Impact of COVID-19 on Sri Lanka Economy

Abstract

COVID-19 is the ongoing menace to the all over the world, labeled as pandemic and worst economic shock in recent history. Sri Lanka is one of the most vulnerable middle- income countries suffer most during this novel virus outbreak. The economic impact of COVID-19 can expect substantially both direct and indirect. Sri Lankan economy mainly depends on the foreign trade. The paper was basically a desk study involving compilation and examination of information from national and international level research studies and media reports such as newspaper articles featuring the updates on COVID-19. Various Short term and middle term, direct or indirect economic shocks were identified in Sri Lanka due to COVID-19. In this article, we discussed and illustrated about historical evidences on global pandemics that have occur over time and identified the COVID-19 and its impact of Sri Lanka economy. The study forwards to explain Impact on Sri Lanka’s GDP and Employment, also founds that key income earning sectors such as agriculture, tourism, apparel and textile and small medium enterprises have been adversely affected by the COVID-19 pandemic. COVID-19 pandemic has created many negative effects on key income earning sectors.