Answer to Question #298246 in Microeconomics for Dmtn

Question

Sri Lanka faces severe

hardship in finding foreign exchange to repay debt and payment for important imports. How is current economics situation in Sri lanka

Answer 1

The current economy of Sri lanka has not stabilized as expected. There is still shortages of essential goods like milk, kerosene and cooking gas among other essentials. Additionally, the coronavirus has reduced economic growth since tourism and trade had to stop. From an estimate done on September 2021 Sri lanka's by the central bank, economy has reduced by 1.5%.