Impact of China-Sri Lanka relationship on economic growth in Sri Lanka

Abstract

Most of the Countriesmaintaingood relations between themselves by the globalization. In that kindSri Lankaalso engaged with various countries for the international transactions. In 1977, as a result ofthe liberalizationSri Lankahad 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 thatSri Lankamaintains with China and the mainobjectiveof this study is to identify the impact of China-Sri Lankarelationship onSri Lankan economic growth and to analyze the long run impact of the Sri Lankarelationship on economic growth inSri Lanka. This research has used 3 variables such debt of China, export from Srilanka to china and Gross Domestic Product ofSri Lanka in developing the economy ofSri Lanka. The data of the surveyhas basedon secondary information. The study has applied the multiple regression analysis method to analyze the variables of this study. The results haveobtainedthrough theEViews. Findingsrevealedthat there is a significant relationship betweenSri Lankaneconomic growth rate andChina-Sri Lankarelations. Thus, theChina-Sri Lankarelationship was effective and the variables among these it impacts the economic growth ofSri Lanka. Therefore, the study recommends encouraging exports ofSri Lankato China and strengthen the infrastructure facilities, transportation, political stability and defense for foreignerspromote for developing the relationship with China