'We can't change the past': Sri Lankan MP on Chinese investment and debt trap

Opposition MP Harsha de Silva said there is no point pondering over the Chinese investments in Sri Lanka and the only thing left to do is to figure out a way out of the debt trap.

Harsha de Silva, Sri Lankan MP, on Sunday spoke about the Chinese investments in Sri Lanka and its relation to the current economic and political crisis and said the only thing left to do is to figure out a way out of the debt trap.

Speaking to India Today, the Samagi Jana Balawegaya (SJB) party leader said, "What is done is done. We can’t undo the projects now. What we can do now is to figure out a way to come out of the debt. We have to restructure it and we have to talk to the Chinese and come to a solution."

For years together, Sri Lanka has been borrowing heavily from other countries due to years of budget shortfalls and trade deficits. The country also saw several infrastructural projects that were built using foreign investments, failing to bring in any revenue. This pushed the country further into debt.

READ | Sri Lankan situation is similar to that of India’s 1991 economic crisis, says opposition MP Harsha de Silva

Many of these projects, like the Rajapaksa airport, Hambantota port, a conference hall, the Colombo lotus tower are funded by China and Chinese businesses and at the same time, these projects now stand as reminders of mismanagement of funds.

The Belt and Road Initiative of the Chinese government has been criticised by several experts around the globe as an initiative that targets vulnerable countries and leads these nations into debt traps.

According to reports, 10 per cent of the $51 billion external debt that Sri Lanka owns is to China and it is believed that the amount will be much higher if the loans given to state-owned firms and the Central Bank of Sri Lanka are also considered.