News Snapshot:
China’s financing and operation of the port of Hambantota in Sri Lanka has been cited as a stark example of “debt trap diplomacy”, and some even blame China for the island nation’s economic downfall. Yet experts say Sri Lanka’s debt crisis is more complicated, and China is only one player, albeit an important one. Why we wrote this China may not be behind Sri Lanka’s debt crisis, but recent moves in the Indian Ocean show just how much it benefits from unbalanced lending. The country’s crisis stems mainly from poor financial management, including persistent budget deficits and meager foreign currency...
