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The Dark Side of Chinese Loans to Sri Lanka

Chinese investments were financed by Chinese state-owned banks at high interest rates and without transparency, leaving Sri Lanka heavily indebted to Beijing.
The Dark Side of Chinese Loans to Sri Lanka
International Monetary Fund Senior Mission Chief for Sri Lanka Peter Breuer (C) speaks during a press conference in Colombo, Sri Lanka, on Nov. 23, 2024. Ishara Kodikara/AFP via Getty Images
Panos Mourdoukoutas
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Commentary

The Chinese regime’s investments in and loans to Sri Lanka have turned the island nation into a modern-day semi-colony, placing the future of its economy in the hands of Beijing’s state-owned contractors and bankers and the International Monetary Fund.

Panos Mourdoukoutas
Panos Mourdoukoutas
Author
Panos Mourdoukoutas is a professor of economics at Long Island University in New York City. He also teaches security analysis at Columbia University. He’s been published in professional journals and magazines, including Forbes, Investopedia, Barron's, IBT, and Journal of Financial Research. He’s also the author of many books, including “Business Strategy in a Semiglobal Economy” and “China's Challenge.”