Domestic Savings, Money Supply and Economic Growth In Sri
Keywords:Domestic Savings, Money Supply, Economic Growth,Sri Lanka
This study aims to investigate the impact of money supply, domestic savings and total
debt ratio on economic growth.This study uses an annual research period of 48 years
from 1972 to 2020 in Sri Lanka to estimate Sri Lanka's economic conditions and the
impact of money supply, domestic savings, and debt-to-economy ratios in Sri Lanka.
We use the second data in this study which is sourced from the world bank. This study
uses the Error Correction Model (ECM) analysis. We found that the domestic saving
ratio can encourage economic growth in Sri Lanka in terms of loanable supply where
the increase in the amount of savings, the increased loanable supply which has an
impact on lowering interest rates so that investment can increase and economic growth
can be encouraged to grow.