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Forbes: Lanka, Pakistan and Maldives among biggest debt burdens to China
Sri Lanka, Pakistan and Maldives in South Asia stand neck-deep in the Chinese debt. Pakistan has $77.3 billion of external debt to China while Maldives amounted to 31 per cent of Maldives’ Gross National Income (GNI). Maldives’ total debt amounts to MVR 86 billion by the end of 2020, MVR 44 billion of which is external debt, said a report by the Forbes.
Forbes, collecting data from The World Bank report as of 2020, says that 97 countries across the globe are under Chinese debt. Countries heavily in debt to China are mostly located in Africa, but can also be found in Central Asia, Southeast Asia and the Pacific.
China is reaching most of the countries under the One Belt and Road scheme. The world’s low-income countries owe 37% of their debt to China in 2022, compared to just 24% in bilateral debt to the rest of the world.The Chinese global project to finance the construction of the port, rail and land infrastructure across the globe, has been a major source of debt to China for participating countries.
Those with the highest external debt to China are Pakistan $77.3 billion, Angola at 36.3 billion, Ethiopia $7.9 billion, Kenya $7.4 billion and Sri Lanka $6.8 billion.
Maldives newspaper reported that according to statistics released by the Finance Ministry, Maldives’ debt rose to MVR 99 billion by end of Q1 2022. It made up 113 per cent of GDP. The projects in the Maldives funded with loans from China include the construction of the Sinamale Bridge and the airport development project.
Bangladesh too is a part of China’s Belt and Road Initiative. Dhaka owes 6 per cent of its total foreign debt to Beijing, which is around $4 billion. According to a report from FT, Bangladesh is seeking a first instalment from the IMF of $1.5 billion, as part of a total package worth $4.5billion.” This amount would include a financial line to help it fund climate change resilience projects and buttress its budget,” reads the report. According to the IMF, Bangladesh had a total foreign debt of $62 billion in 2021. The majority of the debt is owed to multilateral lenders such as the World Bank.
The countries with the biggest debt burdens in relative terms were Djibouti and Angola, where debt to China exceeded 40% of gross national income, an indicator similar to GDP but also including income from overseas sources.The equivalent of 30% of GNI or more in Chinese debt affects the Maldives and Laos, with the latter just having opened a railway line to China which is already causing debt issues for the country.
Sri Lanka May 2022 was the first country in two decades to default on its sovereign debt. Chinese debt to Sri Lanka was the fifth-highest overall in late 2020 and amounted to 9% of the country’s GNI. According to the Financial Times, which called the development in Sri Lanka and elsewhere China’s first overseas debt crisis, the country had to renegotiate loans worth $52 billion in 2020 and 2021—more than three times the amount that met this fate in the two previous years.
China has provided record amounts of financing to developing countries over the past two decades, supporting both public and private sector projects. The Belt and Road Initiative is President Xi Jinping’s flagship foreign policy initiative; launched in 2013 to invest in almost 70 countries and international organizations, it has propelled China to global dominance in international development finance.
China’s Belt and Road Initiative has caused dozens of lower- and middle-income countries to accumulate $385 billion in “hidden debts” to Beijing, a new study has claimed.AidData, an international development research lab based at Virginia’s College of William & Mary, says 13,427 Chinese development projects worth a combined $843 billion across 165 countries, over 18 years to the end of 2017.
China has faced criticism for its lending practices to poorer countries, accused of leaving them struggling to repay debts and therefore vulnerable to pressure from Beijing. China rejects this criticism and calls it as “propaganda/narrative of the vested interested countries” to tarnish its image.
News
The Colombo Plan celebrates its 75th Anniversary
The 75th Anniversary Celebration of the Colombo Plan was held on Friday 03 July at the Galle Face Hotel in Colombo under the patronage of Prime Minister Dr. Harini Amarasuriya.
Delivering the keynote address, the Prime Minister stated that the Colombo Plan was established 75 years ago at a time when many Asian nations were embarking on the path to independence while confronting challenges of post-war reconstruction and economic development.
She noted that it is a matter of great pride for Sri Lanka that the organization bears the name “Colombo” and that the country continues to serve as its host.
The Prime Minister further noted that, as Sri Lanka pursues digital transformation, sustainable transport systems, and resilient supply chains, the Colombo Plan’s early investments in the country’s energy, agriculture, irrigation, and transport sectors continue to form an important part of the nation’s development foundation.
The Prime Minister also highlighted the significant contribution of the Colombo Plan’s Drug Advisory Programme in addressing the global drug menace, which has a profound impact on youth, public health, and social stability. The Prime Minister emphasized that, under the leadership of the President, the Government of Sri Lanka has accorded high priority to combating the drug menace and expressed appreciation for the continued support extended by the Colombo Plan towards these efforts.
The Prime Minister further stated that today’s world is far more complex than it was in 1951, with rapid technological transformation, climate challenges, and evolving geopolitical dynamics. In this context, the Prime Minister stressed that regional organizations such as the Colombo Plan must continue to evolve, becoming more adaptive and responsive to contemporary challenges. The Prime Minister also underscored the importance of strengthening cooperation in education and human capital development, while fostering greater awareness among younger generations of the value of international cooperation.
During the ceremony, a special tribute was paid to Dr. Benjamin P. Reyes in recognition of his distinguished service as Secretary-General of the Colombo Plan over the past four years. The newly appointed Secretary-General, Chulamee Chartsuwan, was also welcomed.
To commemorate the 75th anniversary, a special commemorative postage stamp and the publication titled “Colombo Plan 75 Years – 75 Stories” were officially launched.
The event was attended by Deputy Minister of Foreign Affairs and Foreign Employment Arun Hemachandra, Ambassador of Vietnam to Sri Lanka and Chairperson of the Colombo Plan Council Trinh Thi Tam, along with many distinguished guests.

Prime Minister’s Media Division
News
Out-of-control dengue epidemic spreads across Sri Lanka
Dengue hyper-epidemic not yet under control, PHI Union warns
The Public Health Inspectors’ (PHI) Union of Sri Lanka on Friday said the country’s dengue hyper-epidemic situation has still not been brought under control, warning of a fresh rise in cases amid changing weather conditions.
Acting President of the PHI Union Upul Rohana said that although the situation has shown some improvement in areas where outbreaks were first reported, new clusters of infection are now emerging in other parts of the country.
He urged the public to maintain, and not reduce, current dengue prevention activities under any circumstances.
Rohana noted that light showers had begun in several areas under prevailing weather conditions, increasing the risk of mosquito breeding as vector density is already high.
He also identified unoccupied properties as a major challenge in dengue control, pointing out that houses belonging to persons working abroad, as well as newly purchased but uninhabited properties in urban areas, were contributing significantly to mosquito breeding sites.
Meanwhile, the National Dengue Control Unit (NDCU) said on Friday that dengue cases reported so far this year have exceeded 57,000, with 57,668 infections and 35 deaths recorded countrywide.
The NDCU said 1,253 new cases were reported within the past 24 hours alone.District-wise, Colombo has recorded 11,811 cases so far this year, while Gampaha has reported 11,443 cases, making them the two most affected districts.
News
Yoshitha loses appeal in ‘Menik Malla’ case
The Court of Appeal on Friday dismissed a revision application filed by Yoshitha Rajapaksa in connection with the money laundering case popularly known as the “Menik Malla” case.
The application challenged a ruling of the Colombo High Court, which had earlier rejected a preliminary objection raised by the defence during trial proceedings.
The judgment was delivered by a bench comprising Justices Amal Ranaraja and Sumudu Premachandra.
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