Nexus of Tourism and Economi Fluctuations in Srilanka

Abstract

This is study of exploring the nexus between tourism and economic growth in Sri Lanka. Using the annually statics of central bank report. Tourism industry has become the reason for rapid growth in every economy. "A tourist is as an individual who for leisure or other purposes, temporarily leaves the place of residence for being hosted in a destination, activating successive economic effects that are worth investigating,” The objective of this is to explore two main elements of Sri Lankan economy. Those are Tourism and Economic growth in Sri Lanka during the period of 1977 - 2018. The is study obtained the relationship between economic growth and tourism earning during 1977-2018. These two variable have long term relationship. As a result of that which is causality between economic growth and tourism earning. Where economic growth only causes to tourism earnings not the other way around. Economic growth hypothesis in the phase of development since the priority of the tourism earnings had been understood only a few years ago. Due to the domestic war situation in the last years until 2009. Sri Lankan economy had become the upper economic growth rate in last years because of the Tourism industry. Easter day attack was the current affect to the economy. That is the affect for the economic growth of Sri Lanka. Obtain of this study of Sri Lankan Economic development that tourism should guide to economic growth in the future. The relationship measured by secondary data. Descriptive statistics were used to analyze the data and it revealed that there was a significant impact of tourism earnings on economic growth in Sri Lanka