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Is Sri Lanka a victim of Chinese 'debt-traps'?

Sri Lanka's economic crisis continues to run out of control and the country is requesting an emergency bailout from the International Monetary Fund.

However, questions still hover around the flood of Chinese money that has poured into the country, adding to the island nation's debt through loans in what some claim are designed as 'debt traps.'

It is claimed if a country cannot repay the loans, then China is entitled to seize critical infrastructure such as ports.

Others suggest China is not in fact exploiting developing nations, but their investment may facilitate more local level corruption.

Ben Chu reports from Sri Lanka.

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7 minutes