Melting down of Sri Lankan Economy and It’s Impacts Due to COVID-19

Prabashini Bagya
{"title":"Melting down of Sri Lankan Economy and It’s Impacts Due to COVID-19","authors":"Prabashini Bagya","doi":"10.2139/ssrn.3913610","DOIUrl":null,"url":null,"abstract":"COVID-19 is the most tragic disease which has been discovered most recently by Corona virus. It originated from Wuhan, China in December 2019 and currently this virus is widespread all over the world by damaging various sectors. Because of that, The World Health Organization declared a global emergency condition. All the affected countries have been looking for a safety precaution while few countries are researching the specific vaccine against this Corona virus. But currently with lack of awareness and management, it has gone out of hand. Sri Lanka also has made great procedures in controlling the widespread of COVID-19 for more than six months in a pandemic situation. However, still not yet over. Apart from the disastrous effects that have done for the health sector in Sri Lanka, the impacts of COVID-19 on the economy in Sri Lanka are also tragic as well. This study comprehensively discusses the impacts of COVID-19 on GDP, employment, tourism, poverty, household income, exchange rates and remittances. The analysis reveals COVID-19 creates adverse impact on both GDP and employment in Sri Lanka. But the magnitude of this impact is lower than that of the South Asian average. COVID-19 drastically affected the key income earning sector; tourism as well. Due to the restriction on travel by airways and ports, the earning of tourism has dropped by 1,901 USD to 956USD from January to June each 2019 and 2010 respectively. In addition to major economic impacts, this study follows the microeconomic impacts on COVID-19 by highlighting poverty dynamics under four way classification. The prediction reveals that there is a greater potential of increasing poverty which is related to all poverty types as extreme poor, poor and vulnerable non-poor. Also this study briefly examines the potential impacts that the COVID-19 crisis will have on household welfare in Sri Lanka, analyzing stimulated impacts on household income using both pessimistic and optimistic scenarios. As the weakening of export earnings, tourism receipts and remittances, the Sri Lankan rupee has depreciated against the major world currencies. Significantly, the impact of COVID-19 on the economy will be higher than the expected. Hence, the Sri Lankan government should take steps and measures to rebuild the economy while controlling the spread.","PeriodicalId":20373,"journal":{"name":"Political Economy - Development: Health eJournal","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2021-08-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Political Economy - Development: Health eJournal","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.2139/ssrn.3913610","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0

Abstract

COVID-19 is the most tragic disease which has been discovered most recently by Corona virus. It originated from Wuhan, China in December 2019 and currently this virus is widespread all over the world by damaging various sectors. Because of that, The World Health Organization declared a global emergency condition. All the affected countries have been looking for a safety precaution while few countries are researching the specific vaccine against this Corona virus. But currently with lack of awareness and management, it has gone out of hand. Sri Lanka also has made great procedures in controlling the widespread of COVID-19 for more than six months in a pandemic situation. However, still not yet over. Apart from the disastrous effects that have done for the health sector in Sri Lanka, the impacts of COVID-19 on the economy in Sri Lanka are also tragic as well. This study comprehensively discusses the impacts of COVID-19 on GDP, employment, tourism, poverty, household income, exchange rates and remittances. The analysis reveals COVID-19 creates adverse impact on both GDP and employment in Sri Lanka. But the magnitude of this impact is lower than that of the South Asian average. COVID-19 drastically affected the key income earning sector; tourism as well. Due to the restriction on travel by airways and ports, the earning of tourism has dropped by 1,901 USD to 956USD from January to June each 2019 and 2010 respectively. In addition to major economic impacts, this study follows the microeconomic impacts on COVID-19 by highlighting poverty dynamics under four way classification. The prediction reveals that there is a greater potential of increasing poverty which is related to all poverty types as extreme poor, poor and vulnerable non-poor. Also this study briefly examines the potential impacts that the COVID-19 crisis will have on household welfare in Sri Lanka, analyzing stimulated impacts on household income using both pessimistic and optimistic scenarios. As the weakening of export earnings, tourism receipts and remittances, the Sri Lankan rupee has depreciated against the major world currencies. Significantly, the impact of COVID-19 on the economy will be higher than the expected. Hence, the Sri Lankan government should take steps and measures to rebuild the economy while controlling the spread.
2019冠状病毒病对斯里兰卡经济的影响
COVID-19是最近由冠状病毒发现的最悲惨的疾病。它于2019年12月起源于中国武汉,目前该病毒在世界各地广泛传播,破坏了各个部门。因此,世界卫生组织宣布进入全球紧急状态。所有受影响的国家都在寻找安全预防措施,而很少有国家正在研究针对这种冠状病毒的特定疫苗。但目前由于缺乏意识和管理,它已经失去了控制。在疫情大流行的6个多月里,斯里兰卡在控制疫情蔓延方面也采取了重要措施。然而,仍然没有结束。除了对斯里兰卡卫生部门造成灾难性影响外,COVID-19对斯里兰卡经济的影响也是悲剧性的。本研究全面讨论了COVID-19对GDP、就业、旅游、贫困、家庭收入、汇率和汇款的影响。分析显示,新冠肺炎疫情对斯里兰卡国内生产总值和就业都产生了不利影响。但这种影响的程度低于南亚的平均水平。COVID-19严重影响了主要收入部门;旅游业也是如此。由于航空公司和港口的旅行限制,2019年和2010年1月至6月的旅游收入分别下降了1,901美元至956美元。除了主要的经济影响外,本研究还通过四种分类强调了贫困动态,跟踪了对COVID-19的微观经济影响。预测显示,贫穷增加的可能性更大,这与极端贫穷、贫穷和易受伤害的非贫穷等所有类型的贫穷有关。此外,本研究还简要考察了COVID-19危机对斯里兰卡家庭福利的潜在影响,并使用悲观和乐观两种情景分析了对家庭收入的刺激影响。由于出口收入、旅游收入和汇款减少,斯里兰卡卢比对世界主要货币贬值。值得注意的是,新冠疫情对经济的影响将高于预期。因此,斯里兰卡政府应采取措施重建经济,同时控制疫情蔓延。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
自引率
0.00%
发文量
0
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术官方微信