The India Story Episode 1 | Is Sri Lanka's economic crisis a result of China's debt-trap diplomacy?

This week on The India Story, we take a deep dive into the Lankan economic crisis.

Sri Lanka is facing its worst economic crisis since 1948, with no exit strategy in sight. The Covid-19 pandemic crippled an already collapsing economy, paralyzing Sri Lanka’s largest industry, tourism, which contributes more than 10% of its GDP.

Also watch | Sri Lanka crisis: What has happened so far?

Sri Lankan PM Mahinda Rajpaksa, made matters worse by taking on more loans from Beijing. China has investments in over 50 massive infrastructure projects in Lanka, none of which have earned any revenue. Sri Lanka's total external debt stands at $45 billion, while dues to China alone are to the tune of $8 billion.

However, Sri Lanka is not alone. Other south Asian nations like Pakistan, Bangladesh, and Maldives owe huge debts to China too. What lessons should India draw from the Lankan economic crisis? What should India do for its neighbours?

Also watch | Sri Lanka: President Rajapaksa invites all parties to take up ministerial portfolios

Watch Vikram Chandra in conversation with Asanga Abeyagoonasekera, Geopolitical Analyst and Senior Fellow, The Millennium Project, Washington DC; TCA Raghavan, Former High Commissioner to Pakistan and Singapore, and Pronab Sen, Country Director, International Growth Centre and former Chief Statistician of India.

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