Macroeconomic Variables and Stock Market Performance in Sri Lanka: An ARDL Bound Testing Approach

The aim of the study is to examine impact macroeconomic variables on stock market performance in Sri Lanka. This uses yearly data collected from annual reports Central Bank Lanka for period 1990 2019. Macroeconomic used this are interest rate, inflation real exchange and money supply while All Share Price Index (ASPI) measure performance. Inflation rate found stationary at zero levels one Augmented Dickey-Fuller (ADF) test. No serial correlation among by employing Breusch-Godfrey LM Test. Auto-Regressive Distributed Lag (ARDL) bounds test long-run short-run relationships between variables. empirical result reveals that there a negative significant do not hold any long run. Further, it short