Sri Lanka Seeks to Hike Tax Rates

The video discusses Sri Lanka's economic challenges, focusing on the IMF bailout and the necessary structural reforms, including tax hikes and expenditure cuts. It highlights the severe inflation and currency depreciation issues, with inflation expected to reach 40%. The Central Bank's monetary policy is also covered, noting the decision to hold interest rates to assess the impact of previous hikes. The overall outlook suggests short-term pain before potential recovery.

What is one of the key requirements set by the IMF for Sri Lanka to receive a bailout?

• Increase in foreign investments

• Reduction in import tariffs

• Hiking of taxes and pruning expenditure

• Expansion of the tourism sector

How much financial assistance does Sri Lanka need to address its economic crisis?

• $8 billion

• $6 billion

• $4 billion

• $2 billion

What is the expected inflation rate in Sri Lanka due to the ongoing crisis?

• 50%

• 40%

• 30%

• 20%

What has been the impact on the Sri Lankan rupee since March?

• It has appreciated by 10%

• It has depreciated by 40%

• It has appreciated by 20%

• It has remained stable

What is the central bank's current stance on interest rates?

• They have eliminated interest rates

• They have increased rates significantly

• They have decreased rates

• They have held rates steady