Sri Lankan Government led by Prime Minister Mahinda Rajapaksa has finalized the terms of a $500 million concession loan from China. The loan was confirmed by Sri Lankan authorities as the meeting with the seven member delegation from Chinese Communist Party ended.
The delegation led by Yang Jeichi, the Director of the Office of the Foreign Affairs Commission of the CPC Central Committee is in Sri Lanka to discuss the renewed ties between the Sri Lankan government and China following the last general election. According to Sri Lankan Treasury Officials, the terms agreed with Yan Jeichi and his delegation are that the loan would be paid back in over the span of 10 years. Additionally, there would no restrictions on the usage of the loan. However, it is expected that the loan would be used to resuscitate the economy form the COVID-19 pandemic.
Both Maldives and Sri Lanka have become the interest of India and China in their struggle to maintain superiority over each other. While the Chinese elect to maintain their presence through economic cooperation and win-win solutions for smaller states, India elects to maintain its presence through covert operations and military presence,