Last accessed: 27.09.2026

"The idea of a port at Hambantota was proposed to alleviate economic pressure on the congested area around Colombo, Sri Lanka's former capital city and primary port, and extend industrial development into its southern region."

"By contrast, the Export-Import Bank of China (or China EXIM Bank) offered commercially competitive rates with little oversight over the project's management or Sri Lanka's fiscal policies."

"But the lease agreement did not result in any equity toward the port project's lenders, a defining criterion of debt-trap diplomacy."

"Investing in such a large project in Sri Lanka would give China more political sway and commercial favor in the country, provide a foothold in the southern Indian Ocean, and help ensure that its vital supply chain would remain open in times of tension with India or the United States."

Last accessed: 27.09.2026

"More than 140 countries, including several members of the European Union, have signed on to the BRI. China has lent more than $1 trillion to developing countries and has become one of the largest creditors to developing countries."

"Pakistan, for example, has struggled to make external payments, as one-fourth of its total debt is owed to China."

"Whereas China emphasizes that the BRI aims to enhance economic connections and collaborations in the targeted regions, many in the West view it as a strategy to expand China's sphere of economic and political influence around the globe."

Last accessed: 27.09.2026

"Ports are classified according to the types of traffic which they handle. An industrial port specializes in bulk cargo—grain, sugar, ore, oil, chemicals, and similar materials."

"A commercial port is one which handles general cargo—packaged products and manufactured goods, for instance—as well as passenger traffic."

"The chief doorways of the world of international commerce are its harbors and ports. Through them pass cargoes and travelers from one part of the globe to another."

Last accessed: 27.09.2026

"For Xi, the BRI serves as pushback against the much-touted U.S. 'pivot to Asia,' as well as a way for China to develop new trade linkages, cultivate export markets, boost Chinese incomes, and export China's excess productive capacity."

"China views BRI projects as a commercial endeavor, with loans close to a market interest rate that it expects to be fully repaid. Some BRI investments have involved opaque bidding processes and required the use of Chinese firms. As a result, contractors have inflated costs, leading to canceled projects and political backlash."

"China also frequently retains the right to demand repayment at any time, giving Beijing the ability to use funding as a tool to enforce Chinese hot button issues such as Taiwan or the treatment of Uyghurs."

"Examples of such criticisms abound. In Malaysia, former prime minister Mahathir bin Mohamad campaigned against overpriced BRI initiatives and canceled $22 billion worth of BRI projects, although he later announced his 'full support' for the initiative. CFR's Belt and Road Tracker shows overall debt to China has soared since 2013, surpassing 20 percent of GDP in some countries."

Last accessed: 27.09.2026

"incentives for China's international lending program include securing natural resources that China lacks in sufficient quantities domestically, creating overseas demand for oversupplied industrial inputs from China, recycling excess foreign currency from persistent trade surpluses, competing for market share abroad, and for geopolitical objectives."

"most Chinese infrastructure lending abroad comes via loans on commercial terms (around 90 percent), lent mostly in U.S. dollars at or near market rates"

"China is not a member of international creditor organizations like the Paris Club that provide data on official lending and restructuring."

Last accessed: 27.09.2026

"Less than 5 percent of Beijing's overseas lending portfolio supported borrower countries in distress in 2010, but that figure soared to 60 percent by 2022."

"'Beijing is ultimately trying to rescue its own banks. That's why it has gotten into the risky business of international bailout lending,' said Carmen Reinhart, one of the study's authors. 'But if you are going to bail out a borrower that is in default or teetering on the edge of default, it's important to have a clear understanding of whether you are trying to solve a short-term liquidity problem or a long-term solvency problem.'"

"whereas a typical rescue loan from the International Monetary Fund (IMF) carries a 2% interest rate, the average interest rate attached to a Chinese rescue loan is 5%."

"China has emerged as a lender of last resort for developing countries that are having difficulty repaying their Belt and Road Initiative (BRI) debts."

Last accessed: 27.09.2026

"First, the Chinese contracts contain unusual confidentiality clauses that bar borrowers from revealing the terms or even the existence of the debt."

"Second, Chinese lenders seek advantage over other creditors, using collateral arrangements such as lender-controlled revenue accounts and promises to keep the debt out of collective restructuring ('no Paris Club' clauses)."

"Even if these terms were unenforceable in court, the mix of confidentiality, seniority, and policy influence could limit the sovereign debtor's crisis management options and complicate debt renegotiation."

"Overall, the contracts use creative design to manage credit risks and overcome enforcement hurdles, presenting China as a muscular and commercially-savvy lender to the developing world."

Last accessed: 27.09.2026

"In Sri Lanka and Malaysia, the two most widely cited 'victims' of China's 'debt-trap diplomacy', the most controversial BRI projects were initiated by the recipient governments, which pursued their own domestic agendas."

"Their debt problems arose mainly from the misconduct of local elites and Western-dominated financial markets."

"China has faced negative reactions and pushback in both countries, though to a lesser extent than is commonly believed, given the high-level interests at stake in the recipient countries."

Last accessed: 27.09.2026

"Lekki port received 26 ships in 2023, its first year of operation, according to ship tracking and maritime analytics provider MarineTraffic. It's a modest number compared to bigger ports — but Gwadar, despite being completed in 2007, has only logged 22 ships in its best year to date. It has also failed to attract any regularly scheduled deep-sea shipping lines."

"The port's three berths, where loading and unloading takes place, can handle 137,000 standard 20-foot shipping containers per year. In contrast, Karachi and its 33 berths can handle the equivalent of 4.2 million 20-foot containers per year."

"This model almost kind of acts as a subsidy for Chinese companies," he told DW. He explained that Chinese banks loan money to governments that then give that money to Chinese construction companies and pay the loan back to the bank over time. This means the money essentially never leaves China, "while the bill is ultimately footed by taxpayers in other countries."

"China gets the lion's share of everything."

"With Gwadar port, for instance, 90% of the quite limited revenue goes to the Chinese operating company. The Pakistani government receives 10%, while nothing goes to the Balochi regional government."

Last accessed: 27.09.2026

"By 2015, some 95 percent of Sri Lanka's government revenue was going toward servicing its debt, and the government initiated debt renegotiations with China. Talks culminated in the 70 percent equity and 99-year lease deal."

"Many Chinese-funded projects in Sri Lanka have been unsolicited, but Hambantota's port is not one of them. Constructing a port at Hambantota has been part of Sri Lanka's official development plans since at least 2002."

"Negotiations around the port sparked local protests and accusations that Sri Lanka was selling its sovereignty."

"Some observers worry that China's infrastructure investments are creating economic dependencies, which are then exploited for strategic purposes."

Last accessed: 27.09.2026

"What attracted China was Gwadar's unique geopolitical location — at the entrance of the Strait of Hormuz, an important waterway where over one-sixth of global oil production and one-third of the world's liquified natural gas (LNG) pass. As a natural deep-sea port, Gwadar has the potential to accommodate large cargo shipments."

"But, regardless of these promising attributes, a decade later, the port remains underutilized, with minimal revenue-generating shipments. In 2023, only 17 ships docked at Gwadar, a stark contrast to the 441 at Sri Lanka's Hambantota Port, which a Chinese ports managing company also manages."

"Meanwhile, Karachi, Pakistan's largest port and one of the three seaports in the country handled 1,767 ships during the 2023-2024 fiscal year."

"Initially, China may have overlooked or deliberately downplayed Balochistan's longstanding tensions with Islamabad, when strategic advantages outweighed the challenges. However, the continuous attacks on Chinese nationals in Pakistan, the surge in attacks throughout the province, mass protests by the citizens in Gwadar and project delays have put the bilateral relationship at a crossroads."

Last accessed: 27.09.2026

"The Senate was told on Friday that 91 per cent of the revenues to be generated from the Gwadar port as part of the China-Pakistan Economic Corridor (CPEC) would go to China, while the Gwadar Port Authority would get 9pc share in the income for the next 40 years."

"This was disclosed by Federal Minister for Ports and Shipping Mir Hasil Bizenjo after senators expressed concern over the secrecy surrounding the CPEC long-term agreement plan, with many observing that the agreement tilted heavily in China's favour."

"The minister said that the agreement was based on a build-operate and transfer model spread over 40 years. That means that Pakistan will take over the operation of the port along with the infrastructure to be built on it during the period to enhance the port's cargo-handling capacity."

Last accessed: 27.09.2026

"More than two-thirds of the projects, including the port and airport at Hambantota, were financed by Chinese banks at interest rates as high as 6.3% annually, several times what other lenders offered, and did not go through open bidding processes, officials say."

"They were vanity projects for Rajapaksa, plain and simple, and China was quite happy to nurture his vanity"

"I wanted development for Sri Lanka and China was the only one which had the resources and the inclination to help me"

"A $210-million international airport built two years ago has hundreds of employees but receives just a handful of passengers a day."

"Rajapaksa embarked on a $6-billion spending binge on infrastructure projects starting in 2009."

Last accessed: 27.09.2026

"By 2016, the Hambantota Port under the ownership of Sri Lanka Ports Authority (SLPA) had incurred losses of about SLR 46.7 billion. Meanwhile, Sri Lanka had to repay nearly US$ 1.7 billion to China as principal and interest for the loan it had taken to build this Port (till about 2036)."

"This was reconfirmed during a recent hearing (22 June 2022) under the aegis Committee on Public Enterprises (COPE) of the Parliament of Sri Lanka where it was revealed that the loans taken for the construction of the Hambantota Port had not been repaid with the 'investment' by the Chinese company in 2017."

"CMPort agreed to 'invest' US$ 1.12 billion for the acquisition of 85% stake in HIPG and a 52% stake in HIPS."

"Its construction began in 2008 which was funded through Chinese loans of about US$ 1.3 billion."

Last accessed: 27.09.2026

"Sri Lanka defaulted on its foreign debt in May 2022 amid its worst financial crisis in decades."

"Reaching a deal with all of its creditors will allow Sri Lanka to keep accessing funds from a $3bn bailout programme with the International Monetary Fund (IMF)."

"The next tranche - worth $330m - has been on hold since last month after Sri Lanka and the IMF failed to agree on the terms for its disbursement."

"They might be concerned that China managed to negotiate special terms with regards to the loans, according to Dhananath Fernando of Colombo based think tank Advocata."

"If they got preferential treatment, it means another creditor will have the bear the burden, according to Mr Fernando."

Last accessed: 27.09.2026

"But China is the biggest bilateral creditor to Sri Lanka – having lent about $7 billion of the country's total foreign debt of $42 billion (as of 2022)."

"In April 2022, Sri Lanka declared that it had failed to repay its debt of more than $83 billion, with more than half of it owed to foreign creditors."

Last accessed: 27.09.2026

"With 700,000 transshipment vehicles handled, the port marked a significant 26% increase from 2022 figures."

"On 30th December 2023, the Hambantota International Port (HIP) proved itself as the fastest growing RO-RO transshipment port in the region."

Last accessed: 27.09.2026

"The overall oil and gas throughput handled by the port in 2023 was 918,000 metric tons, with 700,000 metric tons of bunker and 218,000 metric tons of LPG cargoes"

"The port recorded a growth of 186 percent in LPG vessels and 125 percent growth in bunker vessels in 2023, HIPG said."

"A key reason for this is the port's bunkering partner Sinopec actively operating in the market, bringing significant value addition to the HIP's commercial operations."

Last accessed: 27.09.2026

"In 2009, Greece leased the land of dock 2 and what would become dock 3 (both container berths) to COSCO's subsidiary COSCO Pacific for 35 years."

"In 2016, COSCO bought 51% of the port from the HRADF for 280.5 million Euros."

"As per an escrow, COSCO has paid 90 million more Euros for an additional 16% stake by 2021, contingent on COSCO making certain investments in the port, including passenger and cruise expansions, dredging, and expansion of the car terminal."

"As of 2020, the operating company of the Port of Piraeus is majority owned by COSCO with 67% of shares (16% in escrow shares)."

"The corridor leverages Piraeus's strategic position as the first European port after the Suez Canal and closest deep-water port to the Far East, providing Chinese goods with faster access to European markets through the Mediterranean."

Created with ChatGPT (text-to-image model), generated on 27.09.2026,
based on a custom prompt by the author: "Clean visual comparison: a large modern fictional deep-water port with mostly empty berths. Beside it, 22 small ship silhouettes representing the port's best year. In one corner, a small version of Astera's blue, white and orange flag. No decorative text."

Created with ChatGPT (text-to-image model), generated on 27.09.2026,
based on a custom prompt by the author: "The supplied Astera flag fills most of the background. Beside it, a simple fictional coastline silhouette with the name ASTERA. Small footer text: 'Fictional country'"

Created with ChatGPT (text-to-image model), generated on 27.09.2026,
based on a custom prompt by the author: "The supplied Astera flag fills most of the background. Beside it, a simple fictional coastline silhouette with the name ASTERA. Small footer text: 'Fictional country'"

Created with ChatGPT (text-to-image model), generated on 27.09.2026,
based on a custom prompt by the author: "Simple bar chart with two bars. Port Bahari: 137,000 standard containers per year. Main port: 4.2 million. Fictional port names as the only labels."

Created with ChatGPT (text-to-image model), generated on 28.09.2026,
based on a custom prompt by the author: "Simplified geographic diagram: port on the coast connected by road and rail to factories, cities and warehouses inland. Container and commodity icons move between the hinterland, port and ships. No sentences on screen."

Created with ChatGPT (text-to-image model), generated on 28.09.2026,
based on a custom prompt by the author: "Simplified geographic diagram: port on the coast connected by road and rail to factories, cities and warehouses inland. Container and commodity icons move between the hinterland, port and ships. No sentences on screen."

Created with ChatGPT (text-to-image model), generated on 28.09.2026,
based on a custom prompt by the author: "World map with more than 140 countries softly highlighted. Astera's flag appears separately as the visual symbol for the fictional lender. Small unobtrusive label: 'Real-world data'"

Created with ChatGPT (text-to-image model), generated on 28.09.2026,
based on a custom prompt by the author: "Size comparison graphic: Astera's shield represents the fictional lender. Beside it are smaller neutral symbols representing the World Bank, IMF and Paris Club bilateral lenders. Small label underneath Astera: 'fictional representation'."

Created with ChatGPT (text-to-image model), generated on 28.09.2026,
based on a custom prompt by the author: "Minimal diagram of the debt-trap hypothesis: Astera loan → debt → inability to repay → port control. Large question mark beside the final arrow. Clearly presented as a hypothesis."

Created with ChatGPT (text-to-image model), generated on 28.09.2026,
based on a custom prompt by the author: "Fictional island map of Sansara with Port Esperanza marked on the southern coast and the capital's existing port marked elsewhere. Three small question icons: project origin, financing, debt crisis."

Created with ChatGPT (text-to-image model), generated on 28.09.2026,
based on a custom prompt by the author: "Timeline with four visual points: Sansara development plan, search for financing, agreement with Astera, construction. Only years and simple icons."

Created with ChatGPT (text-to-image model), generated on 28.09.2026,
based on a custom prompt by the author: "Balance scale: Astera-branded contract and repayment schedule on one side, gift box on the other. Contract side visibly heavier."

Created with ChatGPT (text-to-image model), generated on 28.09.2026,
based on a custom prompt by the author: "Circular flow graphic: Astera state bank → loan to borrowing country → infrastructure project → Astera construction company. Separate arrow shows long-term repayments returning to Astera."

Created with ChatGPT (text-to-image model), generated on 28.09.2026,
based on a custom prompt by the author: "Three-part graphic using Astera's visual identity: factory and construction equipment, stack of foreign currency flowing outward, cargo ship moving along a major sea route. No explanatory sentences."

Created with ChatGPT (text-to-image model), generated on 28.09.2026,
based on a custom prompt by the author: "Astera contract document surrounded by three simple symbols: padlock for confidentiality, revenue account for collateral, negotiation table for repayment terms."

Created with ChatGPT (text-to-image model), generated on 28.09.2026,
based on a custom prompt by the author: "Illustrated parliamentary chamber with a locked contract in the center. Beside it, a simple 91/9 revenue split graphic. Astera's small flag identifies the foreign operator."

Created with ChatGPT (text-to-image model), generated on 28.09.2026,
based on a custom prompt by the author: "Two-bar graphic: less than 5% in 2010 and 60% in 2022. Astera's shield beside the bars and a small rescue-ring icon beside the second."

Created with ChatGPT (text-to-image model), generated on 28.09.2026,
based on a custom prompt by the author: "Sansaran government leader beside a model containing a port, airport, stadium and convention center. Financing documents lie between the government and an Astera representative. Neither side is portrayed heroically or negatively."

Created with ChatGPT (text-to-image model), generated on 28.09.2026,
based on a custom prompt by the author: "Timeline: Port Esperanza losses → rising national debt-service pressure → 99-year lease → later sovereign default. Visually separate the port's financing from Sansara's total national debt."

Created with ChatGPT (text-to-image model), generated on 28.09.2026,
based on a custom prompt by the author: "Proportional debt graphic: approximately one sixth highlighted with Astera's blue and orange identity, remaining foreign debt shown neutrally. Avoid implying exact creditor categories unless sourced."

Created with ChatGPT (text-to-image model), generated on 28.09.2026,
based on a custom prompt by the author: "Busy Port Esperanza vehicle terminal with rows of cars and a ship at berth. Two large figures only: 700,000 and +26%."

Created with ChatGPT (text-to-image model), generated on 28.09.2026,
based on a custom prompt by the author: "Split-screen geographic comparison. Left: Port Bahari with sparse traffic and limited hinterland connections. Right: another fictional port connected to dense road, rail and market networks. Astera's flag appears beside both investor symbols. Small Suez route visible on the map."