Is India Losing Sri Lanka?
The Sri Lankan government recently announced its decision to close diplomatic missions in the three countries in a bid to cut spending on overseas operations. The decision highlights Sri Lanka's deteriorating economic situation and the plight of foreign currency reserves. The outbreak of the corona, the decline in the influx of foreign tourists and the funding from foreign nationals are said to be the reasons behind this situation. Apart from these factors, the mountain of debt on the Sri Lankan economy and the exorbitant interest rates of Chinese banks also poses a major challenge to Sri Lanka's debt repayment. This is the root cause of the current situation. At the very last moment, China has joined hands with the Sri Lankan government for currency exchange, and China's efforts to strengthen its grip on the country in the name of keeping the economy afloat are evident. Many countries are watching the developments in Sri Lanka, which is strategically important in t...