The purpose of the study to evaluate the contribution of foreign direct investment (FDI) and tourism receipts (TR) to Sri Lanka’s gross domestic product (GDP). This study employs time series annual data for the period from 1978 to 2016 and EViews 10 econometrics software was used for the time series data analysis. Unit root test was done on the variables and the method chosen was the Augmented Dicky – Fuller test. Co-integration analysis was used for the long run relationship and the Granger causality test was performed to investigate the causal relationship. Recently a more conducive environment has been established after the three decade long ethnic war came to an end. In this context, the Sri Lankan government has taken positive measures to attract foreign direct investment and boost tourism in the country. This study intends to evaluate the contribution of Sri Lanka, as these two factors are considered to be very effective at increasing the GDP of a country. The empirical study shows that there is a positive and statistically significant relationship between the variable’s TR and FDI to the GDP in the long run. Results of Granger causality test implied that the two-way causality promoted the economic growth of Sri Lanka.

Abstract
1. Introduction
2. Literature Review
3. Methodology
4. Results and Discussion
    4.1. Visual Inspection for the Relationship between Variables-GDP: TRand GDP : FDI
    4.2. Unit Root Test - Variables GDP, TR, FDI and EFI
    4.3. Unit Root Test for Residual Co-integrationRegression Equation for the Model
5. Conclusion
References

• Abdul Majeed MOHAMED MUSTAFA(Business Economics, Department of Management, Faculty of Management and Commerce, South Eastern University) Corresponding Author