans. They concoct this theory to demonize China, Chinese and BRI projects/loans. India, US, along with EU, fear losing their control over other countries which may result from these projects. Such fears are based on their selfish and geopolitical interests. However, people from all over the world, especially from developing countries have acknowledged the needs and the actual benefits of these projects/loans. They know from their first-hand experience that there is no debt-trap. Academics and researchers have reviewed these projects, and have debunked the debt-trap theory.
Dude literally explains how Sri Lanka got into a “debt trap” in this video 33:12. Not saying china holds all blame just pointing out the fact u didn’t watch the documentary actively or ur just a bot.
@@aheisanraveendran3686 I don’t think you understood the original comment. ”Debt-trap diplomacy” as a term was coined by an Indian, (later popularized by US officials as they went on an anti China campaign) and the paper has got enough criticisms. A nice Wiki exists about this. What you are mentioning is just predatory lending (primarily western banks) ruining many developing nations. Unfortunately, there is no term for this practice since the western nations control media narrative.
Corruption is a minor factor the bigger one is the debt that Sri lanka took since independence, unfortunately many media outlets have made this political and make corruption as the main factor but it is a minor factor of the major debt the coutry took on.
@@ssilva5663it was the corrupt leaders that took those loans and sourced them to their personal monetary gain you go around claiming corruption isn’t the reason,someone voted wrong.Every country has debt it’s just that these mobster pea brain leaders invested in white elephant projects with no returns at all.
This is too sad... Why can't we give them more meaningful jobs instead of giving them money? Or can we give them food and healthcare at least for free?
By lending money to risky countries at a high interest rate, investors (creditors) must be willing to accept the high risk of losing their investment when it materialises as a default. If they aren't willing to accept it, then they should not lend in the first place.
So, you will not ask your govt and people to do work and pay it back? rather than cursing the people for asking you to payback their money🤣Seems the mindset of Sri Lankans is "Eat everything nicely and run off"
@@preanand1938 It looks like you were not paying attention. If you charge a higher interest rate, because of the risk factor involved in lending to someone or something, it means that you accept the possibility of default, and that you give up full recovery. You make up for your losses with the higher interest rate that you are charging others. If you are not willing to give up full recovery, and your entire amount lent is recovered, why are you charging the higher rate in the first place? You should be charging what you charge others, counting them as lower risk borrowers; whenever you make full recovery, your borrower is automatically a safe borrower, and represents a low or non-existent risk, and deserves a lower interest rate.
The West broke Sri Lanka. But they blame China 😂😂😂😂 Gotta love that Americans and Europeans live in their own fake reality, powered by western media and government propaganda. They do not want to admit China's contribution to developing poorer countries and also developing Xinjiang. They make up fake "human rights abuses" in order to topple a government, just like they did to Iran in the 70s when Iran was nationalizing its oil industry and the west stopped making a profit. They quickly use media propaganda to brainwash the population. This trick will not work again.😂😂
Sri Lankans are now looking for information about the incident in 2022. Sri Lanka is not the first and only country to face the global economic crisis. Sri Lanka has a high capacity to control this situation. They already understand the situation and deal with it. Sri Lanka can never escape from global political conditions. But they will make a good decision in 2024 based on the information they have obtained about the events that happened in 2022. But it is now becoming clear that it is not the decision that the world expects. That is the common nature of Sri Lankans.
Wonder Why Srilanka public blaming politicians . as if public in Srilanka didn't elect their leaders or wasn't aware of loans being taken beyond their national capacity .
True Sri Lanka is in a difficult situation. But this sucking media shows a different view about crisis. But they will stand up strongly soon come out of this crisis.
The sovereign bonds caused the problem mainly. But these problem arised because their tourism industry's lack earning due to covid, also their going organic policy decreased their reserve further as it decreased Agricultural production fuelling more import.
Its a warnm country. Cant they grow some vegetables in a small garden or big pots, crates, to help? Potaotes grow in anything anywhere, lettuce, tomatoes, fish, get 3 chickens.
Definitely because of crazy corruption earlier and people do not limit how many children they have. I watched in the video, some of them have 3-4 children
Too many people. Dont blame imports or debts. They are because you cant grow enough. Its the same here in Europe and thats before there was any immigration, which doesnt help.
Despite going through the worst crisis in the history of this country, the mindset of the vast majority of the people still have not changed. I doubt if this country is going anywhere.
😂The West broke Sri Lanka. But they blame China 😂😂😂😂 Gotta love that Americans and Europeans live in their own fake reality, powered by western media and government propaganda. They do not want to admit China's contribution to developing poorer countries and also developing Xinjiang. They make up fake "human rights abuses" in order to topple a government, just like they did to Iran in the 70s when Iran was nationalizing its oil industry and the west stopped making a profit. They quickly use media propaganda to brainwash the population. This trick will not work again.
Most of the world isn't going anywhere...
@@ZenioDovgj No, it's only Srilanka.
@@warnpassion its the world , people hate change
As a Sri Lankan, we borrowed too much and wasted it on unnecessary imports, imported food rather growing, so many subsidies, massive public sector and pensions. Sadly we won’t be able to pay any local and international debt. Politicians and public servants stole some money but we public are mostly to blame keep on voting the corrupt.
Imports are irrelevant here yes bloated public sector corruption wasteful projects and loss making SOEs are the make curse
sadly bad leaders all over the world , we pray for Sri Lanka
when you spend wisely you may never need debt outside your country..by developing domestic potential when corrupt leaders had it they spending billions for themself
All small states who were once part of undivided india are having same fate. We all need to have a consensus to be part of an undivided india. Its a quite matured democracy and economy
simple question who is making money on srilanka debt ? the one country china
Corruption is to blame. And now the hard pressed taxpayers of well organised countries will be expected to bail them out.
Awakening people in Srilanka will do everything to live and spend their lives without any paying.
They grow plant , feed chicken for egg.. etc
Srilanka is good choice for retirement, I love Srilanka.
Women can take care home for service and earn everyday.
This is so sad what happend to our country. We kept wrong politicians in power for too long. No accoutability from them! 😢
What about now?
you run away from any debt but not Chinese debt china will give you more and more without restructuring 😢😢😢it’s a big debt trap having principles balance paying only interest next 10 years you won’t go no where it’s just come back to square one where you started 😢😢it’s crazy whole world in economic crisis 😮everyone is spending very little 😢
The politicians are bad but you need to ask why they were given free reign..... responsible lenders would not have given them free reign....
Precisely the problem. Lousy team of financial planners at top leadership level. Could also be corrupted politicians? Eventually the whole country suffers. So sad. Hope Sri Lanka can go through this pain for a while and wisely manage finance to get out of the bad state in a few years time. Manage your budget well and get outta debt.
How did the politicians ended up so bad? That’s because you guys gave your votes to the wrong people. You guys sway towards populist votes.
Citizens all vote for the party giving the most rice subsidies, tax cuts etc.
don’t solely blame the government, blame the greedy citizens.
Well , sri lanka works on majoritism and I was shocked when I heard about Sri Lanka crisis . I mean , as a neighbour and as an Indian we still have internal disputes and tensions due to diversity but don't understand the story of sri Lanka . Why they have become a failure in the end ? , politics become major reason for their failure. And I don't think they are going to be fine any soon now .
This is a great work of journalism, an impartial investigation of the root causes of the issues and also searching for real solutions. While the debts from Chinese was mainly for infrastructure, (some were necessary, while others were white elephants) where did the funds from the International Bonds go ? There is nothing to show for the $12.5 billion. Wasted by idiotic politicians elected by even more idiotic people. Now we all pay the price of idiocy. The external debts of $44 billion is hopelessly unrealistic to be repaid.
As for the International Bonds, 30% haircut or nothing. Those International Bonds should not have been issued in the first place.
From being the third richest country in Asia at Independence we have become the sick man of Asia during 75 years of so-called democracy.
no it is not , he doesn't mention the one and only problem .
and what is that lol @@ercanbanka5377
guia, It was NOT a great work of journalism, as it didn't even cover one of the main problems.
The Sri Lankan govt. was convinced to go all organic in its farming.
So they banned import of fertilizer and pesticides.
The farmers couldn't produce as before, and the country soon spiraled out of of control.
The West broke Sri Lanka. But they blame China 😂😂😂😂 Gotta love that Americans and Europeans live in their own fake reality, powered by western media and government propaganda. They do not want to admit China's contribution to developing poorer countries and also developing Xinjiang. They make up fake "human rights abuses" in order to topple a government, just like they did to Iran in the 70s when Iran was nationalizing its oil industry and the west stopped making a profit. They quickly use media propaganda to brainwash the population. This trick will not work again.
@@johnathonbobley4696 I am not in politics nor in Government, the political system in Sri Lanka has been taken by unqualified incompetent corrupt goons. Smart, qualified and honest citizens are kept out of the political system and Government.
When government gave them fuel subsidies and reduced tax rates on large scale Lankans were happy...But when their government exchequer collapsed because of tax cuts and subsidies they started rioting saying that all politicians are bad...
In my opinion only it’s the government over spending more than the revenue they receive, that caused the financial crisis.
Plus the extravagant corruption
That's plain to see. The problem is the public keeps voting in individuals or groups who keep this scheme going, vs someone trying to do real reform. Creating a fertilizer ban which tanks 40% of the rice crops in one hand... and then offering subsidies that cost's over half their government's budget doesn't make sense (except for the rice farmers who get paid twice... once by the gov't, and then a second time by the public on inflated rice prices).
As a Sri Lankan I really appreciate that You talking about International Sovereign Bonds which accounts for largest portion of our debt instead of blabbering about Chinese loans.
U PPL need to blame ur politicians about loans than any other foreign entities... Why to take loans which are unnecessary for such infrastructure projects??
China's debt composition in Sri Lanka moved from 0.3 percent to 16 percent between 2000 and 2016. By the end of 2022, China's debt stock in Sri Lanka had reached some US$7.3 billion, amounting to 19.6 percent of Colombo's public external debt. China knew that Sri Lanka will fail to service the terms but still loaned the money.
Official data from Sri Lanka's Finance Ministry shows China accounting for only about 10% of the country's $35.1 billion in external debt at the end of April 2021. This figure covers only government-to-government.
A report released by Sri Lankan economists, based on information requested from the Finance Ministry, provides a better picture. Looking at public and publicly guaranteed debt -- which includes commercial lending to the government and loans to Sri Lankan state-owned enterprises the China's share totaled 20% at the end of 2020
China lended despite knowing Sri Lanka cannot service the debt. Between 2000 and 2020, it extended close to $12 billion in loans to the Sri Lankan government, largely for a slate of major infrastructure projects that turned into white elephants - including a costly port facility in the Rajapaksas’ hometown of Hambantota, which was effectively ceded to Chinese control half a decade ago after Sri Lankan authorities recognized they could no longer pay off the loans.
So primarily Sri Lankan political party and government are to be blamed. But China is also partially responsible.
@@RoamingDoctors That's why people have already sent major culprit family to the home.
CHINA HAS GIVEN WAY TOO MUCH LOANS THAN SRI LANKA CAN PAY KNOWING SRI LANKAN ECONOMY WILL COLAPSE AND THEN THEY CAN TAKE OVER SRI LANKA FOR THEIR SILK BELT ROUTE. RAJAPAKSHE CLAN AWARDED PROJECTS INFLATED AT OR ABOVE 200% AND RECEIVING THE INFLATED QUOTE DIRECTLY INTO THEIR BANKS FROM CHINA. BASIL RAJAPAKSHE'S DAUGHTER NOW LIVES IN A LAVISH LIFESTYLE IN WOODLANDHILLS IN HOUSTON TX. WHERE DID THEY GET THIS MONEY?
nothing compared to the 55% by the IMF aka USA @@WorldCitizen-gz6fn
Money wasted for building useless port and infrastructure. would have developed what have already. country suffered with a civil war . Later found politicians created war to be in power . whole country suffer consequences of debt trap while corrupted politicians still stay relaxed.
Sri Lankan Debt problem is caused by Sri Lankan people.
Very clear and unbiased so we finally see the big picture.
Sri Lanka is sadly a lost cause. Why isn't the guy in the blue shirt the prime minister of Sri Lanka? He sounds very intelligent and practical.
Voters don't like such people...
@@nitharjanbalasubramaniam2884 democracy man the peoples vote
The West broke Sri Lanka. But they blame China 😂😂😂😂 Gotta love that Americans and Europeans live in their own fake reality, powered by western media and government propaganda. They do not want to admit China's contribution to developing poorer countries and also developing Xinjiang. They make up fake "human rights abuses" in order to topple a government, just like they did to Iran in the 70s when Iran was nationalizing its oil industry and the west stopped making a profit. They quickly use media propaganda to brainwash the population. This trick will not work again.
As a person who has extensively studied Ramayan I wish to visit SL for sure
This video reminds me so deeply of my poor extremely abusive thrashed insulted demeaned strangulated dead failed past
My gratitude goes to Dr kadiragama who has great vision and working for the well being of his people
A highly sophisticated and well-made film. However, I must follow this carefully again to assess the validity of its observations.
i hope things better sense will prevail and situation will improve for the common citizens. Rich folks will just take money to western countries and leave, poor people always suffer
Few point CNA had miss out, this port build was suggest by who and initial tender to who and later who build it?
In the breakdown debt by country it did not show duration load repayment and loan rate been apply. Why it dint show loan from private finance like Blackrock, UBS, HSBC and others.
Propaganda series. Assets swap comes with a limited period of lease. Also Russia is bankrolling Srilanka nuclear power plant that will enable cheap abundant clean energy
BLKROCK and "China" some say are the same thing
@@timmycorini China PBOC isn't owned by foreign creditors
@@ssuwandi3240The West broke Sri Lanka. But they blame China 😂😂😂😂 Gotta love that Americans and Europeans live in their own fake reality, powered by western media and government propaganda. They do not want to admit China's contribution to developing poorer countries and also developing Xinjiang. They make up fake "human rights abuses" in order to topple a government, just like they did to Iran in the 70s when Iran was nationalizing its oil industry and the west stopped making a profit. They quickly use media propaganda to brainwash the population. This trick will not work again.
When nations refuse to live within their means for a long time this is what happens. And getting tangled up with China makes things worse. Pakistan, Venezuela, Argentina, much of Europe and if we keep going the way we are Australia and NZ will join these failed and no longer truly independent states.
Blaming china again ... When your mom flirts with male strangers also blame china ?
Chinese loan are similar to loans given during colonial times. There are many strings attached.
Convenient to blame China while ignoring how others including IMF and World Bank operate
@@rajnikantsharma Chinese loan comes with the following problems which is not associated with IMF or World Bank loans:
1. It's rate of interest is much higher with a repayment period much lower, basically forcing a debt crisis, unless the nation has strong economic growth.
2. Most places where Chinese invest do not have such economic backbone to such such loans, hence it it's termed as debt trap. When IMF or World Bank loans to such nation, it comes with a sustainable plan to open up their economy, not push them to a debt crisis.
3. IMF/World Bank loans are transparent. Everything can be found on papers and can be openly discussed (both the good and bad). Chinese loans are not. Ask any Pakistani how much pakistan owes to the Chinese and you will get dubious answer.
4. No other nation uses debt as an instrument to take over sovereign assets of another nation (like what Chinese did to hambantota). Surely IMF or World Bank never does that and I have never heard of any western nation in the w1st century doing this. This only reminds me of the colonial period where britishers used to take over sovereign indian kingdoms in the name of taxation.
If after knowing all this, you still support China, you are nothing but an wumao.
@@rajnikantsharmaThe West broke Sri Lanka. But they blame China 😂😂😂😂 Gotta love that Americans and Europeans live in their own fake reality, powered by western media and government propaganda. They do not want to admit China's contribution to developing poorer countries and also developing Xinjiang. They make up fake "human rights abuses" in order to topple a government, just like they did to Iran in the 70s when Iran was nationalizing its oil industry and the west stopped making a profit. They quickly use media propaganda to brainwash the population. This trick will not work again.
We suffered also like this in the Philippines, BUT, not in this kind of MAGNITUDE, it was in the 1980s, because of the political turmoil, and instability, but, LUCKILY, we escaped that economic woes, lucky for the Philippines, our economic managers handled the situation prudently, slowly, paying our DEBTs to the IMF-WB. In the 2000 to 2010, we slowly PAID of our debts to the WB-IMF, once we finished paying out, GMA kicked out the WB-IMF in the Philippines. Now, as we learned from that PAINFUL lessons in the 1980s, our Legislative Body have putting a BUDGET every year, to PAID our Foreign Debts, luckily for the Philippines now, our DEBT is more on LOCAL banks which is 70%, while Foreign debt is 30% only, and the Philippines right now is sitting in a MASSIVE Foreign Exchange Reserves of 120 Billion USD.
ahem, $120 bn foreign reserves isn’t exactly “massive”
A lot of patriotism in the economic discussion leads to ignorance. If you are indebted to a foreign creditor and cannot pay the debt, then you and the creditor share the same fate, but if you are indebted to the domestic market from domestic banks, then you are in a bigger problem. Why? Well, because the bank borrowed money from the local population that keeps it in the bank. Money did not fall from the sky. In that case the whole economy goes down. Not only the state, but the population that was left without their money
@@Kevin-fq3zh That 120 USD Billion in RESERVES are GROWING every year, I think people like you do NOT know, the principle of the SNOWBALL effect.
@@normanocampo4466 source: trust me bro, hahaha… go look at your RBI website for the numbers. see how much you spend propping up your currency
@@Kevin-fq3zh120 BN dollars is more than the GDP of many countries. It is massive.
when the guy said they didn't like that the loans are harder to get with all the restrictions lol and went and got it from someone who didn't put restrictions, reminds me of the loan sharks lmao
What he said implicitly showed his intention to siphon the money for anything else other than the intended purposes of the loan.
The Rajapaksas surely have a large part od the blame. When i was there 8 years ago, it was a failed state then.
I too know what it feels like to not live with no money
That's why saving every little coin into change counts!
by the way, Ruhansa, Shalu, Pawani, Ashinsa, Navya, Sehasha,
and my many online Sri Lankan friends, I miss you all so much
By the way Ruhansa Sethnadee
I still always will love you, still I
Hope you okay taking care out there
"We are at a very strategic location"....have been hearing such a statement from another neighbor country. It makes me wonder what is it?.
You spent money you don't have VERY SIMPLE and Shameful of these politicians
We don’t want “any restrictions “ on how to use the loan money .
So we go with China .
I just have to LOL 😂
All loan has a restriction to ensure you can pay it back .
That’s a prudent things to do .
Loan shark however don’t have restrictions on how their loan is used.
Ans here you are now😂
Srilanka and Pakistan.......India's neighbours are really good
For india the only neighbour we trust in indian subcontinent is Bhutan . Bhutan have relation with china but it never tried to compromise India's security concern in the northeast for china unlike our other neighbours.
India helped srilanka every time when they needed money, fuel, food etc. Srilanka paid back by allowing chinese ships to spy on India😊
You are bloody delusional.....why would China spy on India.
China is so far ahead of India in every respect you can't see them for dust...lol
i don't know every missile test and area warning is accepted as an invitation by chinese navy Yuan Wang 5@@georgewilder7423 you can fact check that
Who is to blame? Why its the people of SL ofc. They VOTED in the Rajapaksas not once, not twice, but THRICE. By willingly wading into the tried and succeeded indentity politics. For the sinhalese race and Buddhism to "save the country" they VOTED in by a landslide the Rajapaksas.
Karma is real
Corruption among the elites does not help
Well best part Singapore helped the president to escape and stay in Singapore.. God bless Singapore the land of the rich and corrupt...
the fact that china literally lent 200% (2% vs 20%~) than the IMF is astounding alone. Literally China basically owns Sri Lanka .
As a poor person, it really confuses me when new ways of life come out and people blend trends for why their business fails during times of change. Like, were you just lazily profiting off of basic flow of humans, or was it really a knack for anticipating human trends and finding a marketable niche? Because I don't understand how you stop reselling other peoples things because people stopped walking by your store. The producers didn't stop manufacturing? You could've been better business men actually paying attention and then maybe anticipate a new thing to resell? Not stick with overhead costs and no business -.-
The West broke Sri Lanka. But they blame China 😂😂😂😂 Gotta love that Americans and Europeans live in their own fake reality, powered by western media and government propaganda. They do not want to admit China's contribution to developing poorer countries and also developing Xinjiang. They make up fake "human rights abuses" in order to topple a government, just like they did to Iran in the 70s when Iran was nationalizing its oil industry and the west stopped making a profit. They quickly use media propaganda to brainwash the population. This trick will not work again.😂
Populatin growth shows that everything is fine. If you think that the loan interest payments are too high then don't take such a loan. This is just unbelievable how Sri Lankan "experts" try to justify not paying back debts.
Great work
I feel u.. SL..
Global Hunger Index says Hiiii 😅😅
Great journalism for sure.
thanks
China's debt composition in Sri Lanka moved from 0.3 percent to 16 percent between 2000 and 2016. By the end of 2022, China's debt stock in Sri Lanka had reached some US$7.3 billion, amounting to 19.6 percent of Colombo's public external debt. China knew that Sri Lanka will fail to service the terms but still loaned the money.
Official data from Sri Lanka's Finance Ministry shows China accounting for only about 10% of the country's $35.1 billion in external debt at the end of April 2021. This figure covers only government-to-government.
A report released by Sri Lankan economists, based on information requested from the Finance Ministry, provides a better picture. Looking at public and publicly guaranteed debt -- which includes commercial lending to the government and loans to Sri Lankan state-owned enterprises the China's share totaled 20% at the end of 2020
China lended despite knowing Sri Lanka cannot service the debt. Between 2000 and 2020, it extended close to $12 billion in loans to the Sri Lankan government, largely for a slate of major infrastructure projects that turned into white elephants - including a costly port facility in the Rajapaksas’ hometown of Hambantota, which was effectively ceded to Chinese control half a decade ago after Sri Lankan authorities recognized they could no longer pay off the loans.
So primarily Sri Lankan political party and government are to be blamed. But China is also partially responsible.
Lol, it sounds as if the US never lent to Sri Lanka after China's first loan.
China is very little responsible, Srilanka became bankrupt not because of Chinese loan repayment, instead China provided them with another 1.2 billion dollars to stabilise srilankan economy. Sovereign bonds bearing 6% interest and only 10 year repayment period was responsible, this bond accounted for 28% of Srilankas total foreign debt. I know indians bots like u will never understand such things because ur thinking is full of propaganda.
The West broke Sri Lanka. But they blame China 😂😂😂😂 Gotta love that Americans and Europeans live in their own fake reality, powered by western media and government propaganda. They do not want to admit China's contribution to developing poorer countries and also developing Xinjiang. They make up fake "human rights abuses" in order to topple a government, just like they did to Iran in the 70s when Iran was nationalizing its oil industry and the west stopped making a profit. They quickly use media propaganda to brainwash the population. This trick will not work again.😂😂
If China knew they would fail to repay, why loan? The answer is simple, Sri lanka decided to get the loan and nobody force them to take it. Why blame China for giving the money when you dont ask who asked for it? Clueless and ignorant
One word: corruption
After the Invision of Tibet China became ambitious and working to control south and southeast Asia by controlling the water of Tibet and trade of Indian and pacific ocean and beyond by the name of BRI with debt trap loans. Hambontota port 99 years leased to China is the best example.
Good analysis there, 👍
The West broke Sri Lanka. But they blame China 😂😂😂😂 Gotta love that Americans and Europeans live in their own fake reality, powered by western media and government propaganda. They do not want to admit China's contribution to developing poorer countries and also developing Xinjiang. They make up fake "human rights abuses" in order to topple a government, just like they did to Iran in the 70s when Iran was nationalizing its oil industry and the west stopped making a profit. They quickly use media propaganda to brainwash the population. This trick will not work again.
Get your facts right.
Watching intently from Kenya.....oiling up my a hole fro the WB stick.
We can't be like Sri Lanka. It's a small country that even imports basic food. We're paying our debts painfully and foreign exchange from the diaspora and tourism keeps coming. We've also stopped these mega projects...
The Sri Lankan people are the ones to be blamed for this crisis. Rajapaksa and gang didn't just appear out of thin air. They were voted in by the Sri Lankan people not once but multiple times.
For the common man in the streets, there are laws and regulations to ensure that banks and other financial institutions do not lend to people who can't afford the loan and that the loan is used for the stated purpose. Only illegal money lenders tout loans to those who can't afford it and not caring what it is used for. At the state level, one needs to ask why loan was allowed to be made to build a port that is not commercial feasible. If responsible lending guidelines were followed, such a loan would not have been allowed.
Lolz ports not commercially viably is builders’ fault? Wow, the same teacher gave lesson to all. Some went on to become ministers while some whine everyday about not enough money. So it’s the teachers’ fault???
@@benpang1396 LOL. You obviously don't know the concept of responsible lending. There is a reason why there is a difference between banks, financial institutions and illegal money lenders. Do the banks in your countries tout credit cards to those underaged?
@@benpang1396agree bat meat soup is next mcdonalds Chinese supremacy
@@benpang1396really missed the point here. Not builder's fault. Lender's fault.
At the individual level when you want to take a bank loan for a business, you will need to prepare and prove to the bank that your business would be viable, why? Because the lender's main priority is getting their money back plus interest.
If this port was already known to be not commercially viable why would the lender lend the money to build it? If not motivated by getting your money back and profit. What's the motivation?
@@DjKagamine lolz ya lender charging 7% interest or more, disagreed to restructure loan, and sue the already bankrupted country for full repayment. I agree it’s their fault. Totally agree with you if you are referring to these lenders. Ops
Chinese debt have significant role for Sri Lankan economy.... Also thier also lacking competency.....They seeks political vote to remian in power instead long term growths 📈....Lets hope the situation will improve because Sri Lankan are good people
Japan.
.ADB..IMF.. not China.
DEBT BOMB --- title so true.
Strange Crisis in a country that is a major producer of the most important goods, crude oil, refined oil , rubber,tea,gems, sugar, coconut oil and so on
9:03 ..what is rate of interest on different lander loan ?
China loan for sri lanka structures, but China companies built the structures 😂... I'm a day laborer and I can see the trap in that
100% it’s crazy 😢😢😢
You are Vietnamese
@@Jkl62200 He is telling the truth though. It was China's ploy to get business for its state enterprises. That supposed "loan" just went from a Chinese bank to another Chinese company. All the building materials, vehicles, and labourers came from China. In other words, China managed to monetize its over capacity by these supposed "loans".
@@jarjarbinks3193 so you think highly educated SriLankan elites are dumb eh? You've been going around TH-cam trolling, envious AF about China and the impotence of India. Lousy try.
@@Jkl62200doesn't matter if he is Vietnamese. What he said is true. If all the loans are paid back to China's workers and construction companies, that means the economy is not circulating within the country. The loans go back indirectly to China's government through those workers and companies.
They need learn lessons from them suffer. Really impressed with that man from northern province Jaffna. He is absolutely right. They need to boost local economy
Srilanka has to thank China for the mess
😅😂😂
Why china investing this kind of dead project?
Ans. INDIA.
You don't need rocket science or PhD degree to find out obvious ans.
God bless Dr Lanka.
Sri Lanka needs to look at itself!
What do they make and sell other than tea!
Stop borrowing and stop breeding, and start producing
Sad truth is those problem makers still rule the country. Thise who went to IMF 16 times still trying to develop country.. Current president Ranil Rajapakse nearly 50 years in parliament .. 6 time PM.. Real joke is he need more time to develop country.we know that gonna never happen. He just trying to protect himself and Rajapaksa thieves. No elections.. 😢
99% Truth. agree with you 😢
The Philippines is heading this way too. EXCESS DEBT
The only way out if sent traps is debt forgiveness - it’s as old as debt itself
We should be investing in wind and solar energy so we don’t need to import electricity. Why are we importing food, we should grow so much that we can send to other countries, not just cinnamon. Like wheat, corn etc. Also instead fancy bridges, spend money on things that will return value like more internet access so people can learn from internet.
They had lots of success in the past. Hence they themselves are to be blamed. Other country no need to bail them out. No point.
This is for the Wumao bots who make up fake statistics! This video at @11:15 has the actual debt breakup of Sri Lanka.
China - $8.7b - 20%
Japan - $2.6b - 6%
India - $2.3b - 5%
IMF - 1b - 2%
World Bank - 3.9b - 9%
ADB - 5.9b - 13%
Others - 7.6b - 17%
ISB (International Sovereign Bonds) - 12.5b - 28% (These are issued by Sri Lanka to raise money).
add up all your % did it add up to 100%?
what a dumb comment
The country should Stop having new kids till the crisis comes down. Then less pressure.. Maybe 5 years down the line, start again. Population control + economic reprieve. And much needed population gap for future jobs.
I blame the people for always seeking for freebies. Excess freebies will kill any country if not careful. I hope other countries will learn something from their story. Also depending on foreign countries to bail them, well, they trusted china to rescue them but look what happened. The people must stop having the subsidy mentality for everything.
Borrowing from countries like China at low interest for infrastructure development is not a problem because we can negotiate with them. It’s not the same with so called sovereign bond sharks. The persistent problem is we have one government servants for every seven citizens and increase their salaries without productivity
If the loan is built with local help it mkae sense because it create jobs but taking loan and using chinese workers leave the local with a infrastructure that is not usable because the lodal are still poor
Sure . Take the Chinese loan , pay the Chinese construction company , pay the Chinese worker , then sign over the port to Chinese government. 🤣
How about Chinese loan to build the world loneliest airport ?
Pure Chinese gold
@@Mr.Sevenn007 The problem is most poor Countries doesn’t have the know-how to execute such large projects
@@malalachernobyl5594 that's why China not able continue loan to Philippines.. becuz Philippines have man power to build infastructure.. China want to loan money and build infastrature by using their own chinese companies and workers so that money will back to china. and china use their chinese materials to build those infastructure. making profits by building infastructures, making profits from interest loan and money loan will back to china..
chernobyl, You didn't catch the fact that China will take over Sri Lanka's land if they don't get paid back?
Their dilly dallying with China is to blame. If India had not rescued it the story would have been over for this country
Corrupted Rajapaksa and regime are still alive.and after them, wickramasingha started new era for protect thieves then strategic planning for corruption 😢
we are suffering up to change the system but no more hopes.
yes there is a way to change this stupid system forever.. 😠😠😠😠😠😠😠😠😠😠😠
If their politicians use those loans properly for the country development, they will never be in this situation. BLAME THEIR OWNSELVES FOR ALLOWING POLITICIANS POCKETING THO SE MONEY.
If sri lanka citizen relocate into more strategy place to do business would it be better? Economy blueprint needed for rational spending.
90% of Sri Lanka loans are to the IMF and western banks. Hambantota port construction started in 2008 and 5 years before the start of the BRI project in 2013
I blame China and Politicians !
We told Sri Lanka, Model your economy like ours then we can grow together. But no, Sri Lanka wanted a Scandinavian model of development. Here is the result.
We? mean who?
They rejected good relationship with India and now you see the result.
Wow... if they've defaulted seven times within one politician's lifetime, and he's still in office... that debt should be radioactive. Someone would prob be looking for 75% interest rate or more to loan that country any money, unless it's has a first lien collateralized on some hard asset (land). It was unclear why there was a fertilizer ban which cratored the rice crop yields. Even with sportatic electricity, I would thin the co-ops would want to invest in some basic solar power & batteries just for refrigeration to keep goods from spoiling overnight (fish, dairy) allowing them to get a better price for their products.
I don't see how Sru Lanka can or if they even should try to escape from this self-imprisonment trap. Make peace with your lender
You can blame the World Economic Forum and the politicians who carried out their bidding!
The “debt-trap” theory is concocted by Brahma Chellaney, an Indian geopolitical strategist. The “debt-trap” theory is concocted by Indians, and popularized by Americans. They concoct this theory to demonize China, Chinese and BRI projects/loans. India, US, along with EU, fear losing their control over other countries which may result from these projects. Such fears are based on their selfish and geopolitical interests.
However, people from all over the world, especially from developing countries have acknowledged the needs and the actual benefits of these projects/loans. They know from their first-hand experience that there is no debt-trap. Academics and researchers have reviewed these projects, and have debunked the debt-trap theory.
Ni hao, Dear wu-mao Pro-China bot. LOL
Dude literally explains how Sri Lanka got into a “debt trap” in this video 33:12. Not saying china holds all blame just pointing out the fact u didn’t watch the documentary actively or ur just a bot.
@@aheisanraveendran3686 I don’t think you understood the original comment. ”Debt-trap diplomacy” as a term was coined by an Indian, (later popularized by US officials as they went on an anti China campaign) and the paper has got enough criticisms. A nice Wiki exists about this. What you are mentioning is just predatory lending (primarily western banks) ruining many developing nations. Unfortunately, there is no term for this practice since the western nations control media narrative.
corruption is to blame?
Corruption is a minor factor the bigger one is the debt that Sri lanka took since independence, unfortunately many media outlets have made this political and make corruption as the main factor but it is a minor factor of the major debt the coutry took on.
@@ssilva5663it was the corrupt leaders that took those loans and sourced them to their personal monetary gain you go around claiming corruption isn’t the reason,someone voted wrong.Every country has debt it’s just that these mobster pea brain leaders invested in white elephant projects with no returns at all.
Countries should be very careful when dealing with China. Pakistan, Srilanka are examples everybody knows
This is too sad... Why can't we give them more meaningful jobs instead of giving them money? Or can we give them food and healthcare at least for free?
Nothing is free in life, the sooner you realize that the better off you would be in the future. There is always a price to pay.
*AND NOW, INDIA IS WORRIED BECAUSE CHAYNIS SHIPS ARE ROAMING AROUND INDIAN OCEAN... THANKS TO SRI LANKA.*
😏😏😏😏😏😏😏😏😏😏😏😏😏😏
Watchin this after eat frozen tomato soup with frozen rice... 😢
Government obviously , they were just not prepared
India should no longer help the backstabbers.
Theres no such thing as "free health care."
By lending money to risky countries at a high interest rate, investors (creditors) must be willing to accept the high risk of losing their investment when it materialises as a default. If they aren't willing to accept it, then they should not lend in the first place.
Absolutely
So, you will not ask your govt and people to do work and pay it back? rather than cursing the people for asking you to payback their money🤣Seems the mindset of Sri Lankans is "Eat everything nicely and run off"
@@preanand1938 It looks like you were not paying attention. If you charge a higher interest rate, because of the risk factor involved in lending to someone or something, it means that you accept the possibility of default, and that you give up full recovery. You make up for your losses with the higher interest rate that you are charging others. If you are not willing to give up full recovery, and your entire amount lent is recovered, why are you charging the higher rate in the first place? You should be charging what you charge others, counting them as lower risk borrowers; whenever you make full recovery, your borrower is automatically a safe borrower, and represents a low or non-existent risk, and deserves a lower interest rate.
The West broke Sri Lanka. But they blame China 😂😂😂😂 Gotta love that Americans and Europeans live in their own fake reality, powered by western media and government propaganda. They do not want to admit China's contribution to developing poorer countries and also developing Xinjiang. They make up fake "human rights abuses" in order to topple a government, just like they did to Iran in the 70s when Iran was nationalizing its oil industry and the west stopped making a profit. They quickly use media propaganda to brainwash the population. This trick will not work again.😂😂
Sri Lankans are now looking for information about the incident in 2022. Sri Lanka is not the first and only country to face the global economic crisis. Sri Lanka has a high capacity to control this situation. They already understand the situation and deal with it. Sri Lanka can never escape from global political conditions. But they will make a good decision in 2024 based on the information they have obtained about the events that happened in 2022. But it is now becoming clear that it is not the decision that the world expects. That is the common nature of Sri Lankans.
Go fishing! They are not poor, they just don't know how to survive.
Wonder Why Srilanka public blaming politicians . as if public in Srilanka didn't elect their leaders or wasn't aware of loans being taken beyond their national capacity .
How were they supposed to know that these people would be corrupt?
Corruption pathetic really.
True Sri Lanka is in a difficult situation. But this sucking media shows a different view about crisis. But they will stand up strongly soon come out of this crisis.
Where to begin.
IMF...USA.
SHAME ON YOU. SHAME ON YOU.
Every country, the poor suffering to put food on the table, many families eating only once or twice a day, they skip chicken and fish
The sovereign bonds caused the problem mainly. But these problem arised because their tourism industry's lack earning due to covid, also their going organic policy decreased their reserve further as it decreased Agricultural production fuelling more import.
The organic farming debacle was one of the main causes of the sudden collapse.
Intermittent fasting is healthy 😊 it'll pay dividend to their health system in years to come ❤
Austerity in different government around the world is a must
India will give seperate provision to srilanka ,if they merge with India.
They don't want to become a part of India!
Its a warnm country. Cant they grow some vegetables in a small garden or big pots, crates, to help? Potaotes grow in anything anywhere, lettuce, tomatoes, fish, get 3 chickens.
Definitely because of crazy corruption earlier and people do not limit how many children they have. I watched in the video, some of them have 3-4 children
True that 😢😢😢
Eye Opener VDO
Too many people. Dont blame imports or debts.
They are because you cant grow enough.
Its the same here in Europe and thats before there was any immigration, which doesnt help.