ICBI 2024

Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/29008

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Subject: search.filters.subject.Economic Crisis

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    Assessing Profitability of Sri Lankan Commercial Banks Amidst Crisis
    (Faculty of Commerce and Management Studies University of Kelaniya., 2024-11-01) Gunasekara, H.M.A.L.; Ranasinghe, R.A.P.M.; Jayasinghe, G.D.C.T.
    This study aims to examine whether the Covid 19 pandemic and the post pandemic economic crisis have damaged the primary profitability of commercial banks. This study uses annual data from 2011 to 2023 for ten leading public and private domestic commercial banks in Sri Lanka. The results have been obtained using panel regression models and mean comparison tests. This study identified that the primary profitability measured by ROA is lower during health crisis and economic crisis periods and it achieves statistical support under comparison tests. The negative impact on ROA is dominant in the first Covid 19 year (2020) and the first economic crisis year (2022) than other periods. Further, comparison tests show that the impacts of any crisis are not superior to one another. However, when controlled for the bank-specific and macroeconomic factors, the negative differential effect of both crises fails to achieve statistical significance, indicating that Covid 19 and post- pandemic economic crisis have impacted domestic commercial banks weakly. This is the first kind of study to uncover that the domestic commercial banks have managed to maintain their primary profitability without a large injury to ROA during the health crisis and economic crisis years, helping them remain resilient during the crisis period.
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    An Examination of Valuers’ Perceptions on Property Valuation during an Economic Crisis: Evidence from Sri Lanka
    (Faculty of Commerce and Management Studies University of Kelaniya., 2024-11-01) Mendis, B. S. N.; Perera, T. G. U. P.
    Uncertainty, an inherent characteristic of property valuation, is a common phenomenon that cannot be avoided. Nevertheless, the material uncertainty in property valuation should be treated with special professional consideration by valuers. Most recently, Sri Lanka faced a severe economic crisis, increasing the likelihood of presence of material uncertainty in the valuation process. This paper aims to investigate whether there was an abnormal uncertainty in property valuation during the economic crisis of Sri Lanka and to identify the behavioural changes of professionals prompted by the crisis. Data for the study was collected through semi-structured interviews with 12 professional valuers who were selected purposively and analyzed using thematic analysis techniques in conjunction with the theoretical lens of prospect theory. The findings revealed that the valuers indeed experienced abnormal uncertainty in property valuation due to the economic crisis, leading to behavioural changes in valuers which were more subjective in nature. This paper recommends establishing a framework for addressing abnormal uncertainty in property valuation to ensure consistency within the profession. Furthermore, it recommends further investigations into abnormal uncertainty regarding specific property categories and valuation types, including statutory valuations.