Unlike the Easter Sunday attacks, COVID-19 is not only affecting Sri Lanka. Its effect is felt by almost all countries across the world. The economic impact of this on Sri Lanka will not only be influenced by what is happening in the country, but also by how the disease is affecting global values chains, markets, and the movement of goods and people across the world. With the COVID-19 pandemic still unfolding, it is too early to estimate the economic impact of the crisis. This blog compares the economic impact of the Easter Sunday attacks to illustrate the likely impact of COVID-19 on Sri Lanka’s economy.
Taking into account the locations immediately affected by the Easter Sunday attacks and its ripple effects, a short- to medium-term impact on foreign exchange earnings is likely to be experienced in Sri Lanka. The tourism industry, despite once being well-positioned to continue its upward trend in foreign exchange earnings, is now likely to experience a temporary downfall, while international remittances, which were experiencing an incipient downward trend, are likely to experience a temporary upturn in the aftermath of these attacks, argues Bilesha Weeraratne.
The coordinated blasts on Easter Sunday in Sri Lanka claimed more than 250 lives and left at least another 400 injured. While Sri Lanka battled a civil war for nearly three decades, this is a new brand of terrorism which transcends geographical borders. In this, migration in and out of countries play a critical role. Here, Bilesha Weeraratne sheds light on some of the policy developments that will need urgent attention in response to extremist terrorist attacks in Sri Lanka from a migration point of view and institutional changes in border control in Sri Lanka.