IMPACT OF COVID 19

OUTBREAK ON SRI
LANKAN ECONOMY.
Group 53
Umesha Savindi – AS2020343
Puranjana Wijayarathna – AS2020387
Introduction
• This research has done in August 2020 by three authors of South Eastern University.

• This paper had examined the impact of COVID-19 on the Sri Lankan economy using
economic indicators and, on the tourism, agriculture and apparel and textile sector
and to find out the solutions and recommendations to uplift the Sri Lankan
economy in future.

• This research was done using some secondary data such as published research
articles, WHO statements, Sri Lankan reports and newspaper articles.
Results and Discussion
Economic Indicators

1. Remittance Economy
• The global covid 19 pandemic reduced the employment stability along with the
remittance revenue to Sri Lanka.
• With the lockdowns in the world the accessibility of short termed laborers from Sri
Lanka would be thin.
• Lot of foreign employed workers who were supposed to come back from countries
like Middle East and Italy couldn’t fly because of lockdowns.
2. Purchasing Managers’ Index (PMI)

• PMI is a list of the overall bearing of monetary patterns in the manufacturing

and service sectors.

Manufacturing PMI Service PMI

• Not getting orders from US and other European countries and decrement of
employees is the main cause of the fall of the manufacturing PMI.

• Business activities getting delayed due residential travel limitations and also zero
global traveler appearances effected to the downfall of the Service PMI.
3. National Consumer Price Index 4. Exchange Rate
Based Inflation (NCPI)
MARCH 2020 APRIL 2020 • The Sri Lankan rupee, which had
Headline 7.0% 5.9% been stable until mid-March 2020,
Inflation began to depreciate sharply in the
Food Inflation 14.1% 12.2%
last half of March and into mid-
Non Food 1.8% 1.1%
Inflation April 2020 with the spread of
COVID-19.
• Costs of vegetables, organic products,
enormous onions and eggs declined during • The rupee recorded a deterioration
the months March and April due to the of 3.4 percent against the US dollar
lockdown. by 15th May 2020.
• But the costs of other insignificant products
remained unchanged due to the lack of
interest in them during the pandemic.
 Sectors
1. Tourism
• The tourism industry is among the financially hardest hit industries around
the world.
• The recuperation while time consuming also rely on the global markets
opening.
• Srilanka suspended all traveler appearances starting from the 19th March
2020.

Reduction % 93.53% 82.33% 29.21% 100%

 2. Apparel & Textiles

Major apparel destinations in 2019

• The apparel sector is one of the most

influenced divisions which have been impacted 22%

45%
by both demand and supply 4%
6%

• Although the supplies are continuing the 8%

15%

demand has been reduced due to major

apparel destinations being the exceedingly US UK Italy
Germany Belgium Others
terrible hit nations
• The clothing segment imports most of its raw materials from China which also made
an abrupt stop due to the pandemic in 2019
• The apparel sector is the largest single-handed industry contributing to the local
economy by representing 59% of industrial exports in 2019
Conclusions and Recommendations

• The COVID-19 pandemic has put tremendous pressure on Sri Lanka’s

macroeconomic stability
• Considering the above results, it can be said that there has been a huge adverse
impact on the Sri Lankan economy due to the covid-19 pandemic mainly along the
tourism and apparel industries.
• To battle the monetary outcome emerging from the COVID-19 pandemic, the
government and the Central Bank should take the respective measures.
Reference
Roshana, M. R., Kaldeen, M. And Banu, A. R. (2020) Impact of COVID-19 outbreak on Sri Lankan
Economy. Journal of Critical Reviews. 7(14), 2124-2133.
THANKYOU!