(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Silva, N.L.C.; Silva, N.K.L.; Perera, P.R.M.R.
This paper investigates the relationship between government debt and gross
domestic production in Sri Lanka. Objective of this study is to find the
relationship between these two variables and the impact of government debt
on economic growth. Data was collected through Central Bank of Sri Lanka
and the data set proven to be normally distributed. Correlation and Linear
Regression Model is used to ascertain relationships. Data sample represent
annual time series data for the period of 15 years starting from 2000 to 2014.
Results of the study is consistent with the Keynes View which proves that
there is a positive impact of government debt on economic activities.
