In Sri Lanka Economic and Poverty Impact of COVID-19

Abstract

The coronavirus disease (COVID-19) pandemic has upended the lives of children and their families as health systems buckle, borders close, and schools and businesses shutter. Also, this is a new virus was unknown before the outbreak in Wuhan, China in December 2019 (WHO, 2019) Furthermore, The Special Focus section of this edition discusses the impact of COVID-19 on poverty. The economic contraction in the wake of COVID-19 has reversed past progress, at least temporarily. Poverty is expected to have risen since the onset of the pandemic mostly due to widespread job and earning losses.The study also observes the in Sri Lanka Economic and Poverty Impact during the pandemic period. The Special Focus section of this edition discusses the impact of COVID-19 on poverty. The economic contraction in the wake of COVID-19 has reversed past progress, at least temporarily. Poverty is expected to have risen since the onset of the pandemic mostly due to widespread job and earning losses. Simulations suggest that job losses were more likely to occur in urban areas and among private sector and own-account workers. Job losses were concentrated in the lower-middle of the income distribution: workers most vulnerable to job loss are located between the 2percentiles percentiles of the pre-pandemic earnings distribution. Temporary absence from work and job losses occurred less frequently than declines in earnings. While informal workers are more likely to suffer earnings losses, formal workers have been affected as well, for example in the export-oriented apparel industry.