Sri Lanka's economic collapse reveals China's debt-trap policies.

China is the world's largest overseas lender, responsible for around 65 percent of the world's official bilateral debt . Sri Lanka is being blamed on a currency shortage triggered by the COVID-19 epidemic .

In the midst of rising demonstrations in the region, China offered Sri Lanka more loans to address its economic crisis.The crisis is being blamed on a currency shortage triggered by the COVID-19 epidemic.However, Chinese loans are considered to be another major contributor to Sri Lanka's debt.The World Bank and the International Monetary Fund combined to fund the Chinese loans.According to local media reports, it has become the world's largest overseas lender, responsible for around 65 percent of the world's official bilateral debt.As the dismal South Asian nation scrapes the last of its usable foreign reserves, Chinas economic stakes in Sri Lanka are being put into question.

The communist nation has always kept its interests at the forefront and used the small nations as a pawn, whether it was Sri Lanka or the Maldives.Beijing is renowned for selling a vision of a fast-growing economy and then enveloping these countries into debt diplomacy, according to media reports.China's debt-trap approach has always maintained that it allows it to build economic dependencies and political leverage in these countries, and that its overseas lending follows a no-strings-attached model and respects other countries' right to choose their own development path with a focus on developing countries control, according to Nikkei Asian China complicitly bludgeoned the West and Sri Lanka's financial mismanagement, blaming them for its weak economic foundation, lack of a self-sustaining economy, excessive borrowing habits, and poor planning.