Sri Lanka and Pakistan are dealing with serious economic crises. Apart from serious domestic issues like shortage of essential commodities, and power cuts, both countries have meagre foreign exchange reserves. The excessive dependence on China is the main reason for the increasing debt trap. Both countries also had to seek International Monetary Fund (IMF) assistance despite domestic opposition against the conditionalities imposed by the IMF. It is important for South Asian countries to work towards more robust economic linkages within the region and to shed dependence upon external assistance.