Sri Lanka’s gross domestic product (GDP) is forecast to decline in 2020 due to the negative impact of the COVID-19 pandemic, according to a report by the Central Bank of Sri Lanka.

The report highlights that Sri Lanka's economic growth could decline to 1.5% in 2020, compared with 2.3% growth a year earlier as key sectors of the economy suffer the effects of the coronavirus outbreak.

The Bank warned that the economy is likely to be impacted severely in terms of its growth, fiscal, external, and financial sector performance.

However, the Bank said that the country’s medium-term growth was projected to rebound quickly assuming investor confidence will be restored soon after the COVID-19 pandemic is contained.

Most of  Sri Lanka’s economic activities have been brought to a standstill from March as the crisis first hit tourism, exports through supply chain disruptions.

In the beginning of 2020, the  government forecasted an average growth rate as 6.5% within the next five-year period. However, as a result of Easter Sunday attacks, the Central Bank revised this forecasted growth as only 4.5% for the year 2020.

Meanwhile, in 2020 the Central Bank projects the export revenue to be US$ 8.7 billion, down from US$ 11.9 billion in 2019 while the import bill would be US$ 15.4 billion, down from US$ 19.9 billion.