Question:
The Import Substitution Industrialization (ISI) strategy adopted by Sri Lanka in the past aimed to:
(1) promote exports of manufactured goods.
(2) reduce reliance on foreign imports by developing domestic industries.
(3) attract foreign direct investment (FDI) into all sectors.
(4) eliminate all tariffs and trade barriers.
(5) privatize all state-owned enterprises.
Correct Answer:
(2)
Answer Explanation:
ISI was an inward-looking strategy (popular in the 1970s) to save foreign exchange by producing goods locally instead of importing them, often protected by high tariffs.
Topic: Sri Lankan Economy Year: 2024
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