With the current development of country, Sri Lankan Domestic Debt level has been increasing since 1960 (Central Bank, 2009). But care should be taken on escalating Domestic Debt level of country as it threats on internal economic policies through continuous budget deficit, crowding private...

Nowadays, the issue of volatility in GDP is becoming a fundamental development concern due to the undeniable connections between volatility and lack of development. In addition, the recognition of the negative link between short-term fluctuations and long-term growth not only signifies the...

In this paper we present various techniques to estimate Sri Lanka's potential output and output gap, including statistical and model-based approaches. Compared to conventional statistical filters that rely exclusively on information in a single series, the model-based approaches allow potential...