Journal Research of Social Science, Economics, and Management
Vol. 2 No. 8 (2023): Journal Research of Social Science, Economics, and Management

Analysis of Lobbying and Negotiations of Sri Lanka With China Regarding The Acquisition of Hambantota Port In 2017

Manuputty, Tessalonica (Unknown)
Nugroho, Agung Yudhistira (Unknown)



Article Info

Publish Date
25 Mar 2023

Abstract

This study aims to analyze Sri Lanka's lobbying and negotiations with China through offering debt for equity swaps, i.e. exchanging debt into assets. The situation at that time was that Sri Lanka wanted to build a port on the Hambantota route, or now known as Hambantota Port. But Sri Lanka lacks funds for development and needs help from a large economy. China, which has good bilateral relations with Sri Lanka, is willing to provide assistance to Sri Lanka in the form of loans. Behind the loan lies China's national interest, which is to expand the trade route of the Belt and Road Initiative. But after the port operated, the output of the port was not optimal and even suffered losses. Gradually Sri Lanka's foreign debt is getting bigger, and it is in a cornered condition of difficulty paying debts to China, but on the other hand Sri Lanka also needs funds, namely port operational costs to continue operating. Until finally Sri Lanka nogision to China by doing debt for equity swaps with the result that China agreed to acquire the Hambantota port.

Copyrights © 2023






Journal Info

Abbrev

jrssem

Publisher

Subject

Environmental Science

Description

The Journal Research of Social Science, Economics, and Management is a double-blind peer-reviewed academic journal and has open access to social and scientific fields. The journal is published monthly once by CV. Publikasi Indonesia. The Journal Research of Social Science, Economics, and Management ...