Why Strangle Economy To Combat Coronavirus?

As of April 6, 2020, there are 177 confirmed cases and five deaths attributed to the coronavirus (COVID-19) in Sri Lanka.

- Seneka Abeyratne

These are impressive statistics relative to those in many other countries affected by COVID19. Physical distancing is the key to controlling the spread of the COVID-19 infection and accordingly, the island has been in curfew mode since March 20.

But in pursuing this course of action, the government has brought the economy to its knees. If the corporate and financial sectors are allowed to collapse, the country will fall apart. This is the fate awaiting the island, if the curfew is extended indefinitely. It is far easier to close the economy than to restart it. The economy cannot be reopened by simply pressing a button. It will take months for production, marketing and distribution, to return to normal levels.

Since manufacturing has come to a virtual standstill, the supply of domestically produced goods is decreasing day by day. To make matters worse, the government has imposed a ban on a wide range of imports. When the supply of industrial and agro-industrial goods begins to hit rock bottom, there will be hyperinflation. We should bear in mind that commodities like curry powder, turmeric powder, chilli powder, ground pepper, sugar, iodized salt, liquid milk, coconut oil, kerosene, agrochemicals and a range of Ayurvedic products, are produced largely by the domestic agro-industrial sector.

The production of toiletries has also ceased, more or less. When the country runs out of soap and toothpaste, we will be returning to the Stone Age. The supply of medicines is also rapidly dwindling, which could result in a sharp increase in the number of deaths unrelated to COVID-19, especially among the elderly.