Sri Lanka Can't Access $1.5 Billion China Credit Line

Sri Lanka Can't Access $1.5 Billion China Credit Line

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Business, Social Studies

University

Hard

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Sri Lanka is facing a severe economic crisis, struggling with unusable credit lines that are not part of the country's reserves. The government is seeking help from countries like India and Japan to secure essential supplies like food and fuel. China is concerned about its loans being included in Sri Lanka's debt restructuring, especially with an IMF program in sight. On the ground, the situation is dire, with long queues for fuel and cooking gas. India has been a significant aid provider, offering substantial bridge financing, but more support is needed as the country's reserves are nearly depleted.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main reason Sri Lanka is seeking credit lines from countries like India and Japan?

To invest in infrastructure projects

To pay off international debts

To provide basic necessities like food and fuel

To increase their foreign reserves

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why are the Chinese swaps in Sri Lanka's reserves considered problematic?

They are unusable and complicate debt restructuring

They are only available for military use

They are not recognized by the IMF

They are too small to make a difference

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary concern for China regarding Sri Lanka's debt restructuring?

The potential for increased interest rates

The possibility of unfavorable repayment terms

The loss of political influence in Sri Lanka

The reduction of trade agreements

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What temporary relief has Sri Lanka experienced amidst its economic crisis?

A rise in tourism

Unloading of cargo at Colombo port

An increase in foreign investments

A decrease in international debt

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How much bridge financing has India provided to Sri Lanka so far?

Around 1 billion dollars

Around 2-3 billion dollars

Around 4-5 billion dollars

Around 6 billion dollars