Sri Lanka: Victim of Chinese „Debt Trap Diplomacy?“
The Western media blames China for Sri Lanka’s economic crisis, but the vast majority of Sri Lanka’s debt is held by Western institutions & firms.
DW’s article „Sri Lanka’s foreign debt default: Why the island nation went under,“ admits:
„A financial crisis had been brewing for more than a decade in Sri Lanka, where International Sovereign Bonds (ISB) — or market borrowing — constitute a major portion of the country’s foreign debt.“
It also includes the feat. graphic, showing just how small Sri Lanka’s debt to China is relative to total debt.
If we look at who holds these bonds, as Nikkei Asia reveals, the top 20 ISB holders include BlackRock, Allianz, UBS, HSBC, JPMorgan Chase, and Prudential – all Western financial firms.