COVID-19's Discriminatory Burden on the Sri Lankan Economy Casts a Pall on the Disease

13 Pages Posted: 1 Sep 2021

See all articles by Nawodya Pathirana

Nawodya Pathirana

Uva Wellassa University of Sri Lanka, Faculty of Business Management

Date Written: August 29, 2021

Abstract

The COVID-19 pandemic, also known as the coronavirus pandemic, is a global coronavirus disease 2019 (COVID-19) pandemic caused by coronavirus 2 that causes severe acute respiratory syndrome (SARS-CoV-2). In December 2019, the new virus was discovered in Wuhan, China; a lockdown in Wuhan and other towns in Hubei province failed to stop the outbreak, and it spread to other areas of mainland China and the rest of the world. On January 30, 2020, the World Health Organization (WHO) declared a Public Health Emergency of International Concern, and on March 11, 2020, it declared a pandemic. Many nations have seen viral variations develop or become prevalent since 2021, with the Delta, Alpha, and Beta versions being the most dangerous. More than 214 million cases and 4.47 million deaths had been confirmed as of August 27, 2021, making it one of the worst pandemics in history.

The COVID-19 epidemic and its accompanying economic crises provide enormous problems, offering several unknowns and forcing painful trade-offs. Both crises are global in scope, yet their consequences are highly localized. Both crises require a swift policy response, even if it is rough around the edges. However, countries cannot do this on their own—global crises need global cooperation and coordination.

To assist nations recover quicker from the COVID-19 epidemic, governments must fundamentally change policies and invest in public health, economic stimulation, and universal health care. The economic study cautions that a hodgepodge of previously implemented remedies would not succeed, and that governments must work together to speed up recovery. Working in silos is not an option in this global situation. Specifically, 54,452 Chinese visitors visited Sri Lanka in January–February 2019, while Chinese tourist arrivals decreased to 24,459 in the same time in 2020, representing a 55.1 percent reduction in Chinese tourist arrivals, and then dropped even further to 144 in 2021 (SLTDA 2020–21).

COVID-19 has had a significant impact on Sri Lanka's tourist sector, which is the country's third-largest source of foreign revenue. In reality, the travel prohibitions, which also apply to domestic tourists, have harmed key tourism sites in Sri Lanka. COVID-19 has had a major influence on Sri Lanka's tourism industry, which is the country's third-largest source of foreign currency. In truth, the travel restrictions, which also apply to local tourists, have hurt Sri Lanka's most important tourist destinations. The second-largest donor was China.

The COVID-19 epidemic has had far-reaching consequences in many aspects of life. It has, nevertheless, had a significant impact on the economy and poverty levels. Because of how the pandemic has damaged employment stability and household income in Sri Lanka, considerable poverty reduction efforts has been stalled.

Keywords: COVID-19, Economic Impacts, Sri Lanka, Export Earnings, Tourist Arrivals, Poverty

Suggested Citation

Pathirana, Nawodya, COVID-19's Discriminatory Burden on the Sri Lankan Economy Casts a Pall on the Disease (August 29, 2021). Available at SSRN: https://ssrn.com/abstract=3913557 or http://dx.doi.org/10.2139/ssrn.3913557

Nawodya Pathirana (Contact Author)

Uva Wellassa University of Sri Lanka, Faculty of Business Management ( email )

Sri Lanka

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