Sri Lanka is expected to have a more severe economic downturn than peer countries, according to a survey.
More than 40% of those polled felt it was unlikely that the economy would rebound to previously seen levels, Managing Consultant Tusitha Kumarakulasingam told the Women’s Chamber of Industry and Commerce in Sri Lanka organized webinar aired to assist Small and Medium Enterprises to navigate through the economic consequences of COVID-19. The webinar was done in collaboration with Commercial Bank and their SME clientele.
A quarter of those polled had no income for monthly expenditures. 28% of the sample felt that they were at risk of getting the virus. 27% felt that the economic fallout caused by the virus would either cause them to lose income or permanent employment. 21% of those polled felt that there would be a lasting impact on the education of members of their families.
People aged 55 and over said that they had experienced similar economic fallouts during their lifetimes.
Partner Ernst and Young, Anoji De Silva said that SMEs should look to manage cash flow. Silva suggested that SMEs study the credit periods on their contracts and look to conserve cash while maintaining sustainable relations with their suppliers and clients. Silva called on SMEs to prioritize expenses given the downfall in the economy.
Chairperson Women in Logistics and Transport Gayani De Alwis categorized the event as a black swan occurrence. A black swan is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences. Black swan events are characterized by their extreme rarity, their severe impact, and the widespread insistence they were obvious in hindsight.
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