13th Students’ Research Symposium 2023/2024

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A Comparative Analysis of the Impact of Firm- Specific and Macro Economic Factors Influence Capital Structure Decisions: Evidence from Sri Lankan Finance and Diversified Holdings Companies.
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Moulana, M. T. M. A. H.; Perera, L. A. S.
Introduction: This research describes the influence of Firm-Specific and Macro Economic Factors influence on Capital Structure Decisions of Sri Lankan Finance and Diversified Holdings Companies during the period of 2013 to 2023. Then understanding the knowledge gap then we can get the understanding of relative impact on these factors, the study concern to observing the financial strategies and regulatory policies. The research focuses on Firm-specific and Macro Economic Factors such as Profitability, Firm Size, Tangibility and Liquidity includes under Firm-specific Factors, the GDP, Interest Rate, Inflation Rate and Exchange rate includes under Macro Economic Factors. Methodology: The study applying a quantitative approach using panel data analysis. We were collected Financial Secondary data from the Colombo Stock Exchange website and the Macro Economic Factors data collected from the Central Bank of Sri Lanka website. We were used STATA software to run the data set, the Statistical techniques including descriptive analysis, Pearson’s correlation analysis and Regression analysis are were used to analyze and make interpret the connection between the variables. The hypothesis testing and robustness test to check the accuracy of the findings results. Findings: Based on the results the Profitability and Firm Size made a significant impact on Capital Structure across the sectors. The Finance Companies definitely depend on debt financing, it was impact by Liquidity and Asset Tangibility. The Diversified Holdings Companies explore more balanced approach between debt and equity, it was influenced by Macro Economic Factors such as GDP growth and Inflation. Finally, the key differences were understood in the relative importance of these determinants between the Finance and Diversified Holdings Sectors. Conclusion: The research explained the complex combination between Firm-Specific and Macro Economic Factors impact the Capital Structure. The finding delivers preferable insights for financial managers and policymakers in fluctuation economies like Sri Lanka. Furthermore, identifying sector-specific determinants, the research supports strategic decision-making for sustainable growth and Financial Stability.
A Comparative Analysis of the Impact of Firm-Specific and Macroeconomic Factors Influence Capital Structure Decisions: Evidence from Sri Lankan Manufacturing and Telecom Companies (2013-2023).
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Begum, M. H. S.; Perera, L. A. S.
Introduction: Optimal capital structure is important for the sound financial and future growth of any enterprise. This study aims to examine the significant impact of firm specific variables namely profitability, size, tangibility, liquidity and dividend payout policies in combination with macroeconomic variables consisting of; GDP growth rate, interest rate, inflation and exchange rate on the Manufacturing and Telecom firms of CSE for the year 2013-2023. Methodology: The analysis was carried out using panel data regression on a sample of 22 firms, 2 telecom firms and 20 manufacturing firms employing the criteria of market capitalization. All samples were chosen based on available ratios to accomplish the measurement of capital structure using the debt-to-equity ratio, and validity tests were applied to assess the accuracy of the calculations. In addition, the sectoral and combined examinations was conducted to look for difference and difference patterns. Findings: From the findings of the study show that this study finding of this manufacturing sectors represent firm specific characteristics, which show that tangibility and liquidity of the manufacturing firms have significant effects on capital structure decision and that firms with high tangible and high liquid assets utilize least debts. The level of profitability has a strong inverse relationship with leverage and strong positive relationship with dividend and interest rate that may be due to telecommunication infrastructure financing requirements. In the combined sector analysis, tangibility and liquidity are used as the major indexes, and the indexes of macroeconomic environment, including interest rate, exchange rate, inflation, and GDP growth had not been concluded to exert major influence over both sectors. It was also revealed that simply due to these observations, Firm size, Growth, GDP growth, Exchange rate and inflation rates held insignificant impacts across both sectors. Conclusion: This study has shown that firm specific characteristics organizational liquidity tangibility, Dividend and Profitability significantly affect capital structure decisions in the Manufacturing and Telecom industry of Sri Lanka aside from influence by the macroeconomic indicators namely the interest rates. The overall model also shows significance at the 1% level for both the telecom and the manufacturing sectors. These insights vindicate the essentiality of industry-specific financing to give firms the ability to improve their solvency and performance.
A Comparative Analysis of the Impact of Firm-Specific and Macroeconomic Factors on Capital Structure Decisions: Evidence from Sri Lankan Automobile and Consumer Goods Companies
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Kenusha, T.; Perera, L. A. S.
Introduction: Capital structure decisions are fundamental to a firm's financial management, influencing its ability to optimize resources and mitigate risks. This study evaluates the impact of firm-specific factors - profitability, firm size, tangibility, liquidity, and dividend payout and macroeconomic factors, including GDP growth, interest rates, inflation, and exchange rates, on the capital structure of automobile and consumer goods companies listed on the Colombo Stock Exchange (CSE) between 2013 and 2023. Methodology: The analysis used panel data regression on a sample of 30 companies, consisting of five automobile firms and 25 consumer goods firms, selected based on market capitalization. The debt-to-equity ratio was utilized to measure capital structure, and rigorous diagnostic tests ensured the reliability of the results. Sectoral and combined analyses were conducted to identify distinct patterns and variations. Findings: The results indicate that firm-specific factors such as firm size and tangibility are significant in shaping capital structure decisions. Firm size positively influences capital structure in the automobile sector, while tangibility shows a marginally significant positive effect across sectors. Liquidity has a significant negative impact on capital structure in the consumer goods sector and across the combined sample. Among macroeconomic factors, interest rates exhibit a significant negative influence on capital structure in the consumer goods sector and combined analysis, while exchange rates show mixed effects, negatively impacting the automobile sector but positively influencing the consumer goods and combined sectors. Notably, profitability, dividend payout, GDP growth, and inflation rates were found to have no significant effect across all sectors. Conclusion: The study's findings reveal that firm-specific factors, particularly firm size and tangibility, and macroeconomic factors such as interest rates and exchange rates significantly influence capital structure decisions in Sri Lanka's automobile and consumer goods sectors. The overall model demonstrates statistical significance at the 1% level across both sectors. These insights highlight the critical importance of tailored financing strategies for different industries, enabling firms to enhance their financial stability and performance.
A Comparative Analysis of the Impact of Firm-Specific and Macroeconomic Factors on Capital Structure Decisions: Evidence from Sri Lankan Retail and Utility Sector.
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Kajanika, P.; Perera, L. A. S.
Introduction: This study investigates the influence of firm-specific factors, such as profitability, firm size, asset tangibility, liquidity, and dividends, and macroeconomic factors, including GDP growth, inflation, interest rates, and exchange rates, on capital structure decisions within Sri Lankan utilities and retail companies. Spanning the period from 2013 to 2023, this research compares the distinct financial dynamics of these two sectors to provide insights into their capital structure choices and the factors influencing these decisions. Methodology: A quantitative approach was employed using secondary data from 21 companies—15 in the retail sector and 6 in the utilities sector—listed on the Colombo Stock Exchange (CSE). Capital structure was measured through leverage ratios, while profitability, size, tangibility, and macroeconomic indicators were analyzed. Panel data regression techniques were applied to assess the relationships between the independent variables and capital structure. Sectoral comparisons provided further insight into variations. Findings: The findings indicate significant differences between sectors. In the utility sector, higher tangibility of assets strongly correlates with increased debt usage, reflecting the capital-intensive nature of this industry. Conversely, retail firms exhibited a higher reliance on equity, likely driven by their need for financial flexibility amidst competitive market dynamics. Macroeconomic factors such as GDP growth and inflation had varying impacts, with inflation negatively affecting retail firms but offering a mild hedging benefit to utility firms. Interest rates showed a uniformly negative influence on debt usage across both sectors. Conclusion: This study highlights the critical role of both firm-specific and macroeconomic factors in shaping the capital structure decisions of Sri Lankan utilities and retail companies. Utilities, with their stable cash flows, favor debt, whereas retail firms prioritize flexibility due to market volatility. Policymakers and corporate managers can use these findings to tailor strategies for optimizing capital structures, mitigating risks, and enhancing financial resilience in their respective industries. The study concludes that firm-specific factors such as tangibility, firm size, and liquidity, along with the macroeconomic factor of interest rates, are the most influential determinants of capital structure. Utilities Sector: Tangibility and firm size are key drivers, reflecting the sector's reliance on debt financing for infrastructure development. Retail Sector: Liquidity and profitability are critical, underscoring the need for financial flexibility in a competitive market. Macroeconomic factors, especially interest rates and inflation, further shape these decisions by altering the cost and attractiveness of debt. Firms and policymakers should consider these findings to optimize capital structure strategies, enhance resilience to economic fluctuations, and support sustainable growth in their respective industries.
A Study on Awareness and Positive Attitudes Towards Cryptocurrency Investments Among Millennials in Sri Lanka.
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Samarasinghe, S. K. S. D.; Herath, H. M. N. P.
Introduction: The increasing interest in cryptocurrency investments among millennials has made understanding their awareness and attitudes toward these digital assets crucial. The current study focuses on assessing the influence of impact of awareness and positive attitude on the behaviour of Sri Lankan millennials regarding cryptocurrency investments. Methodology: The research adopted a quantitative-deductive approach, with data gathered through an online questionnaire from 394 Sri Lankan millennials. The independent variables were awareness and attitude, while the dependent variable was investment behavior. Statistical analyses using SPSS were conducted on reliability, descriptive, correlation, and multiple regressions. Findings: Based on the findings, it is evident that both awareness and positive attitudes have a significant influence on cryptocurrency investment behavior. Awareness appears to play a slightly stronger role in shaping investment decisions. The correlation analysis shows strong positive relationships among these variables, supported by inter-correlation, VIF, and Cronbach’s alpha values, which confirm the reliability of the data. Conclusion: The study highlights the need to enhance awareness and foster positive attitudes to promote responsible cryptocurrency investments among millennials. These insights can guide policymakers and educators in developing programs to improve financial literacy and investment decision-making.
Analyzing the Impact of ESG Score on Equity Portfolio Performance: A Comparative Study of High and Low ESG Portfolios Evidence from the Largest Economy in South Asia: India
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Nanayakkara, N. S. S. T.; Herath, H. M. N. P.
Introduction: In today's investors are now more frequently considering environmental, social, and governance performance when making investment decisions. India is one of the largest economies in the world and ESG considerations have been implemented in India very recently. This study focuses on analyzing the effect of Environmental, Social, and Governance (ESG) scores on equity portfolio performance in the Indian stock market. Methodology: This research utilizes a quantitative approach with data from the India National Stock Exchange's Nifty 500 index for 2019–2022. Daily stock returns and ESG scores were recorded for 174 companies according to the ESG data availability. According to ESG scores the companies set to descending order and the top 20% of companies are included in the “high ESG portfolio,” and the bottom 20% companies are included in the “low ESG portfolio”. Value-weighted and equal-weighted methods are used to compute the portfolio return. Findings: The findings of this study show that both equal weighted and value weighted approaches, High ESG portfolio does not outperform significantly low ESG portfolios. Conclusion: The results indicate that high ESG portfolios marginally underperform insignificantly low ESG portfolios, suggesting that investing in ESG-focused stocks may not lead to significantly higher returns or higher losses. This creates a favorable scenario for investors, allowing them to earn while incorporating sustainability and ethical considerations into their investment strategies.
Behavioral Bias Factors on Making Socially Responsible Investment Decisions: Evidence from Individual Investors in Colombo District
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Shashipaboda, M. M. S.; Ranjani, R. P. C.
Introduction: This research investigates the impact of behavioral biases on socially responsible investment (SRI) decisions among individual investors in the Colombo District, Sri Lanka. It focuses on three specific behavioral biases: Herding, Overconfidence, and Loss Aversion. The study aims to fill empirical and geographical gaps in the field of behavioral finance by exploring the adoption of ESG-focused investments in a developing country context. Methodology: The study used a quantitative approach, and the data were collected by distributing a Likert scale questionnaire among 385 individual investors. The following statistical tools were employed to assess the relationship between the variables: reliability test, descriptive analysis, correlation analysis, and regression analysis. Findings & Discussion: Further, the findings reveal a significant positive correlation between herding, overconfidence, loss aversion bias, and socially responsible investment decisions. Also, the regression analysis highlights that loss aversion bias has the most significant impact, followed by overconfidence and herding. Conclusion: According to the results obtained, they underscore the importance of addressing behavioral biases to promote rational decision-making in socially responsible investing. This study helps policymakers, financial institutions, and investment advisors to design targeted strategies to mitigate the negative impact of these biases. Understanding these biases correctly could enhance investor awareness as well as the preference towards the SRI.
Behavioral Bias Factors on Making Socially Responsible Investment Decisions: Evidence from Individual Investors in Gampaha District
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Sandakelum, H. R.; Ranjani, R. P. C.
Introduction: This research investigates how behavioral biases such as herding, overconfidence, and loss aversion affect socially responsible investment (SRI) among individual investors in Gampaha District, Sri Lanka. It aims to fill empirical and geographical gaps in the field of behavioral finance by exploring the adoption of ESG-focused investments in a developing country's context. Methodology: 386 responses were collected through a questionnaire distributed to 400 investors, and they were subjected to quantitative analysis. The validity and reliability of the questionnaire were tested through a pilot test, and statistical techniques such as correlation and regression were performed using SPSS software. Findings: The study found that biases such as herding, overconfidence, and loss aversion positively affect socially responsible investment (SRI) decisions. Herding shows that investors tend to follow their friends instead of making independent choices. Overconfidence can lead to underestimating and ignoring their advice, especially regarding ESG factors. Loss aversion leads them to think higher in SRI compared to traditional investments, limiting their involvement in ESG investments. Accordingly, this implies that these biases create barriers to the wider adoption of ESG investments. Conclusion: Through the study, exploring SRI decision-making in Sri Lanka, a largely under-researched context in Sri Lanka, advances knowledge related to behavioral finance and SRI. It proposes policy interventions to improve financial literacy and reduce cognitive bias, promoting a more informed and sustainable investment culture. It also highlights the importance of investor behavior in driving sustainable investment trends while providing valuable insights for research scholars, financial professionals, and policymakers by addressing empirical and geographical gaps.
Brand Equity of Stocks and the COVID-19 Stock Market Crash:Evidence-Based on the Companies Listed in the Colombo Stock Exchange
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Yapa, Y. M. D. N. B.; Hettiarachchi, T. R.
Introduction: This paper examines the mediating effect of brand equity in modulating the effects of the Covid-19 stock market crash on the CSE-listed firms. Brand equity, a measure of consumer trust and brand power, is increasingly recognized as an element contributing to market resilience in economic shocks. This study is focused on determining if the branded firms performed better than the non-branded firms during the crash, thus shedding light on the role of brand equity in financial stability. Methodology: The study adopts a quantitative method with WLS regression method herein to handle the heteroscedasticity of the dataset. The research extends over two temporal periods—crash and non-crash—using stock performance information from branded and non-branded firms. Dependent variables are Raw Return, Abnormal Return, Systematic Risk, and Idiosyncratic Risk, while Brand Equity is the independent variable and Firm Age is a control variable. Data were analyzed with SPSS software under pre-tests for normality, autocorrelation, and homoscedasticity for strong statistical modeling. Findings: Raw Return: Branded stocks demonstrated a positive yet statistically weak relationship with returns during the crash period, whereas non-branded stocks showed minimal impact. Abnormal Return: Non-branded stocks outperformed branded stocks in producing high abnormal returns, the opposite of prediction. Systematic Risk: Branded firms showed less systematic risk, supporting the protective effect of brand equity in a volatile market. Idiosyncratic Risk: Notably, there was no significant difference between branded and non-branded stocks in terms of idiosyncratic risk, which implies that brand equity necessarily fails to provide a shield against all kinds of market risk. Conclusion: The results provide evidence for a nuanced mediating effect of brand equity in the modulation of stock performance in crisis periods. However, compared with branded firms, whose advantage was less apparent in returns, they did provide stability in the form of reduced systematic risk. The findings indicate that brand equity can be considered as a partial absorber of market shocks, with implications for branding and financial planning in times of economic shocks.
Determinants of Capital Structure: An Analysis of Pre and During Economic Crisis – Evidence from Listed Consumer Services Sector Companies in Sri Lankan Stock Exchange
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Wijenayake, K. D. D. I.; Gunasekara, H. M. A. L.
Introduction: Leverage plays a vital role in optimizing capital structure, and identifying determinants of leverage across varying economic conditions is crucial for strategic financial management. However, limited research focuses on recognizing key determinants of leverage in the consumer service sector in Sri Lanka, creating a gap in understanding its unique leverage dynamics and determinants. To fill this gap, this research endeavor aimed to examine the determinants of financial leverage in consumer service companies in Sri Lanka, with a specific focus on how these determinants behave before and during an economic crisis. Methodology: This study adopted a quantitative methodology to investigate the impact of firm profitability, size, asset tangibility, and growth on leverage, measured by the long-term debt-to-asset ratio. Data were collected from 15 listed Sri Lankan consumer service corporations, selected by size, covering eleven years from 2014 to 2024. Panel regression analysis was performed to identify the effects of these variables on leverage under different economic conditions. Findings: Profitability consistently showed a notable adverse effect on leverage, intensifying during downturns as firms prioritized internal financing to mitigate risks. Asset tangibility positively influenced leverage but diminished in relevance during crises. Firm size positively impacted leverage over the years, but larger firms adopted conservative financing strategies during economic uncertainty, mirroring smaller firms. Growth consistently exhibited an adverse effect on leverage, as growing firms avoided excessive debt, favoring financial stability. Conclusion: The impact of these determinants slightly weakened during crises due to restricted access to external financing. This emphasizes the importance of understanding contextual factors that influence financial decisions during periods of instability. These findings benefit corporate managers and policymakers by enabling more informed strategies for risk management and sustainable finance.
Dividend Policy and Shareholder Wealth of Listed Financial Service Companies in Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Anojan, K.; Gunasekara, H. M. A. L.
Introduction: Dividend policy is a key topic in corporate finance, traditionally linked to firm valuation and shareholder wealth. This study examines how Dividend Per Share (DPS), Dividend Payout Ratio (DPR), Dividend Yield (DY), and Return on Equity (ROE) influence Earnings Per Share (EPS). Focusing on Sri Lanka's financial sector from 2014–2023, it explores whether disciplined dividend policies enhance profitability per share amid economic challenges. Methodology: The research uses secondary data from eight listed financial institutions, encompassing both banking and non-banking entities. Key variables (DPS, DPR, DY, ROE, and EPS) were analyzed using multiple regression. Hypotheses tested include the positive effects of DPS, DPR, DY, and ROE on EPS, with descriptive statistics and data integrity checks conducted to support the analysis. Findings: Results reveal significant positive links between dividend policy variables, ROE, and EPS. Firms with robust dividend practices and efficient equity utilization exhibit stronger EPS. This suggests that dividends serve as signals of financial health, reflecting governance quality and resource efficiency, while supporting overall profitability. Conclusion: The study highlights a significant relationship between dividends and EPS. Stable dividends may indicate strong fundamentals and foster market confidence, particularly in emerging markets like Sri Lanka. Managers, investors, and policymakers can use these insights to align dividend strategies with long-term profitability goals. Future research is encouraged to explore causality and broader contextual applications.
Effect Of Board Characteristics on Quality of Sustainability Reporting in Listed Manufacturing Companies in Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Hansani, M. V. D.,; Ranjani, R. P. C.
Introduction: The main objective of this study to assess the relationship between board characteristics and the quality of sustainability reporting in listed manufacturing companies in Sri Lanka. Methodology: In this study, it takes the board characteristics as the independent variable. The level of sustainability reporting is dependent variable and ultimately hopes to examine the relationship between board characteristics and the level of sustainability reporting. Board independence, board size, board financial expertise, and board gender are all factors to consider when evaluating board attributes. GRI standards are used to evaluate the level of sustainability reporting. Based on the scoring system developed by (Dragomir, 2010) calculated sustainability reporting quality, analyzed multiple regression models, and identified whether board characteristics affected sustainability reporting quality. Findings: Statistical analysis revealed that there is a no significant impact of board characteristics on quality of sustainability reporting.
Effect Of Financial Risks on Financial Stability of Licensed Commercial Banks in Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Arangalla, A. G. S. N.; Perera, L. A. S.
Introduction: This study examines the effect of financial risks including credit, market, operational, and liquidity risks on the financial stability of licensed commercial banks in Sri Lanka. Financial stability is pivotal for Sri Lanka’s economic resilience, especially in the face of challenging economic conditions. However, financial risks pose considerable challenges to banks’ financial stability. This study seeks to explore an identified empirical gap by examining the impact of these financial risks on the long-term sustainability of banks in Sri Lanka. Methodology: The study follows a quantitative approach, analyzing secondary data collected from 13 domestic licensed commercial banks in Sri Lanka over 10 years (2014–2023). Credit risk, market risk, operational risk, and liquidity risk are the independent variables used in this study, and the dependent variable is financial stability. Bank size is also included as a control variable for this study. This research employs panel data regression with random effects and diagnostic tests for the analysis. Findings: The findings reveal that credit risk and operational risk have a significant effect on financial stability, while market risk is only significant with financial stability under interest rate risk. Liquidity risk does not have a significant effect on financial stability in Sri Lankan banks. Conclusion: The study concludes that credit risk and operational risk are key determinants of financial stability in Sri Lankan banks. Even risk factors deemed insignificant in the current context should be monitored, as they have the potential to become impactful in the future. The study underscores that risk management strategies are vital to maintaining banks’ stability and fostering sustainable economic growth. Future research may consider analyzing the impact of other types of risks on banks’ financial stability.
Exploratory Study on Utilization of AI Technology Public Commercial Banks in Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Gunarathna, R. M. T. D.; Liyanage, M. L. D. C. J.
Introduction: This study explores the integration of AI in Sri Lanka's public banking sector, focusing on the opportunities, challenges, and strategic insights from senior professionals at People’s Bank and Bank of Ceylon. Examines how AI can improve operational efficiency, customer service, and security while identifying barriers to adoption and proposing strategies for successful implementation. Methodology: A qualitative methodology was used in this study, involving semi-structured interviews with banking professionals to gather insights on AI's role in transforming the banking sector. The data was analyzed through thematic analysis. Findings: The findings highlight that AI offers major opportunities for improving operational efficiency, such as through Robotic Process Automation (RPA), predictive analytics for customer behavior, and advanced security features like fraud detection. However, challenges such as limited budgets, a skills gap, inadequate technology infrastructure, and resistance to change from both employees and customers were also identified. The study stresses the importance of employee training, customer education, and strategic planning to ensure successful AI adoption. Conclusion: This research offers valuable insights into AI adoption in developing economies, particularly for public sector banks. It provides a strategic roadmap for gradual AI integration, balancing technological progress with workforce readiness. The study highlights the transformative potential of AI while recommending a phased approach to address implementation challenges.
Exploring Barriers and Opportunities Faced by Banking Sector When Adopting Fin-Tech Innovations
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Swarnathilake, P. G. O. K.; Abeysekera, R.
Introduction: FinTech innovations have transformed the banking industry by increasing efficiency in services and improving customer satisfaction, while reaching a greater number of the unbanked population. However, in Sri Lanka, the potential benefits of FinTech are curtailed by regulatory constraints, cybersecurity concerns, and resistance to change. This paper analyzes the dynamics of these challenges and opportunities, focusing on actionable solutions for successful FinTech integration in the Sri Lankan banking sector. Methodology: This qualitative research has been designed under a social constructivist framework; the data collection method adopted in this study is semi-structured interviews with nine representatives of different banks. The respondents have been chosen using purposive sampling in order to capture the diversity in private, government, and foreign banks. Thematic analysis was employed to identify patterns and themes pertaining to FinTech adoption barriers and opportunities. Findings: Opportunities: 1.Efficiency and Automation: Reduction in operational costs; smoother processes. 2.Customer-Centric Innovation: Personalized finance services; AI-driven support. 3.Financial Inclusion: Increasing access to the rural and under-served sections of society. 4.Improving Payment Systems: Speedier and more secure digital transactions. Challenges: 1.Regulatory Barriers: Vagueness and outdated frameworks. 2.Cybersecurity Risks: Growing vulnerability with digitization. 3.Resistance to Change: From both employees and customers. 4.Infrastructure Gaps: Inadequate connectivity in rural areas. Conclusion: This study brings to light that while FinTech offers transformative opportunities for Sri Lankan banks, overcoming significant barriers is essential for successful integration. Investments in infrastructure, digital literacy programs, and regulatory reform are vital to leveraging FinTech's potential for efficiency, inclusion, and customer satisfaction.
Exploring Business Development Services Provided by Microfinance Institutions in Sri Lanka.
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2025) Bandara, A. G. M. P. I.; Abeysekera, R.
Introduction: Microfinance institutions (MFIs) play a key role in empowering marginalized communities by providing financial and non-financial support to enhance entrepreneurial growth and economic development. In Sri Lanka, MFIs address capital constraints and enhance entrepreneurial growth and capacity through Business Development Services (BDS), including training, mentoring and market facilitation. This study examines the types of Business Development Services offered by MFIs in Sri Lanka, delivery methods, barriers faced by MFIs and strategies to enhance the sustainability of micro and small enterprises. Methodology: Following a qualitative approach, data were collected through in-depth interviews with senior officials from five leading MFIs in Sri Lanka. Thematic analysis was used to identify key patterns and insights. Findings: The study categorizes BDS as advisory services, agricultural training, and digital market linkages, delivered individual workshops, field officers, and partnerships. Challenges like resource constraints and workforce retention are addressed through collaboration, staff training, and community education initiatives. Conclusion: BDS from MFIs leads to micro enterprise growth by improving financial literacy, market access, and efficiency. Despite challenges, effective delivery and collaboration increase impact. The study contributes to understanding the role of MFIs in economic development and provides policymakers with actionable insights to strengthen the microfinance sector in Sri Lanka.
Exploring the Barriers and Challenges of Social Entrepreneurship in Sri Lanka; in the Good Market
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Bandara, M. M. T. D. T.; Abeysekera, R.
Introduction: This study aims to explore social entrepreneurs in Sri Lanka with special reference to the Good Market. Specifically, it seeks to understand the impact of three factors: success factors, challenges and barriers, and sustainability factors on social entrepreneurs in good markets (triple bottom line). By delving into these dimensions, the study aims to provide a clear understanding of the complex interplay between these factors and social entrepreneurship in the good market. Methodology: The study takes a qualitative-inductive approach using semi-structured interviews with 10 social entrepreneurs from different types of businesses in the Good Market. The study method uses purposive sampling methods, collecting data through direct interviews and then analyzing it using thematic analysis. Findings: This study reveals that the success factors of social giving (skill development and knowledge acquisition, support system, experience and expertise, self-motivation), challenges and barriers (financial challenges, market and trade barriers, communication challenges, operational challenges), and sustainable factors (product excellence, sustainable practices, financial management, social responsibility, and employee development) positively and negatively influence social entrepreneurs in the Good Market. This article also incorporates new findings that can be categorized under the three factors mentioned above, focusing on the responses of social entrepreneurs. Conclusion: The findings of this study provide a comprehensive understanding of the Sri Lankan Good Market social entrepreneurs. The study highlights the barriers faced by social entrepreneurs and identifies enabling factors for success. Removing the barriers faced by social entrepreneurs can promote sustainability and have long-term impacts on the country’s economic growth and society. These findings provide a wealth of knowledge for stakeholders and policymakers interested in social entrepreneurship in developing countries like Sri Lanka.
Exploring the Impact of Financial Literacy, Smart BNPL Solutions and Financial Well - Being on Consumer Buying Behavior in Kalutara District, Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Weerakoon, W. M. G. H. M.; Perera, L. A. S.
Introduction: The rapid advancement of technology has revolutionized the financial services industry, giving rise to innovative solutions such as Buy Now Pay Later (BNPL) services. However, the effective utilization of these services is contingent upon consumers' financial literacy and overall financial well-being. This research delves into the interplay between these factors, exploring how they influence consumer buying behavior in the context of Sri Lanka. Methodology: A quantitative research methodology was employed, utilizing structured questionnaires to collect data from a sample of [number] respondents residing in the Kalutara District. Key variables such as fintech literacy, BNPL usage, financial well-being, and consumer buying behavior were measured using validated scales. Statistical techniques, including correlation and regression analysis, were utilized to analyze the data and test the formulated hypotheses. Findings and Discussion: The findings reveal significant positive relationships between fintech literacy, BNPL usage, and financial well-being, and their subsequent impact on consumer buying behavior. Individuals with higher levels of financial literacy were found to be more likely to use BNPL services responsibly, such as paying on time and using them for planned purchases. Conversely, lower financial literacy was associated with impulsive buying behavior and potential financial difficulties. Additionally, higher financial well-being was linked to more prudent financial decisions and a reduced likelihood of financial difficulties associated with BNPL usage. Conclusion: The study underscores the importance of financial education initiatives to enhance fintech literacy and promote responsible use of BNPL services. By fostering a more financially literate population, policymakers, financial institutions, and educators can empower consumers to make informed financial decisions and mitigate the potential risks associated with digital financial innovations.
Exploring the Impact of Fintech Literacy, Smart BNPL Solutions (Koko App and Credit Cards), and Financial Wellbeing on Consumer Buying Behavior in the Colombo District, Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Wanigasuriya, W. D. H. D.; Perera, L. A. S.
Introduction: This study investigates the impact of Fintech literacy, smart BNPL solutions (Koko App and credit cards), and financial wellbeing on consumer buying behavior in the Colombo district, Sri Lanka. This research highlights how these variables impact consumer behavior. Methodology: The research employs a quantitative methodology, using structured questionnaires to collect data from 419 respondents within the Colombo district. Key variables—Fintech literacy, smart BNPL solutions (Koko App and credit cards), financial wellbeing, and consumer buying behavior—were measured using validated scales. Statistical techniques, including correlation and regression analyses, were applied to evaluate the impact of the independent variables on dependent variables and test the proposed hypotheses. Findings: The study reveals significant positive impact of independent variables on consumer buying behavior. Smart BNPL solutions (Koko App and credit cards), Fintech literacy, and financial wellbeing are positively impacting consumer buying behavior, demonstrating that increased financial knowledge and stability promote responsible financial decisions. Conclusion: This research underscores the pivotal role of Fintech literacy, BNPL adoption, and financial wellbeing in shaping consumer purchasing decisions. The findings provide actionable insights for policymakers, financial institutions, and educators to enhance the adoption and effectiveness of technology-driven financial solutions. Future studies could explore demographic influences, longitudinal trends, and psychological factors to build a more comprehensive understanding of consumer buying behavior in the digital financial landscape.
Exploring the Impact of Fintech Literacy, Smart BNPL Solutions and Financial Wellbeing on Consumer Buying Behavior in the Gampaha District, Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Silva, A. S. N.; Perera, L. A. S.
Introduction: The rapid expansion of financial technology (Fintech) has transformed consumer financial behaviors globally, with the rise of Buy-Now-Pay-Later (BNPL) solutions like Koko playing a pivotal role. This study examines the influence of Fintech literacy, smart BNPL solutions, and financial well-being on consumer buying behavior in the Gampaha District of Sri Lanka. Methodology: Adopting a quantitative approach, the study surveyed 386 consumers using a structured questionnaire. The sample was drawn using stratified random sampling to ensure diversity across demographics. Independent variables analyzed included Fintech literacy, BNPL solutions, and financial well-being, while consumer buying behavior served as the dependent variable. Data analysis employed SPSS 23.0, utilizing descriptive statistics, correlation, regression, and factor analyses to derive insights. Findings: The results reveal that Fintech literacy, BNPL solutions, and financial well-being significantly influence consumer buying behavior, with financial well-being emerging as the strongest predictor. Smart BNPL solutions showed a robust correlation with buying behavior, emphasizing their role in reshaping purchasing dynamics. Reliability and validity tests confirmed the consistency of constructs, and multicollinearity tests indicated distinct contributions of each variable to the regression model. Conclusion: The findings underscore the importance of promoting Fintech literacy and enhancing financial well-being to encourage responsible consumer behavior. Policymakers and financial service providers should consider these insights to design educational programs and flexible financial products that align with consumer needs in evolving economic landscapes.