Sri Lanka is now feeling economic brunt following corona virus outbreak with the Colombo bourse temporarily halted trading a few weeks ago following the S&P Index plunging by more than five percent, reflecting negative sentiment of investors from a corporate standpoint.
The island nation is bracing for the spread of Covid-19, which could further depress economic activity, damage supply chains, and stress already weak public health systems.
Sri Lanka should seek assistance from Asian Development Bank’s (ADB) Asia Pacific Disaster Response Fund to help finance the government’s efforts to combat the novel coronavirus (COVID-19) eruption in the country, economic experts suggested
ADB’s grants will ease the government’s immediate financial, logistics, and other constraints to meet immediate relief needs and deliver appropriate medical services where required.
The grants will support the procurement of emergency medical goods and supplies; diagnostic equipment; materials for critical care facilities, including intensive care unit beds; and personal protection and other key medical equipment.
DB announced an initial package of approximately US$6.5 billion to address the immediate needs of its developing member countries, including Maldives which was granted $500,000 today, as they respond to the COVID-19 pandemic.
Although the general election is forthcoming, both consumers and businesses are more concerned about the COVID-19 pandemic, which has made inroads in Sri Lanka as well, Nielsen’s Director – Consumer Insights Therica Miyanadeniya said.
Inflation and interest rates are major concerns among businessmen in addition to high taxes. Meanwhile, the coronavirus also enters the list of pressing issues for business in Sri Lanka today.
This is particularly true of supply chains with a member of the corporate community noting that they “face difficulties in importing products from China due to the coronavirus. Therefore, the future of business is uncertain.”
Prevailing sentiment indicates that the impact of COVID-19 will hit businesses and the economy hard – similar to what transpired following the Easter Sunday attacks last year, according to Miyanadeniya.
While the hope is that the outbreak will be contained to manageable levels through state, individual and organisational measures, the business outlook hangs in the balance as the authorities work to combat a disease that has tested the very essence of human resilience.
(LI)