The Contribution of agricultural sector in gross domestic product of Sri Lanka: an empirical study

Abstract

Agricultural sector is the pillar sector of Sri Lankan economy. Agricultural sector contribution of the Gross Domestic Product [GDP) has been declining in past few years. The colonial powers Portuguese, Dutch and British introduced commercial economy to the Sri Lanka. The study investigated the statistically significant evidence of the relationship between agriculture and GDP data in Sri Lanka from 1959 to 2016. Augmented Dickey Fuller test and Johension co-lntegration test were used as the tools for obtaining the empirical results of the study. The estimations proved that there is a long run equilibrium in agriculture towards GDP. So, the government should pay their attention to build up the agricultural sector and maintain the food security in appropriate level in Sri Lanka.