PIERS 2019

Permanent URI for this collectionhttps://ir.lib.pdn.ac.lk/handle/20.500.14444/2910

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Causal links between trade openness and foreign direct investment : the long-run and short-run analysis of Sri Lanka
(University of Peradeniya, Sri Lanka, 2019-10-17) Mayoshi, R. M. M.; Vidanage, T. N.
Introduction In general, foreign direct investment (FDI) inflows play an increasingly strong impetus for economic development and progress of countries. It is considered as one of the major factors of growth in countries like Sri Lanka, India, and Bangladesh. According to Omisakin et.al. (2009), FDI serves as an important source of funds supply for domestic investment, thus promoting capital formation in the host country. FDI clearly brings investment finance and can contribute to employment. Technology and skills transfer, pioneering of new industries and export markets, formation of new clusters as anchor investors and creation of linkages with, and associated upgrading of competencies of local enterprises are perceived major benefits of FDI (United Nations Conference on Trade and Development, 2004). In the particular case of FDI inflow to Sri Lanka, it can play a major role in the economy. In 2017, net FDI inflows for Sri Lanka were 1,374 million US dollars, an increase from 193 million US dollars in 1998, growing at an average annual rate of 15.34% (Central Bank Annual Report, 2017). There are many studies showing the relationship between FDI and trade openness for a number of counties. According to Sazali et.al. (2018) trade openness has a positive and significant impact on FDI in Malaysia. Liargovas and Skandalis (2012) found that trade openness contributes positively to the inflow of FDI in developing economies. Athukorala and Karunarathna (2004) found that the direction of causality was not towards FDI to GDP growth and the impact of domestic investment and trade liberalisation have a positive effect on GDP growth. Literature survey revealed the absence of studies on causal links between trade openness and foreign direct investment in Sri Lanka; hence it is a very important area to reach a high economic growth position in the future.
The education component of human capital : explorations with an indicator for Sri Lanka
(University of Peradeniya, Sri Lanka, 2019-10-17) Abayasekara, C. R.; Madadeniya, M. G. C. N.
Introduction Education is a primary component of ‘human capital’, a key factor of production (Becker 1992, 1964; Romer, 1986; Lucas, 1988). Physical indicators of education are either ‘input-based’, as in years of schooling and enrollment ratios, or ‘outcome-based’ as in literacy rate and ‘Learning- Adjusted Years of Schooling’ (World Bank, 2019). A recent approach (Sumaiya and Abayasekara, 2016; Kariyapperuma, 2018) measures the human capital of the employed population for Sri Lanka through an ‘Education-adjusted Employment Index’ (EAEI), to account for the changing composition of education over time. The computed index does not cover the unemployed and those outside the labor force; nor does it differentiate between genders. It has also not been ‘validated’ as an alternative indicator to others in use. The research problem therefore constitutes the following questions: How does the index and its rate of change compare among males and females, employed and unemployed, and those within and outside the labor force in Sri Lanka; and does public expenditure on human capital have an impact on education-based human capital accumulation as measured by the index?.
Status of health sector reforms in Khyber Pakhtunkhwa: a post-devolution analysis
(University of Peradeniya, Sri Lanka, 2019-10-17) Abbasi, Mutawakkil Ahmad; Ahmad, Iftikhar
Introduction Decentralization brings power and authority closer to people. Experts believe that decentralization and devolution of power lead to an improved health sector. The essence of democracy lies in devolution which promotes social and economic transformation of an economy. A centralized system of government looks at the picture holistically and a decentralized government sets its own set of priorities in the region. Devolving power to the lower tier helps the system gets diversity in a way that more people are involved in the decision making processes. Political representatives become more accountable and thus the service delivery gets better. Many experts of devolution are in favor of including local representatives over important services like Health (Shah, 2004; World Bank, 2006; Yilmaz & Serrano- Berthet, 2008). However, developing countries tend to have a centralized form of government which therefore needs the decentralization of power and its promising prospects to keeps the region driving ahead. In Pakistan, the 18th constitutional amendment transfers some powers to the provinces. This was successfully implemented as the devolution of power to the lowest tier; the essence of the 1973 constitution of Pakistan. This amendment empowered provinces to legislate and implement policies related to the devolved ministries on their own. This amendment devolved the power of 17 central ministries24 to the second tier of provincial governments in 2010. Among them the powers of the Ministry of Health were also defined as provincial subjects. The provincial health sector, after taking charge, has started formulating policies with the goals of obtaining fruitful results for their respective provinces. However, Pakistan has failed to still achieve real progress in the devolution of power, and provincial governments are not in a position to exercise the devolved power in a true and manner since the 18th constitutional amendment passed in 2010. While the devolution of power to lower tiers is considered to expedite economic growth and sustainable development, research in this area is lagging.
An analysis of household demand for major food items in urban, rural and estate sectors of Sri Lanka
(University of Peradeniya, Sri Lanka, 2019-10-17) Paraneetharan, N. J. C.; Nigel, J.; Vinayagathasan, T.
Introduction The analysis of food demand has received increased attention world-wide in the last few decades ever since food intake was found to have a strong empirical linkage with human health and labour productivity (Aromolaran, 2004). The estimated price elasticity of demand and income or expenditure elasticities of demand are regarded as important tools for policy design and planning. The study of food consumption patterns is crucial in Sri Lanka, which is categorized as a Food-Deficit country by FAO. In Sri Lanka, consumption expenditure contributed more than 70% of GDP (Economic and Social Statistics, 2018). However, it contributed only 38% of the total expenditure shares of an average household (HH) (Consumer Finances and Socio-Economic Survey, 2003/04). The HHs living in urban, rural and estate areas make expenditure on different commodities to attain their day to day requirements. The overall HH demand for food in Sri Lanka has been well documented. But, there no adequate study exists on HH demand for food based on sectoral wise using Sri Lankan data. Thus, the present study by complementing the existing HH demand for food studies, attempts to bridge the existing gap.
Technical efficiency and its determinants of small – holder rubber farmers in Kalutara: stochastic frontier analysis
(University of Peradeniya, Sri Lanka, 2019-10-17) De Costa, N. N. S.; Thayaparan, A.
Introduction Rubber is one of the prime agricultural export crops that brings an exceptional amount of foreign exchange and also provides sustained socio-economic benefits to the country. According to the Agalawatta Rubber Research Institute’s (RRISL) statistical data, more than 63% of the national rubber production is significantly contributed by the small rubber cultivators who own less than 20 acres, and have provided a large number of direct and indirect employment opportunities. Rubber production grew by 5.1% to 83.1 million Kgs in 2017 from 79.1 million Kgs recorded in 2016. This growth in natural rubber production was achieved amidst unfavourable weather conditions, particularly during the first half of the year which resulted in severe floods in traditional rubber areas. Among the major categories of rubber produced, sheet rubber production increased by 4.4% while crepe rubber production decreased by 23.3 % in 2017. On the other hand, the cost of production of rubber has been increasing over the years making rubber production less attractive for the smallholder sector. Sri Lankan rubber growing areas are mainly located in the wet zone and the top three growers in the rubber industry in the country are identified as Kegalle, Kalutara and Ratnapura Districts. Kalutara district is well-known for small rubber cultivation because its wet climate and fertile soil are favourable to cultivate rubber and most of the cultivators in the study area are engaged in cultivating rubber by utilizing their traditional knowledge and techniques. Technical innovation and more efficient use of existing technology are the main strategies of achieving high level of output in a small holder rubber sector (Hoang and Coeli, 2009). However, in developing countries like Sri Lanka, mostly new agricultural technologies have become partially successful in improving the productivity.
An evaluation of crop damage done by wild animals in Meegahahena grama niladari division
(University of Peradeniya, Sri Lanka, 2019-10-17) Kahapola, P. A. S. K. K.
Introduction Quantifying crop damage has a fundamental role in determining loss yet does not provide a complete or accurate representation of the impact of crop damage by animals on affected communities (Webber and Hill, 2014). Although there are various programmes to increase local food production such as ‘Waga lanka waga sangramaya’, it is necessary to take immediate action to save crops from the threats of wild animals. Some reports reveal that nearly one third of crops is eaten or destroyed by animals. Although this has become a national issue, sadly there have not been many studies on this issue to identify the gravity of the issue and to come up with possible solutions. Nonetheless this issue is now being discussed at national level on various platforms and the necessity to carrying out a study on this has been identified. Meegahena North Grama Niladari division is one such Division in Galagedara Divisional Secretariat area which has been subjected to threats of wild animals on crops for the last decade or so, and is selected for this study.
Integrating women in the clean energy supply chain: identifying patterns and barriers to their inclusion using case studies of clean energy projects in India
(University of Peradeniya, Sri Lanka, 2019-10-17) Chauhan, P.
Introduction The 2030 Agenda for Sustainable Development provides a holistic approach to development by integrating its social, economic and environmental dimensions, and making the process participative by engaging all the relevant stakeholders, including women, and implementing the principle of “leaving no one behind.” While the SDGs recognise the importance of gender equality (SDG 5), and clean and affordable energy (SDG 7) separately, there exists a gender-energy nexus which makes the two goals mutually reinforcing. The gender-energy nexus arises because of different energy needs of men and women due to gendered roles and responsibilities in the household and society. Women share a disproportionate burden of domestic chores like cooking, and therefore energy becomes their primary responsibility in a household; most of which is obtained from traditional biomass fuels such as wood, charcoal, and agricultural wastes due to lack of access to cleaner forms of energy. Such dependence of women on traditional fuels is a cause for concern due to various reasons. Firstly, the task of fuelwood collection is physically exerting and unsafe. Secondly, it takes away most of their time, subjecting them to time poverty and leaving little or no time for them to undertake productiveactivities. Thirdly, the use of traditional fuels causes indoor pollution and has adverse health effects. In India, 53 percent of the population lacks access to clean fuels and technologies for cooking, with time spent per day on collecting such fuels ranging from 40 minutes to 2 hours and exposure to smoke from traditional fuels causing 481,738 premature deaths in 2017 (Data World Bank, 2017; IEA 2019). Access to clean energy for women has the ability to reduce their time and energy poverty. For instance, a study found that the use of an improved cookstove could reduce the time spent on cooking by 20 minutes, which was further reduced by 1 hour 10 minutes with a stove using non-solid fuel. This leaves them with more time for productive activities, and therefore expands women’s opportunities for education and paid employment. The existing literature that explores the gender-energy nexus sees women as victims of energy poverty, recognises the need to reduce their drudgery within the sphere of household, and accordingly considers them as beneficiaries of increased access. However, the emerging literature on gender-energy nexus goes beyond the role of women as “users” and “beneficiaries” of clean energy and emphasises the role that women can play in expanding clean energy. Such literature argues for women being active stakeholders and part of the process of providing clean energy. The underlying basis is that since women are the ultimate consumers of energy, they drive demand for household energy and determine shifts in energy use patterns; therefore making it imperative for the clean energy initiatives to be reflective of their energy requirements. One of the ways in which this can be done is by integrating women in the energy workforce, particularly in the supply chain of clean energy products and services, as it will cater to women’s energy needs better, and bring greater acceptability and adoption of such products. As such, integrating women at all levels of the supply chain including product design, production and manufacturing, distribution and sales, and after sales services is called for. Based on this, the paper investigates the opportunities and barriers for women’s integration at all the levels of the clean energy supply chain, and identifies the key determining factors for the same through case studies of ongoing initiatives in India like SURE, Solar Saheli, Barefoot, SEWA and Jagriti for markets for clean cookstoves and rooftop solar systems
Examining the inter-temporal dynamic relationship between inflation and volatility of inflation: evidence from Sri Lanka
(University of Peradeniya, Sri Lanka, 2019-10-17) Shobini, P.; Sivarajasingham, S.
Introduction Knowledge about the linkage between inflation and inflation variability (uncertainty) plays an important role in decision making of economic agents. Inflation volatility/uncertainty distorts decisions regarding future saving and investment due to reduced predictability of the real value of future nominal payments; further, it also extends the adverse effects of these distortions on the efficiency of resource allocation and the level of real activity (Fischer 1981; Golob 1993; Holland 1993). The welfare costs of inflation and inflation uncertainty are well documented in the literature. However, empirical evidence on the link between the two is sparse in the case of Asia and Sri Lanka in particular. Inflation is defined as a persistent increase in the general price level, while inflation uncertainty refers to a situation in which future prices are unpredictable and the public does not know whether inflation will increase or decrease in the future. The existence of a positive association between the level and variability of inflation has been widely accepted in the literature (Okun, 1971; Logue and Willet, 1976; Foster, 1978; Taylor,1981). The link between inflation rate and inflation uncertainty attracted more attention by theoretical and empirical macroeconomists following the Nobel lecture of Friedman (1977). Friedman’s (1977) and Ball’s (1992) hypothesis say that higher inflation invokes more inflation uncertainty. In contrast, Cukierman and Metltzer’s (1986) hypothesis is that higher inflation uncertainty leads to more inflation. Friedman (1977) says that high inflation will create political pressure to reduce it, but policy makers may fear recessionary effects and be reluctant to lower inflation, resulting in future inflation uncertainty. He argued that increased variability of inflation distorts relative prices and adds an additional risk to long term contracting. However, the issue of liaison between inflation and inflation uncertainty is still debatable. Cukierman and Meltzer (1986) showed that increased uncertainty about money supply and inflation raises the optimal inflation rate set by policymakers. Holland (1993) thinks that inflation uncertainty arises due to the unknown size of the change in price level because of a certain change in money supply. Nevertheless, studies are scarce about the relationship between inflation and inflation uncertainty in developing countries including Sri Lanka. Therefore, this study attempts to examine the whether there exists any significant relationship between inflation & inflation uncertainty in Sri Lanka. The findings of the study can have a number of policy implications for trade, monetary policy.
The impact of government debt on economic growth in Sri Lanka
(University of Peradeniya, Sri Lanka, 2019-10-17) Bandara, A. S. G. S.
Introduction Policy makers in Sri Lanka are currently confronted with issues in macroeconomic management and increasing public debt. According to the Annual Report of the Central Bank of Sri Lanka for 2018, the total public debt of Sri Lanka is Rs.11, 977,539 million, or 82.8% of GDP, with domestic debt around Rs.6, 017,992 million or 41.6% of GDP. The total foreign debt of the government is Rs.5, 959,547 million which is 41.2% of GDP (CBSL, 2018). Comparison with previous years indicates that Sri Lanka’s government debt is steadily increasing at present, while economic growth is stagnant around 3% - 4 %. The Government obtains loans from both local financial institutions and foreign sources, as project loans and non-project loans. Government borrowed Rs. 3,149,905 million from foreign sources under project loans and Rs. 2,809,642 million under and under non-project loans (CBSL, 2018). As a result of increase in public debt and debt repayment, Sri Lankan Governments were led unable to allocate resources to various key sectors such as education, health, research and development. Previous studies have found that the domestic debt and external debt have an inverse relationship with economic growth (Atique & Malik, 2012). Expansion of public debt has been found to have a negative impact on economic growth (Chudik et al. 2017) and concessionary loans have been found to have a negative impact on economic growth (Fernando et al. 2017). In this context, the study of public debt in Sri Lanka is timely important. However, there is a limited literature on understanding the impact of government debt on economic growth. It is in this backdrop that this study is conducted to fill this research gap. This study focuses primarily the impact of government debt on economic growth.
The effects of natural disasters: a study to sustain paddy and other seasonal crop farmers in Sri Lanka
(University of Peradeniya, Sri Lanka, 2019-10-17) Deshapriya, R. D. N. L.; Lakpriya, K. A. D. L.; Pathiraja, P. M. D. G. T.; Wijesiri, P. G. N. A. H.; Jayathilaka, M. D. R. K.
Introduction : The United Nations (UN) Development Programme set out seventeen sustainable development goals (SDGs) to be achieved by the UN member countries in 2030. One such goal, SDG 8 is about decent work and economic growth, where the agriculture sector can play a wider role for economic growth by reducing unemployment in the country. Worldwide, various factors can adversely affect many occupations, especially with unfavorable effects on those engaged therein. Previous researchers have shown that natural disasters cause impacts in terms of income volatility, particularly negative income shocks regardless of the cause whereas risks force households in developing countries to lower their expenditure on health and education. Mottaleb et al. (2013) identified natural disasters impacting on household income and expenditure volatilities in Bangladesh as well. Ministry of Disaster Management (DM) in Sri Lanka identifies flood and drought as the major types of natural disasters affecting Sri Lanka (Karunarathna and Athukorala, 2018). Nevertheless, Tsunami has also been a major issue in the recent past. Its likelihood of occurrence is rather small, but it causes high damage. Ancient Sri Lanka was a country with self-sufficiency. Currently, an open market economy, Sri Lanka’s dependency is higher on imports, partly due to insufficient local production. In addition, over the years cultivation has declined due to various reasons. The International Trade Administration (2018) states that in Sri Lanka, over 25% are employed in the agricultural sector, which contributes 6.9 % to Gross Domestic Production (GDP). This indicates the magnitude of any adverse impacts to the agricultural sector. In Malaysia, Hein (2019) discussed the response to extreme disasters and climate change when the government intervenes to mitigate same and spread awareness of climate changes. However, in Sri Lanka no long term plan is in place to mitigate or at least minimize the effects of natural disasters, which can lead to inequalities in the population. The findings/results of this study can assist Sri Lanka to initiate policies to reduce inequality among farmers, and thereby improve and sustain the agricultural practices in Sri Lanka; and thus to achieve SDG 8 as set out by the UN.
Financial intermediation and economic growth: evidence from Sri Lanka
(University of Peradeniya, Sri Lanka, 2019-10-17) Mathusha, S.; Gnaneswaran, K.
Introduction : The importance of commercial banks in generating growth within an economy has been widely discussed by various scholars. Commercial banks are mainly involved in financial intermediation, which is the channeling of funds from surplus unit to deficit units of the economy, thus transforming bank deposits into loans or credits. The role of credit on economic growth has been recognized as credits that are obtained by various economic agents to enable them meet operating expenses. Business firms obtain credit to purchase seeds, fertilizers, erect various kinds of farm buildings. Therefore, the credit funds are made available for investment in productive capital (Chinwoke et al. 2014). Soon after financial liberalization in Sri Lanka in 1977, the government introduced financial sector development policies. This created a competitive environment in the financial sector. In this context, a dramatic change can be seen within the commercial banking system. The number of commercial banks have increased while financial intermediation of commercial banks shows an upward trend. However, the growth performance of Sri Lanka during the post liberalization period is higher than the pre liberalization period. Although the country was able to maintain an average five percent growth rate, it was not consistent throughout the period. The data related to economic growth reveals high fluctuation. The existing literature identifies a positive relationship between financial intermediation and economic growth (Rexiang and Rathnasiri, 2008; Donald et al., 2000; Chinwoke et al., 2014). However, the quantitative assessment of the relationship between financial intermediation and economic growth is inadequate and limited in the context of Sri Lanka. Thus, this study attempts to fill this gap by investigating financial intermediation and economic growth in Sri Lanka.
Evaluation of required contribution by residents and other entities for solid waste collection: a study in Kandy municipal area
(University of Peradeniya, Sri Lanka, 2019-10-17) Rathnayake, S.; Bandara, M.
Introduction Municipal solid waste (MSW) is a popular topic in many countries. Management of solid waste has become a broad subject in today’s world. Industrial development can be considered a major reason for the increase of solid waste generation in the form of polythene, plastics, and various durable disposals. Solid waste or municipal solid waste can be defined as materials generated from the result of daily human activities in places like households, public places and city streets, shops, offices and hospitals. It can be further defined as any unwanted material intentionally thrown away for disposal (Karunarathna, 2015). Accordingly the management of MSW is defined as the discipline associated with the control of generation, storage, collection, transport or transfer, processing and disposal of solid waste materials in a way that best addresses the range of public health, conservation, economic, aesthetic, engineering and other environmental considerations. Techniques used to solve the MSW problem varies from country to country. Developed countries use advanced techniques such as recycling, reusing, etc. Underdeveloped and developing countries apply open dumping techniques. However, dumping cannot be considered an appropriate way to solve the MSW problem. During the last two decades, European Union legislation has put increasing pressure on member countries to achieve specified recycling targets for municipal household waste (Xiaoyun, 2015). Sri Lanka still has a very poor system of managing municipal solid waste (MSW). The most common method of MSW disposal still remains to be open dumping (Bandara, 2011). According to the provisions of the Local Government Act, the Local Authorities (LAs) in Sri Lanka are responsible for the collection and disposal of waste generated by people within their territories. Necessary provisions have been made under sections 129, 130 and 131 of the Municipal Council Ordinance; sections 118, 119 and 120 of the Urban Council Ordinance; and sections 93 and 94 of the Pradeshiya Sabha Act. The National Environmental Act (NEA) of 1980 which was subsequently amended in 1988 provides the necessary legislative framework for environmental protection in the country. The National Strategy for Solid Waste Management (NSSWM) put out by the Ministry of Forestry and Environment in 2002 endorsing the need for integrated solid waste management provides overall guidance for the management of the country’s solid waste (Bandara, 2011). The Kandy municipal area, which is highly urbanized, generates huge amounts of solid waste. This area consists of 28.53km2 of land. According to a 2012 survey, there are102, 500 permanent residencies in the area and 400,000 people enter the city daily for their requirements. The main MSW dumping site is located at Gohagoda.
Public education versus private tutoring in Sri Lanka: who is contributing more?
(University of Peradeniya, Sri Lanka, 2019-10-17) Herath, T. N.
Introduction Private tutoring, also known as ‘shadow education’ is a globally expanding phenomenon (Byun et. al. 2018). In Sri Lanka, supplementary private tutoring has long been a pervasive part of many students’ everyday experiences (Bray 2003). Even though the Sri Lankan government spends a huge amount of money per student (Rs. 11,804 in 2015 and Rs.11, 357 in 2016) for public education, many Sri Lankan children start attending private tution beginning from the Grade Five scholarship examination to the G.C.E A/L examination (Cole 2017). Among Sri Lankan students, private tutoring demand is very high. In 1990, it was estimated that 75 percent of G.C.E (A/L) students were attending private tuition classes. The proportion was 62 percent among G.C.E (A.L) arts students, 67 percent for G.C.E (A.L) commerce students and 92 percent among G.C.E (A.L) science students in 1990 (De Silva 1994). Empirical literature on private tutoring is growing; however whether shadow education indeed matters for academic achievement is still unclear and needs further analysis (Byun 2014: 54; Cole 2017). In Sri Lanka, the government always provides education at public cost while people also always clamor for free education. In such a situation, private tutoring is escalating. As a result, household expenditure for private tutoring is also increasing. It seems that parents enroll their students in public schools while sending them to learn in informal fee-paid out-of-school classes. As a result, parents have to spend much money on private tutoring. However, there is a lack of knowledge regarding this area. Therefore this study is an attempt to assess the contribution of public schools and private tutoring classes on students’ academic performance and to estimate household expenditure for both public school education and private tutoring.
Challenges of social inclusion of the visually impaired and blind persons in the Sri Lankan workplace
(University of Peradeniya, Sri Lanka, 2019-10-17) Suraweera, T.; Dunuwila, V. R.
Introduction People with visual impairment and blindness (VI&B) represent the majority of the differently abled population in most communities (WHO, 2011) where social inclusion in the workplace has always been a challenge. They are more likely to be overly sympathized, negatively viewed or even teased which results in them being excluded from society (Zainol et al., 2018). Social inclusion of diverse communities is a key element of social sustainability coming under UN Global Compact principles. Thus, a high priority has been given to studies dealing with social inclusion, which include the improvement of orientation & mobility and social acceptance aimed at empowering employees with VI&B. This paper focuses on the challenges associated with social inclusion encountered by the employees with VI&B in the workplace. Employees with VI&B do not enjoy full integration in the workplace due to the lack of social support. Inability to navigate through social venues, failure to recognize co-workers, inability to obtain food and drink without assistance and the need to rely on colleagues for assistance are some of the barriers that exclude them from socializing (Naraine & Lindsay, 2011). Alma et al. (2012) highlight personal value attached to participation and the size of their social network as major determinants of social inclusion, while factors such as self- perceived vision and degree of visual impairment has no relationship to social inclusion of the visually impaired adults. Thus, it is imperative to investigate the issues of social inclusion of employees with VI&B for implementing new policies, support services and intervention programs towards enhancing their social inclusion (Hagiliassis et al. 2014) and in turn to guarantee social sustainability.
Stimulating factors of social inclusion of children with visual impairment and blindness in Sri Lanka
(University of Peradeniya, Sri Lanka, 2019-10-17) Suraweera, T.; Perera, T.; Mihirangana, P.; Rukmal, N.; Senaviratne, V.
Introduction Social sustainability entails the mutual co-existence of individuals, diverse communities and societies. Social equity, social capital, human rights, quality of life, education and social responsibilities are the main factors that promote social sustainability. Persons with Visual Impairment and Blindness (VI&B) represent the largest component of the disabled population in most communities. Education is observed as a key determinant that promotes social inclusion, in particular with respect to children. However, support towards educating children with VI&B is quite poor in the South Asian region including Sri Lanka. Although promoting education is vital for social inclusion, the question arises as to how far Sri Lanka is geared to improve the level of education of children with VI&B. Sri Lanka Government Census of 2012 indicates that 996,939 persons of the age of 5 years and above are blind, which comprises 4.7% male and 6.0% female children (Holmes et al., 2018). Past research, conducted in the West in particular, has observed that visual impairment not only impact on individuals, but also their families, caregivers and community (Köberlein et al., 2013). Sachs and Schreuer, (2011) suggest that promoting education is an essential requirement for people with visual impaired and blind children. Even in the domain of higher education there are several barriers and challenges for people with VI&B. Children with VI&B has more prospects for securing employment which in turn gain strength to sustain themselves financially with self-possession. Vuletić et al. (2016) state that the parents of children with VI&B are very much concerned about the future of their child. Taking the above into consideration a serious knowledge gap exists with respect to social and economic aspects of children with VI&B. On the other hand, research studies focusing on persons with VI&B and differently abled persons are common in developed countries but lacking in the developing countries including Sri Lanka. Thus, this research focuses on the factors that determine promotion of education of children with VI&B in Sri Lanka.
Chronic kidney disease of unknown aetiology: a review of literature on the socio-economic aspects
(University of Peradeniya, Sri Lanka, 2019-10-17) Ratwatte, V.; Athukorala, W.; Bandara, S. Y.; Gangahagedara, R.
Introduction The global burden of Chronic Kidney Disease (CKD) continues to increase not only because of its higher prevalence of traditional causes, such as diabetes and hypertension, but also CKD resulting from infections and unknown aetiology. Endemic occurrence of Chronic Kidney Disease of unknown etiology (CKDu) is reported in Sri Lanka, Bangladesh, India, Nicaragua and El Salvador. It has been a prevalent environment-related national health issue for two decades in Sri Lanka. As the term CKD in Agricultural Communities (CINAC) reveals, a close relationship is drawn between agriculture and the particular socio economic status of the farmer and CKDu. It is the eighth factor for mortality in Sri Lanka and reportedly was the cause of 13.8 % of mortality in 2017. Research in this area claims tentative causes for CKDu which include high fluoride contents in groundwater, presence of toxins produced by cyanobacteria in surface waters, particularly in freshwater reservoirs, excessive use of agrochemicals, consumption of contaminated (heavy metal pollutants from agro-chemicals) and consumption of water-based plants such as nelum and kohila, and Tank fish. Some studies have hypothesized that high concentrations of Cadmium, Arsenic, smoking tobacco, excessive dehydration in the work environment of farmers, and genetic predisposition are factors contributing to the prevalence of Chronic Kidney Disease of unknown aetiology. Numerous studies have been conducted by a range of institutions and researchers in relation to the problem. However, there is yet to be more research done in relation to this area, more specifically, the lack of identifying definite causes hampers its diagnosis. Moreover much research is to be conducted in exploring the terrain of the socio-economic aspects of the disease. This paper aims at reviewing existing literature in this area.
Impact of bank size on bank profitability: using four licensed commercial banks in Sri Lanka
(University of Peradeniya, Sri Lanka, 2019-10-17) Jayamali , W. M. T.; De Mel, S. J. S.
Introduction The banking sector, in all countries, has an important effect on economic measures due to the essential role played by banks for improvements in overall economic activity necessary for economic growth (Monnin and Jokipii 2010). Today, the sector is moving towards integrated financial services. One of the main goals of a bank is to make profits. Only a profitable banking sector can contribute to the stability of the financial system. As such, an understanding of factors that affect bank profitability is very important for banks themselves. In the existing literature, bank size has been considered as a fundamental variable in explaining bank profitability by various researchers. Size of a business means the ability it possesses and the variety and production capacity or the quantity and multiplicity of services the business can be offer to its customers. Previous studies examining this relationship have yielded mixed results. Correlation analysis of Velnampy and Nimalathasan (2010) showed a positive relationship between bank size and profitability in Commercial Bank of Ceylon Ltd, but there is no relationship between bank size and profitability in Bank of Ceylon. Aladwan (2015), Ani et al. (2012) and Sufian and Habibullah (2009) have found a negative relationship. Therefore, it is very essential to address the following research question which is “What is the impact of bank size on bank profitability in Sri Lanka?” Given this background, the present study investigates the impact of bank size on bank profitability in Sri Lanka, using four LCBs namely Bank of Ceylon, Peoples Bank, Sampath Bank and Hatton National Bank over the period 1998 to 2017.
Measuring the impact of special or concessionary tax rate policies on corporate income tax revenue of Sri Lanka
(University of Peradeniya, Sri Lanka, 2019-10-17) Hettiarachchi, K. K. S.; Jayawickrama, J. M. A.
Introduction The corporate income tax (CIT) is the main direct tax of Sri Lanka. In recent years, it accounted for 9.2 % of total tax revenue and 52 % of income tax revenue of Sri Lanka. One important issue in CIT in the case of Sri Lanka is its gradual decline reported over time as a percentage of GDP. In the early 1980s and early 1990s, the ratio approached 2.5 % and later recorded a gradual decline to about 1% in recent years. At a given marginal corporate income tax rate, it is expected that CIT revenue will increase in line with the expansion of the GDP. But, the declining trend of CIT revenue as a ratio of GDP indicates that CIT revenue does move in line with the growth of the economy. Jayawickrama (2008) and Madushani and Jayawickarama (2014) show that the income elasticity of the CIT is relatively low in Sri Lanka which indicates the failure of the tax to track GDP closely. The government of Sri Lanka has granted concessionary /special CIT rates according to the company size and sector to achieve objectives such as the promotion of local and foreign investment, protection of the companies at their early stage to compete the market competition, promotion of agricultural production, promotion of small and medium scale companies and elimination of regional development disparities etc etc. (Wijesinghe, Ekanayake and Mahendra (2013) Special tax rates or concessionary tax rates granted for different sectors or companies by Sri Lankan governments may be expected to reduce the tax revenue collected in the short run and to expand the sector at a higher growth rate in the long run. Many reseachers argue that the declining tax/GDP ratio is mainly due to tax exemptions, concessionary tax rate policies etc. (Jayawickrama, 2008; Amirthalingam, 2013; Hettiarachchi and Jayawickrma, 2018). However, no studies have computed revenue loss due to exemptions or concessionary tax rate policies granted by the government for different sectors with a view to enhance the growth of the economic activity or the sector.
Recreational activities and their impact on poverty in Sri Lanka
(University of Peradeniya, Sri Lanka, 2019-07-18) Gamage, B.G.D. U. I.; Geethanjana, G.P.D.P.G.; Karunarathne, L.G.S.H.M.; Rathnayaka, R.M.H.T.; Jayathilaka, M.D.R.K.
Introduction Poverty is one of the major challenges the world faces, with massive implications that hinder sustainable development. More than 4.3 billion people out of the global population of 7.5 billion are in poverty, affected mostly from causes which are preventable with low cost and proven interventions (UNICEF, 2010). Statistics reported by the Department of Census and Statistics (DCS, 2016) indicates that 169,392 households and 843,913 persons live in poverty in Sri Lanka. Furthermore, the mean monthly income was Rs. 62,237, while the mean monthly household expenditure on recreational activities was only Rs.908 (2.5 % of total non-food expenditure). The literature has focused extensively on income and expenditure patterns and recreational activities, and how it can affect the level of poverty. As stated by Chacón-Araya and Crow (2015), since 1988, expenses associated with recreational and leisure activities was slightly high for people in the lowest and highest income quan tiles. Heckman model and Probit analysis used by Haq, et al. (2018), pointed out that the probability of the household contribution for leisure and tourism increased with favorable changes in income, level of education and women's empowerment. Similarly, household spending on tourism is influenced positively by the age of the head of household and negatively by the number of children and adults in Pakistan. However, even though there are numerous studies conducted on poverty, there is no significant study on recreational activities and their impact on poverty in Sri Lanka. As such, this study addresses this research gap, by highlighting the significance of recreational activities with in-depth insights. The new findings gathered from this research will be of immense use to Government of Sri Lanka in formulating better policies for entrepreneurs in the business sector, who are one of the stakeholders in recreational activities in the country. Furthermore, this is an opportunity for all national stakeholders to discover untapped market segments. Thus, these insights are important for investors in the social sector including leisure and entertainment industries, covering cultural and religious activities too.
International migration flows in South Asia: A cross-sectional analysis
(University of Peradeniya, Sri Lanka, 2019-10-17) Ranawaka, D. N.
Introduction As of 2017, the Asian continent consists of 60% of the world’s population (World Population Review, 2017) where the stock of migrants in Asia had increased drastically from 40 million to a nearly 60 million since 2005 (IOM, 2018). Interestingly, out of the top 20 migrant countries in 2015 in Asia, India is ranked as the top contributor followed by Pakistan and Bangladesh in fourth and fifth places along with Afghanistan in the tenth place (IOM, 2018) signalling that South Asia contributes to the world migration flows significantly in an era where the development in the South Asian region is acknowledged by the world bank (The World Bank, 2018). The purpose of this paper is to understand which factors contribute to bilateral migration in South Asia and to explore if there exist salient patterns for migration flows for developed and developing regions. Furthermore, this paper seeks to understand why people migrate from South Asia and what aspects of policies would help sustain this wealth of human resources within the region.

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