Discussion
Based only on the above passage, which one of the following statements can be inferred with certainty?
Answer: C
The statement that can be inferred with certainty is that, according to the World Bank, Sri Lanka does not yet have an adequate macroeconomic policy framework.
The passage says the World Bank will not offer new financing “until the country has an adequate macroeconomic policy framework in place”. Making the lack of such a framework the condition for resuming finance means the Bank judges that Sri Lanka has no adequate framework at present.
- A is not stated. The passage says the crisis has “starved it of foreign exchange”, so the shortage of foreign exchange is a consequence of the crisis, not its root cause. The root causes are only said to need tackling.
- B goes beyond the text: the Bank says Sri Lanka needs to adopt reforms, and says nothing about advising its government.
- D contradicts the passage: the Bank will give no new financing, and is only repurposing resources under existing loans.
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