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Research Paper | Social Science | India | Volume 12 Issue 12, December 2023 | Popularity: 5.4 / 10

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Navigating the Storm: Sri Lanka's Struggle to Sustain its Economy amid the COVID-19 Pandemic

Dr. Imran Nadeem Siddiqui

Abstract: The COVID-19 pandemic has unleashed an unprecedented economic crisis globally, affecting nations in varying degrees. This research article delves into the specific case of Sri Lanka, a tropical island nation in the Indian Ocean, and examines the profound impact of the pandemic on its economy. With a focus on the period from the outbreak's onset to its aftermath, this study analyzes the significant socio-economic losses incurred by Sri Lanka, particularly in vital sectors such as tourism, manufacturing, and small and medium-sized businesses. The article outlines Sri Lanka's economic landscape before the pandemic, highlighting its strong potential as a tourist destination, diverse exports, and the vital role of micro, small, and medium-sized businesses in developing the nation. However, the advent of COVID-19 resulted in severe disruptions, such as the collapse of the tourism industry, dwindling foreign exchange reserves, and escalating inflation, which ultimately led to a substantial increase in poverty rates. Despite these challenges, the research identifies Sri Lanka's efforts in implementing various mitigation measures, including livelihood assistance programs and technological advancements. The government's initiatives to provide cash transfers and support to vulnerable populations demonstrated an intent to protect the welfare of its citizens during the crisis. Moreover, the potential of digital infrastructure and digital literacy to facilitate economic mobility and resilience is explored as key enablers for future economic growth. The article also examines the impact of the pandemic on key industries, such as apparel and footwear, and evaluates the role of foreign debt and fiscal policies in managing the crisis. Sri Lanka's response to the economic fallout, including the management of currency exchange and external debt service, is analyzed to provide insights into the nation's strategies for recovery. This research article sheds light on Sri Lanka's journey through the COVID-19 pandemic's economic challenges and highlights the nation's efforts to rebound from the crisis. By exploring the potential of digital technologies and sustainable economic practices, Sri Lanka seeks to navigate the path to recovery and create opportunities for long-term growth and prosperity. As the world continues to grapple with the pandemic's repercussions, lessons from Sri Lanka's experience may serve as valuable guidance for other nations striving to rebuild their economies amidst the ongoing uncertainty.

Keywords: Economy, COVID-19, pandemic, developments, tourism, Employment

Edition: Volume 12 Issue 12, December 2023

Pages: 289 - 293

DOI: https://www.doi.org/10.21275/SR231129152723

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