Will Sri Lankan Economy Survive?

Abstract

Entire world have facing one of the biggest pandemic in history and trying to fight with this situation as a team. World Health Organization(WHO) declares global emergency due to rapidly spreading COVID-19 virus across the globe. Most of countries are now facing various problems with this pandemic situation and Developed countries are helping to other countries to out come from this issue.Sri Lanka is one of the country successfully control 1st Wave of this virus and produced new tactics to protect the economy and overcome from the difficulties that economic sectors were faced. But 2nd and 3rd Waves are hit to the economy hardly and Sri Lankan economy lost their main income options gradually. Accordingly Sri Lanka’s exchange rates flying high and it appears highest rupee depreciation in history. Then it was harm to inflation and GDP rate was discreased in 2020.COVID-19 drastically affected Colombo Stock Exchange in Sri Lanka, reporting a historical low in mid-March 2020. External sector performance of Sri Lanka has weakened due to reduced export earnings, tourism receipts and remittances and in turn Sri Lanka rupee has sharply depreciated against major currencies in the world. Sri Lankan employees who are work in abroad have lost their jobs in this pandemic situation and some employees received pay cuts in their salary. Accordingly they discourage to remit money to Sri Lanka due their problems and economy lost foreign income. It was badly affected to economic imports and exports and government faced most deep problems in the history. Tourism Industry was affected worsley against this pandemic situation. Day to day tourist arrivals were decreased and it was directly damaged the industry and most of entrepreneurs are lost their business and income. Then economy haven’t enough liquidity to run international trade business as recent past. Economy suffer poverty, lack of income sources and rising unemployment ratio were directly affect to the GDP