The COVID-19 pandemic is receding, and as the world emerges from their homes, they will face a new, and possibly an even more difficult challenge, and that is the economy. The economies of many countries are in shreds, more so countries like Sri Lanka, where a large part of the national income is based on tourism and exports. Therefore, we must be alert and take economic precautions to make sure we are safe from financial difficulties.

Tourism is unlikely to bounce back to its former glory anytime soon. PCR/Antigen tests are very uncomfortable, and they are likely to be made compulsory for any traveler in the future. This is enough to change the mind of anyone considering a holiday in Sri Lanka. A single trip may require more than one PCR test. One test when you are departing your home country, and one test when you land at your destination. Travelers are bound to think twice before booking flights solely due to this.

As developed nations begin to spend on vaccines and medical research, their budget for third world economies will shrink. This will reduce the number of tax concessions, and reduction in export volumes for a little while, causing big deficits in our earnings. Exports are the primary source of foreign exchange for our nation, and without the dollars rolling in, everything will go up in price.

Therefore, 2021 is a bad year for luxury purchases. Lock-downs have not completely gone away, and you may be unlucky enough to face one yourself. So, be thrifty with your funds, and retain as much as you can to take care of important expenses. If you have children this is a good time to talk about this with them.