The Impact of COVID-19 on Economy of Sri Lanka

Abstract

A new Corona Virus appeared in China (December, 2019), rapidly spread its global reach, and is currently (2021) causing a high number of COVID-19 afflicted patients and fatalities. Despite the fact that numerous nations have been working on developing vaccines to combat the COVID-19 virus, it continues to spread with new variations. Hence, reviewing peer researches, it is examined how COVID-19 influenced the Sri Lanka’s economy through this study. Because Covi-19 is propagated through human contacts, the fast spread of the virus has caused states to lock down all aspects of the country, including the economic systems. This resulted in dramatic changes in the global economic arena, and underdeveloped and developing governments like Sri Lanka were compelled to act to mitigate the disastrous consequences of COVID-19. As an indirect economic effect of COVID-19, the pandemic's growth on high unemployment and inflation rates seems to have had a substantial impact on Sri Lanka's poverty level. As a result of the pandemic, the tourism sector, import and export industry, supply chain of the country, manufacturing, apparel, and other sorts of businesses that rely on human interactions are the most affected in Sri Lanka. COVID-19 pandemic and its massive repercussions raised the point of having a resilient plan which is important to face and manage unforeseen risks, especially a revival plan for tourism and export industry. Further, psychological implications such as panic buying, travel phobia, human interaction phobia, etc.. Should also be taken into consideration, when developing strategic plans the pandemic that cannot be predicted its endpoint; the world is compelled to go forth with the COVID-19 virus in a new normal mode. A work month with low wages is also recommended for Sri Lankans to rise up the economy of Sri Lanka as a collective effort.