That’s why the IMF had guideline. Sri Lanka couldn’t meet those guidelines so they went to china. It wasn’t the interest rate. China knew what was going on. They had the ability to make china merchant port 65 percent ownership. They could of forced them to wait. It’s a debt trap plain and simple. Plus your whole argument was that china was using debt trap diplomacy.

That’s beside the the point, China knew very well the couldn’t pay back the loan. The loan about the 2 percent was made with contingent that the China merchant point would get 65 percent in 2012. In 2016 when they relinquish 80 percent ownership for 99 year contract. They couldn’t pay it off.

Construction phase 1 didn’t begin until 2007 and finished around 2010. Second phase didn’t begin until 2012 and funded Exim with the agreement that China merchant port would get 65 percent stake for 35 years . Jesus I wonder why they couldnt pay back the loan.

CIDA proposed it could be done in 3 phases in 2002 for 1.7 billion. It never came to fruition. The port proceeded in two phases by Chinese backed loans. The first phase and second being funded by Exim Bank of China.

You realize the port wasn’t feasible right. Feasibility studies were done. China knew it, but still funded it. Once the Sri Lanka government realized they couldn’t repay the debt they were forced to privatize it. China funded, china owns the debt, and a Chinese State enterprise owns the port.

It does not have lower interest rates then the IMF. The reason they couldn’t secure a loan from the IMF. The IMF required Sri Lanka to have a series of reforms to manage their deficit. The IMF knew they wouldn’t able to pay back without a series of reform. Only a predatory entity would lend to a government who can’t back, maybe it’s coincidence China got the 99 lease on the port.

China knowingly lent money to a country who the had the in abilities to payback. I wonder how they got the hambo port

Does the address the current state of Sri Lanka

Tell that to Sri Lanka .

IMF, has lower interest, the problem is their stricter requirements to lend. China has higher interest loans with predatory language in their contract, but more lenient requirements. Sri Lanka is a great example of it.