Sri Lanka is in the grip of its worst economic and financial crisis since independence in 1948, plunging the country into chaos. In addition to the pandemic and the Russia-Ukraine war that have severely damaged the world’s second-largest tea exporter and major tourist destination, the country is also mired in the Chinese Communist Party (CCP)’s Belt and Road debt trap, with about $11 billion of its $51-billion total foreign debt owed to China.
Sri Lankan Prime Minister Mahinda Rajapaksa resigned on May 9 after violent clashes between his supporters and anti-government protesters.
Sri Lanka’s finance minister Ali Sabry warned parliament last week that the country had less than $50 million in foreign exchange reserves to draw on due to severe shocks, including the pandemic, soaring oil prices, and government tax cuts. He said about $3 billion in foreign aid would be needed over the next six months.
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