Fernando: Sri Lanka Looking At How To Rectify Crisis

The video discusses Sri Lanka's economic challenges, focusing on the need for immediate policy changes and fiscal discipline. It highlights the role of the new Central Bank governor and the importance of upcoming IMF talks. The discussion covers potential interest rate hikes, fiscal policy adjustments, and the necessity of debt restructuring. The video also addresses the economic outlook, emphasizing the need for a credible reform plan to avoid default and ensure long-term recovery.

What is the main role of the new Central Bank governor in Sri Lanka's current economic situation?

• To promote tourism

• To reduce inflation rates

• To manage the country's solvency and liquidity

• To increase foreign investments

What immediate measure is expected to be taken at the monetary policy meeting?

• Introduction of new currency

• Decrease in interest rates

• Increase in government spending

• Sharp rise in interest rates

What is the significance of increasing tax rates in Sri Lanka's economic recovery?

• To reduce inflation

• To boost tourism

• To increase government revenue

• To attract foreign investments

What is a crucial step for Sri Lanka to take before the IMF talks in April?

• Increase in foreign aid

• Debt restructuring with a credible reform plan

• Increase in tourism

• Reduction in exports

What is the expected outcome if Sri Lanka does not receive a government-to-government lending facility?

• Tourism boost

• Financial haircut

• Economic stability

• Increase in foreign investments

Why is it important for Sri Lanka to learn from past IMF programs?

• To increase foreign investments

• To avoid repeating past mistakes

• To improve tourism

• To reduce inflation

What is a potential consequence of not implementing fiscal discipline in Sri Lanka?

• Tourism decline

• Economic default

• Increased foreign aid

• Economic growth