The Impact of Of COVID-19 on the Sri Lankan Economy

Abstract

The recently identified coronavirus causes COVID-19, an infectious disease. Before the eruption in Wuhan, China in December 2019, no one had heard of this new virus (WHO, 2020). All affected nations have taken steps to protect themselves and several countries have already specialized in obtaining the coronavirus vaccine but have been unable to control the problem due to lack of knowledge and management. Although more than six months have passed since the epidemic, Sri Lanka has made significant progress in curbing the spread of COVID-19; However, the threat persists after the third wave of COVID-19 attacks. This article focuses on identifying the impact of the country's major income sectors, especially tourism, apparel and textile industry, small and medium enterprises, agriculture and food, on the Sri Lankan economy. Tea export earnings fell to the US $ 270.1 million. Revenue from other sectors such as fruit and vegetable production and coconut production in March 2020 was significantly lower than in March 2019. Tourism earnings from January to June 2019 were 1,901. USD This was due to restrictions imposed on airport routes and the revocation of visas. Delays or cancellations of orders from local and international clients reduced sales by more than 80% in small and medium enterprises. The impact of Kovid-19 on all these major revenue-generating sectors in the country, however, led to a GDP growth of 3.6%, which could harm the overall economy of the epidemic and lead to appropriate recommendations. It is being implemented to achieve economic growth despite the epidemic in the country.