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Fig 1.

$Debt and $Reserves of Sri Lanka from 1997 to 2022 compared to the exchange rate.

Sources: Author’s illustration based on data from The CBSL, The World Bank and Macrotrends.

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Fig 2.

CRISIS index fairly represent the situation in Sri Lanka.

Source: Author’s illustration based on data from the CBSL and the World Bank.

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Fig 3.

Theoretical framework.

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Table 1.

Descriptive statistics.

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Table 2.

Correlations.

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Table 3.

Regression.

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Table 4.

PS&AV on $Reserves.

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Table 5.

PS&AVT on $Debt.

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Table 6.

Lagged DV regression- (CRISIS t-1 with the independent variables).

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Table 7.

Granger causality test results.

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Table 8.

CRISIS t-1 as a control variable.

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Table 9.

Regression on the error term (Residual).

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Fig 4.

Independent variables Vs Regression residuals.

•(p < .05), ••(p < .01), •••(p < .001).

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Fig 5.

Regression results.

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Fig 6.

Change of estimates of WGI over 20 years.

Source: Author’s illustration based on data from the World Bank.

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Fig 7.

The vicious cycle.

Source: Author’s illustration based on data from the World Bank.

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