Sri Lanka Can't Access $1.5 Billion China Credit Line

Sri Lanka is facing a severe economic crisis, struggling with unusable credit lines that are not part of the country's reserves. The government is seeking help from countries like India and Japan to secure essential supplies like food and fuel. China is concerned about its loans being included in Sri Lanka's debt restructuring, especially with an IMF program in sight. On the ground, the situation is dire, with long queues for fuel and cooking gas. India has been a significant aid provider, offering substantial bridge financing, but more support is needed as the country's reserves are nearly depleted.

What is the main reason Sri Lanka is seeking credit lines from countries like India and Japan?

• To invest in infrastructure projects

• To pay off international debts

• To provide basic necessities like food and fuel

• To increase their foreign reserves

Why are the Chinese swaps in Sri Lanka's reserves considered problematic?

• They are unusable and complicate debt restructuring

• They are only available for military use

• They are not recognized by the IMF

• They are too small to make a difference

What is the primary concern for China regarding Sri Lanka's debt restructuring?

• The potential for increased interest rates

• The possibility of unfavorable repayment terms

• The loss of political influence in Sri Lanka

• The reduction of trade agreements

What temporary relief has Sri Lanka experienced amidst its economic crisis?

• A rise in tourism

• Unloading of cargo at Colombo port

• An increase in foreign investments

• A decrease in international debt

How much bridge financing has India provided to Sri Lanka so far?

• Around 1 billion dollars

• Around 2-3 billion dollars

• Around 4-5 billion dollars

• Around 6 billion dollars