PIERS 2025

Permanent URI for this collectionhttps://ir.lib.pdn.ac.lk/handle/20.500.14444/6561

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Global uncertainty and economic wellbeing: investigating the role of institutional quality
(Department of Economics and Statistics, Faculty of Arts, University of Peradeniya, Sri Lanka, 2025-09-11) Ungureanu , Camelia; Ungureanu , Andrei – Silviu
Introduction It is well known that today’s society is facing a series of challenges that possess considerable implications for both individual and collective well- being. In recent years, humanity has encountered several circumstances, such as geopolitical tensions, climatic challenges, economic and pandemic crises, which have influenced and persisted in influencing and maintaining widespread stress and uncertainty. The negative effects of perceived uncertainty on development and macroeconomic performances have been a subject of interest, as the papers Liu and Gao (2022) and Palmen (2022) highlight, focusing on different states or different country groupings. However, few studies have examined the moderating effect of institutional quality in the uncertainty-growth relationship at the state level. Thus, the novelty of the research lies in examining how public institutions may buffer economies against uncertainty, a topic rarely addressed for emerging economies.
Entrepreneurship awareness and gender disparities among undergraduates in Sri Lanka: bridging the intention-action gap
(Department of Economics and Statistics, Faculty of Arts, University of Peradeniya, Sri Lanka, 2025-09-11) Dimbulgasthenna, A.I.M.; Dorabawila, S.S.K.B.M.
Introduction Entrepreneurship is a key driver of economic growth, particularly in developing economies like Sri Lanka, where limited job opportunities and high youth unemployment persist (ILO, 2020). University undergraduates, with their education and creativity, represent a promising group for entrepreneurial activity. Yet, despite high awareness, the transition from intention to action remains weak due to financial, educational, and socio-cultural barriers. Gender disparities exacerbate this challenge, as women face restrictive norms, limited support, and unequal opportunities, resulting in lower participation despite strong entrepreneurial intentions (Perera & Jayasinghe, 2017; de Mel, McKenzie, & Woodruff, 2009). The University Grants Commission’s (2018) Tracer Study further highlights graduate underemployment, underscoring the need for entrepreneurship as an alternative pathway (Jayawardena, 2019). This study explores entrepreneurship awareness and aspirations among Sri Lankan undergraduates, with emphasis on gender disparities and barriers. The findings aim to inform inclusive policies that strengthen higher education’s role in fostering entrepreneurship.
The determinants of GDP, literacy rate and life expectancy on PWE in Sri Lanka : analysis from 2000-2022
(Department of Economics and Statistics, Faculty of Arts, University of Peradeniya, Sri Lanka, 2025-09-11) Hapuarachchige, Dinujaya; Lakshitha, Chanuka; Wijemanna, Sachinthani; Ekanayak, Mineth; Yapa, Shanta R.; Dayapathirana, Nirmani
Introduction One of the largest environmental problems of the twenty first century is plastic waste. The management of plastic waste has become more complex due to the world’s rapid growth in plastic production and consumption. The worldwide export of plastic waste is an important problem. Plastic’s low cost and various uses have made it the most vital materials in a wide range of industries. Plastic manufacturing and usage have been steadily increasing since 1950. Between 1950 and 2015 it has reached about 7800 million tons (Mt). In 1950 the globe produced 2 Mt of plastic annually by 2015, that amount had increased to 381 Mt. Estimates show plastic production is rapidly increasing and may reach 34000 Mt by 2050 (Salhofer et al., 2021). Sri Lanka produces around 1.59 Mt of plastic waste each year. Out of that, 33% is collected and a paltry 3% of that is recycled, resulting in serious environmental issues. The country was ranked number five in the world by the amount of plastic waste that gets into the ocean in 2017 (Rizkiya, 2024). The greater the GDP, the greater is the demand for consumer products. The OECD estimates that in the absence of major policy interventions, plastic waste can reach three times its current levels by 2060, fueled by population and economic growth (Sonke et al., 2025). In Sri Lanka, economic development has caused plastic onsumption to grow. In the absencs of waste management infrastructure increase mismanaged waste. While there are no direct correlations between plastic waste and life expectancy, environmental pollution caused by plastic can have serious implications for public health. Plastics have been detected in drinking water sources and food chains around the world, raising concerns about long-term health effects and causing environmental degradation, which indirectly affects public well-being and longevity (Ragusa et al., 2021). Education plays a crucial role in shaping sustainable waste management behaviors. Higher literacy rates are strongly associated with increased environmental awareness and responsible waste disposal practices. Globally, educational initiatives aimed at promoting environmental stewardship such as school-based environmental Programmes help instill knowledge from an early age. However, turning awareness into action remains a challenge (Dalu et al., 2020).
The pivotal role of entrepreneurship in Sri Lanka's economic development : an analysis of sectoral dynamics and government policy impact
(Department of Economics and Statistics, Faculty of Arts, University of Peradeniya, Sri Lanka, 2025-09-11) Aslam, Fahim
Introduction Sri Lanka's economy has demonstrated remarkable resilience in the post- 2022 crisis period, achieving a robust 5.0% GDP growth rate in 2024, significantly exceeding World Bank projections of 4.4%. This economic recovery trajectory has been fundamentally driven by entrepreneurial activities across key sectors, positioning entrepreneurship as a critical catalyst for sustainable development. The Global Entrepreneurship Monitor (GEM) 2024/2025 report reveals that while 49% of potential entrepreneurs globally cite fear of failure as a primary barrier, an increase from 44% in 2019, developing economies like Sri Lanka present unique entrepreneurial dynamics that warrant comprehensive investigation (Bosma et al., 2024). The entrepreneurial landscape in Sri Lanka exhibits distinct sectoral concentrations, with traditional industries such as tourism and apparel maintaining dominance, while emerging technology sectors remain significantly underdeveloped. With unemployment rates stabilising at 4.4% and labour force participation at 47.4% in 2024, understanding the mechanisms through which entrepreneurship contributes to economic development becomes crucial for policymakers seeking sustainable growth strategies (Central Bank of Sri Lanka, 2024). This research addresses the critical knowledge gap regarding the specific roles different entrepreneurial sectors play in Sri Lanka's economic development and the extent to which government policies have facilitated or hindered entrepreneurial growth.
A comparative analysis of rice industry productivity and export strategies : evidence from Sri Lanka and Thailand from 2003 - 2023
(Department of Economics and Statistics, Faculty of Arts, University of Peradeniya, Sri Lanka, 2025-09-11) Gunawardhana, T.P.U.M.
Introduction Rice is more than a staple food crop in Asia. It is deeply embedded in economic structures, food security systems, and export potential, particularly in South and Southeast Asia. Thailand and Sri Lanka, though geographically close and culturally influenced by rice cultivation, have followed diverging trajectories in terms of productivity growth and international competitiveness in the rice industry. Thailand has consistently ranked among the top global rice exporters, contributing approximately 12% to the world rice trade in 2022 (FAO, 2023). In contrast, Sri Lanka, despite favourable agroecological conditions and a rich agricultural tradition, has remained a net importer of rice in several recent years (CBSL, 2023). This divergence raises critical questions regarding the structural, policy, and technological differences shaping rice productivity and export strategies in these two countries. In Thailand, the rice sector has been strengthened by large-scale mechanisation, effective irrigation systems, and market-oriented reforms introduced in the 1990s and expanded under Thailand’s Agricultural Development Plan (Ministry of Agriculture and Cooperatives, 2022). These reforms emphasised export competitiveness, infrastructure development, and farmer training programmes. By contrast, Sri Lanka’s rice industry has focused mainly on domestic food security, supported by heavy subsidies for inputs such as fertilizer and water, as reflected in the “Api Wawamu Rata Nagamu” initiative. However, a lack of systematic export strategy and weak integration with global market has limited Sri Lanka's ability to capitalize on potential surplus production (Edirisinghe et al., 2020). Moreover, comparative productivity between the two countries reflects a significant disparity. In 2022, Thailand recorded an average rice yield of 3.0 metric tons per hectare, while Sri Lanka achieved 4.3 metric tons per hectare (FAOSTAT, 2023). Despite Sri Lanka’s higher yields, Thailand has outperformed in total factor productivity due to technological efficiency, superior logistics, and post-harvest management systems (World Bank, 2022). This paradox of higher yields, lower export performance in Sri Lanka indicates that productivity alone does not ensure trade competitiveness, highlighting the need for a multi-dimensional analysis of industry performance. The importance of this study is underscored by the economic crises faced by Sri Lanka in recent years, where agriculture and export diversification have emerged as key pillars in the recovery discourse (IMF, 2023). Understanding the successful elements of Thailand’s rice export strategies could offer critical insights for Sri Lanka to realign its agricultural policy toward both food security and global trade integration. Further, this research filled the gap in comparative literature that systematically evaluates production and trade metrics, institutional frameworks, and technological adoption in rice sectors across these two countries. Further, this study conducted a comparative analysis based on quantitative methods, investigated not only the level of productivity and export performance but also the institutional and technological foundations of sectoral outcomes, and found evidence-based policymaking contributes to the broader discourse on sustainable agricultural development and trade resilience in developing country contexts.
The impact of wages and education on female labour market outcomes in Sri Lanka
(Department of Economics and Statistics, Faculty of Arts, University of Peradeniya, Sri Lanka, 2025-09-11) Hewamadduma, C.S.V.
Introduction Female participation in the labour market plays a vital role in fostering inclusive economic growth, particularly in developing countries like Sri Lanka. Despite significant improvements in women's education and policy efforts to promote gender equality, many Sri Lankan women still struggle to secure stable and meaningful employment. To design effective gender and labour policies, it is crucial to understand how factors like wages and education influence women’s labour market outcomes.
Determinants of technical efficiency in dry zone dairy farming systems of Sri Lanka
(Department of Economics and Statistics, Faculty of Arts, University of Peradeniya, Sri Lanka, 2025-09-11) Hitihamu, H.M.S.J.M.; Abayasekara, A.W.A.D.R.
Introduction Dairy sector is a vital part of Sri Lanka’s rural economy, providing income, employment, and nutrition. Beyond supplying high-quality protein and essential nutrients, livestock also acts as a “living bank” for smallholders, offering financial security in times of hardship. Despite this socio-economic importance, sector’s overall contribution to GDP remains modest: agriculture accounted for 8.3% in 2023, with animal production at just 0.8%. With 77% of the population living in rural areas, dairy remains critical for livelihoods. Sri Lanka’s livestock population includes 1.57 million cattle & 0.47 million buffaloes, of which only 37% are milking animals. In 2023, domestic output totaled 370.32 million liters, but the country still imported over 50 million kg of milk powder at a cost of Rs. 63 billion. Productivity is limited by poor feed, breeding, management, & veterinary services, particularly in the Dry Zone, which holds 79% of livestock yet produces only half the milk. Addressing technical efficiency here is crucial for boosting productivity and rural welfare.
Harnessing tourist reviews of natural attractions to foster sustainable development in Brașov, Romania
(Department of Economics and Statistics, Faculty of Arts, University of Peradeniya, Sri Lanka, 2025-09-11) IVASCIUC, Ioana- Simona
Introduction Tourism is one of the most dynamic economic sectors worldwide, and mountain- and nature-based destinations play an increasingly important role in attracting visitors (World Tourism Organization, 2022). Brașov County, ranked third in Romania in terms of green-space area, encompasses over 1,365 hectares of green spaces, including forests, natural parks, and protected areas, that form the main pillars of its tourist appeal. Natural attractions are threatened by overuse and poor planning, requiring a balance between economic growth and conservation to protect ecosystemsand communities (Brundtland Commission, 1987). Managing tourist activities and promoting low-impact alternatives is essential, as nature-based tourism can lead to habitat degradation, roadkill, and wildlife disturbance (Wolf et al., 2019). Highly attractive sites are especially vulnerable, with pressure reducing visitor satisfaction over time and potentially causing environmental decline (Barros et al., 2015; Wolf et al., 2019). Harmonizing economic goals, such as increasing accommodation capacity and tourist arrivals, with resource preservation requires careful planning and participatory governance. Key elements include assessing attractions, defining protected areas, and fostering collaboration among authorities, operators, and communities (UNWTO & UNEP, 2005). At the European level, frameworks like Agenda 21 and Natura 2000 guide sustainability integration in regional development. Nevertheless, it remains difficult to quantify how visitors’ perceptions of natural attractions—as reflected in online reviews—translate into concrete outcomes for tourism infrastructure and visitor flows. Literature in this area has not explored the relationship between review-based indicators (ratings and review frequency) and accommodation capacity or tourist arrival variations within a given geographic area. This study investigates the relationship between online review metrics (ratings and volume) of natural attractions and their impact on accommodation development and tourist flows in Brașov County, Romania, aiming to understand how digital engagement influences sustainable tourism planning.
The impact of remittances, FDI and capital formation on economic growth : evidence from Sri Lanka (1977-2023)
(Department of Economics and Statistics, Faculty of Arts, University of Peradeniya, Sri Lanka, 2025-09-11) Jayarathna, H.G.M.S.; Ranathilaka, M.B.
Introduction Sri Lanka’s economic growth trajectory since liberalisation in 1977 has been shaped by both external and internal drivers, most notably foreign direct investment (FDI), workers’ remittances, gross capital formation, exports, and savings. These variables are widely recognised as central to the growth process of small open economies, where reliance on external finance is high (Athukorala, 2012). In Sri Lanka, remittances have provided stability to household consumption, particularly during crises, while FDI has contributed to technology transfer and integration into global markets (Alfaro et al., 2004). Similarly, gross capital formation reflects investment in infrastructure and production, whereas exports and savings are important indicators of economic resilience (Levine and Renelt, 1992). Although many studies have examined these factors, most focus on them in isolation or cover limited periods (De Silva and Kodituwakku, 2018; Jayasuriya and Arunatilake, 2020). This leaves a gap in understanding their combined and dynamic impact on growth, particularly in the face of recent challenges such as the COVID-19 pandemic and the 2022 debt crisis. Previous research has not sufficiently distinguished between short-run adjustments and long-run equilibrium effects, an area that requires further exploration (Loayza and Rancière, 2006). This study seeks to fill that gap by applying the Autoregressive Distributed Lag (ARDL) model to annual data from 1977 to 2023. The contribution of this study lies in providing an updated and integrated assessment of Sri Lanka’s key growth drivers, generating insights that can inform policymakers in shaping more resilient and sustainable development strategies.
Remodelling traditional food bank supply chain to a virtual supply chain in Sri Lankan context
(Department of Economics and Statistics, Faculty of Arts, University of Peradeniya, Sri Lanka, 2025-09-11) Jinadasa, A.V.S.; Jinadasa, P.N.G.; Hettiarachchi, S.; Samarakoon, H.K.G.N.D.
Introduction “Food insecurity” is a global issue, affecting 3.9 million individuals in Sri Lanka (SL) with severe consequences (FAO and WFP, 2023). Food Banks are a non-profit initiative focused on reducing food insecurity, with a supply chain that can be outlined as follows, donors - supermarkets providing surplus food (Reusken, Cruijssen, and Fleuren, 2023) and individuals donating funds; food banks - organizations that distribute food at free of charge; and beneficiaries - individuals and families receiving assistance from food banks (Rivera, Smith and Ruiz, 2023). Multiple difficulties are faced by parties involved in food bank supply chains. Individual donors lack personalized feedback on the impact of their donation, and struggle to find and give to preferred causes leading to lack of motivation to continue donations (Rivera, Smith and Ruiz, 2023). Food banks face challenges due to inappropriate fundraising strategies, high cost, a lack of regular donations, volunteer dependence, a lack of organizational capacity, managing demand and distribution and perishable inventory (Stötzer and Kaltenbrunner, 2023). Beneficiaries struggle with unsuitable, unusable or low-nutrition food, that is spoiled or not meeting beneficiary’s nutritional requirements (Stein, 2022). The study proposes a virtual food bank concept to reduce supply chain costs, increase donations, and enhance beneficiary experience. There is no research conducted on food banks such as ‘Kadamandiya’ food bank in SL, and related culture.
The impact of investment and trade on Sri Lanka’s economic growth since 1977
(Department of Economics and Statistics, Faculty of Arts, University of Peradeniya, Sri Lanka, 2025-09-11) Kumudhini, K.
Introduction Investment is identified as one of the most important determinants in a country's macro-economic progress. In the journey toward stable and long-lasting economic growth, developing countries like Sri Lanka often face two main challenges: increasing local investment and connecting more with the global economy. Sri Lanka, because of its important location in the Indian Ocean and its mixed economy of agriculture, industry, and services, offers an interesting case. For a small developing country like Sri Lanka, embracing an open economy model that is, encouraging exports, foreign investment, and integration into global supply chains can be particularly beneficial. The garment and tourism sectors are key export earners and GDP contributors for Sri Lanka, demonstrating the positive impact of foreign direct investment (FDI), trade agreements, and liberalized policies. These sectors have thrived due to trade agreements with the EU and U.S., and a more open trade environment, which has encouraged foreign investment and growth. Although Sri Lanka has implemented trade liberalization policies and encouraged investment since 1977, the long-term outcomes of these strategies remain uncertain. While sectors like garments and tourism have clearly benefited from FDI and international trade agreements, overall economic performance has been inconsistent. For example, export earnings reached a record $16.17 billion in 2024, reflecting growth in trade-related sectors. However, despite these positive figures, Sri Lanka continues to face macroeconomic instability, trade imbalances, and low domestic savings. The labour force participation rate has not shown strong or consistent links to economic growth, and there is limited empirical consensus on how trade, investment, and labour contribute to GDP in the short and long run.
Impact of macroeconomic factors on unemployment dynamics in Sri Lanka (1980 -2023) : an ARDL bounds testing approach
(Department of Economics and Statistics, Faculty of Arts, University of Peradeniya, Sri Lanka, 2025-09-11) Kumudhini, K.; Sri Ranjith, J. G.
Introduction Unemployment remains a persistent challenge for many developing nations, and Sri Lanka is no exception. Despite periods of moderate economic growth, the country continues to grapple with high unemployment rates particularly among youth and women. According to the Department of Census and Statistics (2024), the youth unemployment rate stands at 20.6%, with a stark gender disparity: 16.3% for males and 29.5% for females in the 15–24 age group. These statistics highlight structural weaknesses in Sri Lanka’s labour market, including limited job creation, distribution of job Macroeconomic factors such as GDP growth, inflation, educational expenditure, government activities, foreign direct investment (FDI), and labour force participation significantly shape unemployment dynamics. For example, Sri Lanka’s public investment in education is mostly below 2% of GDP, limiting the development of technical and vocational skills critical for employment. Similarly, while FDI can be a potential driver of job creation, much of it in Sri Lanka has been directed toward capital-intensive sectors like infrastructure and telecommunications, with limited employment impact. Several empirical studies have examined the macroeconomic and structural determinants of unemployment in Sri Lanka, offering nuanced insights into the complexities of the labour market. Madushani and Madurapperuma (2023), employing the ARDL bounds testing approach for the period 1990– 2020, found that GDP, FDI, and population growth significantly influenced unemployment in both the short and long run, while inflation exerted a long-run effect only. Karunarathna et al, (2023) examined the relationship between economic growth and unemployment in Sri Lanka from 2001 to 2020 using a simple linear regression model. Economic growth rate was treated as the independent variable and unemployment rate as the dependent variable. The results showed a negative relationship, and it implies that a 1% increase in economic growth leads to a 0.072% decrease in unemployment. The study concludes that reducing unemployment is essential for promoting long-term economic growth, reducing poverty, and minimizing inequality in Sri Lanka. This study looks at why unemployment in Sri Lanka has stayed high from 1980 to 2023, even when the economy was growing. It explores how key economic factors like GDP growth, foreign investment, labour force participation, education spending, and inflation affect unemployment in both the short and long run.
Survival-driven or growth-driven : analysis on types of entrepreneurs from an economic growth perspective
(Department of Economics and Statistics, Faculty of Arts, University of Peradeniya, Sri Lanka, 2025-09-11) Madhavie, A.V.K.
Introduction Entrepreneurs are a prominent group of individuals who make significant contributions to economic growth. The positive effect of entrepreneurship on economic growth has been highly noted (Rodrigues and AC TEIXEIRA, 2020; Hamdan, 2019; Zvavahera et al., 2018; Kressel and Lento, 2012; Kefela, 2011; Acs, 2006; Van Stel et al., 2004; Fritsch and Mueller, 2004; Audretsch and Fritsch, 2003; Reynolds et al., 2002; Wennekers and Thurik, 1999; Holcombe, 1998). However, until recent years, entrepreneurs were considered a unique group. Later, due to the expansion of the field of entrepreneurship, researchers tend to analyze entrepreneurship more closely in relation to economic growth. It was then noted that entrepreneurs are not uniform and can be categorized into different types based on various criteria. Targeting higher economic growth, countries worldwide are preparing policies to promote, improve, and accelerate entrepreneurship. However, to achieve the expected results from these policies, it is essential to understand the contributions of different types of entrepreneurs to economic growth. The identification of types of entrepreneurs is no longer a historical phenomenon. However, after identifying that entrepreneurs are not uniform, they were divided into types based on different criteria. One such criterion commonly used is the aspiration of being an entrepreneur. It refers to either survival or any other aspiration. Necessity, subsistence, survival, remedial, self-employed, and general entrepreneurs’ primary aspiration of being an entrepreneur is survival. They are running businesses as a means of survival. Also, they have become entrepreneurs due to the absence of employment opportunities. Most probably, this was their last opportunity for a means of income for survival. Opportunity, growth-oriented, transformational, business owners and employer entrepreneurs run their businesses to capitalize on prevailing opportunities in the entrepreneurial ecosystem and exploit their advantages. Their main objective is the growth of the business (Stel et al., 2014; Berner et al., 2012; Schoar, 2010; Block and Wagner, 2010; Mondragon–Veles and Pena, 2010; Stam et al., 2009; Block and Sandner, 2009; Hechavarria and Reynolds, 2009; Ardagna and Lusardi, 2008; Hessels, 2008; Bergmann and Sternberg, 2007; Acs, 2006; Bosma and Harding, 2006; Reynolds et al., 2002). Although there are different types of entrepreneurs, the literature highlights that not all types significantly contribute to economic growth. Additionally, it suggests that types of entrepreneurship with minimal economic impact should not be actively promoted. Instead, emphasis has been placed on encouraging entrepreneurship that makes a significant contribution to economic growth. However, counterviews can also be noted when reviewing the existing literature. Then, there is a higher requirement for a unique agreement to encourage and maintain different types of entrepreneurs from an economic growth perspective, facilitating effective policy design.
Spatial Inequality in Sri Lanka: contemporary tendencies
(Department of Economics and Statistics, Faculty of Arts, University of Peradeniya, Sri Lanka, 2025-09-11) Nadeeka, G.H.D.; Rajapaksha, R.K.M.
Introduction Spatial inequality refers to the unequal distribution of income and access to services across different geographic areas or locations (World Bank, 2009). According to the World Bank (2024), rising food insecurity, increasing malnutrition, and growing rural poverty in Sri Lanka highlight widening spatial and intergenerational inequalities, which demand urgent and inclusive policy responses. Urban areas - especially in the Western Province have seen sustained improvements in education, healthcare, digital connectivity, and income levels, while many rural and estate sectors remain underserved. According to the Household Income and Expenditure Survey (HIES), (Department of Census and Statistics (DCS), 2021), the poverty headcount in rural areas is nearly three times that of urban areas. Rural youth continue to face higher rates of underemployment, and access to tertiary education and health infrastructure remains disproportionately concentrated in urban districts (Central Bank of Sri Lanka, 2022). Vicious cycle of poverty explains how poverty perpetuates itself across generations due to limited access to education, poor health, low productivity, and weak capital accumulation. In rural Sri Lanka, households often lack access to quality schools, healthcare, and markets, trapping them in a cycle of low income and limited upward mobility. As posited by Nelson (1993), breaking this cycle requires structural interventions, not merely short-term welfare assistance. This issue is not only empirical but also deeply rooted in development theory. One relevant framework is Gunnar Myrdal’s theory of cumulative causation, which explains how economic advantages tend to concentrate in specific regions, typically urban centers creating a reinforcing cycle of development. As urban areas grow, they attract more investment, talent, and infrastructure, while rural areas fall further behind due to “backwash effects.” This contributes to widening inter-regional inequalities, as seen in Sri Lanka, where public and private investments are disproportionately concentrated in the Western Province. Spatial Inequality Theory explains that development is unevenly spread across different areas because of historical, institutional, and geographic reasons. In Sri Lanka, historical infrastructure development, colonial plantation economies, and current centralization of services have resulted in significant spatial gaps. These disparities are visible in sectors such as education, where access to advanced schools and universities is heavily urban-centric, and in healthcare, where rural areas often lack specialists and well-equipped hospitals (Kanbur & Venables, 2005; Henderson, 2002). Marxian analysis helps explain how capitalist growth, the legacy of plantation economies, and neoliberal globalization deepen the gap between urban and rural areas. Recent years have witnessed increased global attention to the need to tackle inequality (Stewart, 2010). In Sri Lanka over 75% of population lives in rural areas. Regional inequality can trigger internal migration, overburdening urban infrastructure and weakening rural economies. Recent evidence from the World Bank's Sri Lanka Development Update (April 2024) highlights how these disparities are worsening with poor labor force participation particularly in rural and estate sectors, increased poverty (25.9% in 2023) etc. This signals geographically uneven issues and demands more targeted policy interventions. Therefore, this study investigates “What are the contemporary tendencies of Spartial inequality in Sri Lanka”. The research aims to contribute to development policy by identifying both the causes and consequences of regional inequality, offering insights into how Sri Lanka can move toward more balanced and inclusive growth.
Feeding nations : domestic food production and food security in SAARC countries through a panel ordered probit lens
(Department of Economics and Statistics, Faculty of Arts, University of Peradeniya, Sri Lanka, 2025-09-11) Pulle, N.K.P.N.; Sampath, L.P.; Wijayaweera, W.J.L.D.J.; Perera, G.D.S.P.; Jayathilaka, R.; Dabare, U.
Introduction South Asia is the second most poorest region in the world (SAARC, 2020). During the late 20th Century, the South Asian Alliance for Regional Cooperation (SAARC), discerned a boom in agriculture, enhanced by the Green Revolution, resulting in high-yielding crop varieties and high-input intensity (Tiwari et al., 2017). However, it was difficult for SAARC nations to cater to the growing demand caused by rapid population growth and urbanisation. Most of these countries faced significant economic changes over time, but their poverty and undernourishment levels are still concerning, and must be diligently addressed. The novel introduction of the three-tiered categorisation of the Food Production Index (FPI) helps to identify the probability of the SAARC nations being low, moderate or high food secure. This study employs a panel ordered probit analysis; a technique not previously applied to this type of econometric study. It has been identified that land used for production, varying climate patterns and rising Carbon dioxide (CO2) emissions are key determinants of food security across SAARC nations (Behera et al., 2024). The SAARC region has experienced economic growth over the last few decades (Tiwari et al., 2017), while still retaining the highest rural population out of all other developing regions (FAO, 2001). Hence, it is vital to ensure the food security of these nations by focusing whether adequate food is produced to sustain its population. The study intends to contribute to the SDGs by exploring the impacts of greenhouse gases, expanding arable land and uncontrollable population growth, alongside persistently low food security levels which impacts the entire ecology.
Exploring the impact of inflation, real interest rate, unemployment on economic growth in Sri Lanka
(Department of Economics and Statistics, Faculty of Arts, University of Peradeniya, Sri Lanka, 2025-09-11) Rajapaksha, R.W.M.N.G.
Introduction Economic growth is a fundamental goal of any developing nation, as it translates into rising living standards, job opportunities, and national prosperity. While Sri Lanka is a developing nation, that grappling with the challenges of post-conflict reconstruction, debt pressures, and external shocks, realizing steady which daunting the sustainable growth. Among the many important macroeconomic indicators, unemployment, real interest rate, and inflation have crucial role in economic growth (Selvnayagam and Mustafa, 2019). Fischer (1981) argued that major costs of inflation arises uncertainty of consumption, savings, borrowing, and investment decisions. IMF (1984) emphasize that interest rates affect economic growth by affecting saving and investment decisions. Patel and Makwana (2024) states that unemployment generates poverty, income inequality, lack of investment, and depletion in human capital. Therefore, relationships among these variables and economic growth need to be further examined.
Assessing the impact of digital connectivity and ICT trade on black carbon emissions in Sri Lanka from 2000 to 2022
(Department of Economics and Statistics, Faculty of Arts, University of Peradeniya, Sri Lanka, 2025-09-11) Samarasinghe, K.T.B.Y.; Pinnawala, P.A.P.S.; Samarasingha, N.N.S.; Iroshima, W.L.P.P.; Yapa, S.R.; Dharmapriya, W.D.N.M.
Introduction Black carbon emissions (BCE) refer to the release of soot particles to the atmosphere from the incomplete combustion of fossil fuel, biomass and waste and they are major contributors to climate change and air pollution. Two main contributing factors to this situation are urbanization and industrialization. As a result it causes significant environmental and public health issues. During the covid-19 lockdown Sri Lanka has observed a significant decrease in air pollution like PM 2.5 levels. The literature highlights the importance of country specific studies on how technical and behavioral factors affect to mitigate BCE (Pushpawela et al., 2023). In the South Asian region BCE has significantly affected environmentally sensitive Tibetan Plateau as identified in the literature which demands global mitigation strategies. Murshed (2024) argues that carbon emission growth rate can be reduces directly and indirectly using the internet penetration and digitalization effectively. A study by Anita et al., (2024) revealed that black carbon as a component of “Particulate Matter (PM2.5)” associate with significant health risks, especially among children under the age 5. The deaths due to PM 2.5 have reached approximately 306,800 during 2010 to 2014 in South Asia demanding the urgent need of effective air quality improvement initiatives. Further, ICT goods also significantly contributes environmental pollution (Bhujabal et al. (2021)). The negative effects include e-waste, carbon leakage and pollution in the manufacturing processes. By focusing on Sri Lanka's BCE as opposed to the well-researched CO₂ emissions, this study fills a crucial research gap. It examines the often-overlooked impact of wireless and broadband adoption as well as the trade in ICT commodities on BCE and provide new insights for evidence-based mitigation solutions and policy initiatives.
Measuring career intentions of youth in Bhutan : is entrepreneurship a career alternative?
(Department of Economics and Statistics, Faculty of Arts, University of Peradeniya, Sri Lanka, 2025-09-11) Adhikari, Sapnam; Saha, Debdatta
Introduction Bhutan has registered significant youth unemployment in recent times. Unemployment, being a critical problem of underdevelopment, understanding the unemployment problem from various perspectives is of paramount importance for Bhutan. In this paper, we explore this issue from the vantage of the career intentions of the youth in Bhutan. Specifically, we are interested in understanding the extent to which entrepreneurship has emerged as a career option for the youth. It is interesting to note that entrepreneurship has not been recognized in Bhutan for a long time. However, in recent times, entrepreneurship has been a focus area for the government, potentially due to rising unemployment among the youth (Department of Employment and Entrepreneurship of Bhutan, 2022; National Statistics Bureau, 2022). There are significant gaps for further research because the issue of entrepreneurial intent among the youth as a career alternative in Bhutan is very briefly covered in the existing academic literature.
Hidden burdens : exploring the economic impact of domestic violence in Sri Lanka’s tea estate sector (Nuwara Eliya district)
(Department of Economics and Statistics, Faculty of Arts, University of Peradeniya, Sri Lanka, 2025-09-11) Rajendran, Shobana
Introduction Domestic violence (DV) is a significant global issue that transcends cultural and economic boundaries, representing a major violation of human rights. It negatively impacts public health, productivity, and economic participation, with women disproportionately affected due to their unpaid work and caregiving roles (UN Women, 2020; Folbre, 2006; Elson, 1999). In Global South nations, where informal economies are common, DV contributes to women's economic disempowerment by limiting their access to paid labour, reducing productivity, and increasing time poverty (Heise et al., 2002). Often, poor women lack access to services and legal protection, which further marginalizes them and perpetuates cycles of violence and exclusion. The tea estate sector in Sri Lanka is a major trade-driven industry that employs many Tamil-speaking women from marginalized communities. Despite being the backbone of the estate economy, they face underpayment and overwork, often in harsh conditions without legal protection. Domestic violence (DV) in this sector remains largely unaddressed by national policy and estate governance. Furthermore, there is a dearth of studies on the unpaid costs of DV, such as lost income and increased healthcare expenses, which are often overlooked by conventional economic analyses. Hence, there is a need to address this gap by examining the economic cost of DV. Utilizing a feminist-economics framework, it explores the intersection of DV with labour, care work, and financial survival in Sri Lanka’s plantation economy. By highlighting the ‘unpaid costs' of DV, the research contributes to gender and economic policy debates, advocating for a re-evaluation of how violence is measured and addressed in labour and development discussions.
Analysing the determinants of 10-year government bond yield in Sri Lanka
(Department of Economics and Statistics, Faculty of Arts, University of Peradeniya, Sri Lanka, 2025-09-11) Yatipansalawa, Y.G.H.K.B.
Introduction The government security market is one of the most fundamental alternate sources of financing which is a debt instrument issued in the form of Treasury Bills and Treasury Bonds by the Sri Lankan state government through the Central Bank of Sri Lanka to raise money for public spending. The yield of the bonds reflects the government’s cost of borrowing and it can act as an indicator of the country’s macroeconomic health. The yield of longterm government securities plays a vital role in shaping a country’s debt sustainability, guiding investor behaviour, and influencing the transmission of monetary policy. In the Sri Lankan context, the 10-year government bond yield is a key benchmark for market expectations regarding inflation, interest rates, and fiscal credibility. Given the country’s fiscal and monetary developments between 2015 and 2024—including high inflation, exchange rate fluctuations, and debt restructuring efforts—understanding the underlying factors that influence long-term yields has become increasingly important. This research seeks to fill this gap by identifying and examining the determinants that affect the 10- year government securities yield in Sri Lanka thereby contributing to both academic literature and policy formulation.

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