Sri Lanka economic crisis: Story of the great Chinese betrayal

The situation in Sri Lanka continues to remain tense with the administration deploying armoured vehicles across the country in an effort to crush the protest being carried out by the people against the Rajapaksa family. At the same time, strategic observers believe that China has backstabbed Sri Lanka. 

Experts say that Beijing would not come to bail out Sri Lanka, but instead, it would try to collect its dues if Colombo managed to get some from anywhere else. 

In a press briefing in Beijing, China's Foreign Ministry spokesman Zhao Lijian said that the Chinese side is closely following the developments in the island nation. Beijing has asked its nationals working in the island nation to be alert and on guard against risks.

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Sri Lankan Prime Minister Mahinda Rajapaksa's resignation from his post following the violent protest in parts of the country is being seen as a setback for the Chinese leadership, as he was considered to be very close to them. Rajapaksa had paved the way for large-scale Chinese investments, which included leasing out the Hambantota port -- situated in his hometown -- to China for 99 years as a debt swap. 

In the last few years, the Chinese have infused more than $8 billion in Sri Lanka and also provided loans worth $6.5 billion. 

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Asianet Newsable has spoken to South Asian University senior Assistant Professor Dr Dhananjay Tripathi to understand the dynamics of China's stand on the current economic crisis in Sri Lanka.

"Since the Sri Lankan economy has already defaulted, China is defending its economic interests in the island nation. China also has shares in that default. It has also invested a huge amount in the country. Ports like Hambantota are on lease and if Sri Lanka does not get the money China will also lose its money," Dr Tripathi said.

"In this case, Beijing is acting smart. They want Sri Lanka to get funds from anywhere so that it can take its share out," the expert said, adding, "There was a talk that China may be providing $2.5 billion in aid. It is for sure that it does not come without any stringent conditions."

The South Asian University professor feels that the Rajapaksa family will have to face public ire if it goes for assistance from China.

"Taking a loan from Beijing on certain conditions may not go down well with the public. Whatever is happening in Sri Lanka today, the people are holding this family responsible. This family has sided with China so much in past that they are in a political dilemma. But China is very smart in defending its interests," Dr Tripathi added.

In an ethical sense, "we can call it a betrayal".

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India's role in Sri Lanka

India must stand with Sri Lanka as it shares history, culture, and boundaries with the island nation, unlike China. Beijing does not have cultural connections with Colombo. 

For India, it is its moral, ethical and political responsibility as a major South Asian power to help people who are in need, he said.

"Stable, peaceful, and prosperous South Asia is in India's interest while China has a different interest," he added.