The economic impact of Covid-19 on the micro, small and medium enterprise (MSME) sector in Batticaloa district, Sri Lanka

Abstract

Micro, Small, and Medium Enterprises (MSMEs) play an important role in the growth and stabilization of the Sri Lankan economy. The outbreak of coronavirus disease-2019 (COVID-19) has severely affected national and global economies. Various MSMEs are facing different issues with a certain degree of losses during the COVID-19 pandemic period. Therefore, the main objective of this study was to identify the major economic impacts on MSMEs through the marketing mix concept (4Ps) method. This study was conducted with the use of primary data collection from the MSMEs, who were based in the Batticaloa District in Sri Lanka from August to September 2020. According to the outcomes of the Problem Faced Index (PFI), reduction of production (340 out of 400), price of raw materials increased (326 out of 400), impact on the market (338 out of 400), and reduction of customer communication (340 out of 400) were first ranked in production, price, place, and promotion respectively during the pandemic period. In addition to that, the study recommended, the NGOs and local government bodies should create awareness and support to the MSMEs via the arrangement of seminars and training programs on overcoming this critical situation in the country.