IMPACT OF BANKING PERFORMANCE ON ECONOMIC GROWTH IN SRI LANKA

The objective of this study is to analyze the impact of banking performance on economic growth in Sri Lanka. This study is conducted by using a panel data from 2010 to 2019 for 10 banks to examine the impact of banking performance on economic growth in Sri Lanka. The data was taken from selected banks annual reports. By using panel unit root test, found that at first difference variables are stationary. By using panel co-integration, shows that there is long run and short run co-integration among the variables. A stable banking sector is very important for the economic growth of a country. As policy implications, in order to stabilize economic growth and make the banking sector more resilient, policymakers and bank managers should aim to enhance total assets, return on assets among other things.