1.

Introduction
Department of Economics of the University of Kelaniya has been conducting
Master of Arts (MA) and Master of Social Sciences (MSSc) degree programs
since 1998. The courses have been prescribed according to the general
regulations for postgraduate degrees offered by the Faculty of Social Sciences,
University of Kelaniya.

Master of Arts Degree Program in Economics One Year Degree

by Course Work Program

Master of Social Sciences Degree Program in Two Years

Economics by Research (Course Work + Degree Program
Thesis)

2. Entry Qualifications
Master of Arts in Economics (MA)
Bachelor’s Degree (General or Special) from a recognized university with
Economics as a subject or any other academic or professional qualifications
approved by the Board of Study, Faculty of Social Sciences and by the
University Senate.

Master of Social Sciences Degree Program in Economics (MSSc)

Bachelor’s Degree (Special) with a Class from a recognized university with
Economics as a subject or any other academic or professional qualifications
approved by the Board of Study, Faculty of Social Sciences and by the
University Senate.

1
Course Units
Master of Arts (Economics) Degree Program

Course Course Unit Title Type Credits

code
ECON Advanced Economic Theory – Microeconomics C 5
53015

ECON Advanced Economic Theory – Macroeconomics C 5

53025

ECON Mathematics and Statistics C 5

53035

ECON Economic Thought, Growth and Development C 5

53045 of Sri Lanka
ECON Monetary Economics and Public Finance O
53055

ECON Project Analysis and Management O

53065
ECON Resource Economics and Natural Resource O
53075 Management
ECON International Trade and Commercial Policy O
53085
ECON Econometrics O 5
53095

ECON Research Methodology for Economics O

53105
ECON Independent Dissertation O 5
53115
Total Number of Credits 30
C = Core course unit
O = Optional course unit

2
Master of Social Sciences (Economics) Degree Program

Course Course Unit Title Type Credits

code
ECON Advanced Economic Theory – Microeconomics C 5
53015

ECON Advanced Economic Theory – Macroeconomics C 5

53025

ECON Mathematics and Statistics C 5

53035

ECON Economic Thought, Growth and Development C 5

53045 of Sri Lanka
ECON Monetary Economics and Public Finance O
53055

ECON Project Analysis and Management O

53065

ECON Resource Economics and Natural Resource O

53075 Management
ECON International Trade and Commercial Policy O
53085 5
ECON Econometrics O
53095

ECON Research Methodology for Economics C 5

53105

ECON Thesis C 30
6301W
Total Number of Credits 60

C = Core course unit

O = Optional course unit

3
3. Course Structure
Master of Arts Degree in Economics (MA) - One Year Degree Program
This degree program consists of,
i. Four compulsory course units (ECON 53015, ECON 53025, ECON
53035, ECON 53045) and
ii. One optional course units from (ECON 53055, ECON 53065, ECON
53075, ECON 53085, ECON 53095) together with
 ECON 53105 course unit (Research Methodology for Economics) or a
dissertation with 8000 – 10 000 words. 

Master of Social Sciences Degree in Economics (MSSc) – Two Year

Degree Program
Year 1
This program consists of,
i. Four compulsory course units (ECON 53015, ECON 53025, ECON
53035, ECON 53045) and
ii. One optional course unit from (ECON 53055, ECON 53065, ECON
53075, ECON 53085, ECON 53095) together with
iii. ECON 53105 course unit (Research Methodology for Economics).

And
Year 2
In the second year, all candidates must produce a research thesis. The thesis
should be based on an original research under a topic approved by
the Board of Study (BoS) of the Faculty of Social Sciences and the
University Senate. Supervisor/s for each research student will be appointed
by the Board of Study (BoS) of the Faculty of Social Sciences, and by the
University Senate.
4
Viva voce Examination will be held after evaluation of the thesis by
examiners appointed by the Board of Study (BoS) of the Faculty of Social
Sciences, and by the University Senate.

4. Postgraduate Criteria
4.1 Postgraduate Certificate (Economics)

Eligibility for the Award of a Postgraduate Certificate

i. For award of a Postgraduate Certificate, a student must accumulate
grades of B- (B minus) or better in course units aggregating to at least
20 credits within three consecutive academic years with a GPA of 2.70
or greater.

ii. For award of a Postgraduate Certificate with Merit, a student must

accumulate Grades of B- (B minus) or better in course units
aggregating to at least 20 credits within one academic year with a GPA
of 3.70 or greater, and obtain grades of A or better in course units
aggregating to at least 50% of total credits for the course units
considered above.
iii. A student who does not obtain a grade B- (B minus) or better in
particular course unit may re-sit the examination of that course unit in
the following academic year in order to improve the grade. The best
grade obtainable by a student in this instance would be B- (B minus).
In the event a student obtains a lower grade while attempting to better
the grade, he/she will be entitled to the previous grade.

5
4.2 Postgraduate Diploma (Economics)

Eligibility for the Award of a Postgraduate Diploma

1. For award of a Postgraduate Diploma, a student must accumulate
grades of B- (B minus) or better in course units aggregating to at least
25 credits within three consecutive academic years with a GPA of 2.70
or greater.

ii. For award of a Postgraduate Diploma with Merit, a student must

accumulate Grades of B- (B minus) or better in course units
aggregating to at least 25 credits within one academic year with a GPA
of 3.70 or greater, and obtain grades of A or better in course units
aggregating to at least 50% of total credits for the course units
considered above.

iii. A student who does not obtain a grade B- (B minus) or better in a

particular course unit may re-sit the examination of that course unit in
the following academic year in order to improve the grade. The best
grade obtainable by a student in this instance would be B - (B minus).
In the event a student obtains a lower grade while attempting to better
the grade, he/she will be entitled to the previous grade.

Note: A student who fulfills these requirements stipulated under 5.1

above may be considered by the Board of Examiners for the award of
Postgraduate Certificate.

4.3 Master’s Degree (Economics) by Course Work

Eligibility for the Award of the Master’s Degree by Course Work
i. For award of a Master’s Degree by Course Work, a student must
accumulate grades of B- (B minus) or better in course units
6
 aggregating to at least 30 credits within three consecutive academic
years with a GPA of 2.70 or greater.

ii. For award of a Master’s Degree with Merit, a student must accumulate
grades of B- (B minus) or better in course units aggregating to at least
30 credits within one academic year with a GPA of 3.70 or greater,
and obtain grades of A or better in course units aggregating to at least
50% of total credits for the course units considered above.

iii. A student who does not obtain a grade B- (B minus) or better in a

particular course unit may re-sit the examination of that course unit in
the following academic year in order to improve the grade. The best
grade obtainable by a student in this instance would be B - (B minus).
In the event a student obtains a lower grade while attempting to better
the grade, he/she will be entitled to the previous grade.

Note: A student who fulfills the requirements stipulated under 5.1 and
5.2 above may be considered by the Board of Examiners for the award
of Postgraduate Certificate or Postgraduate Diploma respectively.

4.4 Master of Social Sciences Degree (Economics) by Research

Eligibility for the Award of the MSSc Degree

i. For award of a MSSc Degree a student must accumulate grades of B -
(B minus) or better in course units aggregating to at least 60 credits of
which at least 30 credits must four consecutive academic years with a
GPA of 2.70 or greater.

ii. For award of a MSSc Degree with Merit, a student must accumulate
grades of B- (B minus) or better in course units aggregating to at least
7
 60 credits of which at least 30 credits must be from each academic
year within two consecutive academic year with a GPA of 3.70 or
greater, and obtain grades of A or better in course units aggregating
to at least 50% of total credits for the course units considered above
and complete the relevant requirements within a period of two
consecutive academic years.

iii. A student who does not obtain a grade B- (B minus) or better in a

particular course unit may re-sit the examination of that course unit in
the following academic year in order to improve the grade. The best
grade obtainable by a student in this instance would be B - (B minus).
In the event a student obtains a lower grade while attempting to better
the grade, he/she will be entitled to the previous grade.

Note: A student who fulfills the requirements stipulated under 5.1, 5.2
and 5.3 above may be considered by the Board of Examiners for the
award of Postgraduate Certificate, Postgraduate Diploma or
Master’s Degree with Course Work respectively.

5. Grade Point Average

Grade Point Average (GPA) is the credit-weighted arithmetic mean of the

grade point values. The GPA determined by dividing the total credit-
weighted grade point value by the total number of credits.

8
For example, a student who has completed six course units each of 5 credits
with grads A, A-, B+, B, C+, and C respectively, would have the GPA:

5  4.0  5  3.7  5  3.3  5  3  5  2.3  5  2


555555
20  18.5  16.5  15  11.5  10

30

 91.5
30
 3.05

6. Grading System

Range of Grade Marks

Marks Levels
85-100 A+ 4.0
70-84 A 4.0
65-69 A- 3.7
60-64 B+ 3.3
55-59 B 3.0
50-54 B- 2.7
45-49 C+ 2.3
40-44 C 2.0
35-39 C- 1.7
30-34 D+ 1.3
25-29 D 1.0
20-24 E 0.0

9
7. Subject Curriculum

MASTER OF ARTS (ECONOMICS)/MASTER OF SOCIAL

SCIENCES (ECONOMICS) DEGREE PROGRAMS 2015/2016

COURSE TYPE : CORE

COURSE CODE : ECON 53015
COURSE TITLE : ADVANCED ECONOMIC THEORY –
MICROECONOMICS

LERNING OUTCOMES: After completion of this course unit students

will be able to acquire a deep knowledge in Advanced Microeconomic
concepts and to develop skills in analyzing problems in resource allocation,
analyze the real world economic problems, and analyze microeconomic
problems relating to Sri Lankan context through specific case studies.

COURSE CONTENTS: Theory of Consumer Behavior, Theory of

Production and Costs. Theory of Firms, Competitive Markets: Imperfect
Competition; Monopoly, Monopolistic competition; Game Theory and
Oligopoly: Efficient Pricing Policies; Information Theory: Markets with
Asymmetric Information, Choice under Risk and Uncertainty; Theory of
Distribution, General Equilibrium, Economic Efficiency and Welfare
Economics,

TEACHING AND LEARNING METHODS: Lectures and

Assignments/class tests.
METHOD OF EVALUATION: Written examination 80% Assignments
20%.

10
SELECTED READINGS:
Baumol, W. J. (2006). Economic Theory and Operations Analysis. 4th
edition. Prentice–Hall. Englewood Cliffs. NJ.
David Begg, Stanley Fischer, Rudiger Dornbusch (2008).
Economics. McGraw-Hill.
Hal R. Varian (2006). Intermediate Microeconomics (the 7th
edition). Affiliated East-West Press
Jeffrey M. Perloff, (2011), Microeconomics, 6th edition, Pearson
Education Mas-Colell.
Lipsey, R. G. (1992). An Introduction to Positive Economics.
Weidenfeld & Nicolson Ltd. London.
Pindyck, Robert S. (2008). Microeconomics, (sixth Edition).
Prentice-Hall of India (Pvt) Ltd.
Samuelson P.A. and Nordhouse W. D. (2005), Economics, 8th edition, Tata
Mcgrow-Hill

11
COURSE TYPE : CORE
COURSE CODE: ECON 53025
COURSE TITLE: ADVANCED ECONOMIC THEORY –
MACROECONOMICS

LERNING OUTCOMES:
After completion of this course unit students will be able to acquire a
deep knowledge in advanced Macroeconomic concepts and to analyze
real world macroeconomic issues.

COURSE CONTENTS:
Aggregate Demand and Aggregate supply, Neo-classical, Keynesian and
Neo-Keynesian Models, Role of Monetary and Fiscal Policies in Closed and
Open Economies. Optimization Models Including Consumption and
Rational Expectation School, Equilibrium Models on Trade Cycles, Labour
Market, Economic Growth Models, Inflation and Unemployment,
Macroeconomic Policies: National Income Fluctuations and Economic
Stability, Policy Packages and Instruments, Inflation, Underemployment
and Long Term Growth.

TEACHING AND LEARNING METHOD: Lectures and Assignments

METHOD OF EVALUATION: Written examination 80% Assignments
/Class tests 20%
SELECTED READINGS:
Acemoglu, Daron (2008). Introduction to Modern Economic
Growth. MIT Press

12
Ackley. G. (1978). Macroeconomic Theory and Policy.
Macmillan.
Ahuja, H. L. (2006). Macroeconomic Theory and Policy. S. Chand and
Co. Ltd. New Delhi.
Allen. R.D.G. (1967). Macroeconomic Theory. St. Martins
Dorbush R &Ficsher S and Startz R. (2001). Macroeconomics.
McGraw-Hill, Irwin
Romer, D. (2001). Advanced Macroeconomics. 2nd edition. McGraw-
Hill.
Shapiro, E (1996). Macroeconomic Analysis. Fifth edition. Galgotia
Publication. New Delhi.

13
COURSE TYPE : CORE

COURSE CODE : ECON 53035

COURSE TITLE : MATHEMATICS AND STATISTICS

LERNING OUTCOMES:
By the end of this course unit students will be able to demonstrate skills in
mathematical and statistical methods that are highly useful in analyzing
problems related to economic theory and practice and understand the uses
of basic descriptive and inferential statistics in economic analysis. 

COURSE CONTENTS: This course unit consists of two parts:

Part I: Mathematics - Functions and their applications in economics,

Calculus and its applications in economics: Differentiation, Partial
differentiation, Integration; Matrices; Maxima and Minima; Constrained
Optimization with economic applications, Linear programming.

Part II: Statistics – Probability: Basic concept, Introduction to

distribution/s, Discrete and continuous distributions. Correlation: Simple
correlation, multiple correlation, Partial correlation. Regression: Simple
Regression: Leaner, Non-Linear. Multiple Regression: Linear, Non-Linear.
Time Series Analysis. Hypothesis testing and confidence intervals.

TEACHING AND LEARNING METHODS: Lectures and Assignments

METHOD OF EVALUATION: Written examination 80% and

Assignments/Class room test 20%
SELECTED READINGS:

Archibald, G. C. and Richard G. Lipsey (2003). An Introduction to A

14
Mathematical Treatment of Economics (3rd edition). A.I.T.B.S. Publishers
& Distributors. India.

Chiang, Alpha C. and Kevin Wainwright (2005). Fundamental Methods

of Mathematical Economics. McGraw-Hill, Inc. New York.
Connor L.R. and Morrell A.J.H. (1972). Statistics in Theory and
Practice, pitman publishing.
David, W and William G. (1971). Introductory Statistics and
Probability, Houghton Mifflin Company- Boston, USA.
Prem S. Mann (2006), Introductory Statistics, John Wiley & sons.
Stephen Bernstein (2006). Elements of Statistics, Schaum’s outline
MacGraw-Hill.
Sydsaeter, Knut and Peter Hammond. (2006). Essential Mathematics
for Economic Analysis, 2nd edition, Prentice Hall: Harlow, England.

15
COURSE TYPE : CORE

COURSE CODE : ECON 53045

COURSE TITLE: ECONOMIC THOUGHT, GROWTH AND

ECONOMIC DEVELOPMENT OF SRI LANKA

LEARNING OUTCOMES: After completion of this course unit students

will have; an understanding of economic thought from early periods to
present, deep knowledge in theory and issues of growth and development,
and will be able to develop skills in planning process through knowledge on
current international trends in politics of development and economics of
development.
COURSE CONTENTS: This paper consists of two parts.

Part I: History of Economic Thought - Early economic thought,

Mercantilism, Adam Smith and Laissez-faire, Hume, Ricardo, J.S. Mill,
Malthus, Austrian School, Marx and labor theory of value, Neo classical
thought, Marshal, Keynesians thought, Early American economists,
Modern economists. Theoretical background of growth and development;
Introduction to basic concepts and definitions of growth and development,
Early growth theories: Neo classical growth models, Harrod-Domar,
Kaldor, Modern growth and development theories.

Part II: Economic Development of Sri Lanka-Agricultural development,

Industrial development and structural changes in Sri Lanka, Education and
development, Population and development and Related issues in Sri Lanka,
Foreign aid and Economic Development, Foreign direct investment,
Regional cooperation and economic development in Sri Lanka, Poverty
and poverty alleviation in Sri Lanka.

16
TEACHING AND LEARNING METHODS: Lectures and Assignments
METHOD OF EVALUATION: Written examination 80% and
Assignments/Class tests 20%

SELECTED READINGS:
Blaug, Mark (1997). Economic Theory in Retrospect, 5th ed.
Cambridge University Press.
Buchholz, Todd G. (1989). New Ideas from Dead Economists. New
York Penguin Group.
Ekelund, Robert B., Jr. and Robert F. Hébert (2007). A History of
Economic Theory and Method, 5th ed. Waveland Press.
Gerald, M. Meier and James, E. Rauch (2006). Leading Issues in
Economic Development (8th edition). Oxford: Oxford University Press.
Lakshman, W.D. (1997). Dilemmas of Development: Fifty years of
Economic Changes in Sri Lanka, Colombo: Sri Lanka Association of
Economists.
Screpanti, Ernesto, Stefano Zamagni. (2005). An Outline of the History
of Economics Thought. 2nd ed. Oxford University Press.
Senanayake, S.M.P., Wimalaratana, W. & de Silva Amala (eds.) (2008).
Development Perspectives, Growth and Equity in Sri Lanka, a
Festschrift in Honor of Prof. W. D. Lakshman. Department of Economics.
University of Colombo.
Tadaro, Michael, P. (2006). Economic Development. 8th edition. Asia:
Pearson Publication.

17
COURSE TYPE : OPTIONAL
COURSE CODE : ECON 53055
COURSE TITLE : MONETARY ECONOMICS AND PUBLIC
FINANCE

LEARNING OUTCOMES: After the completion of this course students

will be able to have a deep and clear understanding of theoretical and
practical understanding on monetary affairs and public finance affairs.
This course comprises of two parts.
COURSE CONTENTS: This paper consists of two parts

Part I : Monetary Economics - Role of money in exchange process,

Demand for and supply of money, Banking industry, monetary
intermediation, and credit rationings, interest rates, Theory of monetary
policy and monetary targets, Money interaction, Role of monetary policy
in credit and monetary intermediates and overall economic activities.
Part II : Public Finance - Theory of public finance, Formulation of public
finance policies, Public finance and taxation, budgeting taxation, tariff
reforms and planning during the transition to liberalized economy, Public
investment, Public debt and Foreign investment.

TEACHING AND LEARNING METHODS: Lectures and Assignments.

METHOD OF EVALUATION: Written examination 80% and

Assignments/Class Tests 20%

SELECTED READINGS:
Buckle, M and . J. Thompson,(1998). Principles of Banking. University
of London.

18
Bhatia, H.L. (2008). Public Finance. 26th Edition, New Delhi, Vikas
Publishing House.
Browning, Edgar. K. and Browning, Jacquelene. M (2004). Public
Finance and the Price System, 4th Edition, Delhi, Pearson
Education(Singapore) (Pvt.) Ltd, Indian Branch
Mishkin, F. S. (2010). The Economics of Money Banking and
Financial Markets. 9th Edition, Pearson Addison Wesley,
Musgrave R.A. (1959). The Theory of Public Finance: A Study of
Public Economy. New York. McGraw-Hill.
Musgrave R. A. and Musgrave P. B. (1983). Public Finance in Theory and
Practice. Singapore. McGraw- Hill.
Otto Eckestein (1983). Public Finance. Prentice Hall of India Pvt. Ltd.
Prest A. R. (1960). Public Finance: In Theory and Practice,
London. Wedenfeld and Nicolson.
Tayler, Philip E. (1974). Economics of Public Finance. 3rd Edition,
New York. Mohan Primlain.
Trech, Richard W. (1981). Public Finance: A Normative Theory.
Business Publications Inc: Texas.

19
COURSE TYPE : OPTIONAL
COURSE CODE : ECON 53065
COURSE TITLE: PROJECT ANALYSIS AND MANAGEMENT
LEARNING OUTCOMES: Upon completion of this course unit the
students will be able to,
Understand the assumptions, pros and cons of each evaluation method and
able to explain why a particular method is appropriate/not appropriate for a
given project; understand the challenges of multi attributed decision-making
and to apply an appropriate model to a given project for effective decision
making; comprehend and relate to real-life examples the fundamental
concepts in project appraisal (e.g. the meaning of time value for money,
equivalence); calculate common financial indicators for a given project and
explain the relevance of each to the appraisal of the project; rank projects by
combining both financial and non-financial indicators (e.g. environmental
and social); understand how risks and uncertainties affect evaluation
outcomes and able to deal with uncertainties and risks in analysis; apply
techniques to account for the effects of inflation/deflation and exchange
rates in analysis; and understand the basic concepts in financing and able to
carry out basic financing analysis. 

COURSE CONTENTS: This course consists of three parts

Part I: Project Analysis - Financial Analysis and Economic Analysis;
Interpretation of projects, Role and importance of private sector project
analysis in national planning, Project preparation: project cycle, descriptive
study on various parts of project cycle, feasibility study, technical and
economic analysis on project study. Project evaluation, Financial evaluation
and economic evaluation: Financial evaluation; Comparison between
relative cost and benefits, Investment determinants; Internal rate of return,
Cost benefit ratio, Net present value, Sensitive analysis, Economic
Analysis: Social cost benefit analysis and shadow prices, differences
20
between commercial and social practice of cost benefit analysis, Little-
Merrles and UNIDO approaches on project evaluation.

Part II: Techniques of Evaluation of Environmental Values and

Project Analysis
Environmental impact evaluation, Principles of environmental impact
evaluation, Limitations of environmental impact evaluation.

Part III: Industrial Project Evaluation - Principles of industrial

project evaluation, Commercial and national profitability under
uncertainties.
TEACHING AND LEARNING METHODS: Lectures and Assignments

METHOD OF EVALUATION: Written examination 80% and

Assignments/Class test/Presentations 20%

SELECTED READINGS:
Boardman, Greenberg, Vinning, and Weimer (2001). Cost Benefit
Analysis: Concepts and Practice. 2nd Ed. Prentice Hall. Upper Saddle
River. USA
Chandra, P. (1997). Projects Preparation, Appraisal, Budgeting &
Implementation. McGraw-Hill. New York.
Dasgupta, P., Sen, A. K. and Marglin, S. (1972). Guidelines for Project
Evaluation. New York: United Nations Industrial Development
Organization.
Harrison, F. L. (1985). Advanced Project Management. Gower
Publishing.
Irvin, G. (1978). Modern Cost-Benefit Analysis Methods.
London: Macmillan.

21
Layard, R. and Glaster, S. (1994). Cost-Benefit Analysis. 2nd edition.
Cambridge University Press.
Lester, A. (1991). Project Planning and Control. 2nd Edition, Butterworth:
Heineman. Little, I. M. D. and Mirrlees, J. A. (1974). Project Appraisal
and Planning for Developing Countries. New Delhi: Oxford & IBH
Publishing Co. PVT.LTD.
Lock, D. (1989). Project Management. Gover, Publishing.
Ministry of Planning and Economic Affairs, (1970). Guidelines for Project
Formulation and Evaluation-Part I. Colombo: Ministry of Planning and
Economic Affairs.

22
COURSE TYPE : OPTIONAL
COURSE CODE: ECON 53075
COURSE TITLE: RESOURCE ECONOMICS AND NATURAL
RESOURCE MANAGEMENT
LERNING OUTCOMES: Upon completion of this unit students will be
able to acquire a clear understanding of the theoretical aspects of Natural
resource and Environmental management and to apply the knowledge in
natural resource management practices in Sri Lanka.

COURSE CONTENT: This course consists of two parts.

Part I : Principles of Welfare Economics - Scope of Welfare Economics,

Compensation principle, Social welfare function, Measurements of welfare
changes, Consumer’s Surplus, Compensation variation and equivalent
variation, Projects and practices.

Part II : Resource Economics and Management - Introduction to

Resource economics, Economic growth and resource availability,
Efficiency in resource utilization, Externalities, Market distortions,
Interim resource utilization, property rights and economy, Common
resource rights, Principles of sustainable development, Forest, fishery and
aquatic resource management, Value evaluation methods, Full economic
value, Use value, Theory of environmental pollution control.

TEACHING AND LEARNING METHODS: Lectures and Assignments

METHOD OF EVALUATION: Written examination 80%

Assignments/Class tests 20%

23
SELECTED READINGS:
Boadway W. Robin and Neil Bruce, (1984). Welfare Economics. Basil
Blackwell Publisher Ltd. 108 Cowley Road. Oxford, England.
Calerance j. and Goldon j. Darkanwald, (1973). Economic Geography.
Graham and Trotman Ltd. London. England.
Dasgupta Partha, (2001). Human Well Being and the Natural
Environment. Oxford University Press Inc. New York. USA.
Gunathilaka M. Herath (2003). Environmental Valuation: Theory and
Application. Postgraduate Institute of Agriculture. University of
Peradeniya. Offset printers. William Gopallawa Mv. Sri Lanka.
Kohlin Gunnar, (1998). The Value of Social Forestry in Orissa.
India. Printed by kompendiet–Goteborg, Sweden.
Maler Kal-Goran,(1974). Environmental Economics: A Theoretical
Inquiry. Johns Hopkins University Press. Baltimore. USA.
Natural Resources, Energy and Science Authority, (1990). Natural
Resources of Sri Lanka. NARESA, Printed by Uni-Walker packaging Ltd.
Colombo. Sri Lanka.
Randall, A., (1989). Resource Economics. Third Edition, John Wiley
and Sons. SD 10662. New York. USA.
Starrett A. David, (1988). Foundation of Public Economics. (Cambridge
economic handbooks) (Reprinted). Cambridge University Press. New York.
USA.
Terner t., (2003). Policy Instruments for Environmental and
Natural Resource Management, Resource for the Future. The
World Bank. Washington D.C. USA.

24
COURSE TYPE : OPTIONAL
COURSE CODE : ECON 53085
COURSE TITLE : INTERNATIONAL TRADE AND TRADE
POLICY
COURSE CONTENTS: This course consists of two parts.

Part- 1: International Trade Theory - International Specialization and

Exchange; The classical theory; Absolute and comparative advantage;
Reciprocal demand and offer curves; The specific factors model; The
Heckscher-Ohlin model, Factor-price equalization, Stolper-Samuelson
and Rybczynski theorems.; Leontief paradox; Modern Theories of Trade;
Intra-industry trade, Imperfect competition and trade; Monopoly,
Monopolistic Competition and Oligopolistic (Reciprocal-dumping)
models.
Part - 11: Trade Policy - Instruments of trade policy: Tariffs and
quantitative trade restrictions; Theory of tariffs, The political economy of
protectionism; Multilateral trading system and the World Trade
Organization (WTO); The theory of customs union; Economic
Integration.
TEACHING AND LEARNING METHODS: Lectures and Assignments
METHOD OF EVALUATION: Written examination 80%
Assignments/Class Tests 20%

SELECTED READINGS:

Bhagawati, J. Srinivasan, T.N. and Panagariya (1999). Lectures on

International Trade. the MIT Press.
Baldwin, R.E. (1989). The Political Economy of Trade Policy.
Journal of Economic Perspectives. Vol. 3, 119-35

25
Baldwin, R.E. and Venables, A. (1995). "Regional Economic
Integration," in Grossman, G and Rogoff, K. (eds.) Handbook of
International Economics. Vol. 3, North-Holland
Feenstra, R. C. (2003). Advanced International Trade: Theory and
Evidence. Princeton University Press.
Krishna, P., A. Panagariya, and J. Bhagwati, (1999). Trading
Blocks: Alternative Approaches to Analyzing Preferential
Trade Agreements. MIT Press.
Krugman, P.R. and M. Obstfeld (2005). International Economics: Theory
and Policy - 7th Edition, Addison Wesley.
Mikic, M. (1998), International Trade. Basingstoke. Macmillan Press.

Website References –

Http//www.worldbank.org,
Http//www.imf.org,
Http//www.wto.org ,
Http//www.undb.org

26
COURSE TYPE : OPTIONAL
COURSE CODE : ECON 53095
COURSE TITLE : ECONOMETRICS

LERNING OUTCOMES: At the end of this course, the students will be

able to demonstrate skills in econometric methods employed in economic
analysis and to analyze economic data using appropriate econometric
methods, as well as to interpret the results scientifically.

COURSE CONTENTS: Role of Econometrics, Review of Multiple

Regression: Linear models and Non-linear models; Significance tests;
Violation of assumptions: Heteroscedasticity, Autocorrelation,
Multicolinearity; Stochastic Regressions and Measurement Errors;
Probability models; Simultaneous Equations; identification problem,
estimation, Binary Choice Models and Maximum Likelihood Estimation,
Models Using Time Series Data.

TEACHING AND LEARNING METHODS: Lectures and Assignments

METHOD OF EVALUATION: Written examination 80%

Assignments/Class Tests 20%

SELECTED READINGS:
Greene, H. W. (1993). Econometric Analysis. Pearson Education
International- Prentice Hall, U.S.A.
Gujarati, Damodar, N. (2004). Basic Econometrics. Tata McGraw-Hill,
New Delhi. Exposition of Econometric Methods. 2nd Edition.
PALGRAVE. New York.
Gujarati, Damodar, N., Dawn C. Porter and Sangeetha Gunasekar (2012).
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Basic Econometrics (5th edition). Tata McGraw-Hill. New Delhi.
Koutsoyiannis, K. (2001). Theory of Econometrics: An Introductory
Exposition of Econometric Methods. (Second Edition). PALGRAVE,
New York.

Madala, G. S. (1992). Introduction to Econometrics. Macmillan,

New York.
Pindyck, R. S. and D. L. Rubinfeld. (1990). Econometric Models
and Econometric Forecasts. 4th Edition. McGraw-Hill. New York.

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COURSE TYPE : CORE
COURSE CODE : ECON 53105
COURSE TITLE: RESEARCH METHODOLOGY FOR
ECONOMICS

LERNING OUTCOMES: Upon completion of this unit students should

be able to:
understand different research perspectives and methodologies in the field of
economics; have an awareness of their ethical responsibilities when
undertaking research; reflect on the meanings and motivations they bring to
the research endeavor; perceive the interconnections between research
questions, data forums, research methodologies and methods; formulate
research questions, hypotheses and accompanying study designs;
understand assumptions and issues of validity and reliability of quantitative
research; adopt conventions for reporting statistical findings; interpret and
critically evaluate reports of quantitative research 

COURSE CONTENTS: Nature of research, research paradigms and

traditions, Main methods of qualitative research, Introduction to
quantitative analysis, Sampling methods, Organizing a Sample Survey;
Methods of action research, Choice of ethnographic research for economic
research, Writing and submitting dissertations, Preparation of a research
proposal.

TEACHING AND LEARNING METHODS: Lectures and Assignments

METHOD OF EVALUATION: Written examination 80%

Assignments/Class Tests 20%

SELECTED READINGS:
Della Porta. D., M.Keating (2008). Approaches and Methodologies in the
Social Sciences: A Pluralist Perspective. Cambridge.
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Emory C.W., (1980). Business Research Methods. Homewood, Illinois,
Richard D Earwin Inc.
Groves, R M, Fowler, F J, Couper, M P, Lepkowski, J M, Singer, E, and
Tourangeau, R (2009). Survey Methodology. (2nd ed.). Wiley.

Kothari C.R. (1998). Research Methodology. New Delhi, Wishwa

Prakshan Publication.
Santosh Gupta, (1993). Research Methodology and Statistical
Techniques. New Delhi, Deep and Deep Publication.
Sarantakos, S, (1998). Social Research. Second Edition. Macmillan Press
Ltd. London.

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10. Contact details

Head of the Department Prof. M.M.Gunatilake

TP. 0112914488

Course Coordinator (Sinhala Medium)

Dr. D.M.Ajith Dissanayaka
Mobile: 0718227951
Email: [email protected]

Course Coordinator (English Medium)

Prof: H.M.Nawarathna Banda
Mobile: 0716209187
Email:[email protected]

Department homepage: http://www.kln.ac.lk/socialsciences/depts/econ/

Note: Time table and all other massages relevant to the postgraduate
programme will appear in the department website and the official social
media websites of the university.

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 1 . Academic Sta ff of the MA/MSS c Degree Prog ra ms

Academic Staff of the Department

Prof. M. M. Gunatilake (Head of the Department)
Senior Prof. Upali Hettiarachchi
Senior Prof. Y. M. S. Madduma Bandara
Prof. H. M. Nawaratne Banda (Program Coordinator – English Medium)
Dr. D. M. A. Dissanayake (Program Coordinator – Sinhala Medium)
Prof. W. M. Semasinghe
Prof. G. M. Henegedara
Dr. H. R. Anulawathie Menike
Dr. Seetha Priyangani Bandara
Mrs. L. W. Dassanayake
Dr. Manjula Gunarathna
Prof. Sumanasiri Liyanage
Prof: Herath Madana Bandara
Prof: Ajitha Tennakoon

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