PurposeGDP growth, money growth and inflation are essential to an economy's macroeconomic stability and have a direct impact on the policymaking process. Sri Lanka is currently concerned about high inflation. Inflation is a monetary phenomenon. Inflation has been caused by monetary policy in several nations. According to the economic theories of Karl Marx, Irving Fisher and Milton Friedman, a continuous increase in the money supply causes inflation. This paper aims to investigate the relationship between Sri Lanka's GDP growth, money growth and inflation.Design/methodology/approachAn econometric model and the economic theories of Fisher and Friedman are used to figure out how money supply, inflation and economic growth are linked. Between 1990 and 2021, data were gathered from secondary sources.FindingsThe increase in the money supply is found to cause inflation. Inflation has negative effects on both short- and long-term economic growth. Long-term, the increase in money supply has a negative effect on economic growth.Research limitations/implicationsAccording to research, the money supply and inflation are inextricably linked, and the money supply has a direct impact on economic growth. As a result, the government should have an appropriate monetary policy and proposals to control inflation levels and stimulate economic growth.Originality/valueThe paper adds to the existing literature in two ways. First, it fills in the lack of studies in Sri Lanka, where there are no papers on this important relationship, especially with a modern econometric study. Second, it tries to shed light on the asymmetric shocks (both positive and negative shocks and changes) between the three variables, which was not done in previous studies.

Method: Using time series data over a period of 37 years , this study employed Johansen cointegration test methods, followed by Granger's causality tests. Results:The results of this study confirm that there is no long-run relationship between air transportation and economic growth in Sri Lanka. However, the results show that there is a short-run unidirectional Granger causality, which runs from economic growth to total passenger movements. Conclusion:It can be concluded from the findings that they disprove the aviation-centric growth hypothesis and instead suggest that air transport does not play a significant role in the promotion of Sri Lanka's economic growth. Furthermore, the existence of unidirectional causality from economic growth to air transport and the recognised time lags of 2-3 years would guide government and policymakers to manage resources properly and allocate resources efficiently for the sectors, which accelerate economic growth in Sri Lanka.

PurposeThis study aims to examine the short- and long-term equilibrium relationship between All share price index (ASPI), macroeconomic variables and the economic crisis in Sri Lanka.Design/methodology/approachMonthly time series data for inflation (CPI), industrial production (IP), an exchange rate (EX), an interest rate (TB), short-term interest rate (CD) and economic crisis were used from 2010 to 2021. The ADF test, the bound testing approach, the CUSUM test and the CUSUMQ test were used in this study.FindingsThe findings show a long-run stable relationship between stock price, macroeconomic variables and political crisis (i.e., CPI, IP, ER, TB, CD and economic crisis). The results of the Johansen cointegration test suggest that there is at least one cointegrating equation, indicating that there is a long-run equilibrium relationship between macroeconomic variables and stock prices in Sri Lanka.Research limitations/implicationsThe vector error correction estimates show that the coefficient of the error correction term is significant with a negative sign, indicating that a long-run dynamic relationship exists between macroeconomic variables and stock prices. In the short term, economic crisis has had a big effect on stock prices suggesting that Sri Lanka’s domestic financial markets are linked to the stability of the country.Originality/valueThis research establishes the links between stock returns, macroeconomic variables and economic crisis. So far, research has been unable to establish the empirical nature of such links. The authors believe that this paper fills that gap.

Digitalization transforms business processes and benefits enterprises to operate across borders. As a result of digitalization, the business operates internationally through micro firms. These micro firms are smaller entrepreneurial firms identified as micro-multinational (mMNEs) presence in different countries used as a vehicle to artificially reduce taxable income or shift their profits to low or no-tax jurisdiction. Methodology: Although the growing number of research to understand the compliance behavior of taxpayers, there is a lack of research to understand the tax compliance behavior of micro multinationals. Under the phenomenological approach, we uncover the factors that influence on tax compliance behavior of the entrepreneurs in the digital economy. Findings: Broadly, the tax compliance behavior of micro multinational enterprises is influenced by the taxing capability of the authority and taxpayer confidence and Technology adoption in tax compliance increase taxpayer interaction. Originality/Value: In this study we attempted to understand the tax compliance behavior of Micro-Multinational Enterprises.