Sri Lanka on the verge of bankruptcy, may be a threat to India!
A huge economic crisis has deepened in Sri Lanka.
Sri Lanka remains a topic of discussion all over the world due to its economic crisis. In recent times, after the Corona epidemic, a huge economic crisis has deepened in Sri Lanka. On the one hand, inflation is rising there and people are worried, while on the other hand, the Sri Lankan government is struggling with increasing debt due to heavy borrowing from China. The situation has become such that Sri Lanka has reached the verge of bankruptcy as a nation. In the midst of all this, looking at Indian interests in Sri Lanka, experts believe that if the situation in Sri Lanka worsens, then due to its heavy debt, China will be more arbitrary about policies in Sri Lanka, which can be dangerous for India.
The biggest problem of Sri Lanka's economy is rising inflation, food crisis, and lack of foreign exchange there. When Rajapaksa took office in November 2019, the country's foreign exchange reserves stood at $7.5 billion, but by the end of 2021, forex reserves had fallen to $2.5 billion. Because of this, Sri Lanka's concern about repaying foreign debt increased. China has a debt of more than five billion dollars on Sri Lanka. Last year, Sri Lanka took a loan of one billion dollars to avoid the economic crisis.