The widespread Co-vid 19 pandemic managed to engulf the world and grind thriving and growing economy’s to a literal halt. No country was left unaffected in 2020. A recent report released by the World Bank states that although challenges are still prevalent the Sri Lankan economy is estimated to undergo a growth of 3.4% for 2021.
2020 statistics showed that the economy contracted by 3.6%, highlighted as the worst growth performance on record. The reserve declined to an 11 year low as of February 2021. The exchange rate recorded a depreciation of 6.5% from January to March 17th, 2021. Furthermore the report noted that public and publicly guaranteed debt is estimated to show a 109.7% increase of GDP.
With a slow global recovery catalysed by the still prevalent trade restrictions and high debt burdens the economic growth has been significantly affected and striking a balance between the supporting economy amid Co-vid 19 and ensuring fiscal sustainability remains as key priorities.
The Word Bank Director for Sri Lanka, Nepal and Maldives Faris H. Hamed Zervos highlighted on how Co-vid 19 has had an unprecedented impact on the Sri Lankan Economy, he also noted how the government’s handling of the crisis with its social protection systems especially for those who have lost their jobs is now beginning to show positive signs of economic recovery as the country enters the recovery phase from the pandemic.
The report did not shy away from including several recommendations that would help boost the recovery process such as more targeted social safety nets and investment in digital technology and literacy to name a few.
No.820, Mount Cresent,Malabe,Sri Lanka