Thinking About China
Opinion

Sri Lanka’s Troubles Raise Questions for China

Sri Lanka’s Troubles Raise Questions for China
The Grand Aurora vehicle carrier sits moored at Hambantota Port, operated by China Merchants Group, in Hambantota, Sri Lanka, on March 28, 2018. Under the overwhelming burden of the Chinese debt, the Sri Lankan leased the port to Beijing for 99 years. Atul Loke/Bloomberg via Getty Images
Milton Ezrati
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Commentary

Chaos and failure in Sri Lanka signal problems throughout the developing world that will make trouble for China. Loan losses in Sri Lanka and elsewhere will of course add to China’s increasingly severe debt overhang. Further, events in Sri Lanka will raise questions among others about participating in Beijing’s vaunted Belt and Road Initiative (BRI) and in so doing, will interfere with Beijing’s global plans.

Milton Ezrati
Milton Ezrati
Author
Milton Ezrati is a contributing editor at The National Interest, an affiliate of the Center for the Study of Human Capital at the University at Buffalo (SUNY), and chief economist for Vested, a New York-based communications firm. Before joining Vested, he served as chief market strategist and economist for Lord, Abbett & Co. He also writes frequently for City Journal and blogs regularly for Forbes. His latest book is "Thirty Tomorrows: The Next Three Decades of Globalization, Demographics, and How We Will Live."
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