Day 487

I know that I have been absent for few days since I last wrote my post. Well, this time was taken just because I was doing some analysis. I know I wrote about Sri Lankan crisis. Actually, I was doing detail research about this crisis. So, this is the explanation about my being absent from writing the post.

In the last post, I wrote that how gradually with time, China has increased its debt trap in Sri Lanka. There were many economic deals made between both the countries but only China is gaining much from those deals and Sri Lanka is going downwards. I wonder how Sri Lankan government failed to see this basic thing that China is going to exploit Sri Lanka economically? Is it a sign of economic slavery for Sri Lanka? Is China going to rule Sri Lanka economically in future? I’m afraid that it’s also possible that Sri Lanka can be used against India in future. Who knows what are the real intentions of China? But I’m afraid that China will make its military and naval base in Sri Lanka against India? Geographically speaking, Sri Lanka, Pakistan, Bangladesh and Nepal are other neighbouring countries of India along with China.

China had already invaded Pakistan in name of CPEC (China Pakistan Economic Corridor). Although, the progress of CPEC is negligible today but it can be used against India. Sri Lanka is in same scenario. Actually, I’m taking you all in not so far in past. Well, after 1962 Indo – Chinese war, when Chinese military invaded Indian territory, I think Chinese hunger for encroaching neighbouring countries territories and including those territories into its own has increased. Maybe, this is the reason why China is investing heavily in economically weak countries like Pakistan and Sri Lanka. India has always been a huge market for China so instead of giving debts to India, China has always created products according to the Indian market. But, since, Mr Narendra Modi became Indian Prime Minister and he requested Indians to boycott Chinese products then the demand of Chinese products have gone down resulting loss for Chinese companies in thousands of crores. This had shaken the Chinese economy to an extent.

Hambantota port has become exclusive port for Chinese products in Sri Lanka. All the Chinese consignments unloaded at this port is exempted from the taxes by the Sri Lankan government. This means Sri Lanka government can’t have a single penny from the products arriving or leaving Hambantota port but Chinese government will have full profit from the sell or transfer of goods from this port. I’m unable to understand why Sri Lankan government agreed to such a one directional agreement? According to me, there may be two reasons behind this. Either Sri Lankan government officials or ministers got big cheque from China or Sri Lankan government gave Hambantota port to China in exchange of some default payments. I don’t know what’s the real truth behind this. But it was said that Hambantota port could be used as a military base. There was protest against this in Sri Lanka. Officially, India and America raised their concerns about the Chinese interference in Hambantota port which could result in clash of interest between China with India and America. Sri Lankan government transferred 85 per cent of assets of Hambantota port to the Chinese company along with giving the port on lease for 99 years.

Actually, borrowing from China to repay old debts became headache for Sri Lankan government. Instead of gaining from the investment, Sri Lankan government got more trapped in the Chinese dept. Hence, the present situation is the result of all the mistakes like Hambantota port. People don’t have much options left to them. Today, Sri Lanka is facing acute shortage of fuel, food, electricity, gas cylinder, medicine and milk. People are forced to wait in long queues for these basic commodities. In a civilised society, its hard to imagine to live in 13 hours non supply of electricity in a day. Due to shortage of fuel, Sri Lankan army has been deployed at every fuel station.

Actually, I was really shocked when I came to know that one kilo of rice is costing about 200 Sri Lankan rupees. Likewise, 400 ml milk is 800 Sri Lankan rupees and a gas cylinder used for cooking is costing 4200 Sri Lankan rupees. Its hard to imagine the life with such high prices for the essential products. Survival has become the toughest problem there. Situation like this will definitely lead to the revolt from the public. Although, Sri Lankan President has imposed national emergency to stop the suspected protest from the public again. Previously, one public protest has taken place which resulted in imposing curfew along with the national emergency. Later on, curfew was removed by the government. I think its clear that ban on the social media comes along with the emergency.

I just hope that soon the Sri Lankan government will come with some solution. I think asking for bail out from the international community is the only option left in front of them. But they have to be cautious with the Chinese help in future. Actually, China’s debt has already become a huge headache for Sri Lanka. I just hope that the Sri Lankan government doesn’t repeat its past mistake. Sri Lankan government has to formulate a plan for getting out of this economic crisis. It will take time but it has to do something. Actually, Sri Lanka’s dependency on imported items had made the situation a bit more complex. So, keeping these things in mind a new road map has to be formulated.