11th Students' Research Symposium 2022

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The Analysis of Determinants of Profit Growth: Evidence from Sri Lankan Food, Beverage & Tobacco Companies Listed in Colombo Stock Exchange Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Devage, W.S.D.V.A.; Perera, P.A.S.D.
Purpose: The aim of this study is to estimate the impact of current ratio (CR), current liability to inventory (CLI), total asset turnover (TAT), net profit margin (NPM), sales growth (SG), and company size (FS) on profit growth (PG) of listed Food, Beverage & Tobacco Companies in Sri Lanka Design/Methodology/Approach: The study followed deductive research logic, positivism philosophy and a quantitative approach. A total of 50 Food, Beverage & Tobacco companies listed on the Colombo Stock Exchange (CSE) is considered as the population. The sample size of collecting data of 20 Food, Beverage & Tobacco companies were analyzed using a purposive sampling technique and the data estimation method used the random effect panel data regression model processed using STATA 16 application. Findings: Random effect model reveals that the CR and CLI ratios have a negative effect on PG, while the TAT, NPM, SG and firm size ratios have a positive effect. The study’s findings suggest that higher sales growth combined with efficient operations and low liquidity can lead to higher company profits. Also, it was found that except for the determinant Sales Growth (SG), all other variables had a statistically insignificant impact on Profit growth (PG). Originality: The researcher proved that CR, CLI, and sales growth ratios have a negative effect on profit growth while TAT, NPM, SG and FS have positive effect on profit growth.
Analysis of the Factors Affecting on the Employees Job Satisfaction with Special Reference to AIA Insurance Lanka Ltd
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Bopage, B.S.D.; Liyanage, M.L.D.C.J.
Purpose: The purpose of this research study is to analysis the impact of the factors affecting the employees’ job Satisfaction with special reference to AIA Insurance Lanka. Design/methodology/approach: In this study, the researcher used a quantitative approach. The independent variables of this study were job security, pay and promotion, health and safety, fairness and job training. The dependent variable was job satisfaction. Primary data were collected through a structured questionnaire distributed to the employees of AIA Insurance Lanka. The data gathered were analyzed using descriptive statistics and regression analysis using SPSS software. Findings: This survey found that job security, pay and promotion, health and safety, fairness and job training have positive relationship with the job satisfaction. Out that the salary (pay and promotion) of the employees has the strongest impact to the job satisfaction. The study has further provided recommendations to improve the level of job satisfaction to the said organization. Originality: This study has discovered a new finding about the relationship between job security, pay and promotion, health and safety, fairness and job training with the job satisfaction of AIA Insurance Lanka Ltd during the year 2022.
Attitudes towards Credit Card Usage of Banking Sector Employees in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Jayasena, R.A.H.P.U.; Weligamage, S.S.
Purpose: There are number of empirical researchers in other countries regarding credit card usage, but in Sri Lankan context there are not much empirical researcher regarding the credit card usage. Among them there is lack of sufficient empirical evidence regarding to credit card usage of banking sector employees in Sri Lanka. The main aim of this study is to identify the attitudes towards credit card usage of banking sector employees in Sri Lanka. Design/Methodology/Approach: To identify their attitudes, 300 questionnaires were distributed and only 270 were responses. The sample is collected based on convenient sampling method. Perceived usefulness, perceived ease of use, customer knowledge and social influence are the independent variables and credit card usage is the dependent variable. Through the use of the SPSS software’s (23.0 version) correlation test and regression analysis, four hypotheses were examined. Findings: Findings revealed that there is a significant positive relationship between perceived ease of use, customer knowledge, social influence and credit card usage, as well as it is found in between perceived usefulness and credit card usage is not having a significant positive relationship. Originality: Identifying and understanding these customers’ attitudes towards credit card usage will be useful to the banks/ credit card issuers, government and future researchers as well.
Board characteristics and firm performance: Evidence from the Life Insurance Companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Jayasundara, J.M.D.N.; Buddhika, H.J.R.
Purpose: The purpose of this study is to test the hypothesis about the impact of board characteristics on the life insurance firms‟ performance in Sri Lanka. The data used for the study is derived from eight consecutive years from 2014-2021 annual reports of 13 life insurance firms operating in Sri Lanka. Design/Methodology/Approach: This study employed publicly available data from financial databases and annual reports of 13 sample life insurance companies in Sri Lanka which are registered with the Insurance Regulatory Commission of Sri Lanka (IRCSL), for the past eight years from 2014-2021. The annual reports published by the respective companies and the statistical reviews of the Insurance Regulatory Commission of Sri Lanka are used to collect data about the life insurance companies. The Return on Asset (ROA) and Return on Equity (ROE), this study measures the performance of life insurance companies in Sri Lanka. Multivariate regression analysis on panel data is used to find the impact of the board characteristics, such as CEO duality, the Board size, Board independence, Audit committee size Audit committee independence and the performance of the life insurance companies. Findings: The results show audit committee size and audit committee independence have positively impacted the life insurance firms' performance in Sri Lanka while CEO duality, board size and board independence show a negative impact. The outcome emphasizes the importance of good board characteristics in Sri Lankan life insurance companies needed to perform well in the insurance industry. Originality: This finding guided life insurance firms how to manage their board composition to lead to better performances of the organization.
Cashflow Indicators as a Predictive Tool for Financial Distress
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Gamage, A.D.W.; Sudasinghe, S.L.
Purpose: The main objective of the study was to identify the usefulness of cash flow indicators in predicting financial distress in manufacturing firms listed on the Colombo Stock Exchange (CSE) Design/Methodology/Approach: The study utilizes multiple regression analysis to explore the relationship between cash flow indicators and financial distress with the use of 65 companies over four years, from 2019 to 2022. In addition, control variables such as company size and return on assets (ROA) were also considered for the study. Findings: The results implied that the solvency indicator is a strong predictor of financial distress when combined with two control variables. The study suggests that cash flow indicators are not a useful method for determining financial distress in the Sri Lankan context on their own but can be valuable when combined with financial indicators such as company size and ROA. Originality: The findings of the study provide useful insights for stakeholders in understanding the relationship between cash flow indicators and financial distress and to mitigate the risk of failure. The study recommends techniques such as effective cash flow and interest management, prospective business expansion, and increasing income-generating assets to avoid bankruptcy.
Customer Perception towards Cyber Security Threats Affecting Online Banking and Online Transactions
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Samarasekara, U.A.N.; Samarawickrama, A.J.P.
Purpose: This study was aimed to study about the cyber security issues in Sri Lanka and to give suggestions for those issues. According to managerial and social perspective this study will help to measure applicability of managers to ensure the safety of their customers and as a social guider this study will help to identify how that we can overcome cyber security issues. Design/Methodology/Approach: The researcher has used the quantitative method in this study. Convenient sampling method was used to gather data from 119 online customers in Colombo district using an online questionnaire. Perceived Identify Theft, Perceived Impersonation and Perceived Account Hijacked were the independent variables and E-banking adaptation and retention was the dependent variable in this study. For data analysis, descriptive statistics, independent sample T-test, ANOVA test, and multiple regression were used. Findings: Based on the study’s findings Perceived Identify Theft and Perceived Account Hijacked are having significant impacts on E-banking adoption and retention. The adjusted R square value of the multiple regression model 0.61 indicates that the Perceived Identify Theft and Perceived Account Hijacked explain 61% of E-banking adoption and retention. Originality: Findings of this study will help the banking sector and future researchers to identify the potential threats to e-banking systems and online transactions and the measures to mitigate them.
Determinants of Commercial Banks’ Lending Behavior in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Gimhana, K.P.S.; Weerasinghe, W.D.J.D.
Purpose: This study aims to examine the determinants of lending behavior of commercial banks in the Sri Lanka. Commercial banks are critical to the growth and prosperity of the economy. There are 24 commercial banks in Sri Lanka, both locally and internationally owned. Design/Methodology/Approach: The two theories, Portfolio theory and Bank Lending & Loanable Fund theory have been revisited through this study. Further, two parameters are used to calculate the sample size. They are long-term banking activities, as well as the availability of each bank's data during the time-period under consideration. This study relied on secondary data, and it spanned eleven-year period from 2010 to 2020. The key sources of secondary data for this study are annual reports from local commercial banks and annual reports. Altogether, 23 commercial banks in Sri Lanka sampled for the study. The descriptive statistics, correlation, and multiple regression analysis were used to analyze the collected data. Findings: The finding implies that commercial banks' lending is dependent on depositor's money. It means that as the ability of the bank to mobilize more deposits, the amount of loan granted to the customer will improve. Originality: It is investigated that to attain profitability and liquidity, Sri Lankan commercial banks should improve their methods for mobilizing public deposits and build a robust liquidity management mechanism, according to the report.
Determinants of Financial Literacy with Special Reference to Young Adults in Western Province of Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Malavithanthila, M.K.T.N.; Perera, L.A.S.
Purpose: The aim of this study is to investigate and evaluate the factors affecting financial literacy among the young adults of western province of Sri Lanka. The fact that this study expands on the idea of financial literacy and its factors is one of its strengths. Design/methodology/approach: The research has a quantitative survey-based data collection, and it also uses both structural equation modeling (SEM) and Regression analysis. The population of the study is the young adults that is young adults whose age is between 17 to 30 in Western province of Sri Lanka. The sampling method of the study is convenience sampling, and the sample size was determined using Cochran’s formula which is 384.91. Findings: The results of the study showed that the young adults are more confident with financial literacy, financial behavior, financial knowledge, and financial experience whereas they should concentrate more on improving their financial goals, financial decisions and financial wellbeing. With the help of the regression models, it also proved that financial Technology is a new determinant of financial literacy and the model built showed the interrelationship between the financial literacy determinants. Originality: This study fills a gap in the body of knowledge about the several variables that affect financial literacy. It offers data to aid decision-makers in creating plans to improve societal financial literacy.
Determinants of Financial Literacy: Analysis of the Influence of Financial Behavior and Financial Attitudes
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Navodani, R.B.G.S.D.; Gunasekara, A.L.
Purpose: The purpose of this study is to identify the determinants of financial literacy and examine the most significant determinant of the financial literacy in Sri Lanka. This study focuses on how financial behavior and financial attitude impacts on the financial literacy in Sri Lanka. Design/Methodology/Approach: The research has used the quantitative approach to investigate this notion and gathered data from 400 individuals between only 18 and 60 years old in all nine provinces in Sri Lanka in order to achieve the research objectives. This research used a simple random sampling technique. In this study, the main source of data gathering approach is questionnaires. Findings: Based on the study's findings, the hypotheses test shows that the financial behavior and financial attitude are significantly impact to the financial literacy in Sri Lanka. As a result, the researchers suggest that the efforts needed to be made to include the importance of risk diversification, the time value of money, the calculation of compound interest, the importance of budgeting, effective savings strategies and money management skills debt in financial literacy programmes. Originality: This study considers the whole Sri Lanka to identify whether the financial behavior and financial attitude impacts financial literacy. This is a novelty of this study.
Determinants of Financial Performance During Covid 19 Pandemic: Evidence from Colombo Stock Exchange
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Eshan, W.M.T.; Perera, L.A.S.
Purpose: Financial information is crucial for improving Sri Lanka's economy and delivering critical services to its citizens. The purpose of this study was to identify factors influencing financial performance with special reference to top companies in CSE in 20 sectors in Sri Lanka before and during the COVID-19 period. The study's importance lies in its ability to pinpoint the variables influencing the financial performance of Sri Lanka's top CSE firms across 20 industries. Design/Methodology/Approach: The target population of the study was 295 CSE companies Sri Lanka. The sample size in this study was top 50 companies in CSE in 20 industries. Data was obtained from audited financial reports. Data were analyzed using both descriptive, correlation and regression analyses. Statistical Software for Data Science (Stata) software was used as a tool for data analysis. The dependent variable is a firm’s performance measure ROA, the independent variables include Firm Size (FS), Asset Utilization (AU), Leverage (LEV), Liquidity (LIQ), Capital Structure (CS) and Operating Expenses (OPEX). Findings: The finding shows that leverage and capital structure have significantly impact on financial performance in top companies in CSE in 20 sectors and Liquidity, assets utilization, capital structure and operating expenses are not significantly impact on firm’s performance of companies in CSE in 20 sectors in Sri Lanka in before and during the COVID-19 period. Originality: This study has identified the determinants of financial performance During Covid 19 Pandemic for entire 20 sectors in the CSE.
Determinants of Low Insurance Penetration in the Sri Lankan Life Insurance Market
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Arachchi, K.D.G.; Buddhika, H.J.R.
Purpose: Insurance penetration is the most popular measurement in the insurance sector. The main goal of this study is to identify the Determinants of Low Insurance Penetration in the Sri Lankan Life Insurance Market. Sri Lanka has a considerably low insurance penetration when compared with other main south Asian countries. Higher insurance penetration indicates the capability and confidence of the insurance industry. Insurance penetration serves as a benchmark for measuring the progress of the insurance sector. Many studies have been undertaken in the framework of foreign nations, but just a handful in the context of Sri Lanka. Design/Methodology/Approach: It was decided that an insurance penetration research study should be conducted to emphasize the factors of insurance penetration in the Sri Lankan setting. According to previous studies, some independent variables affect insurance penetration, which was Inflation rate, Income, Literacy ratio, and dependency ratio. And the data was gathered over 22 years from 2000 to 2021. This study was conducted as quantitative research and for the analysis of data, this research uses the EWIEWS statistical software to find outs the relationship between the independent variables and the dependent variable (life insurance penetration). Findings: Most of the independent variables are significant to the life insurance penetration in Sri Lanka long run as well as the short run. Not only that, but this study also examines if there is any difference between the pre-war-the post-war and the pre covid and post covid. Originality: This study guided the government of Sri Lanka to focus on factors leading to low insurance penetration ad further weight on those to improve the insurance penetration in Sri Lanka.
Determinants of Non- Performing Loans in the Banking Sector: Evidence from Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Kumara, G.S.P.; Gunasekara, A.L.
Purpose: In Sri Lankan context, Non-Performing Loans of banks have significantly increased during last few years due to the pandemic, and it has bad effect on bank performance. Nonperforming loans have a negative impact on banks' profits directly. Therefore, this study aims to identify determinants of non-performing loans and banking sector taking evidence from Sri Lanka. Design/Methodology/Approach: The sample of the study consists of 10 banks as included CSE main board in Sri Lanka. 10 years from 2012 to 2021 was used as the period for data collection. All the collected data were analyzed using STATA software, which included statistical tests such as multicollinearity, normality, and panel regression analysis. Finding: The findings show that return on equity ratio had a statistically significant negative relationship with the dependent variable (non-performing loans). while other variables (capital adequacy ratio, loan to deposits ratio, return on assets ratio, public debt as % of GDP, Annual average inflation rate, interest rate) are statistically insignificant. Also, the control variable firm size is statistically insignificant. Hence, banks should focus more on these dimensions while making a concerted effort to reduce non-performing loans. Originality: This study considers the pandemic period and it’s a novelty in this research.
Determinants of Non-Performing Loans in Licensed Commercial Banks and Impact of Covid 19 on Nonperforming Loans: Evidence from Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Weerakoon, K.W.H.M.Y.R.; Weerasinghe, W.D.J.D.
Purpose: The purpose of this study is to ascertain the determinants of the non-performing loans and identify the impact of COVID19 on non-performing loans in licensed commercial banks in Sri Lanka. Design/Methodology/Approach: The study employed panel data methodology to investigate the effect of bank specific and macroeconomic factors on non-performing loans. This study takes secondary/ quantitative data. Panel unit root test has been undertaken in order to test the stationary of the variables. Hausman test and Breusch-Pagan Lagrange multiplier test were used to select the appropriate model out of pooled, random and fixed effect. The research conducted for pre-pandemic period (2012-2019) and period with the pandemic (2012-2021) to identify the impact of COVID19 on non-performing loans using selected 20 licensed commercial banks. Findings: Findings revealed that return on assets and loan loss provision has a significant positive influence, while loan to assets ratio positively associated with non-performing loan and no significant impact in both periods. Bank size has a significant negative influence. Real GDP growth rate, unemployment rate and lending interest rate were highly significant in both periods. Contrary to literature, inflation rate has a positive insignificant relationship with nonperforming loans. Originality: The findings of the study which details the determinants of non-performing loans of licensed commercial banks in Sri Lanka is beneficial for different stakeholders. The findings of the study might be used as a directive input in developing regulatory standards regarding lending policies in banking sector in Sri Lanka.
Determinants of Tax Compliance among Small and Medium-Sized Enterprise Owners in Kandy District
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Gunarathna, W.M.N.R.; Sudasinghe, S.L.
Purpose: The main objective of the study was to identify the factors that influence tax compliance among small and medium-sized enterprise owners in Kandy District Design/Methodology/Approach: The current study has gathered the primary data from 100 SME owners in the Kandy district by using a questionnaire. The study used descriptive statistics, Pearson correlation, and regression analysis for each of the specific objectives, and data were analyzed by IBM SPSS. Findings: The findings of the research indicated that automation of tax filing, fairness of the tax system, tax awareness, and education had a strong positive correlation to tax compliance. Hence according to regression analysis, those three variables had a great positive impact on tax compliance. Further, the analysis indicates that the operational years, educational level, and income level had a significant effect on tax compliance however, gender did not significantly affect the tax compliance level of SMEs. Originality: While tax evasion leads to budget deficits for the government, tax compliance generates significant cash for the government to fund its projects. In this case, the SMEs, businesses, and individuals will adapt to the constantly evolving tax systems and will get a better understanding of the variables and their interactions with one another in the context of tax compliance.
Dividend Policy and Stock Price Volatility: A Study among the Commercial Banks in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Mathumitha, G.; Madhushani, P.W.G.
Purpose: The main aim of this study is to identify the impact of the dividend policy on stock price volatility in listed commercial banks in Sri Lanka because the volatility of share prices affects the price return of shares (capital gain). Design/ Methodology/Approach: Two key variables; Dividend payout and Dividend yield have been taken as the independent variables after controlling for firm size. The stock price volatility was taken as the dependent variable. Data collection was carried out with a sample of 10 listed Licensed Commercial Banks (LCBs) in Sri Lanka for the period from 2012 – 2019. A Panel regression model was adopted with the random effect model to analyze the impact of dividend policy on stock price volatility. Findings: The results revealed that the Dividend Payout ratio has a significant positive and Dividend Yield has an insignificant negative impact on the stock price volatility of LCBs in Sri Lanka. Originality: The findings suggest that the dividend payout would lead to volatile stock prices. Hence potential and existing investors should focus on banks that have a high payout ratio compared to the earnings generated.
Do Insurance Companies Provide Flexible Life Insurance Policies to Suit the Customer Needs: A Study on Gampaha District
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Chathurangani, H.K.G.A.V.; Fernando, J.M.R.
Purpose: Human life is a most important asset and life insurance is the most important type of insurance which provides financial protection to a person and his family at the time of uncertain risks or damage. This study examines the flexibility of life insurance policies to cater customer needs also to identify the affecting on buying life insurance policies. Design/Methodology/Approach: A questionnaire was delivered to 140 policy holders in Gampaha district, and it included a Likert scale and multiple-choice questions. However, only 129 responded to the survey. Study chosen investment plan, pension plan, education plan and house building fund plan as the proxies for flexible life insurance policies. Findings: The study shows a statistically significant positive impact on buying decision on life insurance policies in the Gampaha district. Pension plan is the more effective policy on buying decision of life insurance policies in Gampaha district. Investment Plan is secondly effective followed by House Building Fund Plan and Education Plan. Originality: This study is the first to explore the flexibility of life insurance policies in Sri Lankan context. Accordingly, the study tested the hypotheses on investment plan, pension plan, education plan and house building fund plan as the indicators of life insurance policies.
The Dynamic Relationship of Domestic Credit and Stock Market Liquidity of the Commercial Banks on the Economic Growth of the Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Kumara, A.G.D.M.; Gunasekara, A.L.
Purpose: Domestic credit and Stock market liquidity are the most important components of the economy in any country. Both of these two components have been identified as highly impacted factors that affect economic growth in the studies. This study examines the dynamic and significant impact and the relationship between domestic credit and stock market liquidity on economic growth. Design/Methodology/Approach: The researchers use the quantitative research method and positivism philosophy. Researchers have collected secondary data from 2011 to 2021 on the selected research variables from Central Bank and other economic publications for the study. Also, domestic credit and stock market liquidity have been identified as independent variables and economic growth has been identified as dependent variables. Findings: The correlation analysis shows that the domestic credit has a weak negative and significant correlation to economic growth. Further, stock market liquidity has a weak, negative, and insignificant correlation to economic growth. Originality: This study covers the Covid-19 period and it is a novelty in this study.
Effect of Earning Per Share and Price Earnings Ratio on the Share Price Before and During Covid 19: Evidence From CSE
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Ahamedha, M.A.S.; Perera, P.A.S.D.
Purpose: The purpose of this research on “Effect of earning per share and price earnings ratio on share price of listed companies in CSE before and during Covid-19” is to give some idea of the relationship between share prices and related variables. Design/Methodology/Approach: In this study, the researcher used earnings per share and price-earnings ratio as the independent variables and share price as the dependent variable. The researcher adopted a descriptive and causal-comparative research design to conduct the study. Diversified financial companies listed in CSE were the study population, and the researcher selected 20 companies as the study sample. Data were collected through the annual reports of the selected sample and descriptive statistical analysis, correlation analysis and multiple regression analysis were used in the data analysis process of the study. Findings: Correlation analysis revealed a significant correlation between earnings per share and share price and an insignificant correlation between the price-earnings ratio and share price. The regression result denotes a statistically significant moderate impact of both independent variables on the dependent variable before covid-19 and a significantly weak impact of independent variables on the dependent variable in after covid-19. Originality: As per the findings of the study, the researcher concluded that investors in the diversified financial sector are sensible not only on return but also on the risk of the investment.
Effects of the Exchange Rate Volatility on Financial Performance of Licensed Commercial Banks in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Wasana, W.E.; Piyananda, S.D.P.
Purpose: The question of whether there exists a relationship between the volatility of exchange rates and the financial performance of licensed commercial banks in Sri Lanka was the subject of this research. Design / Methodology/ Approach: The study used three types of variables as dependent variable, independent variables, and control variables. Dependent variable was financial performance. The independent variable was exchange rate volatility while control variables were inflation, interest rate, and bank size. Secondary data was collected from the banks’ consolidated financial statements as well as the Central Bank of Sri Lanka. The study used the quantitative approach. The study also used panel data analysis using STATA Software Version 13.0 to aid in data analysis. Findings: The study established the existence of a negative association between exchange rate volatility and banks’ performance as measured by the returns on assets ratio. Negatively association between interest rate and ROA. There is a negative relationship between inflation change and ROA also. The bank size had a positive relationship with financial performance. Originality: Exchange rate volatility had an influence on commercial banks’ financial performance in Sri Lanka during the study period. The co-relation findings portrayed a weak negative connection between the FX volatility and the profits of banks over the study period. The correlation findings a medium negative connection between the interest rate, inflation change, and the profits of banks over the study period. The bank’s total assets increased over the research period. Bank size significantly influenced financial performance at a 95% confidence level. The exchange rate also significantly influences financial performance at a 90% confidence level at a 0.1 significant level.
Examining The Barriers to The Microfinance Sector: Evidence from Padukka Division Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Hansani, W.A.; Abeysekera, R.
Purpose: Microfinance Institutions (MFIs) provide services to low-income people to alleviate poverty. MFIs face barriers when reaching out to clients. This research aims to examine the barriers to the microfinance sector in the Padukka division of Sri Lanka. Design/Methodology/Approach: The study used the multiple case study method. Four MFIs were selected for the study. Data were gathered by conducting 12 in-depth interviews of managers, officers, and clients from selected MFIs. The data were analysed by using crosscase analysis and pattern matching. Findings: Supply-side and demand-side barriers were identified. Supply-side barriers are Deposit side barriers, loan-side barriers, and lack of knowledge, Demand-side barriers are lack of knowledge, non-membership, and economic barriers. Originality: The findings contribute to the microfinance domain, and the practitioners could implement the recommendations.