What is the main reason behind Sri-Lankan economic crisis?

  • A. political irregularities
  • B. Shortage of exporting
  • C. Shortage of Food and Fuel
  • D. Shortage of foreign currency

Correct Answer: D. Shortage of foreign currency

Sri Lanka’s government recently offered unsolicited value-added and income tax cuts to taxpayers. This led to an extreme loss of government revenue. As a consequence, the Sri Lankan Rupee started to slip. Without the necessary cash reserves in place, in early March Sri Lanka had to allow the rupee to free fall.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *