Analyzing the Impact on COVID-19 and Its Impacts of Sri Lanka Economy
14 Pages Posted: 31 Aug 2021
Date Written: August 23, 2021
Abstract
This review paper discusses the impact of COVID-19 on Sri Lankan economy. Further it discusses about the crisis on the key economic income earning sectors that are tourism, apparels and textiles, small and medium scale enterprises as well as the impact of the income of Sri Lankan households. In section 2, it discusses the history of global pandemics from 165-180 to present. In section 3 comprehensively examines the impact of COVID-19 on an immediate lock down in the country which caused an enormous effect on GDP, employment, tourism, poverty, and household income. GDP is used to estimate the size of an economy and growth rate which highly depends on agricultural, industrial, and service sectors. it is said that it is expected to have 8% drop in annual GDP if pandemic continues for a longer period. Then it is explained the share of job loss after the pandemic. Tourism is severely affected, and it has a major impact on the economy as it is the third largest foreign income generator. It has had a 17% of drop of total tourist arrival after the Easter attack in 2019. This further dropped after shutting down the airports and imposing the travel restrictions. Finally, it discusses the poverty index increase percentage as well as the decrease of household income because of COVID-19 affects the labor market.
Keywords: COVID-19, Economic Impacts, Sri Lanka, Export Earnings, Tourist Arrivals, Poverty
JEL Classification: E2, E5, E6, G2
Suggested Citation: Suggested Citation