Symposia & Conferences
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Item The Impact of Monetary Policy on Stock Market Performance: Evidence from Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Nimesha, A. T.; Piyananda, S. D. P.Introduction: The study explores the pivotal role of monetary policy in shaping stock market performance, focusing on Sri Lanka's All Share Price Index (ASPI). It highlights the critical influence of monetary tools like Treasury Bill Rate (TBR), Money Supply (M2), Standing Lending Facility Rate (SLFR), and Statutory Reserve Ratio (SRR) alongside macroeconomic variables like the Exchange Rate and Inflation Rate. By addressing the gaps in existing literature, particularly during the post-COVID-19 economic crisis, the research emphasizes the dynamic interplay between monetary policy and market performance. Methodology: This will be a quantitative test based on secondary data from July 2014 to August 2024, which was extracted from the Colombo Stock Exchange and Central Bank of Sri Lanka. Analyzing the research will draw upon econometric methods which include tests of unit roots, regression analysis, and diagnostic checks for multicollinearity, heteroskedasticity, and autocorrelation in order to draw conclusions about how monetary policy variables affect the ASPI. The model has been developed considering its robustness and reliability by incorporating all the required macroeconomic indicators as control variables. Findings: The above analysis indicates that monetary policy variables such as money supply, treasury bill rate, and inflation rate are positively and significantly related to ASPI. Thereby, these variables prove to be the important contributors toward improving stock market performance in Sri Lanka. On the contrary, SLFR and ER negatively influence ASPI, reflecting the devastating effects of the tight monetary stance and currency depreciation on market dynamics. The contribution of the SRR, though positive, is insignificant to explain the trend in the stock market. All diagnostic tests prove that the estimated model is reliable and free from multicollinearity, heteroskedasticity, or autocorrelation. The findings emphasize that monetary policy does not have a one-way effect on the stock market in Sri Lanka. Conclusion: Monetary policy significantly influences the performance of the stock market in Sri Lanka; therefore, proper monetary interventions are very important in creating a stable and prosperous market. Though the findings support theoretical expectations and prior literature on the subject, there are limitations to this present study, which include exclusion of some of the key macroeconomic variables, such as fiscal policy, and also sector-specific analysis. Thus, future study could elaborate more on those dimensions and create more comprehensive insights. These are very important findings in terms of the policy implications for policymakers and investors in developing an appropriate view of how monetary policy affects stock performance in emerging economies.Item The Impact of Financial Inclusion on Economic Growth: Evidence From India(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Wijerathna, G. H. S.; Piyananda, S. D. P.Introduction: This paper discusses how financial inclusion has affected India's economic growth, considering its multi-dimensional aspects: Banking access, Banking Penetration, Use of banking Services, and financial stability. While there have been significant improvements, structural problems like low financial literacy, limited digital infrastructure, and regional imbalances impede broader financial inclusiveness. The objectives are to assess the role played by financial inclusion in fostering Economic development and identify ways the existing challenges can be overcome. Methodology: A quantitative approach was adopted, using time-series data from 2000 to 2023. Key variables of interest, including GDP growth, Access to banking Services, Banking Penetration, Use of banking Services, and financial stability indicators (Bank Z-Score, Non-performing loans) were analyzed using descriptive statistics, Correlation analysis, Regression analysis, and classical assumption testing. The results affirm that financial inclusion significantly influences economic growth by facilitating access to financial services and promoting equitable participation in economic activities in India. However, challenges such as high non-performing loans and inflation persist, underscoring the need for targeted policies. Findings: According to the results, FI has a statistically significant positive impact on economic growth. It has been observed that access and use of banking services are crucial drivers in ensuring equality in economic participation. There is still significant NPL and inflation, which pose an upward risk and necessitate very targeted intervention. It calls for more substantial digital financial inclusion, supported by higher levels of financial literacy, in terms of their reach and significance. Conclusion: It sums up that financial inclusion will play a very important factor in sustaining economic growth in India. It suggests increasing financial literacy among people, the use of digital banking facilities, the increase of Digital Financial infrastructures, and sound regulatory mechanisms for access to financial services by all. Due consideration of regional and demographic disabilities by policymakers and financial institutions is required for interventions appropriate to the context to elicit maximum benefits from financial inclusions.Item The Impact of Digital Financial Inclusion on Economic Development in Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Wijesiriwardhana, H. G. S. I.; Piyananda, S. D. P.Introduction: Digital financial inclusion refers to the use of digital platforms such as mobile banking, digital wallets, and online payment systems to expand access to financial services, especially for underserved and rural communities. In the context of Sri Lanka, a developing economy, digital financial inclusion plays a critical role in fostering economic growth and addressing financial disparities. This research investigates the impact of digital financial inclusion on economic development in Sri Lanka while accounting for control variables such as inflation and interest rates. Methodology: The study adopts a quantitative approach, using EViews software to analyze the relationship between digital financial inclusion and economic development. Control variables such as inflation and interest rate are incorporated to isolate the specific effects of digital financial services on broader economic outcomes. The study was derived data collected through published reports from the Central Bank of Sri Lanka. Specifically, the sample size consists of time-series quarterly data over a 10-year period (2014–2023), representing the key indicators and trends relevant to digital financial inclusion and economic development. The analysis was conducted using descriptive statistics, correlation analysis, and regression analysis with the pretests. As well, the researcher discussing the hypotheses based on the results obtained from the regression analysis. Findings: The findings of the study have important policy implications for governments and financial institutions in Sri Lanka, offering recommendations on how to harness digital financial inclusion to foster economic development, reduce inequality, and enhance financial resilience in the face of global challenges. Ultimately, the study contributes to the growing body of literature on the role of digital finance in economic development, particularly in emerging economies like Sri Lanka. Conclusion: This research underscores the intricate relationship between digital financial inclusion (DFI) and economic development in Sri Lanka. While mobile subscriptions and internet access alone have limited impact, their effectiveness depends on complementary factors such as digital literacy, infrastructure quality, and policy support. The study reveals ATM availability significantly contributes to GDP per capita by bridging traditional and digital banking gaps, while debit card usage poses challenges due to insufficient infrastructure. Conversely, credit card usage positively influences economic growth by promoting digital transactions and enhancing financial integration. These findings highlight the need for holistic strategies to optimize DFI's role in sustainable economic development in Sri Lanka.Item Impact of Risk Management on Firms’ Financial Performance: Evidence from Licensed Commercial Banks in Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Sandeepani, W. R. N.; Piyananda, S. D. P.Introduction: This study investigates how methods for risk management affect Sri Lankan commercial banks with permissions and their financial results. Effective risk management is now essential to maintaining the profitability and security of banks in a financial environment that is becoming more and more uncertain. The research focuses on key risk factors: nonperforming loans (NPL), loans and advance (LA), loan loss provision (LLP), liquidity ratio (LR), and return on equity (ROA). The study investigates financial statements from seven commercial banks out of the twenty-four commercial banks that are listed on the Colombo Stock Exchange. They are selected under the sufficient of data category and other banks excluded due to the insufficient of data. Methodology: All the data collected as secondary data from annual report from 2019 to 2023 of each bank and the data analyzed by using regression analysis. The data set was analyzed using EVIEWS software. Furthermore, the firm’s performance measured by Return on Asset and risk management measured by loan loss provision, loans and advances, non-performing loans and capital adequacy ratio. Findings: Loans and advances (LA) represent a critical role in improving financial performance, as the analysis shows that they have a statistically significant and positive impact on ROA. On the other hand, ROA is not significantly correlated with Loan Loss Provisions (LLP), Non-Performing Loans (NPL), Liquidity (LIQ), or the Capital Adequacy Ratio (CAR). While the model explains a moderate proportion of the variation in ROA, the adjusted R-squared suggests room for improvement in predictive accuracy. The overall model is statistically significant, with no evidence of autocorrelation in the residuals. Conclusion: In conclusion, these findings highlight the urgent need for more empirical and theoretical research to strengthen the model's explanatory power, improve its predictive stability, and provide a more comprehensive, complex understanding of risk management's multiple influence on bank performance, operational efficiency, and financial stability.Item The Role of Investor Perspectives on Cryptocurrency Integration in Sri Lankan Investment Portfolios Using the Black-Litterman Model(Faculty of Commerce and Management Studies University of Kelaniya., 2024-11-01) Abayakoon, V. D. W.; Piyananda, S. D. P.; Herath, H. M. N. P.The study examines the integration of cryptocurrencies into investment portfolio diversification, emphasizing the influence of investor opinions on their portfolio strategy in Sri Lanka. The study has investigated how investor views impact portfolio optimization when cryptocurrencies are included into their investment portfolios. The Black-Litterman model was employed to assess this influence, incorporating historical prices of conventional equities, cryptocurrencies and other relevant financial data. The S&P20 index of the Colombo Stock Exchange represents the conventional equities while Bitcoin and Ethereum were used to benchmark cryptocurrencies for the study period of 2021 to 2023. The timeframe was strategically chosen to encapsulate both the pre-and post-COVID eras in Sri Lanka, thereby capturing the nuances of economic recovery from the crisis and the economic downfall. The findings from this timeframe indicate that incorporating investor views produced superior risk-return outcomes that significantly enhanced portfolio performance. The analysis emphasized that the post-implementation of investor viewpoints, the portfolio’s volatility and anticipated returns align more closely with the investors’ expectations. Accordingly, even with the high volatility of cryptocurrencies, the portfolio achieves optimal returns and Sharpe ratios with reduced overall volatility. This demonstrates the Black- Litterman model's efficacy in addressing the challenges posed by integrating cryptocurrencies into investment portfolios. The study highlights the potential of investor- informed strategies to improve portfolio diversification and the performance of their stock portfolio by incorporating cryptocurrencies. This provides novel insights to Sri Lankan investors, policymakers and portfolio managers on optimizing portfolio performances encompassing investor views and cryptocurrency investments.Item Firm Specific Factors Impact on Company Financial Performance of Life Insurance Companies in Sri Lanka(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Godawela, G. D. S. M.; Piyananda, S. D. P.Introduction - Insurance can be a critical environment in all markets and a key component of the economic system that tackles both individual and structural risks. Insurance companies serve as the bedrock of each country's risk management, guarantee financial stability, act as a vital part of the financial intermediation chain, and offer an outlet for long-term accumulation of resources. The insurance industry also plays a vital role in helping to address risk, helping to get jobs, and providing a market for insurers and financial investment services such as bonds and shares as a source of government tax revenue. Not only does the success of every company play a task in increasing the stock value of that individual company, but it also contributes to the expansion of the whole industry, which eventually results in the economy's overall prosperity. Design/Methodology/Approach - The impact of business-level characteristics (firm age, leverage ratio, current ratio, ratio (risk)) on insurance performance was discussed during this analysis. A primary measure of the success of the insurance company is employed as a variable in Growth in Written Premium (GWP), whereas age, current ratio, leverage ratio, and loss ratio are independent variables. Over the 2014 to 2019 period, the sample contains 14 life assurance companies. Findings - Multivariate analysis findings show that the firm age, current ratio, leverage ratio, and the loss ratio of insurers are statistically important and negatively associated with Growth in Written Premium. Conclusion - The final results of the multivariate analysis indicate that the firm age, current ratio, leverage ratio, and loss ratio of insurers are statistically relevant and negatively linked to Written Premium development.Item Determinants of Dividend Pay-Out Ratio of Listed Commercial Banks in Sri Lanka(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Rammandala, R.G.I.P.; Piyananda, S. D. P.Introduction – This research study has been carried out to identify the determinants of dividend pay-out in listed commercial banks in Sri Lanka in order to fill the gap using information from listed commercial banks in Sri Lankan context. Design/Methodology/Approach – This study was incorporated with the determinants of dividend pay-out as return on equity, return on assets, return on assets, earnings per share, firm growth and financial leverage, while the firm size is standing as a control variable. The research has adopted a quantitative research method and study selected 10 listed commercial banks during the period of 2015 to 2019. And also Panel Estimated Generalized Least Square (EGLS) (Cross-section random effects) regression method is used to analyse the collected secondary data. Findings – Based on the key findings of the study, Earnings Per Share is negatively significant and financial leverage and firm size are positively insignificant towards dividend pay-out. And also it is proved that the preceding year dividend payment is also influenced the current year dividend pay-out. Conclusion - The final result emphasizes that the overall model is statistically significant and the researcher is concluded that considered determinants are influencing the firms’ dividend policy and also recommended that there is a need of dividend policy makers should be emphasized at large on profitability that influences the dividend policy out to listed commercial banks hence enhancing the shareholder value.Item Factors Affecting to Customer’s Adoption of Mobile Banking in Sri Lanka: Special Reference to People’s Bank(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Madushan, S. J. S; Piyananda, S. D. P.Purpose: In the modern world, mobile banking concept is most important thing in the banking industry. But in Sri Lankan context, mobile banking usage is low. To avoid this situation bank must identify what are the factors affected to customers adapting to mobile banking and bank must address directly to these factors. This study examined the effect of perceived usefulness, perceived trust, social influence, convenience, awareness and perceived risk to customer adoption of mobile banking based on People’s Bank. Methodology: This study was conducted in customer perspective by using people’s bank customers in Colombo and Gampaha district. The study observed perceived usefulness, perceived trust, social influence, convenience, awareness and perceived risk as independent variables and mobile banking adoption as the dependent variable. This is a quantitative research study where a structured questionnaire was disseminated among more than 300 banking customers’ users under convenience sampling method and 249 respondents were responding correctly. Findings: The results of the study show that there is no significant influence from social influence and perceived risk on mobile banking adoption in the Sri Lanka. But according to the findings, perceived usefulness, perceived trust, convenience and awareness have significant impact of mobile banking adoption in Sri Lanka Conclusion: Perceived usefulness, perceived trust, convenience and awareness have significant impact of mobile banking adoption in Sri Lanka. Further, the study has revealed that there are some limitations in the study and provided suggestions to future researchers to make an effective and reliable result from the study.Item Electronic Banking and Banks’ Performance a Study on Sri Lankan Commercial Banks(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Madusinghe, M. N. M.; Piyananda, S. D. P.Introduction - Numerous studies have investigated the impact of Electronic banking on the performance of banks in many countries over the world. Some studies have found the positive impact of E-banking on the bank performance while some studies have revealed the negative impact. So, the purpose of this study is fulfilling this empirical gap in the literatures. Methodology - Automatic teller machine (ATM), internet and mobile banking and Credit & Debit cards are used as key independent variable as components of Electronic banking. Return on Assets (ROA) and Cost to Income Ratio are used as key dependent variables. Furthermore, bank size is used as the control variable. Ten commercial banks listed in Colombo Stock Exchange are used as sample of the study. Secondary data collected through the financial statement and the annual reports of the banks for ten years’ period from 2010/11 to 2018/19. Ordinary least square regression model is used to analyse the data collected. Findings -The current study found statistically significant impact of Electronic banking on banks’ performance. According to that, there is a positive significance impact of ATM on Cost to income and negative significant impact on ROA and credit cards and credit cards has a negative significant impact on ROA and positive significant impact on Cost to income. Although, there is no impact of internet and mobile banking on bank performance based on ROA but there is a significant negative impact of internet and mobile banking on Cost to income. Conclusion – The research study recommends to the management of commercial banks which are slow in electronic innovation adoption, to move in and adopt various innovations in their operation in order to shore up their performance. This study recommends to policy makers to develop appropriate strategies and policies to boost the performance in the Sri Lankan Banking System by considering electronic innovations.Item The Impact of Corporate Governance Board Characteristics on Earnings Management: Evidence from Listed Manufacturing Firms in Sri Lanka(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Randika, W. K.; Piyananda, S. D. P.During the past two decades some companies have failed to manage their internal controls and corporate structure effectively. The purpose of this study is to tap the study attempts to examine the actual compliance with the corporate governance board practices by selected listed manufacturing firms in Sri Lanka and more important to examine the relationship between corporate governance board theories and their effect on earnings management. This study incorporated with agency theory sustains a theoretical foundation for the need for corporate governance best practices in controlling earnings management whereas corporate governance variable comprises five types of board characteristics including board independence, CEO duality, board meetings, board size and board members with financial expertise, financial leverage and firm size considered as the control variables. Although there are number of studies done to identify the impact of corporate governance board characteristics on earnings management, there are contradictory results. The research has adopted a deductive research method and the study selected 24 listed manufacturing firms during the period of 2012 to 2019. Also panel least square regression method has initially used to analyse the collected data. The study found that board independence, directors in the board having financial, accounting expertise has a negative significant impact on real earnings and board size and firm size has a positive significant impact on real earnings. CEO duality, board meetings and financial leverage are not individually significant to the model. The study fulfils the existing local research gap in the area of board characteristics on earnings management in Sri Lanka. These findings will help for future studies relating to corporate governance board characteristics on earnings management.