Question:
The IMF’s Extended Fund Facility (EFF) to Sri Lanka in the year 2023 is primarily aimed at
(1) reducing the country’s inflation rate to below 5%.
(2) restoring macroeconomic stability and debt sustainability.
(3) transforming Sri Lanka towards high income country status in 2048.
(4) supporting a fixed exchange rate regime.
(5) privatization of State Owned Enterprises (SOEs).
Correct Answer:
(2)
Answer Explanation:
The 48-month EFF arrangement approved in March 2023 is anchored by a comprehensive economic reform program. Its primary stated objectives are to restore macroeconomic stability and debt sustainability, safeguard financial stability, and unlock Sri Lanka’s growth potential through structural reforms.
Topic: Sri Lankan Economy Year: 2024
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