2021 has been a year of change, growth, and economic challenges for Sri Lanka’s businesses. As the year draws to a close, it’s time to reflect on the top 5 Lanka business news stories that have made headlines and shaped the industry this year.
1. The impact of COVID-19 on Sri Lanka’s exports
The COVID-19 pandemic had a significant impact on Sri Lanka’s economy as the country depended heavily on exports. The pandemic caused many countries to impose lockdowns, resulting in a decline in demand for Sri Lanka’s goods. Additionally, supply chains were disrupted, making it difficult for Sri Lankan businesses to import critical materials required for manufacturing. Despite these challenges, Sri Lanka’s exports managed to recover slowly towards the latter part of the year, driven by the textile and apparel industry.
2. The rise of e-commerce in Sri Lanka
The pandemic has accelerated the adoption of e-commerce in Sri Lanka, with more consumers shopping online than ever before. Businesses that invested in e-commerce platforms early on benefited from this trend, while others had to adapt quickly to survive. This trend is expected to continue, with forecasts predicting that the e-commerce market in Sri Lanka will grow rapidly in the coming years.
3. Tourism industry recovery
Sri Lanka’s tourism industry was severely impacted by the pandemic, causing significant economic damage. However, with the rollout of vaccinations and the gradual reopening of borders to tourists, the industry is slowly starting to recover. The government has also implemented various measures to support the industry, such as waiving visa fees, and promoting local tourism.
4. Sri Lanka’s power crisis
Sri Lanka faced a severe power crisis this year, with electricity demand exceeding supply, resulting in rolling blackouts. The crisis was mainly due to low rainfall, causing a decline in hydropower generation, which accounts for a significant portion of Sri Lanka’s power supply. In response, the government implemented measures such as importing emergency power and promoting renewable energy sources to address the crisis.
5. Sri Lanka’s debt crisis
Sri Lanka’s economy has been struggling with a debt crisis for some time now, with the country’s debt-to-GDP ratio reaching dangerous levels. The pandemic has worsened the crisis, with the country’s revenue dropping significantly. The government is taking steps to address the crisis, such as negotiating with international lenders for debt restructuring and introducing budget cuts.
Conclusion
2021 has been a challenging year for Sri Lanka’s businesses, but it has also been a year of resilience and adaptation. The top 5 Lanka business news stories of 2021 highlight the impact of the pandemic, the rise of e-commerce, the struggles of the tourism industry, the power crisis, and the debt crisis. As we move into 2022, Sri Lanka’s businesses will need to continue to adapt to changing circumstances, innovate, and work towards long-term sustainability for the recovery and growth of the economy.
