Abstract:
Foreign Direct Investment (FDI) inflow is
considered as an influential factor ofthe economy in
developing nations. The major objective ofthe study
is to assessthe relationship between FDI and economic
growth in Sri Lanka, this study employeddescriptive
analysis, correlation and regression analysis by using data
from 1977 to 2016. The findings of the study indicatethe
relationship between FDI andeconomic growth rose
strongly after the beginning of the 21st century.Since
then, there is a strong positive relationship between FDI
and economic growth. In addition, the regression analysis
indicates that the existence of the positive impact of FDI
on economic growth in Sri Lanka.As a summary of the
conclusion, there is a positive contribution of foreign direct
investmenton economic growth in Sri Lanka. Hence, it is
more important to take policy actions to enhance the FDI
inflows into Sri Lanka since it gives a positive relationship
and positive impact on the economic growth.
