Sri Lanka's Debt Crisis: Who Is Really To Blame? | Debt Bomb | Full Episode
ฝัง
- เผยแพร่เมื่อ 12 พ.ค. 2024
- When Sri Lanka defaulted on its foreign debt for the first time in its history in 2022, it sparked fears of more sovereign defaults to come. Global financial institutions say debt is at the highest level in decades and about 60 percent of low-income countries are now in, or at risk of, debt distress. As interest payments come due in the later half of 2023, are we going to see a string of defaults leading to a global financial contagion?
We look at the human cost when a country goes bankrupt, trace how so much bad debt was created and investigate the so-called debt traps. Sri Lanka has pinned its immediate hopes on a multi-billion-dollar bailout deal with the International Monetary Fund. But that comes with austerity measures that the IMF itself has said reduces growth. Can Sri Lanka change its economic course and avoid another bailout or default in future?
WATCH MORE Debt Bomb
• Debt Bomb
00:00 Introduction
01:57 Debt crisis triggers medicine shortages
09:16 What caused the debt default?
13:32 The dark side of Hambantota’s ambitious development plan
18:26 China's heavy investment in Sri Lanka
25:30 The biggest loan repayment burden
26:48 Will a 17th IMF bailout help?
33:31 What’s holding up debt restructuring?
36:15 How to help countries in debt distress or default
38:51 Cooperatives help put food on people’s plates
45:21 Is there a way forward out of default and debt distress?
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About the show: According to the IMF, 60 percent of low-income countries are either already in debt distress or at high risk of debt distress. Will we see a global financial contagion?
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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
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
Corruption is to blame. And now the hard pressed taxpayers of well organised countries will be expected to bail them out.
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.
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 .
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.
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 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.
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...
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.
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
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).
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 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.
Sri Lankan Debt problem is caused by Sri Lankan people.
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.
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
A highly sophisticated and well-made film. However, I must follow this carefully again to assess the validity of its observations.
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.😂
You spent money you don't have VERY SIMPLE and Shameful of these politicians
"We are at a very strategic location"....have been hearing such a statement from another neighbor country. It makes me wonder what is it?.
Great work
Very clear and unbiased so we finally see the big picture.
My gratitude goes to Dr kadiragama who has great vision and working for the well being of his people
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
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
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 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😂
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
thanks
9:03 ..what is rate of interest on different lander loan ?
Global Hunger Index says Hiiii 😅😅
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.
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
Great journalism for sure.
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.
If sri lanka citizen relocate into more strategy place to do business would it be better? Economy blueprint needed for rational spending.
Corruption among the elites does not help
I feel u.. SL..
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.
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.
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 😢
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...
Eye Opener VDO
Well best part Singapore helped the president to escape and stay in Singapore.. God bless Singapore the land of the rich and corrupt...
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
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.
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
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.
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 Philippines is heading this way too. EXCESS DEBT
Dominic Frisby's "Debt Bomb" music video.
The only way out if sent traps is debt forgiveness - it’s as old as debt itself
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.
One word: corruption
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.
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?
Sri Lanka needs to look at itself!
What do they make and sell other than tea!
Stop borrowing and stop breeding, and start producing
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?
Government obviously , they were just not prepared
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
God bless Dr Lanka.
This is so sad. How can I pay for their cancer treatment?
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
If you keep giving sovereign debt and keep restructuring you will only become theives! Instead you should be improving your credit worthiness by repaying debt so that you can negotiate better interest in the market for sovereign bonds!
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.
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.
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.. 😠😠😠😠😠😠😠😠😠😠😠
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 😢😢😢
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.
*AND NOW, INDIA IS WORRIED BECAUSE CHAYNIS SHIPS ARE ROAMING AROUND INDIAN OCEAN... THANKS TO SRI LANKA.*
😏😏😏😏😏😏😏😏😏😏😏😏😏😏
You can blame the World Economic Forum and the politicians who carried out their bidding!
Srilanka has to thank China for the mess
😅😂😂
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.
Well, plenty of lower income families in Singapore can't afford ' what they need' with the current cost of living situation.
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.
Watchin this after eat frozen tomato soup with frozen rice... 😢
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.
Why china investing this kind of dead project?
Ans. INDIA.
You don't need rocket science or PhD degree to find out obvious ans.
Government Overspending ??
Corruption pathetic really.
Intermittent fasting is healthy 😊 it'll pay dividend to their health system in years to come ❤
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
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.
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?
Western loan they will tell you where you must use the loan for their advancement, China loan will lead to high interest until fall into their debt trap by either selling or agreeing that they will use your land on their will with out liabilities for the next 100 years.
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!
Only way to survive the srilanka economy is more integration with indian economy and act like a Hong-Kong for india. Focus on free movement of goods supported by India rupees act like a free economic zone for financial transactions for hole of india and work as a transhipment base for indian goods. Government of sri Lanka can negotiate a favourable turm to act like a gateway to mainland india for foreign capital. Other than that building infrastructure on small well developed society will only create unnecessary debt.
No
@@kurumbaatoll9190 then aliases will only help. Because low population and higher living stander in sri Lanka means it dose not need excess infrastructure. So it can't have infrastructure supported growth just like india and china.
@@ranadeepjash1150 Why on earth would Sri Lanka want to become the "Hong Kong of India"? Why is it that for every problem the solution Indian nationalists give is to become a part of India?
They rejected good relationship with India and now you see the result.
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.
Chinas belt road initiatives certainly didnot help
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
Haven`t finish watch but my opinion of what I know about Sri Lanka 4 main reason:
1. Bonker governance. (See how unreasonable policy like going organic farming)
2. Messy citizen. (No chance is 1 thing but riot, riot, riot non stop riot will give nothing)
3. Bad Luck (Sri Lanka 1 good industry is tourism and covid cut most of it off)
4. Bad Neighbor (India are not good neighbor for Sri Lanka and it not about terrorist, but everything Sri Lanka can produce India can make it better, cheaper, faster. India also know for undermining Sri Lanka gov.)
Combine all 4 you got a disaster.
Sri Lanka should take reference from nearest counterpart Singapore or Taiwan both.
Bad neighbour? Not long ago, India helped you out providing much needed relief (responding to YOUR government's request, dont say we never asked for it). Srilankans are the most ungrateful people on earth.
Countries should be very careful when dealing with China. Pakistan, Srilanka are examples everybody knows
They spent a lot of money developing the port, and didn't realize until it was nearly completed that there was a large rock blocking the entrance?
It's not Sri Lanka alone its other countries also its intention to make it happen un eu Imf and the every central bank in countries are involved. ..😊
😂😂😂😂 What a conspiracy theory. You definitely mugged your economics textbook.
Hunger index and happiness index all failed for Sri Lanka 😅