The Impact of COVID-19 on Sri Lanka Economy

Abstract

The COVID-19 represents the permanent threat to the whole world, labelled as the worst economic shock and paniernic in recent history. In this novel viral outbreak, Sri Lanka is one of the most vulnerable middle-income countries. COVID-19's economic effect may be expected to be significantly direct and indirect, since the Sri Lankan economy depends mainly on foreign trade. This article discusses the impact of COVID-19 on the Sri-Lankan economy and the specific objective is to assess the impact of COVID-19 on the currency and financial markets with economic indicators and to identify the effect of COVID-19 outbreak. This study is based on secondary data such as research articles published, WHO statements, Sif Lankan newspaper articles and news articles. The outcome has shown that the Sri Lankan economy is enormously affected by COVID-19, because in tourism, investment and several agreements China is one of the major countries associated with Sri Lanka. It is Sri Lanka's second largest tourism and import market and also the leading supplier of textile raw materials. COVID-19 therefore had a major impact on Sri Lankan economy in China. And with the US, UK and European countries, too, a number of distressing transactions occur, and the COVID-19 pandemic is also affected by decreasing demand exports of tar. Tourism is now clogged by demand far. The Sri Lankan foreign passengers are subject to global travel restrictions from mid-March because the Sri Lankan borders are closed and travel restrictions are restricted between the disuediments.In the Middle East counties, there are a considerable number of Sri Lankan employers. Sri Lankan rupee has significantly depreciated compared with the US Dollar, reaching Rs (199.14), which will affect its turnout income. We can conclude that, because of the impact of the COVID-19 pandemic, Sri Lanka is the country most susceptible to mixing income, and proactive policy steps to mitigate the economic crisis in Sri Lanka should therefore be taken.