Browsing by Author "Ranjani, R.P.C."

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Business Failure of Small and Medium Enterprises - A Review
(International Postgraduate Research Conference 2019, Faculty of Graduate Studies, University of Kelaniya, Sri Lanka, 2019) Jayasekara, B.E.A.; Fernando, P.N.D.; Ranjani, R.P.C.
Small and Medium enterprises are back born of developed and developing economies around the world. However the sector has not provided desired level of contribution and suffers from high failure rate in worldwide. The main purpose of this study is to critically evaluate the causes of failure of SMEs based on literature. The objectives of this study is to determine the causes of failure of SMEs, critically evaluate the literature on small and medium business failure theories as well as lessons that could be learnt from the existing literature and to determine the methods of improving the business success to achieve sustainable economic development. The methodology used this study to review literature systematically using sample of 95 studies selected from most relevant articles published from 1968-2016 and critically appraised and synthesized findings qualitatively. The Small and Medium business can be failed due to an inability to achieve certain goals due to activating opposition forces, tensions between assets against liabilities, limited access to finance, unbeatable competition, isolation, inadequate staff, wrong pricing, lack of co-operation, technical insolvency, inability to satisfy principal stakeholder’s aspirations, losses to creditors, cessation of operations, termination due to under performance, involuntary change in both the ownership and management of the business owing to poor performance, unable to meet liabilities, not made profit for the previous three years, sale of the firm or personal decision by the owner to accept employment with another firm, fall in revenue, rise in expenses becomes insolvent ,unable to attract new debt or equity funding, cannot continue to operate under the current ownership and management, exiting the economy or not meeting the “performance threshold” of the market, owner’s personalized management style, end state, liabilities exceeds the value of the company’s available assets, decline and deterioration of financial performance, revenue does not sufficiently exceed costs, decline performance, deviation from goals, continuous performance lapses, inability of a business to meet its financial obligations, economic failure, venture failure, outcomes less than the expectations, poor management practices, overtrading, lack of additional resources, resource insufficiency, unbalance of the resources and opportunities in the organizational life stages, lack the necessary skills or versatility, entrepreneurs lack of strategic management knowledge, entrepreneur’s lack of vision, threat rigidity, strategic persistence, lack of will, lack of turnaround strategies and inability to respond effectively and make necessary adjustments to reverse the downward spiral of decline triggered by external factors. The literature recommend, failures can be mitigate through improving business management skill of the entrepreneurs, continuous concentration on cost reduction, quality improvements, service / product innovation; breakdown organizational barriers between departments; create close relationship with customers and suppliers, eliminating layers of management ,creating flatter organizational hierarchies, transform to advanced latest technology, global focus and enhancing human resource skills and obtain decisions based on the group discussions. The findings of the study useful in identifying practices to be avoided and in aiding educators, consultants, and SME business support agencies in meeting the needs of the business community
Capital Structure and Firm’s Financial Performance: A Study of Sri Lankan Manufacturing Sector
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Hamidon, T.D.; Ranjani, R.P.C.
This research paper attempts to investigate the impact of capital structure on firm’s financial performance based on the manufacturing companies listed in Colombo Stock Exchange (CSE). Annual data were collected from published financial statements relating to 20 sample companies selected using systematic sampling technique operating in manufacturing industry. Descriptive statistics, Correlation and Regression analyses were used as statistical tests to reveal the relationship and the association between the variables. Debt to Equity (DE) and Debt to Total Assets (DT) ratios were used as proxies for capital structure while Gross Profit Margin (GPM), Net Profit Margin (NPM), Return on Assets (ROA) and Return on Capital Employed (ROCE) were used as proxies for financial performance. The results confirm that only ROCE is positively and significantly related with both DE and DT while there is a negative correlation between GPM, NPM and ROA with DE and DT. In conclusion, capital structure is not a major determinant factor affecting the firm’s financial performance where it’s evident that there is no significant association between capital structure components and firm’s financial performance. The results are in support of some literature and are contradictory with some as well.
Covid 19 and Financial Performance-Evidence from Companies Listed in Colombo Stock Exchange
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Lakshan, B.T.; Ranjani, R.P.C.
Introduction: The COVID-19 pandemic has had a significant economic impact not only to Sri Lanka but also around the world. One of the effects of the COVID-19 pandemic on Sri Lankan's Gross domestic production (GDP) growth is fall in 16.4% in the second quarter of 2020 once pandemic started to spread in Sri Lanka. (CBSL, 2020). The purpose of this study is to see how the COVID-19 pandemic has affected the financial performance of companies listed in the Colombo Stock Exchange. Design/Methodology/Approach: The sample consists of 143 firms, which are split into fifteen sectors proportionately. The data are collected over 2019/20 financial statements as per before the Covid 19 and 2020/21 financial statements as per during the Covid 19. The variables are profitability ratio, leverage ratio, short-term activity ratio, and liquidity ratio which are used to check whether there is a statistically significant difference between before and during the Covid 19 pandemic. Data are evaluated through the Wilcoxon Singed rank test between two sets of paired data. Findings: Based on the result, there is a statistically significant difference in the profitability of the companies during the Covid 19 pandemics when compared to before Covid 19 pandemics. And leverage ratio, short-term activity ratio, and liquidity ratio are not statistically significant difference with the Covid 19. Conclusion: As per the results of the analysis, Covid 19 pandemic has significantly impacted to the profitability of the companies listed in the Colombo Stock Exchange. There is no significant impact of the Covid 19 pandemic to the leverage, Liquidity, and short-term activity ratio of the companies.
Degree of operating leverage and stock returns: an empirical study of Colombo Stock Exchange
(University of Kelaniya, 2008) Ranjani, R.P.C.; Sujeewa, G.M.M.
The impact of accounting information on stock market has been one of the most studied topics in the Accounting and Finance research literature. Most of the studies are aimed at identifying in what ways and dimensions of the accounting information is effectively relevant for the investors' decision making. When making decisions with the purpose of maximizing wealth, investors take into account the impact of macro economic and firm specific variables. But, most of the studies have focused on accounting information such as Profitability, Earning per Share (EPS), Return on Capital Employed (ROCE) etc. The present study draws an attention to another important accounting variable, Degree of Operating Leverage (DOL) which is the relationship between Earning Before Interest and Tax (EBIT) and Sales. Hence, this study was undertaken with the purpose of determining the impact of the Degree of Operating Leverage on Stock Return in the Colombo Stock Exchange. This research was based on data from manufacturing firms listed on the Colombo Stock Exchange for the period of 2003 to 2007. The final sample contained 27 companies out of 31 companies in the manufacturing sector. Empirical tests were performed to test the hypothesis that the Degree of Operating Leverage has a positive impact on Stock Returns. We find that there is not a positive and significant relationship between those two variables as expected.
Determinants of Academic Performance of Accounting Undergraduates
(University of Portsmouth, United Kingdom, 2007) Ranjani, R.P.C.; Karuanarathne, W.V.A.D.; Weligamage, S.S.
Determinants of Exchange Rate Movements
(Research Symposium 2010 - Faculty of Graduate Studies, University of Kelaniya, 2010) Ranjani, R.P.C.; Fernando, J.M.R.; Rathnasiri, U.A.H.A.
The economy is comprised of many activities that fulfill human needs. The fluctuations of economy depend on variety of economic tools in any country. The exchange rate is one of the most important macro economic tool, since it links the domestic economy and the rest of the economies together. In the recent past, countries have shown a tendency to choose either hard peg or freely float system in determining their exchange rate. Since January 2001 Sri Lanka was abandoned the existing floated system which were governed by the Central Bank to a free float system by allowing greater freedom in determining the exchange rate through market forces. Therefore identification of the macro economic factors is significant in determination of exchange rate. In this study we have taken the Nominal Effective Exchange Rate (NEER) as the dependent variable and interest rate, inflation rate and GDP growth rate as the macro economic variables. Three months Treasury bills rate is represent the interest rate and Weighted Price Index (WPI) is for the calculation of the inflation. This study will be basically using secondary data sources such as Central Bank annual reports, and Central Bank Website. The time period for this study considered from year 2005 to 200based on quarterly balances. For analysis of data regression and correlation coefficient were used. The result shows that the correlations between the dependent variables and the independent variables have strong relationship and the regression results shows that the selected macroeconomic variables are significant in determining the exchange rate. Overall results conclude that the exchange rate is insightful to the macro economic variables.
Dividend Policy and Firm Performance of Banking and Finance Companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Samarasinghe, K.I.L.; Ranjani, R.P.C.
Introduction: Companies' dividends are considered significant because of the information value of dividends. This study focuses on relationship between dividend policy and firm performance of banking and finance sector companies listed in Colombo Stock Exchange. Design/Methodology/Approach: The Sample of 20 banking and finance sector companies was selected based on Market Capitalization, Dividend Declaration and Availability of Annual Reports for 10-year time period. Regression, Correlation Analysis and Descriptive Statistic were used to analyse the data. Econometrics Views (E-Views) Statistical package was used to analyse the data. Findings: The findings indicate that. there is no significant relationship between EPS and Firm Performance and there is a significant relationship between DPO, DPS and Firm Performance. Conclusion: As per the results of the analysis it can be concluded that dividend pay-out ratio and dividend per share have significant impact on performance and there is no significant relationship between earning per share and performance of Banking and Finance sector companies in Colombo Stock Exchange in Sri Lanka.
An Empirical Analysis on Determinants of Capital Structure in Sri Lankan Companies
(Research Symposium 2010 - Faculty of Graduate Studies, University of Kelaniya, 2010) Silva, P.A.P; Ranjani, R.P.C.
One of the central issues in both the theory and the practice of finance is the problem of determining the optimal capital structure of the firm. This study was undertaken to identify the most significant variables considered for the design of the capital structure and to determine whether or not such factors affect capital structure decision significantly and whether such vary among the sample companies. The study examined the relevance of the corporate capital structure determinants such as size, profitability, tangibility, growth, tax, non debt tax shields and volatility to leverage. The sample of five industries namely Beverage Food and Tobacco, Hotels and Travel, Land and Property, Manufacturing and Plantations during the period of 2003 to 200was selected from the companies registered and listed in Colombo Stock Exchange. The preliminary analysis of the degree of the liner association between variables has been done with the help of Karl Pearsons correlation method. Stepwise multiple linear regression analysis has been used to identify the most significant variables out of various selected explanatory variables. The results show positive association between leverage and non debt tax shields, -size measured in terms of sales, size measured in terms of assets, tax, volatility, tangibility, and profitability (return on equity) while -negatively associate with profitability (return on capital), profitability (return on assets) and growth opportunities. The results have revealed that the size measured in terms of sales, size measured in terms of assets, profitability- (return on equity), profitability (return on capital), growth opportunities, tangibility, tax, non debt tax shields are the significant determinants in the capital structure. Finally, it had been tested on the applicability of Static Trade-off, Pecking Order and Agency Cost theories in the Sri Lankan context. Hence, it is suggested to conduct further research on the determinants of capital structure by considering financial managers board of directors, and the financial consultants thinking patterns and attitudes, based on the available sources in the corporate sector.
Evaluation of group lecturing method and individual lecturing method: undergraduates’ perspective
(University of Kelaniya, 2008) Ranjani, R.P.C.; Karunarathne, W.V.A.D.; Weligamage, S.S.
Financial Stress of Small and Medium Scale Entrepreneurs: A Review
(International Conference on Business and Information (ICBI – 2019), [Doctoral Colloquium], Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2019) Jayasekara, B.E.A.; Fernando, P.N.D.; Ranjani, R.P.C.
Financial stress became contemporary issue in the globe, directly and indirectly affects the individual’s behavior and disorders their physical and mental health. The main objective of this study is to critically evaluate the literature on financial stress and to build a financial stress mitigating framework. The study identified different aspects and different measures of financial stress, level of financial stress of small and medium entrepreneurs, consequences of financial stress and methods of mitigating financial stress. The study finds out that the financial stress caused for depression, anxiety, poor academic performance, unscheduled absences from work and also negatively effect on health, self-esteem, marriage satisfaction, parenting role and family functioning. The financial stressed individuals have a tendency to write cheques with insufficient funds in the bank, regret marketing purchases, make minimum payments, more like to pay interest, less likely to save regularly. To overcome the financial stress, necessary to develop problem solving and financial management skills, develop effective handling of economic hardship, introduce more flexible repayment plans for the loans; improve positive financial behaviors and budgets. The financial stress is less with those who are employed, older, having a lower debt load percentage, and perceives better health and a better family relationship.
Firm Performance During Covid-19 Outbreak Evidence from S&P SL20 Companies
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Fernando, A.N.J; Ranjani, R.P.C.
Introduction: Covid-19 pandemic is a one of main challenge faced by entire world in this century. With the general knowledge about the Covid-19 pandemic most of them know that every economic system had subjected to fall from 2019 November onwards. Sri Lanka economy also highly threat by this pandemic from 2020 March onwards. So, it is important to know how top performing listed entities in Sri Lanka able to manage these impacts from the Covid-19 pandemic. Design/Methodology/Approach: Hence study focus on S&P SL20, sample of this study limited to 20 observations with two time periods 2019 as before Covid-19 pandemic and 2020 financial year as during the Covid-19 pandemic in Sri Lankan context. Using Regression analysis & Paired T test overall investigation conducted. Findings: The overall regression model is significant, and it ensures that there is 75% describing ability of ROA by the explanatory variables of the model. Further paired t test statistics conclude that Firm size, Leverage levels, Debt repayment ability, Liquidity positions are not significantly difference but ROA has a significant mean difference during the Covid-19 pandemic period compare with the pre-Covid period. Conclusion: In overall, sectors like travel & tourism, imported related manufacturing industry are not safe havens for the investments as a wise investor. But telecommunication sector, health sector and export related companies are much suitable companies for future investments until the effects of the pandemic gain under fully control.
The Fit between National Culture, Organisational Culture and Management Practices and its Effect on Employee Satisfaction and Commitment
(University of Portsmouth, United Kingdom, 2007) Ranjani, R.P.C.; Udagedara, R.M.U.S.
Impact of Covid-19 Pandemic to The Resilience of Commercial Banks in Sri Lanka Before and During the Pandemic
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Abeywardhana, W.G.S.; Ranjani, R.P.C.
Introduction: A resilient banking sector, according to the Basel Committee study, is one that has a high capacity to resist shocks caused by various financial and economic crises. This research study was undertaken to investigate the Impact of covid-19 pandemic to the resilience of Commercial banks in Sri Lanka before and during the pandemic. Design/Methodology/Approach: The Sample of the study consist with ten commercial banks in Sri Lanka and use secondary data those data was collected over the period of 2019 to 2020 from Colombo Stock Exchange. There are three variables use to determine the impact of covid-19. Those are Capital adequacy, Liquidity and Profitability. Descriptive test, Normality test, correlation test has been tested through StataSE13 application. Paired t test and Wilcoxon sign rank test respectively use as parametric test and non-parametric test. Findings: This study identified that there is no significant impact to capital adequacy, liquidity, and profitability from covid-19 pandemic. Conclusion: The final result emphasizes that the overall model is not statistically significant, and researcher conclude that there is no significant impact from covid-19 pandemic to the resilience of commercial banks in Sri Lanka before and during the pandemic.
Impact of Dividend Announcement on Share Prices in Colombo Stock Exchange
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Deshapriya, D.M.C.; Ranjani, R.P.C.
Introduction: Dividend announcement plays a potential role in seeking investment by various investors. Investors who are interested in buying shares primarily consider stock price, risk, leverage, company dividends, profitability, and other factors. The share price is very important to make a decision regarding buying and selling shares. As well as the Dividend announcement is a crucial factor influencing investor decision-making. This study was undertaken due to the inconclusive findings regarding the impact of dividend announcement on share price in the Sri Lankan context. Design/Methodology/Approach: The standard event study methodology was used to examine the stock market response to dividend announcements for the event period of 21 days which is 10 days prior to the announcement date, 10 days after the announcement date, and the announcement date. Both event study method and regression analysis methods were applied to analyze collected data in relation to computing the abnormal return, excess return, cumulative average abnormal return, and t values surrounding the dividend announcement day. Findings: The finding shows that Dividend Announcements lead to positive market reactions towards Market Prices in the Colombo Stock Exchange. Conclusion: When using the descriptive analysis, the dividend announcements show a significant impact on the share prices. As a result, it can be concluded that dividend announcements lead to positive market reactions.
The Impact of Free Cash Flow on Capital Expenditure of Listed Companies un CSE (With Special Reference to the Capital Goods Sector)
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Kahandawala, K.A.D.B.H.; Ranjani, R.P.C.
Introduction: Free Cash flow can be considered as one of the major implications of the financial strength of a company. Companies in their introductory stage allocate a higher portion from their funds into capital expenses because they are in the infant stage and need growth. Therefore, they have to increase their capacity level more and more by investing funds in profitable projects. Even though, there are large number of studies have been conducted in developed and developing countries on this topic, no research study conducted in capital goods sector in Sri Lanka. Therefore, this study attempts to examine the impact of free cash flow on capital expenditure of listed companies in the capital goods sector in CSE. Design/Methodology/Approach: The sample of the study consist with 25 companies from capital goods sector in Colombo Stock Exchange and the data was collected over the period of 2011 to 2020. Capital expenditure was taken as dependent variable and free cash flow was taken as the main independent variable and dividends, depreciation, and total assets were considered as control variables. The study used panel data regression and descriptive statistic to analyse the data. Findings: The study revealed that the free cash flow has a significant negative impact on capital expenditure in companies listed in the capital goods sector in Colombo Stock Exchange. In contrast, Dividend, depreciation and total assets have a significant positive impact on capital expenditure in companies listed in the capital goods sector in Colombo Stock Exchange. Conclusion: The final result emphasizes that there is a significant negative impact of free cash flow on capital expenditure in listed companies in Capital Goods sector in Sri Lankan context.
The Impact of Intellectual Capital on Firm Value: A Comparative Study of Consumer Services Companies and Capital Goods Companies Listed in CSE
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Dharmakeerthi, M.M.K.S.; Ranjani, R.P.C.
Introduction: In modern economic era, Intellectual capital is a key competitive advantage for a company. This study was undertaken with the purpose of investigating the impact of Intellectual Capital on Firm value in Consumer Service Sector & Capital Goods Sector companies listed in Colombo Stock Exchange (CSE). Design/Methodology/Approach: This study is for the period of 2015 to 2020 based on the sample of 25 companies in Consumer Service Sector and 20 companies in Capital Goods Sector. Dependent variable for the study was Firm value and independent variable for model 01 was intellectual capital and the independent variables for model 02 were capital employed efficiency, human capital efficiency & structural capital efficiency. Based on the research objectives, the study is tested as two regression models using random effect regression model. Findings: The findings of the study evident that, the intellectual capital has a significant impact on firm value in both consumer service sector and capital goods sector. When consider about component wise impact, capital employed efficiency has a significant impact on firm value and human capital efficiency and structural capital efficiency have not a significant impact on firm value in both sectors. Conclusion: The results conclude that the overall model is statistically significant in both sectors, and there is an impact of intellectual capital on firm value in Consumer Service Sector & Capital Goods Sector in CSE Sri Lanka.
The Impact of Ownership Concentration on Firm Performance: Evidence from Listed Hotels in Colombo Stock Exchange
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Perera, D.M.M.P.; Ranjani, R.P.C.
Introduction: Ownership concentration is the major internal component in the corporate governance to control the agency issue. The concentration of ownership acts as an invisible hand in improving the firm performance. The purpose of this study is to investigate the impact of ownership concentration on firm performance of listed hotels on Colombo Stock Exchange in Tourism sector in Sri Lanka. Design/Methodology/Approach: The sample of the study consist with twenty-one listed hotels on Colombo Stock Exchange for a time period of 2014 to 2020. The independent variable of ownership concentration measured through percentage of shares held by largest shareholder of the company whereas dependent variable of firm performance was measured through return on asset. Firm size, Financial Leverage & firm age used as the control variables. Descriptive analysis, Correlation analysis and panel data regression used to analyse the data in the study. Findings: The results revealed that ownership concentration has negative insignificant impact on firm performance measured through ROA. However, results indicate that firm age has negative significant impact on ROA. But firm size and financial leverage showed negative insignificant impact on firm performance of listed hotels in Colombo Stock Exchange in Tourism sector of Sri Lanka. Conclusion: The results of the study indicate that ownership concentration does not have significant effect on firm performance of listed hotels in tourism sector of Sri Lanka
The Impact of the Government Budget Announcement on Colombo Stock Exchange
(Research Symposium 2009 - Faculty of Graduate Studies, University of Kelaniya, 2009) Ranjani, R.P.C.; Sujeewa, G.M.M.; Rathnasiri, U.A.H.A.
Stock market is important to the success of any nation’s economy and certainly to expand and diversify its economy. If a stock market is shown to be inefficient, the public tends to distrust it and the market may collapse due to eroding investments. In addition if a stock market is shown to be inefficient, it may not provide an important mechanism for valuing financial assets and it may not facilitate for the important economic service of efficiently allocating investible funds among the possible investment project within the economy. Therefore it is the responsibility of the regulatory bodies in any economy to implement proper strategies and policies to develop capital market of the country. Accordingly tax impositions and concessions for different sectors through government budget are being often used to formulate strategies in order to develop efficient capital market. The purpose of this research is to identify the impact of the announcement of Sri Lankan Government budget on the Colombo Stock Exchange (CSE). This study investigates the behavior of CSE price indices in respect of prior and post period budget announcement information. The data set includes All Share Price Index (ASPI) and Milanka Price Index (MPI) of all listed companies for the period of 2005 to 2009. The researchers have considered prior and post period of 15 trading dates based on the first speech of budget announcement date to the Parliament. The event study method has been selected for the purpose of data analysis. The results indicate that the downward trend in ASPI and Milanka price indices in respect of budget announcement period, both prior and post. But it was noted that an upward trend in ASPI and MPI for the year 2007. The results of this study support to make a conclusion that, continuous tax impositions had led to downward trend in ASPI and MPI. However, upward trend in ASPI and MPI for the year 2007 was observed due to significant portion of tax concessions and exemptions from the government budget 2006 in certain sectors such as manufacturing, investment, construction, telecommunication etc. Therefore we can conclude that continuous imposition of taxes cause for downward trend in price indices and significant tax concessions and exemptions for upward trend in price indices in CSE.
An integrated approach for the strategic planning and quality assurance in higher educational institutions in Sri Lanka
(University of Kelaniya, 2008) Ranjani, R.P.C.; Udagedara, R.M.U.S.
Macroeconomic determinants of stock market return with special reference to the Colombo Stock Exchange (CSE)
(Research Symposium 2010 - Faculty of Graduate Studies, University of Kelaniya, 2010) Karunarathne, W.V.A.D.; Ranjani, R.P.C.; Kumari, P.W.N.A.
The linkage between macroeconomic variables and the movement of stock prices for developing countries have been widely discussing topic in research arena. CSE is one of the top performing markets in Asia with an average annual index growth rate of 27% and currently it shows the continuous upward trend. There for this study explores the association between selected macroeconomic variables and sectorial indexes. Since it would be almost impossible to incorporate every potential aspect to explain the stock market behavior we limit our study to the selected monthly macro economic variables such as inflation rate (IR), three months treasury bill rate (TBR) and exchange rate US$ =LKR (ER) for the period of 5 years from 2005 to 200and we select five sectors in CSE as proxy for represent all twenty sectors. Those are Banks Finance and Insurance (BFI), Diversified Holdings (DH), Hotels and Travels (H&T), Telecommunications (Telecom), and Trading. Collected data were analyzed using the SPSS software and Stepwise regression analysis was applied to test for the linkage. Upon testing stepwise regression analysis we show that changes in CSE sectorial indexes do perform a significant relationship with, IR, TBR, and ER. Coefficient of determination (R2) for BFI, DH, H&T, Telecom, and Trading are 60%, 50%, 60%, 68%, and 42% respectively. All the three variables are significant at 1 % level for all the sectors except DH and Trading. Another important finding was ER doesn't make significant influence on the sectorial indexes in DH and Trading. An overall finding concludes that Colombo Stock Exchange is sensitive to changes in the macroeconomic variables. It is hoped that the finding of this study would provide some meaningful insights to the body of knowledge, policy makers as well as the practitioners.