000			01750nam a22001457a 4500
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100			_aRavinthirakumaran, N. Selvanathan, E.A. and Selvanathan, S. _958027
245			_aDeterminants of private investment in Sri Lanka
260			_aSouth Asia Economic Journal
300			_a26(1), Mar, 2025: p.54-76
520			_aPrivate investment plays a vital role in reducing poverty and fostering economic growth in developing countries through job creation and capital formation. This study investigates the key determinants of private investment in Sri Lanka over the period 1977–2019, employing the autoregressive distributed lag model. The findings indicate that economic growth, credit to the private sector and the real interest rate exert a significant and positive influence on private investment. Conversely, political instability caused by war, foreign direct investment and public investment negatively affect private investment. The error correction term is –0.93, signifying a rapid adjustment towards long-run equilibrium following a short-run shock. These results suggest that policymakers should leverage interest rate management and improved access to credit as mechanisms to boost private investment. Furthermore, ensuring political stability is essential to creating an investor-friendly environment that supports sustained private sector development and long-term economic progress in Sri Lanka.- Reproduced https://journals.sagepub.com/doi/full/10.1177/13915614251344757
650			_a• Credit to private sector, Economic growth, Long-run equilibrium, private investment, public investment, Sri Lanka. _958028
773			_aSouth Asia Economic Journal
942			_cAR