Abstract:
The air cargo plays an important role in international trade of goods between countries in the world. International trade contributes much on creating and maintaining a greater intimacy in between countries in the world while facilitating much on being a globalized village by the world countries. It is very essential for each and every country to participate in international exchange mode of goods with highly efficient, low cost, less time consuming supply of goods to the global network with higher accessibility. The low cost and high accessibility orientations have led for various countries to use air cargo as their cargo medium in international trade of goods.
As an emerging economy in the South Asian region, Sri Lanka needs to engage in favorable international trade activities with the rest of the world. Accordingly, it is very essential for Sri Lanka to participate efficiently in international trade activities since the international trade directly links with the country's economic growth. The economic growth directly links with country's Gross Domestic Product (GDP). GDP is the totalmarket value of all finalgoods and services produced in a country in a given year. The annual change of the GDP compared to the previous year represents the country's economic growth rate for the considering year. Accordingly, it is vital to identify the significant impact of air cargo in international trade by Sri Lanka since it serves as the higher efficient, less time consuming cargo handling medium which can directly links with the economic growth of Sri Lanka. Therefore, this research was aimed at identifying the impact and that air cargo exports does on economic growth of Sri Lanka.
