Browsing by Author "Herath, H. M. N. P."

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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.
Determinants of Non-Performing Loans in Licensed Commercial Banks in Sri Lanka
(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Gajasingha, G.M.N.T.; Herath, H. M. N. P.
Introduction - The purpose of this paper is to examine the determinants of non- performing loans in licensed commercial banks in Sri Lanka. In recent years, non- performing loans have been a huge issue for the financial industry. Non-performing loans in the Sri Lankan banking system have grown exponentially over the last few years. Design/methodology/approach - The research sample consists of 10 domestic licensed commercial banks, based on annual data representing the period 2010-2019, including 100 observations, which shall be taken into consideration. Findings - Average Prime Lending Rate, GDP Growth rate, Lone to Deposit ratio and Bank size have a positive relationship with NPL and Inflation rate, Loan Growth for the bank, ROA and Loan Loss Provision have a negative relationship with NPL. Conclusion – Regression findings showed that Six independent variables are statistically significant among both bank-specific and macro-economic variables. Throughout the considered period, public commercial banks maintained better credit quality than private commercial banks that operate in the country. To preserve the banking sector's stability, commercial banks need to continue strengthening their credit risk mitigation measures.
Evaluation of phytochemical profile and in -vitro antioxidant activity Suaeda maritima
(Faculty of Science, University of Kelaniya Sri Lanka, 2023) Pathirana, K. P. S. S.; Herath, H. M. N. P.; Perera, D.; Attanayake, R. N.; Paranagama, P. A.
Suaeda maritima, a halophytic plant species from the family Amaranthaceae, possesses unique adaptations that enable it to thrive in high-salt environments. Halophytes contain various bioactive chemicals, including plant polyphenols, which have garnered interest due to their antioxidant properties. This study aims to investigate how the polyphenolic content and antioxidant activity of extracts change across the polar, mid-polar, and non-polar fractions of crude extracts from S. maritima. These extracts are obtained from both the aerial parts and the roots of the plant, which were harvested from Seguwantivu area of Puttalam, Sri Lanka. Each dried and powdered plant part was sequentially extracted into hexane, dichloromethane (DCM), and methanol at ambient temperature using cold maceration. The Antioxidant activity of each concentrated extract was determined by 2,2-diphenyl-1-1-picrylhydrazyl(DPPH) assay, and 2,2'-azino-bis(3- ethylbenzothiazoline-6-sulfonic acid (ABTS) assay , phenolic content by (TPC) by FolinCiocalteau method, flavonoid content (TFC) by aluminum chloride assay and condense tannin content (CTC) by vanillin/HCl method. Six sequential extracts of S. maritima (from aerial parts and roots) showed antioxidant activity. The results indicated that S. maritima shoot extracts have significant levels of polyphenolic compounds (p=0.05), with methanolic extracts exhibiting the highest TPC (31.55±1.54 mg GAE/g dw), TFC (18.41±0.91 mg CE/g dw) and CTC (3.66±0.19 mg CE/g dw). In contrast, root extracts showed lower polyphenolic content (23.69±5.63 mg CE/g dw, methanol extract) but still possessed appreciable antioxidant activity (IC50, 0.40±0.07×10-1 mg/mL DPPH and IC50, 0.69±0.02×10-1 mg/mL ABTS). The ABTS assays revealed the radical scavenging ability of the extracts, with the methanolic aerial parts extract exhibiting the most potent antioxidant activity (IC50, 0.17±0.01×10-1 mg/mL) exhibiting it has more water-soluble antioxidants. Overall, Solvent extracts of the S. maritima possess antioxidant properties at varying levels. The fraction of polar compounds in the areal parts of S. maritima contains a relatively high amount of phenolic compounds and potent antioxidant properties. Moreover, identifying antioxidant properties from halophytes could contribute significantly to developing of natural antioxidants for combating oxidative stress-related diseases.
Factors Affecting Customer Satisfaction towards Gold Loan Services Provided by Specialized Banks: Evidence from Gampaha District in Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Ananda, L. H. A. P. J.; Herath, H. M. N. P.
Introduction: Gold loans are a popular loan facility in South Asian countries. Pawning is a highly competitive product of the banking sector. This study addressed the research problem of customer satisfaction with gold loan services in Sri Lanka. The main objective of this study is to identify factors that influence customer satisfaction with the gold loan services offered by specialized banks in the Gampaha District in Sri Lanka. Methodology: Service quality, loan process, and communications are independent variables used in this study and the dependent variable is customer satisfaction. The data sample of the study is the gold loan customers of specialized banks, and the sample size was 354 customers. Data is collected by distributing questionnaires. A regression model is developed to achieve the objective using the SPSS software and further, reliability and validity of the data is investigated using the goodness of fit tests. Findings: According to the results, there is a high level of customer satisfaction towards gold loan services provided by the Gampaha District in Sri Lanka. Bank customers' most influential factor in customer satisfaction towards gold loans is service quality in specialized banks; a significant proportion of the participants express confidence while availing themselves of gold loans. Additionally, customer satisfaction of specialized bank customers availing themselves of the loan process and communication has a significant impact. Conclusion: The study contributes to the understanding of customer satisfaction in the context of gold loan services offered by specialized banks in the Gampaha District of Sri Lanka. Future research should include commercial banks and the need to investigate digital banking adoption, customer satisfaction over time, and factors affecting customer satisfaction in the gold loan industry.
Factors Influencing Insurance Awareness on Life Insurance Products Among the Young Undergraduates in Sri Lanka
(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Sandamali, W. A. D.; Herath, H. M. N. P.
Introduction – Life Insurance occupies an essential place in the modern world since life risk, which can be assured, has increased in every walk of life. The main challenge that has to overcome in Life Insurance Industry in Sri Lanka is the lack of awareness among the people. Many people buy a Life Insurance policy and let it lapse and point out most of such cases are derived from people not understanding the value of Life insurance policy. Though the customer has the expansive range of Life insurance products to choose from, wise choices are possible only with requisite awareness within the easy reach in the market. This study aims to identify the factors influencing insurance awareness on Life Insurance products among the young undergraduates in Sri Lanka with particular reference to the undergraduates of University of Kelaniya Sri Lanka. Design / Methodology – A well-structured questionnaire was used to obtain data to the study. One hundred and sixty (160) respondents were selected through stratified random sampling method from University of Kelaniya. The dependent variable is Life Insurance Awareness while the independent variables are Study Stream (SS), Distribution Channels (DC) and Social Class (SC). Findings – The findings are revealed that the influence of Study Stream (SS), Distribution Channels (DC), Social Class (SC) to the Life Insurance Awareness proved statistically significant. Conclusions – Many countries are struggling to improve the insurance system's functioning to enable the financial system. The creation of awareness generation at the university level will benefit the financial system of the country.
Impact of Board Structure on Financial Performance: With Special Reference to Sri Lankan Banking Sector
(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Sankalpani, W. N.; Herath, H. M. N. P.
Introduction: Among the factors that influence bank performance, board structure plays a significant role in the Sri Lankan banking system. The study aims to seek the impact of the structure of the Board of Directors on the performance of banking institutions. Design/Methodology/Approach: Board size, gender diversity and Board Independency in banks have been used as independent variables to capture the characteristics of the Board and Return on Assets and Return on Equity have been used as dependent variables. The impact of board structure on financial performance has been tested using balanced panel data for 18 banks for 2015 to 2019. Findings: As per the study's finding, board independence and Return on Assets have a significant positive relationship, whereas other variables do not significantly impact the study. Furthermore, no relationship was depicted between independent variables and Return on Equity. Conclusion: Board independence can be considered as a key influencing factor to the financial performance of banking organizations.
International Portfolio Diversification and Implications for Investors: Empirical Study of South Asian Emerging Markets and Developed Stock Markets
(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Sandeepani, M.A.U.; Herath, H. M. N. P.
International investment is proliferating among private and institutional investors due to the benefits of global portfolio diversification, if an investor could diversify more optimally by investing in different countries' stock markets, then investors do have opportunities to reduce economy specific risk. This research will add extra value to different stakeholders to utilize their wealth across the world better. This research study has been tested the linkages between stock exchanges of developed and emerging markets of Sri Lanka, India, Pakistan, Bangladesh, Nepal, France, Japan, UK and US. Monthly closing levels of the benchmark indices are taken for period February 2013 to January 2020. Data has been analysed through ARDL bound test, Vector Error Correction Model, Wald test, Granger Causality Test and Variance Decomposition Test. Breusch-Godfrey Serial Correlation LM Test, Breusch-Pagan-Godfrey Heteroscedasticity Test & Jarque-Bera Statistic have been used as the diagnostic checks in VECM. ARDL Bound test indicated a long-run relationship between variables in south Asian Emerging Markets, developed, and both South Asian Emerging & Developed countries. The researcher identified short run relationship with some countries and Variance Decomposition Analysis to identify impact on CSE from South Asian Emerging Markets and Developed Markets. Investors may have to re-think diversification benefits in the future as the study implies diminishing diversification benefits among international emerging and developed markets.
Predictability of Stock Return Using Financial Ratios; Evidence from CSE FMCG Sector
(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Sanjula, N. H. D.; Herath, H. M. N. P.
Fundamental analysis uses annual reports with macroeconomic data to predict stock returns and buy and sell under-priced and overpriced securities, respectively. The present study aims to predict the stock returns using financial ratios for the FMCG sector in Colombo Stock Exchange. The sample data was collected for the six years from 2014 to 2019 for 30 listed FMCG companies listed in Colombo Stock Exchange. The study uses four financial ratios from multiple areas i.e., profitability, liquidity, solvency and market valuation. The analysis was conducted using a multiple regression model via statistical software to understand the predictability of the stock return. The results indicate that profitability, liquidity and market valuation ratios can predict the stock return in the short term and the long term. The return on assets, current ratio and price-earnings ratio had significant predictability on stock returns, while debt to equity ratio did not show any significant results due to the reasons the companies are in the mature stage of their own product lifecycle. The final results concluded that the model is statistically significant in predicting future stock returns. The selection of the ratios under profitability, liquidity and market valuation will enhance the predicting ability of the financial ratios on stock returns.
Stock Market Development and Economic Growth Evidence from SAARC Countries
(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Senevirathne, K. M. I. H.; Herath, H. M. N. P.
This research study to determine the relationship between stock market development and economic growth in the SAARC countries. The study aims to investigate the impact of stock market development, market size and market liquidity on economic growth in the SAARC countries. Two independent variables with three dimensions (market capitalization, turnover ratio, total value traded ratio), including control variables as (foreign direct investment, household consumption expenditure, inflation rate, real interest rate) have been used over one particular dependent variable (GDP annual growth). Also, pooled OLS regression method has initially used to analyse the collected. It indicated that market size positively affects the GDP and market liquidity inconclusively impacts GDP. It has been proved that the stock market development directly impacts on the economic growth of the country. Policy decisions of these countries should focus on Stock market development indicators in order to support their economic growth.
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.