“Economic turmoil in Sri Lanka signals that China’s Belt and Road Initiative (BRI) will have to redefine its aims and create a plan that is more financially realistic. Sri Lanka defaulted on its US$50 billion foreign debt in April, with China among the creditors. Surging inflation and mass protests led to the downfall of President Gotabaya Rajapaksa. Rajapaksa had argued that Chinese investment in Sri Lanka’s Hambantota port was purely economic – but India fears that the port has a military purpose, and the crisis suggests that China’s influence on the country could be waning.”
Funds Europe talks to Tundra’s chief investment officer Mattias Martinsson on the developments and future prospects of China’s Belt & Road Initiativ (BRI).
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