China Meddling? After Pulling Out of ECT Deal, Sri Lanka Clears USD 400 Million Debt to India The day Sri Lanka backed out of th...

China Meddling? After Pulling Out of ECT Deal, Sri Lanka Clears USD 400 Million Debt to India

The day Sri Lanka backed out of the joint partnership with India and Japan for the much-hyped East Container Terminal (ECT) project at Colombo port, a move that shocked both New Delhi and Tokyo, Sri Lanka’s Central Bank (CBSL) also returned the USD 400 million currency swap to India, foreclosing a key debt.

Sri Lanka had availed this facility in July 2020 to meet some immediate expenses during the Covid-induced lockdown. However, both the nations kept quiet about it.