Georgetown University's Devarajan on Sri Lanka's Economy

The video discusses Sri Lanka's economic crisis, focusing on leadership changes, debt restructuring, and IMF negotiations. Despite political instability, technical leaders are progressing with economic reforms. Financial aid from India, China, and others is crucial for essential imports. The situation remains challenging, with shortages in fuel, food, and medicine, but improvements are expected once the IMF program is approved.

What are some of the pressures contributing to Sri Lanka's economic uncertainty?

• High inflation and delayed IMF aid

• Decreasing global oil prices

• Stable political environment

• Increased tourism and foreign investments

What is identified as a major cause of Sri Lanka's economic crisis?

• Natural disasters

• Global economic downturn

• Decisions by the Rajapaksa administration

• Increased foreign aid

Who is leading the technical negotiations with the IMF?

• Governor of the Central Bank and Secretary of the Treasury

• President and Prime Minister

• Opposition leaders

• International investors

What is the role of the opposition in the IMF program discussions?

• They are fully informed and likely to support the program

• They are completely against the program

• They have no knowledge of the program

• They are leading the negotiations

What is the expected timeline for reaching a staff-level agreement with the IMF?

• 3 to 6 months

• 1 year

• 1 to 3 years

• 6 to 9 months

What kind of financial aid is Sri Lanka expecting from international bodies?

• Only bilateral aid from neighboring countries

• No financial aid expected

• 500 million from the IMF, 2 billion from the World Bank, and 500 million from ADB

• 800 million from the IMF, a billion from the World Bank, and a billion from ADB

What are the ongoing hardships faced by the Sri Lankan people?

• Shortages of fuel, food, and pharmaceuticals

• Abundance of resources

• Decreasing inflation

• Increased employment opportunities