The Sri Lankan Economy in the Face of COVID-19 Epidemic

Abstract

The COVID-19 epidemic, which began in December 2019 in Wuhan, Hubei Province, China, has now engulfed the health and economic sectors of the entire world. The epidemic has been affecting the economy and lives of the people of Sri Lanka since April 9, 2019 and the epidemic had a major impact on GDP, unemployment, foreign investment, tourism and the stock market also. The Sri Lankan economy has shrunk due to the COVID-19 impact, which is seen as a record economic contraction. Increased spending and low revenues in the face of the epidemic led to a deterioration in the fiscal position. Poverty also increased significantly due to the loss of jobs and earnings. The stock market in March 2020 recorded a historic decline, reflecting the country's financial situation. It is the worst moment in the Sri Lankan economy. Accordingly, steps need to be taken to control this epidemic at this moment and to revive the economy.