This project will document the coverage and magnitude of the import controls imposed by the Government of Sri Lanka as a response to the COVID-19 pandemic. Further, the impact on exports will be quantified. Finally, the economy-wide impact will be quantified through input-output analysis. Trade policy is a vital instrument that governments use as a pandemic response. Importantly, more inward-looking trade policies are being implemented as a response to COVID-19-induced economic issues. Sri Lanka also restricted imports due to the foreign exchange crisis, which was deepened by the reduced foreign currency inflows. However, in a vertically integrated manufacturing process, restricted input supply would affect domestic manufacturing adversely. Further, due to the increased prices of intermediate goods domestically, domestic producers in Sri Lanka would experience increased production costs, ultimately affecting competitiveness. This study will document the coverage of the current import controls by end-use categories. Further, this study expects to quantify the effect of import controls on the exports and overall economy through input-output analysis.
