Sri Lanka’s Economic Struggles Will Deepen Its Reliance on Foreign Funds

Sri Lanka’s increasing reliance on China and India for financial aid and investment will risk triggering domestic pushback and social unrest, forcing the government to make concessions that could ultimately threaten its economic strategy. China and India are heavily involved in Sri Lanka’s economy, often competing for projects and influence. Both countries are also the two largest importers of Sri Lankan goods, and both have the potential to provide the debt-ridden island nation with large credit lines in the future. ...