Abstract

THE IMPACT OF INDEBTEDNESS ON ECONOMIC GROWTH OF SRI LANKA : AN EMPIRICAL STUDY

Anoma Abhayaratne , Ashani Bandaranayake

Volume: 5 Issue: 3 2015

Abstract:

This study evaluates the impact of external debt on economic growth of Sri Lanka during the period 1972 to 2012. According to the results obtained through a time series estimation carried out in the study using cointegration methodology, debt-service ratio has no significant impact on economic performance. Nonetheless, total external debt ratio has a significant negative effect on economic growth. Therefore, the paper concludes thatSri Lanka’s debt-export ratio has not crossed the critical levels.

Back Download