Effect of covid-19 on small and medium-sized enterprises in Ampara District Sri Lanka

Abstract

The SMEs are expected to contribute more than 90 percent of overall businesses, nearly 50 percent of total jobs, and a substantial addition to the GDP of Sri Lanka's economy. The worldwide economy has been impacted by the Corona Virus (Covid-19) pandemic. Many active enterprises around the globe have dropped to their lowest level ever. This article aims to examine how small-scale business owners are affected by COVID-19 in their financial sector, business sector, demographic sector, and psychological sector. This study used questionnaires and SPSS statistical software for data analysis. According to the result, the agricultural sector's demand is under threat due to the uncontrolled situation. Farmers and fishermen really aren't subject to the restrictions of the countrywide curfew when carrying out their occupation. However, consumers' restrictions on travel have disrupted marketplace processes, causing commodity prices to bounce both high and low in pursuit of a balance between supply and irregular demand. According to this study, evidence has been found to date that there is a severe effect of COVID-19 on finance, business, demographic, and psychological factors observed in the manufacturing sector compared to the service sector of SMEs in Ampara District