Sri Lanka's Economy After Covid-19

We implemented a proper methodology to defeat the threat of the coronavirus (COVID-19). Our next requirement is to win the economy by following an appropriate similar mechanism to overcome economic problems.

- Dr. W.M. Hemachandra

We are a small economy. We remember the president, recently addressing an expert group forum, stated that we need to research and observe how a series of small economies in the world has acquired economic development and apply their successful practices for the development of our small country too. This is a versatile advice.

It is true that the living standards of the people in Sri Lanka have improved to some extent during the recent decades, compared to that of in the past. Development activities that took place over the years have contributed to satisfy the basic needs of the people; some of these are food and beverage, housing, health, education, electricity and trade, etc.

However, the question we encounter is whether these achievements are sufficient for the people to spend a happy life. It appears that due to the unresolved issues, we are still stuck in the so-called ‘vicious circle of poverty’.

As such, in order to come out of this circle and resolve the remaining issues, it is worth experimenting what economic and business administration methodologies that recently the developed countries have adopted to develop their economies, which is also the purpose of this article.

In order to solve the socio-economic problems in a country, lessons to follow from economics and business administration teaching are extremely simple. Actions required to promote a country’s economy are not complex.

In economic theory, there are two types of resources, which can be used to promote an economy. They are human resources (labour) and capital (funds). Labour and capital are the main inputs for production.