Symposia & Conferences

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Author: search.filters.author.Perera, L. A. S.

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    Impact of Climate Finance on Debt Sustainability: An Analysis of Green Climate Finance and Debt-for-Climate Mechanisms in Sri Lanka
    (Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Razana, J. F.; Perera, L. A. S.
    Introduction: Unsustainable national debt and growing climate change vulnerability are Sri Lanka's two main problems. This paper explores how climate finance tools like debt-for-climate swaps and green bonds might reduce the nation's debt load while boosting climate resilience. A substantial empirical evidence vacuum about the quantitative effect of climate funding on debt sustainability is filled by the study. Methodology: The study used secondary data from 2015–2023 that was obtained from organizations such as the Central Bank of Sri Lanka, the IMF, and the Green Climate Fund. It did this by using a positivist research philosophy and a deductive technique. The association between debt-to-GDP ratios and climate finance inflows was assessed using statistical techniques such as regression and correlation analysis. Findings: The results showed that while climate financing systems have theoretical potential, there is currently little evidence of their actual influence on debt sustainability. Negligible regression results and weak correlations imply that present inflows are not enough to considerably lower Sri Lanka's burden of debt. The primary barriers were found to be ineffective resource allocation, institutional imperfections and a lack of conformity with national fiscal policy. The study highlights the possibility of expanding these mechanisms and incorporating them into all-encompassing debt management plans despite these barriers. Conclusion: According to the study's findings, climate finance can help address Sri Lanka's environmental and economic problems, but its efficacy is dependent on improved policy coordination, larger funding scales, and strengthened institutional ability. Among the suggestions are improving governance structures, encouraging private sector involvement, and coordinating climate finance instruments with more comprehensive fiscal plans.
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    The Effect of Money Laundering and Corruption on Banking Sector Stability in Asia
    (Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Nethsarani, T. W. K.; Perera, L. A. S.
    Introduction: The rapid development of modern technology, globalization, and the speed of computer-generated financial transactions enabled by fintech, those advantages have also benefited and facilitated the tasks of criminal groups in money laundering and corruption nowadays. This study aims to empirically test the effect of money laundering and corruption on banking sector stability in Asia. Methodology: This study collected data from 28 Asian countries for eleven years, from 2011 to 2022. The study designs a quantitative methodology, employing secondary data sources for the analysis. Corruption data were obtained from Transparency International, while the Basel Institute of Governance provided money laundering data. Additional variables were sourced from the World Bank database. Money laundering and corruption were used as independent variables and using Z-score measured the banking sector stability in the selected sample. Further, return on assets, non-performing loans, bank size, inflation, unemployment, and gross domestic product were used as control variables of the study. The analysis was conducted using regression analysis. Further, this study used random and fixed effects models. Findings: The results of the study show that money laundering has a positive and significant relationship with the stability of the banking sector in Asia, whereas another hypothesis was rejected. Additionally, return on assets and non-performing loans positively and significantly impact the banking sector stability in Asia. Conclusion: Based on the findings of the study, governments should focus on raising awareness and implementing effective policies to address these challenges. The research offers useful insights for policymakers, financial institutions, and researchers, helping them to understand the knowledge areas of money laundering and corruption. It also provides a foundation for future studies to explore this important topic further.
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    Impact of Bank-Specific Determinants on Capital Adequacy Evidence from Licensed Banks in Sri Lanka
    (Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Rashani Sanjana, H. M.; Perera, L. A. S.
    Introduction: Capital adequacy assesses a bank’s ability to absorb losses and meet its obligations. Capital adequacy can be expressed as banks’ capital to its risk-weighted assets. Basel Committee on Banks Supervision has imposed the minimum capital adequacy ratio to ensure that banks operate safely. Also, a higher capital adequacy ratio implies that a bank has adequate capital to meet its obligations and unexpected losses. Therefore, increasing the customers' and investors’ confidence. The capital adequacy ratio indicates the financial health of a bank. Methodology: Bank-specific variables such as return on asset ratio (ROA), return on equity ratio (ROE), non-performing loan ratio (NPL), deposit to asset ratio (DR), loan to deposit ratio (LTD), total equity to total liability (EQL), and net interest margin ratio (NIM) on capital adequacy ratio of licensed banks (licensed commercial banks and licensed specialized banks) in Sri Lanka considered independent variables. And capital adequacy ratio is considered a dependent variable. A quantitative research approach was used to conduct this research. As a sample, this research used 6 licensed specialized banks and 10 licensed commercial banks. This study used 13 years (2011–2023) of secondary data to investigate the relationship between capital adequacy ratio and bank-specific variables. A linear regression model was used to analyze the relationship between the capital adequacy ratio and bank-specific variables of licensed banks in Sri Lanka. Further panel data analysis with a random effect model. Findings: The findings show that the return on asset ratio and non-performing loan ratio have a positive and significant impact on the capital adequacy ratio of licensed banks in Sri Lanka. And return on equity ratio has a negative and significant impact on the capital adequacy ratio of licensed banks in Sri Lanka. However, net interest margin, total equity to total liability, deposit-to-asset ratio, and loan-to-deposit ratio haven’t significant impact on the capital adequacy ratio of licensed banks in Sri Lanka. ROA, ROE, and NPL ratios are important determinants of the capital adequacy ratio. So banks need to give much attention to these variables. Conclusion: In conclusion, this study aimed to investigate the relationship between the capital adequacy ratio (CAR) and key bank-specific variables for licensed commercial and specialized banks in Sri Lanka. According to the findings, the return on asset ratio, return on equity ratio, and non-performing loan ratio have a significant impact on the capital adequacy ratio. Therefore, must prioritize improving asset returns (ROA) and effectively managing non-performing loans. Additionally, attention to the return on equity (ROE) is necessary to avoid reducing capital buffers. And findings contribute to the bank managers of both licensed commercial and specialized banks, policymakers, regulators, investors, and customers.
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    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.
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    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.
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    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.
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    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.
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    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.
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    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.
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    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.