Sri Lanka's Stock Market Soars as Macroeconomic Variables Drive Growth
The article examines how different economic factors affect the stock market in Sri Lanka. The researchers looked at data from 2006 to 2016 and found that interest rates, industrial production, and the civil war had a negative impact on the stock market, while the US Dollar exchange rate and real GDP growth had a positive impact. Surprisingly, the global financial crisis actually had a positive effect on the stock market in Sri Lanka. This suggests that ending the civil war attracted foreign investment to the country's capital market. Inflation rate and money supply growth did not significantly affect the stock market.