THE IMPACT OF COVID-19 ON SRI LANKAN ECONOMY

Abstract

This paper examines the impact of Covid-190n Gross Domestic Product, Monetory sector, Government income, and expenditure perspective and foreign sector. This study explores especially sectoral wise impact of the overall Sri Lankan Economy in the year of 2020 first three quarters. The Main objective of this paper identify the impact of Covid-19 on production, Monetary sector, fiscal sector, and foreign sector. This study mainly depends on the Secondary data and observatory. The descriptive statistics tools are used for this study. In 2020, when considering the economic growth, there was a slight decline during the first quarter. The second quarter showed a higher decline. Though the third quarter showed an improvement in the economy, due to the second wave of the corona virus, instability prevailed. During the last quarter a recovery was observed. The central bank aims at a 5.2% economic growth in 2021. It is believed that the flexible Monetory policy of the central bank and an accommodated fiscal policy of the government are an incentive towards achieving this. Though the inflation level is at the desired level anda slight highly fiscal sector deficit is recorded in the government's activities towards the fiscal sector in the economy is stable to a certain extent. Besides, in spite of the world wide challenges the foreign sector is able to keep it head afloat. The country's domestic economic policy and the economic recovery believe that the foreign sector will be strengthened in the future.