It's an article about Chinese lenders rejecting and sabotaging the traditional practice of lenders working together to avoid a default. They're trying to grab as much as they can for themselves while the debtor falls into chaos. You don't need to be the sole or even majority lender to cause immense pain through short-sighted greed by doing that.
There is nothing bad with the loan. But the loaners are not always so good at paying back.
Do you have any data to back your assertion? The quick search I did on Sri Lankan debt suggests something different.
https://www.erd.gov.lk/index.php?option=com_content&view=art...
https://www.treasury.gov.lk/api/file/a969a81b-13d9-4337-a5b7...
They're either just really bad at it, or these attempts just smokescreen their proper influence campaign.