Papers by Ravindra Deyshappriya
SSRN Electronic Journal, 2022
COVID-19 has created severe health issues while creating drastic impacts on global economy and th... more COVID-19 has created severe health issues while creating drastic impacts on global economy and thus the World Health Organization (WHO) has announced a global emergency condition as well. These adverse impacts of COVID-19 are more substantial especially in business sectors in least developed and developing countries. Hence, the current study attempts to examine the impact of COVID-19 on SMEs’ performance in Sri Lanka, highlighting the differences in SMEs’ performance between pre-COVID-19 and during COVID-19 periods. The study based on primary data collected from 304 SMEs located in nine provinces of Sri Lanka and both descriptive and econometrics analyses were employed to accomplish the objectives of the study. The statistical investigation based on t-test analysis clearly indicates that there is a statistically significant difference in SMEs’ performance between pre-COVID-19 and during COVID-19 periods. More specifically, both financial and operational performance have reduced while increasing the innovative performance during the COVID-19 period compared to Pre-COVID-19 period. Moreover, the econometrics analysis confirms that SMEs affected by COVID-19 account for lower performance compared to those are not affected by COVID-19. More specifically, negative impact on SMEs performance gets higher when the magnitude of COVID-19 impact increases. Hence, it is apparent that COVID-19 has drastically affected the SMEs’ performance in Sri Lanka. Thus, the present study strongly recommends implementation of proactive policies to re-emerge SMEs while SMEs should themselves organize to battle with the COVID-19 outbreak. Keywords: COVID-19, Small & Medium Enterprises, SME Performance, Sri Lanka, Innovativeness
Stock markets are considered as a crucial sector in the financial system as they fulfill long ter... more Stock markets are considered as a crucial sector in the financial system as they fulfill long term capital requirements of investment projects which are essential for steady economic growth. However, researchers are yet to establish a link between stock market development and economic growth; furthermore, they have ended up with contradictory findings. Consequently, both Growth-Led Finance and Finance-Led Growth Hypotheses are supported by different contemporary authors leaving more space for new scholarly work. This book is an attempt to narrow the gap that exists in literature and provide a more quantitative approach based on modern econometric techniques. While the book analyses the link between stock market development and the economic growth of both developed and emerging markets, it also addresses the development of the stock market in Sri Lanka. Thus, this will be an interesting read for both scholars and general readers.
Sri Lanka has been one of the countries in the region with faster expansion of urban areas. Howev... more Sri Lanka has been one of the countries in the region with faster expansion of urban areas. However, less attention has been paid on the rapid expansion of Sri Lanka’s urban areas and its impacts on poverty and income inequality in Sri Lanka. Hence, the objective of the current study is to examine the impacts of urban sector on poverty and income inequality in Sri Lanka. The study applied probit and ordered probit models and calculations of growth elasticity of poverty along with appropriate descriptive statistics. The analysis is mainly based on the data from Household Income & Expenditure Survey (2012/13) conducted by the Department of Census and Statistics of Sri Lanka. The findings suggest that the being an urban sector household significantly reduces poverty. More specifically, the probabilities of being extreme poor, poor and vulnerable non-poor for a household in the urban sector are lower by 0.2%, 3.4% and 8.1% respectively, compared to the estate sector. Similarly, the prob...
Journal of Economics and Business, 2019
The Journal of Economics and Business is an Open Access publication. It may be read, copied, and ... more The Journal of Economics and Business is an Open Access publication. It may be read, copied, and distributed free of charge according to the conditions of the Creative Commons Attribution 4.0 International license.
Margin: The Journal of Applied Economic Research, 2016
This study is an attempt to model the linkages between stock market development and economic grow... more This study is an attempt to model the linkages between stock market development and economic growth in developed and emerging markets. The causality direction between stock market development and economic growth has also been examined in order to provide solid policy implications. Mainly, the relationship and direction of causality between stock market development and economic growth were tested using dynamic panel data analysis based on the Generalised Methods of Moment (GMM) and panel Granger non-causality, respectively. Additionally, panel unit root tests were also applied to check the stationary of the selected variables to avoid misleading results. The study focuses on 20 countries, both developed and emerging markets, and data were collected over the period 1990–2014 mainly from World Bank data series. Dynamic panel data analysis confirms that there is a statistically significant relationship between stock market development and economic growth in both developed and emerging m...
Journal of Social and Economic Development, 2015
This paper models the impact of corruption and peace on economic growth during the period of 2008... more This paper models the impact of corruption and peace on economic growth during the period of 2008–2012. The study is based on a cross-country analysis which focuses 126 countries. Corruption and peace were represented by Corruption Perception Index and Global Peace Index introduced by Transparency International and Institute for Economics and Peace, respectively. OLS estimates confirmed that corruption negatively affects the per capita economic growth, while peace stimulates the economic growth of the tested countries. These results are consistent with the previous studies, and the results also suggest that labour and financial crisis reduce the per capita economic growth though foreign direct investment boosts the economic growth. The current study recommends securing the good governance which reduces the level of corruption along with peaceful environment in order to ensure the steady economic growth.
Journal of Economics and Development Studies, 2014
This paper models the impacts of the quality of the institutions, war and macroeconomic factors o... more This paper models the impacts of the quality of the institutions, war and macroeconomic factors on stock market development of Sri Lanka over the period of 1990-2012 using the co-integration analysis and error correction model. According to the both long run and short run models, war and institutional quality are the most influential negative and positive factors of stock market development respectively. In addition, macroeconomic factors such as capital formation, floating exchange rate regime, inflation, real interest rate, per capita GDP andforeign direct investment also ensure the stock market development in Sri Lanka. Therefore, the current study highly recommended to accommo date the appropriate policies to ensure the quality of the institutions and peaceful environment along with macroeconomic stability.
International Journal of Economics and Finance, 2014
The current study examines the Stock Market Anomalies in Colombo Stock Exchange (CSE); Sri Lanka ... more The current study examines the Stock Market Anomalies in Colombo Stock Exchange (CSE); Sri Lanka during the period of 2004 to 2013. The existences of both Day of the Week Effect and Monthly Effect have been tested using daily and monthly data respectively. The Ordinary Least Squares (OLS) method and GARCH (1, 1) model were employed to capture the Day of the Week effects and Monthly Effects along with the daily volatility behavior. The sample period was divided in to two periods as War Period and Post War Period in order to take the impacts of the War in to account. The results indicate the presence of negative Monday effect and the positive effects for all other days only for the war period. Further, the positive volatility effect on Monday and the negative volatility effect on Friday have been examined for both war period and the entire sample period with significant Wald F statistics. Despite, the positive January effects are common for all sample periods, the negative December effects cannot be identified for post war period. Hence, the study confirms the existence of Stock Market anomalies; both day of the week effect and monthly effect particularly during the war period. Moreover, these seasonality patterns limit the validity of Efficient Market Hypothesis in the context of Colombo Stock Exchange.
South Asian Journal of Social Studies and Economics, 2019
Aims: This study models tourists’ buying behavior in Sri Lanka analyzing key determinants of tour... more Aims: This study models tourists’ buying behavior in Sri Lanka analyzing key determinants of tourists’ buying behavior along with demographic characteristics of the tourists. The study focuses on how Marketing Mix Factors, Situational Factors and Personal Factors and other demographic factors affect tourist buying behavior in three tourist destinations in Down-South of Sri Lanka. Methodology: Data were collected from 500 tourists who visited three main tourist destinations such as Hikkaduwa, Unawatuna and Mirissa located in Down-South of Sri Lanka. Both descriptive and econometric analyses were employed to accomplish the objectives of the study. Results: The results of the descriptive analysis suggest that most of the tourists were from countries such as Russia, Germany and United Kingdom and their main purpose of the visits were recreation and leisure followed by education and health. Moreover, the respondents stayed 20 days on average in Down-South. However, it was observed that t...
Credit risk pertaining to commercial bank loans can be considered as one of the main risks which ... more Credit risk pertaining to commercial bank loans can be considered as one of the main risks which commercial banks face. Thus, commercial banks diversify their loan portfolio to enhance performance mitigating the credit risk. Loan portfolio diversification refers to providing loans into different sectors without concentrating on a particular sector. However, there is no consensus in the literature about the link between loan portfolio diversification and performance of commercial banks. Therefore, this study examines the impact of loan portfolio diversification on the performance of commercial banks in Sri Lanka. Hirschman Herfindahl Index was used to measure the loan portfolio diversification while performance measured by the CAMEL model. The variables such as Interest Rate Spread and Bank size are considered as the control variables. Data were collected from audited annual financial statements of commercial banks between 2008 and 2017. The sample consists of ten licensed commercial...
China Report, 2019
The article examines recent trends in the economic relations between Sri Lanka and China focussin... more The article examines recent trends in the economic relations between Sri Lanka and China focussing on trade, investment and tourism dimensions. Although bilateral economic ties between Sri Lanka and China have strengthened over time, the article demonstrates Sri Lanka’s low rank among China’s economic partners. For example, while China is the second-largest tourism partner of Sri Lanka in terms of tourist arrivals, Sri Lanka does not rank among even China’s top 25 tourist destinations. Consequently, the article recommends certain policy priorities to ensure mutually beneficial economic relations. With regards to tourism, it recommends promoting Sri Lanka’s brand on Chinese e-tourism websites and social media, introducing user-friendly tourist apps in Chinese, strengthening air connectivity and celebrating Chinese festivals. Similarly, trade and investment could be facilitated by stronger links with Chinese cities and connecting Sri Lankan students in China to the Chinese industry vi...
This study examines the macroeconomic determinants of income inequality using dynamic panel data ... more This study examines the macroeconomic determinants of income inequality using dynamic panel data analysis. Specifically, the study employs dynamic panel data analysis based on the generalized method of moments over 1990–2013 across 33 Asian countries. The World Bank data series was widely used as data for macroeconomic variables while the Gini index was collected from the World Income Inequality Database. In addition to the macroeconomic factors, the study incorporates a series of political economic and demographic factors to provide more realistic estimates. The study found an inverted U-shaped (parabolic) relationship between gross domestic product (GDP) and inequality, supporting the wellknown concept, the Kuznets curve. Apart from that, official development assistance (ODA), education, and labor force participation reduce inequality while higher inflation, political risk, terms of trade, and unemployment increase inequality in Asian countries. The study further observed that an ...
In recent years, trade between China and Sri Lanka has grown rapidly. N.R. Ravindra Deyshappriya ... more In recent years, trade between China and Sri Lanka has grown rapidly. N.R. Ravindra Deyshappriya outlines the significant trade imbalance that has developed as a result and highlights the potential for the island nation to export more products in which it has comparative advantage to its East Asian neighbour.
The present study examines the impacts of COVID-19 on tourism industry in 20 countries of Asia an... more The present study examines the impacts of COVID-19 on tourism industry in 20 countries of Asia and Pacific region, highlighting the effects on international tourist arrivals and tourist receipts, air reservation, hotel bookings and occupancy rates. As the results indicate, Asia and Pacific region reported the highest drop in tourist arrivals, which was-9% in January, 2020 and dropped further down to-98% by October, 2020. Drop in international tourist arrivals caused declining tourist receipts which is eight times higher than that of the global financial crisis in 2009. Apart from that, Asia and Pacific region reported the highest drop (-96%) in flight reservation by November 2020 compared to the previous year. Similarly, the occupancy rate in 2020 has also declined from 55% in January to 27% by March. Moreover, drop in hotel bookings has reached a bottom during April and May of 2020 and drop was more substantial in the regions such as Africa, Europe, Middle East and Asia and the Pacific. Under this scenario, it is apparent that tourism sector of Asia and Pacific countries has been severely affected by COVID-19 and therefore alternative revenue sources should be explored till the tourism sector re-emerged.
Despite the growth in Sri Lanka's tourism industry fuelled by increasing tourist arrivals fro... more Despite the growth in Sri Lanka's tourism industry fuelled by increasing tourist arrivals from China since 2009, the number of Chinese tourists remains negligible when compared to the numbers of Chinese tourists travelling to other countries. Sri Lanka can and should take concrete steps to multiply its incoming tourists from China. N.R Ravindra Deyshappriya writes.
Aims: This study models tourists' buying behavior in Sri Lanka analyzing key determinants of tour... more Aims: This study models tourists' buying behavior in Sri Lanka analyzing key determinants of tourists' buying behavior along with demographic characteristics of the tourists. The study focuses on how Marketing Mix Factors, Situational Factors and Personal Factors and other demographic factors affect tourist buying behavior in three tourist destinations in Down-South of Sri Lanka. Methodology: Data were collected from 500 tourists who visited three main tourist destinations such as Hikkaduwa, Unawatuna and Mirissa located in Down-South of Sri Lanka. Both descriptive and econometric analyses were employed to accomplish the objectives of the study. Results: The results of the descriptive analysis suggest that most of the tourists were from countries such as Russia, Germany and United Kingdom and their main purpose of the visits were recreation and leisure followed by education and health. Moreover, the respondents stayed 20 days on average in Down-South. However, it was observed that tourists' spending per day is significantly low and more than 69% of the tourists spent less than 100$ per day. The econometric findings emphasize that all three key determinants of consumer buying behaviour-marketing mix factors, situational factors and personal factors positively affect the tourists' buying behavior. Apart
Chinese investment in Sri Lanka has grown significantly in the last five years but it continues t... more Chinese investment in Sri Lanka has grown significantly in the last five years but it continues to remain low as a share of GDP and in comparison to other countries in the region. In this article, N.P. Ravindra Deyshappriya analyses China's spending, and discusses how policymakers in Sri Lanka could expand FDI inflows from its East Asian neighbour.
COVID-19 has been rapidly spreading across the globe, taking thousands of lives and bringing hund... more COVID-19 has been rapidly spreading across the globe, taking thousands of lives and bringing hundreds of economies to a standstill. Its initial impact on China’s economy and China’s consequent slowdown may have adverse economic impacts on the rest of the world as well. This article examines the impact of COVID-19 on the Sri Lankan economy, focusing on the sectors such as national output and employment, tourism, exchange rate and financial market and social and welfare.
Uploads
Papers by Ravindra Deyshappriya