Since Sri Lanka is caught in a mire of financial woes, its planners are inclined to bring China back into the equation.
The country could fit into China’s modern Silk Road scheme.
With the defeat of Mahinda Rajapaksa last January and the recent triumph of the United Freedom Party in the parliamentary elections, Sri Lanka may have begun its journey towards becoming a more democratic entity dedicated to addressing the fault lines that have created fissures within society and which were the root-cause of the armed conflict for over 26 years. But the country’s woes have not ebbed as it is probably facing the worst financial crisis of its history, which if not surmounted in the near future, could jeopardize all the political gains made in the recent past and consequently even undermine the unity and integrity of the country. A report of the Central Bank of Sri Lanka reveals that the total government debt increased to 7.39 trillion rupees in 2014, up from 6.79 trillion in 2013. The total foreign debt during the same period rose to 3.33 trillion rupees from 2.96 trillion. The Finance Minister of Sri Lanka has admitted that the debt servicing of the country was almost equivalent to 95.4% of the revenues collected by the government.
The government of President Sirisena since its inception in January has been struggling to tide over the financial crisis. In April, it tried to seek parliamentary approval for issue of treasury bills worth 400 billion rupees, but this was blocked by the opposition