The Peculiarities of Economic Crisis Due to COVID-19 Pandemic: Evidence from Sri Lanka

Abstract

Globally, it has been occurred number of pandemics over the decades and some of them have been recurring still. At present, globe is experiencing COVID-19 which is come under coronavirus and wide spread of the virus with number of variants already carried off a considerable amount of lives. In such a situation, World Health Organization announced a global emergency condition and this review study comprehensively examines the impact of COVID-19 on GDP, inflation, stock market, poverty, employment and tourism in Sri Lankan context. This paper graphically explores that agriculture, industry and services sectors were affected harshly during pandemic. Moreover, COVID-19 adversely affected on tourism sector, construction, transport, hotel and apparel sectors while enhancing unemployment rate as a whole. Due to job lost, unemployment rate was increased while increasing the poverty line as well. More specifically this review identified three main factors that affect on fluctuation of inflation rate throughout previous studies and also valid and timely evidences. Accordingly, it could be explored that there is an additional inflationary pressure in Sri Lankan economy. Apart from that, Colombo stock Exchange in Sri Lanka is financially unstable due to COVID-19 outbreak. Thus, country’s economic condition is threaten at a high risk. In that case, necessary and successful movements must be taken place to move ahead as a one nation during these pandemic days and overcome economic issues.