Impact of COVID-19 on Economic Sustainability: Evidence from Sri Lanka

Abstract

The virus that caused a localized shock in China is now causing a widely spread panic throughout the world. Using a typical local analysis, this study evaluates the probable impact of COVID-19 on GDP, tourism, poverty, employment, household income, exchange rates, remittance Under-utilization of labour and capital, increased international trade costs, a decline in transport services, and a shift in demand away from activities that require people to be in close proximity. In the event of a global pandemic, the world's gross domestic product was fallen by 2%, 2.5% for poor countries, and 1.8% for industrial countries. And also employment rate is declined according to the analysed data.Moreover, this study provides a basic knowledge regarding the history of the global pandemic and ranged from plague of Justinian to the COVID 19 in 2019/20 period. Among number of countries which have undergone with different situations during those pandemics, Sri Lanka also has been influencing. Further it is discussed about the impact of COVID 19 on Sri Lankan economy. Due to the fact that GDP, employment, tourism, poverty, household income, exchange rates and remittance issues were arisen and influenced on sector performance, economy was suffered adversely. When considering COVID 19 impact, finally it can be suggested to the country that it should be prepared to face challenges for COVID-19 situation.