Debt trap - The white men's lie about Sri Lanka

Excerpt from : GREED - Second Deadly Sin of Western Mainstream Media.

*Debt trap *- The white men's lie about Sri Lanka

However, loans from China accounted for only about 10 per cent of Sri Lanka’s total foreign debt in 2020. The largest portion – about 30 per cent – can be attributed to international sovereign bonds. Japan actually accounts for a higher proportion of their foreign debt, at 11 per cent.

Defaults over China’s infrastructure-related loans to Sri Lanka, especially the financing of the Hambantota port, are being cited as factors contributing to the crisis.

But these facts don’t add up. The construction of the Hambantota port was financed by the Chinese Exim Bank. The port was running losses, so Sri Lanka leased out the port for 99 years to the Chinese Merchant’s Group, which paid Sri Lanka US$1.12 billion.

So the Hambantota port fiasco did not lead to a balance of payments crisis (where more money or exports are going out than coming in), it actually bolstered Sri Lanka’s foreign exchange reserves by US$1.12 billion.

So, what are the real reasons for the crisis?

From the few numbers given it clearly showed that the debt trap which Sri Lanka is suffering is not from loans from China.
China's loan accounts for only 10% of the total debt of Sri Lankan.

*Japan's loan to Sri Lanka is more than China at 11%, why no one calls it a debt trap?* Mischievous agenda from the Americans is the reason.
They lied and spread disinformation to smear China without telling the real numbers.

If debt to China is only 10%, Japan 11%, then the bulk of the debt, the real debt trap of 79% came from where? It is the IMF, the biggest creditor of Sri Lanka, the organisation that is causing all the woes of the Sri Lankans.
This is another perfect example of the treacherous Americans pointing fingers, making wild allegations when they are the real culprits.
Sri Lanka's debt trap is caused by loans from the IMF.

What about the infamous lie of debt trap caused by the Hambantota Port?
Yes, Sri Lanka took a big loan from China's Exim Bank and unable to pay back the loan. But Sri Lanka turned it into a revenue by leasing the port to China and was paid US$1.12 billion for it.

Where is the debt, where is the debt trap when it is a plus for Sri Lanka?
Why the evil Americans still spreading this lie of debt trap because of the port?

Why don't the Americans admit that the debt trap came from the IMF, an American controlled organisation?

Leasing the port to China is a profitable business like Djibouti leasing its land to the Americans, and a few other nations as military bases. It is pure business, earning rents.
What is wrong with that? Djibouti is still an independent country and proud of it, unlike the semi colonies of the American Empire, the Japanese, South Koreans, and the Europeans, that have all lost their independence and being controlled by the Americans and have to host American bases in their own countries, cannot say No to the Americans, and have to pay for the Americans' military presence in their homeland.

When would the American and western media stop their fake news about this debt trap? When would all the hostile media and so called journalists, reporters, anal-lysts stop smearing China with this fake debt trap lie? If there is a real debt trap issue, no one would be joining the BRI, the whole of Africa would not be taking loans from China.

Fortunately the leaders of these nations are not stupid and would not be led by the nose by the evil Americans and the West with their disgusting lies and disinformation.

*There is no debt trap from China, only white men's lies.*

The above is from an article in CNA by R Ramakumar is a Professor of Economics at Tata Institute of Social Sciences.

More news & info on this topic: https://rumble.com/v1cgjdp-real-debt-trap-sri-lanka-owes-vast-majority-to-west-not-china.html?mref=10we6z&mc=b5v18