http://repo.lib.jfn.ac.lk/ujrr/handle/123456789/70 2026-04-08T19:25:06Z http://repo.lib.jfn.ac.lk/ujrr/handle/123456789/12451 Title: Determinants of Foreign Direct Investment in Sri Lanka Authors: Sooriyakumar, K.; Perera, S.P.M.P.; Sarujan, S. Abstract: This study examines the macroeconomic determinants of Foreign Direct Investment (FDI) inflows in Sri Lanka over the period from 1970 to 2022. Key variables analyzed include FDI net inflows (as a percentage of GDP), exchange rates, GDP growth, inflation and trade openness. Using Autoregressive Distributed Lag (ARDL) model, the research captures both short-run and long-run relationships between these variables and FDI behavior. The results reveal that both GDP growth and trade openness are significant drivers of FDI, exerting positive effects in both the immediate and long-term contexts. Stronger economic expansion and liberalized trade environments are shown to enhance Sri Lanka’s investment appeal. Notably, while currency depreciation initially deters FDI, it exerts a positive influence over time, underscoring the complex role of exchange rate dynamics in investment decisions. Additionally lagged GDP- particularly with a two-period lag- proves influential, highlighting the importance of sustained economic performance in shaping investor confidence. In contrast, inflation and FDI in US dollar terms were found to have no significant impact on FDI inflows, suggesting that foreign investors weigh broader macroeconomic stability over inflationary pressures. The study concludes that policies fostering economic growth, ensuring exchange rate stability, and enhancing trade openness are crucial for attracting sustained foreign investment and driving long-term development in Sri Lanka. 2025-01-01T00:00:00Z http://repo.lib.jfn.ac.lk/ujrr/handle/123456789/12450 Title: Assessing Local Fishing Communities’ Willingness to Pay for Reducing Faecal and Oil Pollution in the Negombo Lagoon Authors: Sooriyakumar, K.; Dissanayake, T.G.D.S.; Sivashankar, S.; Kamshajini, R. Abstract: The Negombo Lagoon is one of the economically important coastal areas in Sri Lanka, however, it faces challenges due to faecal and oil pollution. Faecal and oil pollution not only affect the water quality but also threaten aquatic organisms, human health, and the livelihoods of local fishing communities. This has led to declining fish and prawn stocks, loss of biodiversity, and reduction in the lagoon's ecological and economic value. Therefore, this study employs the choice experiment approach to assess the local fishing communities’ preferences and willingness to pay to reduce faecal and oil pollution in the lagoon. This study considered six attributes: faecal pollution, oil pollution, algae removal, fish and prawn stock, mangrove restoration, and payment. A total of 350 respondents were randomly selected using a wellstructured questionnaire. The mixed logit model was used to elicit respondents’ preferences. The findings of this study indicate that respondents are willing to pay LKR 1,220.20 and LKR 734.09 for a 50% reduction in faecal and oil pollution, respectively. Additionally, the estimated WTP for 50% algae removal, a 50% increase in fish and prawn stock, and a 50% increase in mangroves is LKR 2,181.10, LKR 2,313.78, and LKR 994.44, respectively. In contrast, respondents exhibited a negative WTP of LKR 899.88 for 25% algae removal. Notably, the findings of this study reveal that respondents have a higher WTP for increasing fish and prawn stock than for reducing faecal and oil pollution. It indicates that respondents prioritize attributes that are directly related to economic benefits over environmental improvements. Furthermore, results imply that respondents’ education level and household monthly income significantly influenced the faecal and oil pollution reduction preferences. The findings of this study will help policymakers in designing effective strategies and pricing mechanisms to reduce pollution while considering local communities' preferences 2025-01-01T00:00:00Z http://repo.lib.jfn.ac.lk/ujrr/handle/123456789/12449 Title: Biologist’ Willingness to Pay for Thondamanaru Lagoon Ecosystem Management: A Choice Experiment Approach Authors: Sooriyakumar, K.; Nithila, K.; Sivashankar, S.; Sarujan, S. Abstract: Thondamanaru lagoon is in the Northern part of Sri Lanka and is one of the most important lagoons in the country. Barrage was built in the lagoon to prevent groundwater salinity in Thondamanaru lagoon; however, this barrage altered the ecosystem. Biologists were chosen as the primary respondents for this study due to their specialized knowledge of ecosystems, biodiversity, and environmental conservation. This study used the choice experiment approach to understand biologists' preferences and willingness to pay (WTP) for lagoon management practices in Thondamanaru lagoon. The attributes considered for this study include barrage, fish stock, mangroves, tourist facilities, and payment. For this study, 154 biologists were purposively selected in the Jaffna and Kilinochchi districts. The random parameter logit (RPL) and latent class models (LCM) were employed to analyze their preferences. Findings revealed that biologists do not prefer the complete closure of the barrage, while they prefer an increase in fish stock, mangroves, and improvements in tourism. Notably, biologists had a negative WTP (LKR 1426.39) for completely closing the sluice gate, while they had the highest WTP (LKR 2956.65) for sluice gate opening for one month per year. Furthermore, they are also willing to pay LKR 913.21 for a 25% increase in the fish stock, LKR 1420.74 for a 50% increase in the fish stock, LKR 437.73 for an increase in the mangrove plants, and LKR 852.79 to improve tourist facilities in the lagoon. Results show that respondents’ gender, knowledge, and understanding of lagoon management practices significantly influence their choice. LCM identifies two classes. Class 1 respondents had a higher WTP for lagoon conservation practices than class 2 respondents, revealing a significant variation in the preferences among the community. The findings of this study will help policymakers to develop suitable policies. 2025-01-01T00:00:00Z http://repo.lib.jfn.ac.lk/ujrr/handle/123456789/12448 Title: Engineers’ Valuation of Ecosystem Services in Thondamanaru Lagoon: A Choice Experiment Approach Authors: Sooriyakumar, K.; Kiriyaliny, V.; Sivashankar, S.; Sarujan, S. Abstract: Thondamanaru Lagoon is a brackish water lagoon located in the northern part of Sri Lanka. The Department of Irrigation built a barrage to prevent seawater from entering the lagoon; however, this barrage construction negatively affected local biodiversity and ecosystem services. Therefore, this study employed a choice experiment approach to understanding how engineers value the ecosystem services provided by the Thondamanaru lagoon and their preference regarding barrage construction. Engineers were chosen as primary respondents due to their technical expertise and role in shaping water infrastructure decisions. This study considered five attributes (barrage, fish stock, mangroves, tourist facilities, and payment), each with different levels. A total of 150 engineers were selected as respondents, and their choices were analyzed using the Random Parameter Logit (RPL) and Latent Class Models (LCM). The results from the RPL model reveal that for the barrage attribute, engineers prefer to completely close the barrage and open the barrage one month per year levels than completely open the barrage; however, they are willing to pay more to open the sluice gate one month per year (LKR 2078.99) than complete closure of the sluice gate (LKR 916.80). The result of the LCM groups the sample into two classes. Respondents in class 1 prefer the complete closure of the barrage, while the respondents in class 2 do not prefer the complete closure of the barrage. Furthermore, results show that engineers are more likely to pay to increase the fish stock and mangrove plants and improve the tourist facilities in the Lagoon. Notably, engineers’ income and their knowledge regarding the lagoon significantly influence their choice. This study proposes that opening the barrage for one month each year could serve as an effective policy for the sustainable management of the lagoon ecosystem. 2025-01-01T00:00:00Z