- India’s security concerns & Challenges
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The Srilankan Crisis; Will it help Chinese to Further Entrench themselves
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In the last article titled ; " India’s difficult neighbourhood "( https://www.bharatamrising.com/india-s-difficult-neighourhood )the looming economic crisis in Srilanka was discussed. The following was highlighted ; .
“With the COVID-19 pandemic, the situation in Srilanka worsened, largely due to the significant loss of tourism earning, taken together; diminishing foreign exchange reserves, the debts, the circumstances have put Sri Lanka in a vulnerable position. The bggest worry was that Sri Lanka cannot address its problems as merely a domestic political issue. Tackling Sri Lanka’s external sector vulnerabilities, including the shortage of foreign currency, will require support from external parties, whether China, India, the United States, or even international organizations such as the IMF or World Bank. Thus far, Sri Lanka has excessively relied on China to tackle its external sector vulnerabilities while economic relations with India seem to remain stagnant. At the same time, Sri Lanka tries not to irritate India. Against this backdrop, Sri Lanka is now struggling hard to balance between China, India, and domestic nationalists, all the while trying to save the country from a potential economic crisis. Thus far, it does not look easy”.
The Economic Crisis led to Declaration of Emergency
Barely two months have passed since we wrote this and the Govt of Srilanka has now declared an emergency. Sri Lanka’s Parliament on Monday (September 6) approved a national emergency. The government said the emergency was required to check soaring prices of food and hoarding of essentials by a “food mafia”. As expected the Opposition called this action to be taken “in bad faith, with an ulterior motive of stifling the fundamental rights of the people and a move towards authoritarianism.
In Parliament, Opposition members argued that there was no need for an emergency, as other legislation were available to check hoarding and cap food prices.
The Vicious Circle.
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