Economic impact of Covid-19 on Sri Lanka

Economic impact of Covid-19 on Sri Lanka

Economic impact of Covid-19 on Sri Lanka

Written by Staff Writer

09 Mar, 2020 | 7:44 pm

Colombo (News 1st) – The death toll due to the coronavirus has exceeded 3,800, and total coronavirus cases have increased to 109,000 worldwide.

In the Philippines, President Rodrigo Duterte has declared a state of public health emergency as additional coronavirus cases were reported in the country. Italy reported 7,375 coronavirus cases and 366 deaths, a significant jump from the 233 fatalities recorded on Saturday. The country now outpaces South Korea in cases and fatalities.

The Saudi Higher Education Ministry temporarily shut all schools and colleges until further notice to avoid the spread of the coronavirus and France topped 1,000 confirmed cases. The UK’s top share index is facing its worst day since the financial crisis of 2007 after it fell 8% in early trade, wiping billions off the value of major firms. Indian stocks too slumped to their lowest in nearly 17 months, tracking global markets, as panic over the economic fallout of the coronavirus outbreak intensified.

Meanwhile, in Sri Lanka, the Colombo stock exchange mainly closed on a negative note last week, with the All Share Price Index (ASPI) decreasing by 4.47 percent and the S&P SL 20 Index decreasing by 5.79 percent compared to the week before.

The Coronavirus impact on global financial market conditions has also affected Sri Lanka’s foreign investments. The outstanding stock of T-bills and T-bonds held by foreigners has decreased by 9.03 percent or 8.236 Billion Rupees bringing the total to 19.6 Billion Rupees in foreign outflows during the past two weeks.

Many sectors in Sri Lanka are currently experiencing difficulties due to disruptions in global trade and tourism. Tourist arrivals to Sri Lanka in February declined by 17.7% in comparison to February last year, mainly due to the outbreak of COVID-19. Sri Lanka’s tea sector has also been adversely affected due to the global impact of the coronavirus.

Speaking to News 1st, chairman of the Colombo Tea Traders’ Association Jayantha Karunaratne said, the reduction of oil prices in the global market will have a negative impact on trade with the middle east.

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