Opinion
Debt Traps?
After the arrival, discussions and departure of Jiechi of China and Pompeo of the US, we hear about “Debt Traps”. Some say there are no debt traps and others say there are.
If we just consider the famous projects that had been done with loans from a foreign country – Hambantota harbour, Mattala airport and Magam Ruhunupura International Conference Hall – it is said that while the income generation from these is insignificant or nil, the sum to be paid back as loan installment and interest is massive.
Can some expert please explain in a simple way whether this situation is a “Debt Trap” or not.
K SIRIWEERA