Sansad TV
In this episode of the Perspective Prog. based on the ‘China Debt trap’. As Sri Lanka continues to grapple with its worst-ever economic crisis, the World Bank has agreed to provide 300-600 million dollars over the next four months to buy medicine and other essential items. The country’s Finance Minister Ali Sabri, who is in Washington to negotiate a rescue package with the International Monetary Fund, has informed. He said while talks with IMF will take some time, the World Bank has agreed to provide support in the meantime. He also said neighbouring India has agreed to provide 500 million dollars to purchase fuel, and negotiations are underway on an additional $1 billion from New Delhi, which has already provided a credit line of $ 1 billion. The island nation is on the brink of bankruptcy, with nearly $7bn of its total $25bn in foreign debt due for repayment this year. A severe shortage of foreign exchange means the country lacks the money to buy imported goods. Sri Lankans have endured months of shortages of essentials such as food, cooking gas, fuel and medicine, lining up for hours to buy the limited stocks available, as a result of which the country has also witnessed massive protests. The country has defaulted on all of its external debt of about $51 billion – after running out of foreign exchange for imports, calling it the last resort. So while domestic policies are largely being seen as reasons for Sri Lanka’s economic collapse, many also blame China for the unprecedented crisis in the island nation. Defaults over China’s infrastructure loans to Sri Lanka, especially the financing of the Hambantota port are being cited as factors leading to the crisis. With an eminent panel of experts, we will try and understand the China factor behind the Sri Lankan crisis. What is China’s lending model and why is it coming under increasing criticism for low & middle-income countries with unsustainable debt?
Guests:
1. Ashok Kumar Jha, Former Secretary, Ministry of Finance, GoI
2. A K Bhattacharya, Editorial Director, Business Standard
3. Dr. S.P. Sharma, Chief Economist, PHD Chamber of Commerce and Industry
4. Lt. Gen. (Retd.) Dr. Rakesh Sharma, Distinguished Fellow, Vivekananda International Foundation
Anchor: Teena Jha
Producer: Amit Srivastava, Sagheer Ahmad
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