Effects of Third Wave of COVID-19 in Sri Lanka: Response on Unemployment and Economic Cost

Abstract

As a developing country Sri Lanka has undergone three waves of coronavirus. COVID-19 continues to pose significant challenges to Sri Lanka even after the lockdowns of the first and second waves. The country is currently on island-wide travel restrictions since 21st May 2021. Sri Lanka had massive impacts on the economy due to the first and second waves. The observable variations in GDP rate contraction by 3.6%, poverty rate by 4.1%, unemployment rate by 5.2%, and inflation rate by 4.56% in 2020 are evident to prove the economic massacre of the country. This paper explores the impact of coronavirus disease (COVID-19) on the economy and unemployment. Several themes emerged from the literature and survey results of various institutes. First, the economic crisis had caused high layoffs and closures in informal sectors at beginning of the crisis. Second, the risk of closure is negatively associated with the livelihood of induvial. Third, most small businesses are financially delicate: and with less capital to operate the business was unable to pay salaries. Fourth, the vaccination crisis within the country will lead to more exposure to increasing the number of COVID-19 impacted cases on new variants. Further, the Sri Lankan Government needs on devising an appropriate National Level vaccination plan or health and safety measures to avoid an increase in the number of impacted COVID-19. The paper analyses the results of the surveys and predictions of the World Bank and other entities to predict the aftermath of three waves of COVID-19 on creating economically unstable conditions within the country. As a result, increase in unemployment and poverty.