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Sri Lanka's Bankruptcy !!

 That would be like saying Vijay Mallya's Bankruptcy is square to be blamed on the State Bank of India.

Sri Lanka's Bankruptcy happened due to a Chain of very Unfortunate events

Event A:- Organic Agriculture resulted in Disastrous Crops for 2 years and a Massive Rise in Food Imports which in turn resulted in Huge Depletion of Foreign Reserves

Event B:- Bomb Blasts plus Coronavirus - Covid 19 - Pandemic that destroyed all the Tourist Businesses and prevented any significant revenues of Foreign Reserves

A+B happened together meaning SL kept buying Food and importing Food with Precious Dollars while unable to replenish their coffers due to the Lack of Tourists their biggest source of revenue

Event C:- IMF Loans. SL borrowed most of their money from IMF and issued Capital Instruments to raise money to purchase and Import Food & Petrol & Notepaper & everything of significance. This required Interest to be paid.

Event D:- Ukrainian Conflict. Huge Supply Chain problems plus rising costs of Oil blew up lots of Foreign Reserves in a very short time until SL was unable to pay for any imports whatsoever.

As A+B was happening - C+D also happened simultaneously

A+B+C+D = Calamity and Disaster

How is China responsible?

China has deferred Interest Payments on its Loans - Twice and now Interest is due only in 2024

Loans sanctioned by the ADB are not Chinese Loans. ADB is Asian Development Bank. It is ADB that is Sri Lanka's Largest Creditor. ADB != China. ADB has China, India, Indonesia, and even Germany as its members!!!!

India has also deferred Interest Payments on its Loans

Japan has also deferred Interest Payments on its Loans

Interest on the Capital Instruments ie:- Bonds issued cannot be deferred. These are Public Bonds. Again most of these Bonds are sold primarily in Europe under the auspices of the IMF. Chinese Public or Chinese Banks by law cannot use public money to buy Bonds from Foreign Countries. Neither can Indian Public or Indian Banks by Law.

So how is China even remotely responsible?

Just like Russia became a” Defaulter”

The People in high places know China has no liability whatsoever when it comes to Sri Lanka and its Crisis.

Sri Lanka is experiencing Shortages.

When you have Shortages of Food, Water, or Energy - You have Anger. A Lot of Anger. And Fear. A Lot of Fear.

Add to this shortage of Medicines and Basic Amenities

Rajapaksa was too Incompetent to address these shortages.

China refused to help SL after they were spurned by SL recently, especially the Rajapaksa Government. Beginning with the Organic Fertilizers - China lost a few projects in SL and China simply decided to not help Sri Lanka with its Supply Demand besides the most Basic Assistance.

Otherwise, China could have happily sent 10 Million Tonnes of Paper and 400 Million Cases of Antibiotics. Don't they send the same stuff to North Korea every year?

China sends Paper, Antibiotics, Painkillers, Ink, Crude Oil, Petrol, Fuel Oil, etc to North Korea on Credit notes.

They were pissed off with SL and believed that the Revolution could be a good thing as Rajapaksas were not good news for China.

That's all China has done

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