COVID-19 and Its’ Impact on Sri Lanka Economy

Abstract

When we are looking at the history of the world, we can see that there have been various epidemics from time to time. Outbreaks appear to be exacerbated during this time around, and the world is facing another epidemic. Although unrecognized, it spreads to nearly 200 countries around the world in a matter of months. Sri Lanka was also affected. During the initial period, Sri Lanka imposed restrictions on travel and closed the country, as well as through various tactics, but these were not long-term solutions. Accordingly, this review explores the impact of COVID-19 on the Sri Lankan economy through tables, charts, and data representations. Facing tests comparatively under GDP in relation to industries. The tourism industry, which has collapsed due to travel restrictions, and the associated changes in the hotel, restaurant and other private service sectors, present the average as the mid-term as well as the worst-case scenario, comparing the average with the average in South Asian countries. Also, the effect of COVID-19 on employers is analyzed in three ways, compared to the average value in South Asian countries. It also highlights the impact of changes in exchange rates and remittances on another problem facing Sri Lanka. Also, changes in household income and the impact of COVID-19 on it have been explored graphically across industry sectors as well as household classifications. Accordingly, it is very clear that the COVID-19 epidemic could adversely affect the Sri Lankan economy as well, and that the economic problems so identified need to be addressed successfully.