Impact of Covid 19 o n SMEs in Sri Lanka and Their Survival Strategies

Abstract

The Covid 19 epidemic had an impact on all global economic activities. The aim of this study is to identify how Covid 19 affected Small and Medium Enterprises (SMEs) in Sri Lanka, what actions those affected SMEs have taken to survive during the pandemic and implemented strategies for the sustainable future of their businesses. To investigate how Covid 19 affected SMEs in Sr i Lanka, a qualitative research approach was used, and Eight SMEs were interviewed via phone calls and video conference calls for data collection. The study's findings revealed that the majority of SMEs in Sri Lanka was severely impacted by the Covid 19 ep idemic. However, in order to survive, SMEs have taken many steps and have developed and implemented methods to ensure the long term sustainability of their enterprises. As a result, methods such as maintaining a healthy cash flow, digital transformation, a nd improving product and service quality have been implemented to ensure long term sustainability. The findings of this study will pave the way for SMEs in Sri Lanka to understand how they should react in a pandemic situation, what actions they should imp lement to survive during a pandemic and strategies that SMEs should develop for a sustainable future.