Browsing by Author "Nanayakkara, K. G. M."

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Does Sustainable Responsible Investment Cause Better Portfolio Performance: Concept Paper
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Rathnayake, S.; Nanayakkara, K. G. M.
The aim of this paper is to examine the performance of portfolios that are constructed based on environmental, social and governance (ESG) scores. The financial industry's growing need for sustainable products indicates that interest in ESG and sustainable investing is set for the long haul. The subject has been debated for a while, and earlier research on the risk-adjusted return differential between conventional and sustainable funds has produced various findings. This study will be carried out in part because previous research has concentrated on capital markets that are bigger, mostly developed countries. There is a huge lack of research in the developing country context. The purpose of this study is to close the knowledge gap about how different fund types performed financially in a developing market. This study will select all developing countries in the South Asian region. According to the World Bank categorization, the following are the countries: Maldives, Sri Lanka, Bangladesh, Bhutan, India, Nepal, and Pakistan. Data will be collected using Bloomberg. Financial data collected will be analyzed using panel data regression analysis.
The Nexus of farmers’ Sustainable agriculture potential and readiness for more organic use in rice farming: Insights from resilience theory
(2023) Ariyarathna, S. M. W. P. K; Nanayakkara, K. G. M.; Thushara, S. C.
Sustainable Agriculture (SA) and the readiness of farmers to implement SA practices are broader discussions in global forums today. However, to date, there has been relatively little focus on holistically developed frameworks to assess farmers’ SA potential or their linkage to farmers’ readiness for SA practices such as adopting more organics in farming, particularly in Sri Lanka. To address this gap, we developed a conceptual model to determine farmers’ resilience in implementing more organic use in farming. The model developed was a philosophical combination of ecosystem resilience theory, the rural livelihood assessment framework, and the dimensions of personal readiness to commit to or experience an action. We derived composite indicators to explain the variances of these constructs through a detailed literature review, followed by pretesting indicators. Data were collected from 386 participants using a structured questionnaire consisting of 119 items. Partial least squares structural equation modelling techniques were used to analyze the variables and path coefficients of the model. Farmers’ sustainable agricultural potential (SAP) was found to be moderately strong in this rice cultivation region. This potential positively influences their readiness for adapting more organics in farming. Some farmers perceived government support as effective. However, this support has not yet been transformed into organic adaptation. Natural capital was identified as the most influential factor in organic farming. Farmers’ education, gender, the extent of sowing, farming methods, and agro-input type were moderating factors between SAP and their readiness for organic matter. Farmers did not deny organic adaptation and understood the need to reduce the use of chemicals.
Ownership Structure, Firm Size and the Operational Risk Management of Domestic Commercial Banks in Sri Lanka
(Department of Finance, University of Kelaniya., 2023) Rathnayake, S.; Nanayakkara, K. G. M.
Purpose: The banking sector is a crucial player in any economy, often affected by economic and social crises. Thus, it is vital to identify the intrinsic weaknesses of banks to manage their operational risk. The recent COVID-19 pandemic also severely affects the global financial sector, irrespective of the development status. Accordingly, this study is an attempt to find out the evidence on operational risk management and its relationship with bank size and ownership structure of the banking sector in one of the developing countries in the world, Sri Lanka. Design/Methodology/Approach: Financial data of eight out of thirteen commercial banks in Sri Lanka were analyzed over 13 years using panel data regression analysis. Sri Lankan banks' operational risk management practices are measured by excess capital (over the required minimum capital for operational risk). Deposits plus advances are used to calculate the size of a bank. Findings: It is revealed a significant positive relationship between firm size and operational risk management. A significant relationship between the ownership and excess capital held by banks for managing operational risk is also identified. This result leads to the conclusion that the larger commercial banks hold higher excess capital over the required minimum as per Basel accords. Moreover, government-owned banks are recognized to have more excess capital for operational risk management. Implications: Given the high amount of losses from bad loans and the central bank's implementation of Basel III regulations, the study has implications for Sri Lankan banks. Originality: When considering Sri Lankan context there can be found only a little amount of evidence on operational risk management practices and its relationship with size and ownership.