Sri Lanka’s economy has plummeted, and the new prime minister admitted that there is only one day left in the country’s oil stock, and the streets of the capital Colombo have seen oil-rushing vehicles and crowds.Figure: Recap of Nga Kor Ming’s Twitter
In the South Asian island country of Sri Lanka, months of riots and demonstrations have been triggered by the rapid economic decline. On May 8, violent clashes between government supporters and demonstrators took place on the streets of the capital Colombo (Colombo), causing at least five members, including a member of parliament, to clash. People were killed and nearly 200 injured, Prime Minister Mahinda Mahindra. Mahinda Rajapaksa announced her resignation on the 9th. However, the new Prime Minister Ranil Wickremesinghe said today (17th) that there is only one day left in the national gasoline stockpile, not only facing the energy crisis, but also facing the huge foreign debt to China due to infrastructure construction, forcing National banks have to print money to pay government salaries. It’s just that the Chinese government, which has been friendly in the past, kept silent this time and made no statement. It was questioned that it was “after eating and wiping, ready to pat on the buttocks and leave.”
It has been revealed on social media that the Sri Lankan capital Colombo’s petrol station has been flooded with vehicles and people queuing today, as three ships laden with fuel under a credit line of more than $3 billion from India, despite power and energy minister Kanchana Wijesekara Scheduled to arrive in the next 2 weeks; but the new prime minister admitted in public televised speeches that the country faces its worst economic crisis in more than 70 years, that oil supplies have reached the “last day” and that $75 million is urgently needed in the next few days ( About NT$2.2 billion) in foreign exchange to cover basic import costs, while state-owned SriLankan Airlines may be “privatized”.
It is understood that Sri Lanka’s economy has been affected by multiple factors including the COVID-19 outbreak, rising energy prices, chronic foreign exchange shortages and soaring inflation, resulting in severe shortages of medicines, fuel and other necessities. Statistics show that the food expenditure of Sri Lankan people has increased by 30% compared with the previous year, and many people have been forced to reduce their meals; while the shortage of fuel and medicine has brought the transportation and health system to the brink of collapse.
Sri Lanka officially announced in April this year that “all foreign debts cannot be repaid”. At that time, the country’s total foreign debt was calculated to be as high as 51 billion US dollars, and the so-called “fundamental works” related to China accounted for about 10%. Airports, highways, etc., but some of the projects were approved as “mosquito house projects”; at that time, the Chinese Ministry of Foreign Affairs used “Tai Chi” to say that “the two countries have always understood and supported each other. China has been doing its best to help Sri Lanka’s economy Social development provides help, and we will continue to do so in the future,” without specifying how to help Sri Lanka.
The Japanese media “Nikkei Asia” even exploded. During the civil war in Sri Lanka, China’s involvement in arms sales amounted to US$1.8 billion; 5 times the interest rate of Japan’s loan; in the name of “One Belt, One Road”, “investment” 1.4 billion US dollars, plans to build a modern commercial center in the reclamation near the coast of Colombo, in an attempt to give Beijing strategic Indian Ocean resources; The Chinese-funded deep-water port of Hambantota has become a classic example of China’s “debt-trap diplomacy”.