New Delhi: With protests and strikes that did not show weakened signs, President Sri Lanka Gotabaya Rajapaksa declared a state of emergency in the island country on Friday night as a public hatred of Rajapaksas for the in -depth economic crisis in the country had increased by The Rajapaksas Atas Atas The deep economic crisis in the country had increased by The Hari.
Although the Sri Lanka public precisely blamed Rajapaksas Inc. for plummeting the foreign exchange deficit, high external debt of more than USDF 50 billion, raging inflation and price, a statement from the office of Prime Minister Mahinda Rajapaksa denied that the president of his brother Gotabaya had asked him to have asked him. stop.
The island nation consisting of 22 million people is currently shaken under a serious economic crisis with Rajapaksa’s leadership who cannot find out the way out because the protest is not weakened and it is quite clear that even the change in PM or the government will be able to calm the public. While India has given USD 2.5 billion in support, Colombo has returned to its main supporters, China, asking for debt rolls like Pakistan. Sri Lanka is also in negotiations with the IMF for financial assistance to stem the current crisis. China holds 10 percent of Sri Lanka’s total debt with more held by Japan, the World Bank and the Asian Development Bank. India holds nearly three percent of Sri Lanka’s debt.
The economic situation of two other Indian neighbors and Chinese friends, Nepal, and Pakistan, is also in a terrible difficulty because of the chaos created by bad governance, increasing external debt and food fuel inflation. The three countries under severe economic pressure are part of the initiative of the Chinese belt road and under the serious debt of Beijing due to commercial loans from Exim China Bank.
The current economic crisis within India provides a challenge for the Modi government because public anger in these countries can cause a humanitarian crisis with refugees flowing from North Sri Lanka in Tamil Nadu and from Nepal through a smooth border. Pakistan has received a loan commitment from Saudi Arabia and UAE after the current regime tries to improve relations with the two kingdoms after the departure of Imran Khan, but the situation is terrible in the Islamic Republic.
While many chair strategists say that the current economic crisis also presents opportunities for the Modi government, the facts are the current economic crisis in Sri Lanka, Nepal and Pakistan have built for several decades of poor financial waste and government. What the Modi government can do is provide financial packages to maintain public anger in these countries so that India’s national security does not consist of increasing Islamic radicalization in these countries.
While Nepal has prohibited the import of luxury and Pakistani goods from mentally rationalizing fuel and electricity subsidies, Sri Lanka seems to be going to be worse with the public fully to the Rajapaksa government and the opposition that does not have enough strength to provide political alternatives. With China itself facing economic stagnation after a long time due to hard anti-covid steps in almost half of Beijing and all Shanghai, the central kingdom itself will be ashamed to provide economic assistance to these tributaries without guarantees. It is time for these countries to realize that large infrastructure projects are built on external debt without forex reserves to support it always cause disasters.
About Author
