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Inflation in Sri Lanka: A Causality Analysis


  • Y.M.W.B. Weerasekera


This study examines the causes of inflation in Sri Lanka during the post-liberalization period using a three-variable Vector Autoregression (VAR) model. Quarterly time series data on inflation, money supply growth and exchange rate changes during the period 1978-1992 were used in the analysis. The data series have been tested for their stationarity with the use of unit roots and cointegration techniques.

Suggested Citation

  • Y.M.W.B. Weerasekera, 1992. "Inflation in Sri Lanka: A Causality Analysis," Staff Papers, South East Asian Central Banks (SEACEN) Research and Training Centre, number sp46, April.
  • Handle: RePEc:sea:spaper:sp46

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