India’s immediate neighbour Sri Lanka is battling a severe economic crisis. It’s a tumultuous moment in the history of Sri Lanka, whose fall from grace – from a reasonably stable economy, despite decades of ethnic war, to being caught in the worst financial crisis since independence – has shocked the world. The en masse resignation of all the 26 federal ministers amid the raging public protests reflects the seriousness of the situation. A nationwide curfew has been imposed and tough laws have been invoked to allow the military to arrest and detain suspects, while internet service providers were ordered to block access to all social media platforms to stem the tide of public anger.
What is happening in Sri Lanka is a lesson for India. For the last few years, Sri Lanka has witnessed a rise in anti-minority sentiments and the nationalist movement has been on the rise. The economy was fully neglected by President Gotabaya Rajapaksa and Prime Minister Mahinda Rajapaksa. Both the brothers played with the sentiments of the Lankans. They got tempted by China’s Belt and Road Initiative, which allowed Sri Lanka to borrow commercial loans on infrastructure projects without strict conditionality, thus luring the island country into a massive forex debt. The growing debt problem of Sri Lanka would certainly impact India’s security interests. In fact, the island nation has become a victim of China’s debt-trap policy.