Impact of COVID-19 on Economy of Sri Lanka

Abstract

Over centuries there were number of pandemic occurred. Some of the pandemic are repetitive time to time and some of them are abolished. COVID-19 or the coronavirus is current pandemic globe is facing at the present. Rapid spread of the COVID-19 and its variants lead to loss of lives of many people across the nations. A global emergency situation proclaimed by the WHO. This review study examine the economic crisis in Sri Lanka due to COVID-19, under the aspects of Gross Domestic Product (GDP), Tourism, Employment, Poverty, Inflation and Export Earnings. Further it is disclose that, GDP and employment adversely affected by the COVID-19. Additional inflationary pressure created on economy due to consumers panic buying and disturbance in domestic production and distribution. Further import restrictions imposed by the government significantly reduce the imports and sever depreciation of Sri Lankan Rupee increases the price of imported commodities. Moreover, tourism sector and textile and garments sector badly affected by the COVID-19 pandemic. Increment in unemployment rate caused due to lack of job openings and health risks led to lack of interest towards working. During this pandemic period appropriate actions to be taken to overcome the economic crisis and controlling the spread of COVID-19 simultaneously. Else expected economic development of country will not be achieved.