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Most read in 2018

Sri Lanka's currency suffers as debt trap deepens

China-financed infrastructure projects put country in vicious cycle

With his country's currency having lost nearly 20% of its value against the dollar since 2015, Sri Lankan Prime Minister Ranil Wickremesinghe visits a Chinese-funded reclamation project in Colombo in January.   © Getty Images

NEW DELHI -- Sri Lanka, which has loaded up on Chinese-funded infrastructure, is sinking deeper into a debt trap as its currency weakens and economic growth decelerates to its slowest pace in 16 years.

The Sri Lankan rupee has depreciated 3% against the greenback this year to 157.4628 per dollar, according to forex data that the country's central bank tracked on Friday. It is at its weakest point ever and has softened nearly 20% since President Maithripala Sirisena took office in January 2015.

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