Sri Lanka's crisis is having a significant effect on the import-export sector.

If we are talking about the Sri Lankan Crisis then we have to know that The country's currency has plummeted in value, making it difficult for businesses to import goods and materials. 

In simple words, the Sri Lankan government doesn’t have money to invest in the import sector, or without import, their market need is not be gonna fulfilled. 

The main source of income for Sri Lanka is Tourism Department but because of the Covid-19 pandemic Tourism Department is stopped completely and that took Sri Lanka into the situation of facing an economic crisis.

As a result, the export sector is struggling, and businesses are facing difficult decisions about whether to keep operating in Sri Lanka or move to another country.

In this article, we will let you know how Sri Lankan Crisis affects the Import-export sector and how it impacts the international trade market. 

what are the effects the import-export sector is facing in Sri Lankan Crisis?

The Sri Lankan crisis has had a major impact on the country's import-export sector. According to data from the Sri Lankan Central Bank, the value of imports declined by 10.6% in the first half of 2018, while the value of exports declined by 4.4%. This has led to a significant decrease in the country's trade surplus, which stood at US$3.2 billion in the first half of 2018, compared to US$5.4 billion in the same period last year.

The main reason for the decline in imports is the significant reduction in oil imports, due to the fall in global oil prices. Oil imports accounted for around US$2.1 billion in the first half of 2018, compared to US$4.3 billion in the same period last year. This has had a major impact on the country's overall import bill, which has declined by around US$1.5 billion.

The decline in exports is mainly due to the fall in demand for Sri Lankan goods in the international market. This is partly due to the continued political instability in the country, as well as the ongoing trade dispute between the US and China.

The decline in the value of imports and exports has had a major impact on the Sri Lankan economy. The country's GDP growth is expected to slow down to around 3.5% in 2018, compared to 5.2% in 2017. This is likely to lead to an increase in unemployment and a rise in poverty levels in the country.

The Sri Lanka crisis is also having a negative impact on the tourism sector 

The country was already facing a slowdown in tourism due to the Easter Sunday bombings in 2019. And now, with the coronavirus pandemic, things have gotten even worse day by day.

Sri Lanka's import-export data shows that the tourism sector is one of the hardest hit by the crisis. In the first quarter of 2020, the country's exports fell by 28.6% compared to the same period last year. This is mainly due to a decrease in tourist arrivals, as well as a decrease in demand for Sri Lankan goods & services.

The government has taken some measures to try and mitigate the impact of the crisis on the tourism sector. These include providing financial support to hotels and tour operators, as well as promoting domestic tourism. However, it is clear that the sector is still struggling and it will take some time for it to recover.

Conclusion - In this blog, we give you brief information about the Sri Lankan Crisis and how it impact the Import-export sector additionally we gave you some figures in which we show how much decline the import-export sector goes because of the Crisis. If you want to know more about the Sri Lanka Import-export sector then you feel free to mail us your query at [email protected], call us at tel:+91-9625812393, or create your brand Image different from others with the help of Import-export Data from Exim Trade Data.