The study looked at the relationship between government spending and trade imbalances in Sri Lanka from 1977 to 2020. They found that when the government spends more than it earns (budget deficit), it leads to a trade deficit (current account imbalance). This means that reducing government spending could help balance the country's trade. The short-term impact of budget deficits on trade imbalances is smaller than the long-term effect. So, making changes to reduce government spending could help Sri Lanka improve its trade situation.