COVID-19 outbreak likely to affect Sri Lanka’s economic performance : Central Bank

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Mar 05, 2020 (LBO) – The exact impact on the Sri Lankan Economy would depend on the extent of the global spread of the COVID-19 outbreak, its persistence and policy responses of major economies and trading partners, the Central Bank said.

“Sri Lanka’s economic links with China could be directly affected as significant volumes of consumer goods, intermediate goods and investment goods are imported from China,” the bank said issuing a statement.

“The likely slowdown of the global economy and disruptions to the supply chain could affect Sri Lanka’s merchandise and service exports as well as related logistics.”

The slowdown in global tourist movements will affect Sri Lanka’s tourism sector, in addition to the direct impact of lower arrivals from China.

The spread of the virus to countries with a significant number of Sri Lankan migrant workers could affect remittance inflows as well.

These adverse implications are likely to outweigh any marginal benefit arising from reduced global energy prices and international interest rates,the statement added.