Accumulation of public debt in Sri Lanka is raised significantly since the independence. It exceeded 100 percent of gross domestic products (GDP) in the late 1980s and the early 2000s. Although it has been declined in the recent past and becomes 79.3 percent of GDP in 2016; the high level of debt in...

Background: This paper examines the role of monetary and fiscal factors in interest rate variations in Sri Lanka under its deregulated regime of interest rates. In addition the paper also examines the role of monetary factors in the variation of interest rates, using a quarterly dataset for the...

This paper enquires the dynamics of current account and capital account in Sri Lanka for the period 2001:Q1 to 2016:Q1 and also examines the role of some policy variables such as exchange rate and interest rate in this dynamics. Estimated autoregressive distributed lag (ARDL) bound testing...

Sri Lanka is an open and market-oriented lower middle income economy situated in South Asia. It is one of the fastest growing economies in Asia and developing world in the recent years. Sri Lankan economy has achieved 6.4 per cent growth over the period 2003 to 2012. At the same period the...