Impact of China- Sri Lanka Relationship on Economic Growth in Sri Lanka

Abstract

Most of the Countries maintain good relations between themselves by the globalization. In that kind Sri Lanka also engaged with various countries for the international transactions. In 1977, as a result of the liberalization Sri Lanka had the opportunity to keep up the relations with all countries. Therefore, the process of export and import operations began to expand; foreign investments increased; tourism sector began to grow. Due to import, the domestic people got the opportunity to use a variety of goods and services. This study has focused on the economic relationship that Sri Lanka maintains with China and the main objective of this study is to identify the impact of China- Sri Lanka relationship on Sri Lankan economic growth and to analyze the long run impact of the Sri Lanka relationship on economic growth in Sri Lanka. This research has used 3 variables such debt of China, export from Srilanka to china and Gross Domestic Product of Sri Lanka in developing the economy of Sri Lanka. The data of the survey has based on secondary information. The study has applied the multiple regression analysis method to analyze the variables of this study. The results have obtained through the EViews. Findings revealed that there is a significant relationship between Sri Lankan economic growth rate and China- Sri Lanka relations. Thus, the China- Sri Lanka relationship was effective and the variables among these it impacts the economic growth of Sri Lanka. Therefore, the study recommends encouraging exports of Sri Lanka to China and strengthen the infrastructure facilities, transportation, political stability and defense for foreigners promote for developing the relationship with China