CLEAN : Long queues for goods as Sri Lanka declares food emergency

The video discusses Sri Lanka's food shortage emergency, highlighting it as a symptom of a larger macroeconomic issue involving dwindling foreign exchange reserves. The country is using these reserves to meet debt obligations, limiting resources for imports. Importers face challenges in bringing goods, leading to shortages and rising prices. Global supply chain issues and the pandemic have further impacted the economy, particularly the tourism sector. Import bans and expansionary monetary policy exacerbate the situation, causing essential goods and services prices to rise alarmingly.

What is the primary reason for the food shortage state of emergency in Sri Lanka?

• Natural disasters affecting agriculture

• Dwindling foreign exchange reserves

• Political instability

• Increased local production costs

What are some of the goods that importers in Sri Lanka are struggling to bring in?

• Luxury cars and electronics

• Clothing and textiles

• Prepared foods, raw materials, and fertilizers

• Pharmaceuticals and medical equipment

What is one consequence of the depletion of warehouse stocks in Sri Lanka?

• Increased exports

• Food shortages and rising prices

• Improved local production

• Decreased demand for imports

How has the pandemic particularly affected Sri Lanka's economy?

• By increasing agricultural output

• By reducing foreign aid

• By impacting the tourism industry

• By boosting the manufacturing sector

What economic policy is contributing to the rise in prices of essential goods in Sri Lanka?

• Austerity measures

• Expansionary monetary policy

• Strict fiscal policy

• Protectionist trade policy