Policy Brief: Chinese Lending in Sri Lanka
In-depth studies by Verité Research indicate that, while the Chinese loans contributed to bad financial management and other serious issues, the root cause of the recipient country’s problems was something different.
Sri Lanka’s 2022 debt default fueled debate over whether China's Belt and Road Initiative-related loans constitute “debt-trap diplomacy.”
Staff Writer
In-depth studies by Verité Research indicate that, while the Chinese loans contributed to bad financial management and other serious issues, the root cause of the recipient country’s problems was something different.
This new BRI Monitor Policy Brief by the Center for International Private Enterprise (CIPE) explains how weak and outdated procurement regulations in Sri Lanka allowed Chinese ventures to undermine responsible public financial management and good governance.
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Kazi Mahmood
The brief also outlines recommendations to close governance gaps and mitigate the risks of future corrosive capital investments from foreign sources.