![]() ![]() The Chinese government rejects such accusations. Sri Lanka’s multibillion-dollar debts to Beijing have hindered efforts to resolve its financial woes and have often been cited as evidence by critics of the Belt and Road Initiative who claim China engages in debt-trap diplomacy. The projects have failed to earn enough revenue to pay for the loans, and in 2017, Sri Lanka leased the seaport in Hambantota to China. Sri Lanka borrowed heavily from China to build the port and other infrastructure including an airport and a city being built on reclaimed land. Some of those projects have raised controversy, among them Sri Lanka’s Hambantota Port, on its southeastern coast. Through it, Beijing has invested tens of billions of dollars each year to build roads, railways, ports and airports, typically in developing nations, to foster trade and goodwill toward China. The DFC was established five years ago in response to Beijing’s massive global infrastructure building campaign, known as the Belt and Road Initiative. “It’s high priority for the United States to be active in the Indo-Pacific region,” he told reporters in Colombo after visiting the site of the new terminal. Nathan said that with the loan, Sri Lanka will be the “2nd biggest exposure” for his institution in the Indo-Pacific region, after India.
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