12th Students' Research Symposium 2024

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Achieving Sustainable Development Goals by Implementing the Blue-Green Economic Provisions: An Analysis of Challenges and Opportunities of Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Fazha, A.F.F.; Weligamage, S.S.
Introduction: The present study explores the potential of incorporating blue-green economic measures to drive sustainable development in Sri Lanka. The objectives encompass a comprehensive examination of policy and regulatory obstacles, economic challenges, and the exploration of potential pathways for both biodiversity preservation and economic expansion. Methodology: The materials and techniques used in this study are critical to comprehending the research procedure. A qualitative study based on secondary data was carried out, which included a thorough assessment of literature, policy papers, and reports on sustainable development in Sri Lanka. The research framework directed the collection and organization of pertinent data. This method allowed for a thorough analysis of the problems and possibilities related to blue-green economic arrangements. The study's qualitative orientation allowed for a detailed investigation, guaranteeing an extensive understanding of the complex interaction of economic, environmental, and social issues in the Sri Lankan setting. Findings: The findings indicate the presence of notable challenges in the form of current policies and economic limitations. However, they also shed light on encouraging opportunities to improve biodiversity and promote economic variety. This study undertakes a critical analysis of the obtained results, drawing comparisons to established knowledge in the field and addressing methodological critiques. Conclusion: The study's conclusions encompass a range of inferred principles, exceptions, theoretical and practical implications, as well as recommendations for future endeavours. The research presented in a comprehensive and structured manner contributes to the discourse on sustainable development in Sri Lanka. It highlights the potential efficacy of blue-green economic provisions in achieving broader developmental goals.
Adoption Potential of Fintech Services: A Study Based on Employees of the Financial Institutions in Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Rathnayake, R.M.A.R.; Kethmi, G.A.P.
Introduction: FinTech can be identified as software, mobile applications, or any other technologies designed to enhance and automate conventional financial services for both consumers and enterprises. Sri Lanka which can be identified as a developing country, the adoption of FinTech would be a crucial factor to improve the economy of the country. This study was conducted to address the research problem of the adoption potential of fintech services in Sri Lanka. The main objective of the study is to examine the adoption potential of fintech services by using the perceptions of the employees of financial institutions in Sri Lanka. Methodology: Performance expectancy, effort expectancy, social influence, facilitating conditions, perceived reliability, added value, self-efficacy and nervousness are the independent variables used in this study and the dependent variable is the actual use of fintech. The data sample of the study is the employees of financial institutions, and the sample size was 384 employees. 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, performance expectancy, effort expectancy, social influence, facilitating conditions, and perceived reliability have an impact on the actual fintech usage in Sri Lanka, while added value, self-efficacy and nervousness do not have a significant impact on the actual fintech usage in Sri Lanka. Conclusion: In conclusion, the study envisions that its findings will not only benefit the financial industry in Sri Lanka but also serve as a valuable reference for other sectors. The study aims to be a milestone, providing insights into the adoption potential of fintech services in Sri Lanka that can apply to other developing countries, thereby paving the way for future research in this evolving field. Even factors deemed insignificant in the current context should be monitored, as they may become influential in the future. Collaboration between the public and private sectors is deemed essential to achieve widespread fintech adoption.
Communication of Sustainable Development Goals in Social Media and Stakeholder Engagement in Asian Companies
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Samaraweera, H.K.B.C.H.; Kethmi, G.A.P.
Introduction: Stakeholder engagement is one of the crucial factors in enhancing the business and communication between the company and the stakeholders is the most important step in building the relationship. This study investigates the connection between the communication of SDG using social media platforms and the stakeholder engagement rate. The necessity for further investigation into sustainable development goals communication via social media (tweets) and engagement of stakeholders, and characteristics of tweets has driven this study and the main aim to comprehend the relationship between those tweets’ characteristics (communication of Sustainable Development Goals through social media) and stakeholder engagement. Methodology: While the dependent variable is the stakeholder engagement rate, the independent variables are Fluency of the messages, Vividness level, Existence of a link, Content type (Communication of SDGs), The industry type of the firm, and Country of the firm. The study focused on Asian companies with the highest market capitalization, utilizing a sample of 84 firms from 11 countries and eight industries. The sample selection involved companies actively using Twitter and communicating at least one of the 17 Sustainable Development Goals (SDGs) in their tweets. The data collection, spanning from January 1, 2023, to September 31, 2023, resulted in 1728 tweets from the selected firms. The Chi-Square Automatic Interaction Detection (CHAID) is adopted to analyze data. Findings: According to the analysis, identifies tweets about specific countries as the primary predictor of engagement. Notably, tweets about Bangladesh lead to greater stakeholder engagement compared to tweets about other countries. Considerably, the most influential SDGs were identified as Responsible consumption & Products. Incorporating relevant links enhances engagement by providing stakeholders with additional information. The impact of vividness levels, with high vividness posts demonstrating the highest engagement rates. The Information Technology sector has more tweets, indicating that this sector is focusing more on communicating SDGs than other sectors, followed by the FMCG and Financial Services sectors, respectively. China firms focus more on communication of SDGs, as they contribute around 31.1 % of sample countries. Conclusion: As a conclusion, this study contributes valuable insights into the complex landscape of stakeholder engagement for Asian companies in the context of SDGs. The identified factors and recommendations offer practical guidance for companies aiming to enhance their sustainability communication strategies on social media. As businesses navigate the intersection of digital communication and sustainable development, these findings provide a foundation for informed decision-making and strategic planning
Customer Readiness and Adoption Potential of Fintech in Sri Lanka: An Empirical Investigation using Online Platform Users
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Weerasinghe, K.; Kethmi, G.A.P.
Introduction: The term FinTech refers to the usage of new technologies to improve financial services. Rapid growth in technology accelerates the fact that businesses adopt technology to provide better service to their customers. This shift towards fintech adoption is crucial as it not only improves financial accessibility and convenience but also promotes sustainable investments and environmentally friendly projects. The main objective of this study is to investigate the customer readiness and adoption potential of fintech in Sri Lanka. Ultimately, this study aims to contribute to the advancement of the Fintech landscape in Sri Lanka and facilitate the growth of a more inclusive and digitally empowered society. Methodology: Age, education level, financial literacy, e-readiness and mental preparedness are the independent variables in the study while FinTech usage is considered as the dependent variable. Data are gathered by distributing standardized questionnaires to a sample of 324 online platform users in Sri Lanka. Correlation and regression analysis are the two main techniques used to analyse data using STATA software. Findings: Correlation analysis showed that there is a strong relationship between the independent variables and the dependent variable. According to the regression analysis results, all the independent variables have positive relationships with Fintech Usage and the R-square value of the model is found to be 42.14%. Further, an index representing the readiness of the people towards adopting fintech is built which can be taken as the base year value for future analysis and the index values showed as 0.000000000292. Conclusion: According to the results, it can be concluded that each of these variables is impacting the fintech usage and finally, the current fintech readiness in Sri Lanka is low but has a promising future. The age gap shows promising data where the newest generation is using technology more often and the country has a high chance of adopting fintech. Through the findings of this study, we can conclude that Sri Lanka is still adopting technology and therefore moving into fintech will take some time than the other countries.
Determinants of Environmental Social Governance (ESG) Disclosure and Effect Of integrated reporting on firm performance. A study on listed companies in Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Harishanth, S.; Weligamage, S.S.
Introduction: Integrated Reporting (IR) is an emerging concept followed by organizations all over the world. The overall objective of the organizations is to know how organization creates value over time. IR indicates the act of quantifying, evolving and being responsible to all stakeholders for the performance of organizations towards their goal of achieving value. The nature of business has drastically changed during the past several years. There is general agreement that the business reporting model needs to go beyond the conventional financial reporting model, which places an emphasis on backward-looking, quantified financial information, in order to satisfy market information needs and provide information necessary for corporate transparency and accountability. Methodology: CSE has 295 companies representing 20 GICS industry groups as of 30th June 2022 (CSE, 2022). However, the study covers only forty (40) listed companies for the period from 2016 to 2021. The relationship and the effect of integrated reporting on firm performance is examined in this study. Findings: The results of the Random effect model regression analysis show that IR has insignificant positive impact on ROA, while Risk, Size and Mtb have insignificant impact on ROA. Further, IR, Risk, Size and Mtb have an insignificant impact on EPS at 5% significance level. Based on the correlation analysis, the results show that only IR has a significant positive relationship with ROA at 5% significance level while rest of the variables have insignificant relationship. Conclusion: The study has an important implication for the management of the companies and other interested parties. Further research can be extended by choosing more time periods of data and choosing other indicators of FP. In this way, IR and its impact on FP have become an important area for research in the recent past and this paper attempts to find out the impact and the relationship between them.
Determinants of Financial Literacy among Youth with special reference to Colombo District, Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Dananjana, T.H.P.; Liyanage, M.L.D.C.J.
Introduction: Financial Literacy refers to the knowledge and skills that are necessary to make effective decisions relating to financial matters. This study aims to identify the impact of financial literacy determinants on the youth population's financial literacy with particular reference to the Colombo district of Sri Lanka. Methodology: This study uses deductive and quantitative methods to analyse the data. Data was gathered from 384 young people (ages 15 to 29) from the Colombo district. The dependent and independent variables were gender, education level, work experience monthly income and Financial Literacy, respectively. Descriptive statistics, correlation and panel regression were used to analyse the data. Findings: The study found a significant impact of gender, education level, work experience and monthly income on Financial Literacy. Further, female has more financial literacy than males. When their education level is high, their financial knowledge is also high, and work experience and monthly income also have a positive impact on financial literacy. Conclusion: The research outcomes confirmed critical implications for policymakers and youth to enhance the financial literacy levels in Sri Lanka. Collaborative efforts between governments, financial institutions, and technology providers are essential to broaden the reach of financial literacy levels, particularly among youth communities.
Determinants of Financial Literacy Level of Working Age Females: with Special Reference to Colombo District, Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Upekshika, S.I.; Liyanage, M.L.D.C.J.
Introduction: Financial Literacy refers to the knowledge and skills that are necessary to make effective decisions relating to financial matters. This research aims to find the demographical and socioeconomic factors that determine the financial literacy level and their impact on the personal financial literacy of working-aged women in Sri Lanka. Methodology: This study uses deductive and quantitative methods to analyse the data. Data was gathered from 384 working-age women living in Colombo district. The demographic factors identified as the independent variables of the study are age and marital status, and the identified socioeconomic factors are education, working experience and monthly income level of working-aged women. The financial literacy level of females is determined as the study's independent variable. Descriptive statistics, correlation and panel regression were used to analyse the data. Findings: The study found that age, education, marital status, working experience, and monthly income have a strong impact on the personal financial literacy of working-aged women. Conclusion: The research outcomes confirmed critical implications for policymakers and working-aged women in Sri Lanka. Collaborative efforts between governments, financial institutions, and technology providers are essential to broaden the reach of financial literacy levels, particularly among working-aged women.
The Disclosures of Sustainable Development Goals: A Study on Top 50 Listed Companies in Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Bulathsinhala, K.B.I.D.; Fernando, J.M.R.
Introduction: The adaptation of Sustainable Development Goals (SDGs) by the United Nations has become the key focus of most nations, organizations, and researchers. This study aims to evaluate and analyze the disclosures pertaining to 17 SDGs within the Sri Lankan context. Methodology: The study adopts survey methods and content analysis techniques to analyze the corporate discourses of SDGs. 50 top companies listed in CSE were used as the sample based on the market capitalization. The design of the research consists of two main steps. Firstly, content analysis is used to capture the disclosures of SDGs by referring to PWC framework, Global Reporting Initiative (GRI) framework and International integrated Reporting Council (IIRC) framework. The content analysis covered three periods from 2018 to 2020. Secondly, a survey method is conducted through a semi-structured questionnaire with one open-ended question to take the opinion and the future perspective of the auditors and the employees of those 50 firms covering executive level or above in the finance division . Findings: The study found that there is a lack of disclosure of SDGs in the Sri Lankan Context; for example, only 40% of the total companies are disclosing SDGs in their annual reports during the period of 2018 to 2020. The reason is Sri Lankan Firms are in the initial stage of SDG disclosure compared to the European and Global Companies, and there is a lack of knowledge on SDGs in Sri Lankan companies. Further, companies follow some basic measurement approaches, such as GRI in Sri Lanka. The CEOs and Managers of the organizations are likely to adopt these SDGs to increase the value of the organizations. Finally, the auditors are of the opinion that there is a lot more to come in the future with regard to SDGs, and they are also of the opinion that there should be a separate department in an organization. Conclusion: There are many factors that affect SDG disclosure of an organization, such as lack of knowledge and availability of non–financial guidelines, which are alternatives to the SDGs. Thus, this study calls for the importance of adopting and disclosing the SDGs as they add value to organizations and highlights the need for management commitment and attention to these disclosures.
The Effect of Financial Distress and Accounting Conservatism on Tax Avoidance with Special Reference to the Manufacturing Companies in Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Theajaani, K.N.; Fernando, J.M.R.
Introduction: Tax avoidance is the activity of managing the company's finances to avoid the larger amount of tax burden legally without violating the prevailing laws. Tax avoidance practices are common and legal for companies. The study aims to examine the effect of financial distress and accounting conservatism on tax avoidance. Methodology: This study aims to analyze the effect of financial distress (Altman Z-score) and accounting conservatism (conservative accruals) on tax avoidance (book-tax differences) with firm size and audit quality as moderating variables and year of tax rate changed as a control variable. Secondary data used to collect the data from annual financial statements of 20 manufacturing companies listed in the Colombo Stock Exchange during the period of 2011 to 2021. Descriptive statistics, correlation and panel data regression used to analyze the data. Findings: The study found that financial distress has a significant negative effect on tax avoidance and accounting conservatism has a significant positive effect on tax avoidance, while firm size moderates the effect of financial distress on tax avoidance, and audit quality does not moderate the effect of accounting conservatism on tax avoidance. The study shows that manufacturing companies had a high level of financial distress from 2011 to 2021, thus there were certainly concerns from the creditors and investors that manifested in the supervision of the company's operational activities. Therefore, managers of manufacturing companies try to avoid high-risk policies such as tax avoidance. Conclusion: Initially, the primary focus for the Sri Lankan tax authority should be on effectively overseeing, closing legal gaps, overseeing tax evasion, and implementing stringent measures in cases of tax avoidance. Additionally, the government needs to establish and strengthen trust, showcasing tangible outcomes to illustrate the efficiency of utilizing tax revenue. Secondly, corporate entities must comprehend and acknowledge their rights and responsibilities concerning tax obligations. These businesses should strive to enhance management capabilities and governance skills to prevent financial strain that could potentially lead to bankruptcy.
The Effect of Risk-Based Capital (Rbc), Net Premium Growth, and Claim Expenses (Claim Ratio) on the Financial Performance of the Life Insurance Companies in Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Vijayantha, G.V. Malin; Fernando, P.N.D.
Introduction & Objectives: The insurance sector stands as a crucial component of Sri Lanka's non-banking financial sector, playing a significant role in bolstering the national economy. The financial stability and performance of Life Insurance Companies are of utmost importance, considering their primary function of risk management and providing protection against financial losses. Therefore, it is essential for these companies to identify the factors influencing their financial performance; and maintain a sound financial condition at any given time to meet their obligations to policyholders. This study seeks to examine the impact of Risk-Based Capital, Net Premium growth, and claim expenses on the financial performance of life insurance companies in Sri Lanka. Methodology: Data for analysis were sourced from quarterly publications of the Insurance Regulatory Commission of Sri Lanka (IRCSL) covering the period from the 1st quarter of 2016 to the 2nd quarter of 2022. The study focuses on the entire population of 16 IRCSL-approved life insurance companies in Sri Lanka, ensuring an identical sample and population. The analytical approach involves employing time series data regression techniques using EViews 12. The research findings are applicable not only to the Sri Lankan insurance sector but also offer insights for insurance companies operating in the wider Asian region. Findings & Conclusions: The study reveals that Risk-Based Capital (RBC), Net Premium growth, and Claim expenses significantly impact the financial performance of life insurance companies in Sri Lanka. Notably, Risk-Based Capital and Claim expenses negatively affect financial performance, as measured by Return on Assets (ROA). Conversely, Net Premium growth has a positive influence on the financial performance of life insurance companies, as proxied by ROA. These empirical results provide practical guidance for insurance companies looking to optimize their strategies in the Sri Lankan and broader Asian insurance markets. Finally, this research can be used as a basis for making a policy related decisions for the regulators, investors and customers on financial performance, Risk based Capital, net premium growth and claim expenses.
Environmental Accounting Disclosure and Financial Performance: Evidence from Manufacturing and Service Sector in Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Naveendya, J.B.S.; Madhushani, P.W.G.
Purpose: The most challenging environmental issues that the world is facing today is the climate change and global warming which stem from business operations. Thus, the corporate sector has an obligation to safeguard the environment. The observation intends to examine the impact of environmental accounting disclosure on the financial performance of manufacturing and services sector companies listed in the Colombo Stock Exchange, Sri Lanka. Design/Methodology/Approach: The methodology was a quantitative survey approach involving a sample of 28 manufacturing and 17 service companies over consecutive financial years from 2012 to 2022. The technique of content analysis was used to measure the level of environmental accounting disclosure (EAD). The Environmental Accounting Disclosure Index (EADI) was prepared based on the 8 environmental accounting disclosure items. Findings: Analysis revealed that the level of EAD in the manufacturing sector is stronger than in the service sector. Panel data regression analysis revealed that there is a significant positive impact of EAD on the firm’s financial performance of the manufacturing sector, but no significant impact on service sector companies. Originality: The findings of this study will accommodate for significant policy implications. The corporate sector needs to create the ground for environmental accounting disclosure practices for stakeholder assessment of their performance. Similarly, the effective supervision of the government is important in ensuring the implementation of environmental disclosure that aligns with applicable regulations.
An Exploration into People’s Perception and Intention on Using Cryptocurrencies in Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Jayalath, J.P.K.D.; Samarawickrama, A.J.P.
Introduction: This study delves into the determinants shaping the attitudes and intentions of individuals in Sri Lanka towards cryptocurrencies. The research focuses on four dimensions—Financial Knowledge, Technological Knowledge, Performance Expectancy, and Trustworthiness—utilizing a structured questionnaire administered to a randomly selected sample of 385 individuals from the Colombo District. Methodology: The research methodology involves the random selection of 385 individuals in the Colombo District, with data collected through a meticulously designed structured questionnaire. The study gauges people's attitudes and intentions towards cryptocurrencies based on four key dimensions: Financial Knowledge, Technological Knowledge, Performance Expectancy, and Trustworthiness. The independent variables include Financial Knowledge, Technological Knowledge, Performance Expectancy, and Trustworthiness, while the dependent variable is People's attitude and intention towards cryptocurrencies. Findings: Surprisingly, the study reveals a negative influence of Financial Knowledge on individuals' attitudes and intentions towards cryptocurrencies. However, Technological Knowledge, Performance Expectancy, and Trustworthiness exhibit positive influences on the same. Those who perceive cryptocurrencies as user-friendly, trustworthy, and beneficial are more likely to harbor favorable attitudes and intentions. Conversely, individuals with limited financial expertise may hold less favorable views on cryptocurrencies. The findings underscore the intricate factors influencing people's perceptions of cryptocurrencies in the context of Sri Lanka. Conclusion: This research seeks to establish the relationships between Financial Knowledge, Technological Knowledge, Performance Expectancy, Trustworthiness, and individuals' attitudes and intentions towards cryptocurrencies in Sri Lanka. Despite the unexpected negative impact of Financial Knowledge, the positive influences of Technological Knowledge, Performance Expectancy, and Trustworthiness indicate that perceptions are shaped by beliefs in the utility, simplicity, and trustworthiness of cryptocurrencies. The complexity of these factors is emphasized, shedding light on the nuanced nature of public perceptions regarding cryptocurrencies in Sri Lanka.
Exploring the Credit Risk Management Practices that improve the Living Standard of Micro Loan Borrowers in Micro Finance Sector. With Special Reference to Thawalama Divisional Secretariate in Galle District
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Ransika, K.N.; Piyanada, S.D.P.
Introduction – Purpose of this study is the identify the Credit Risk Management Practices used in Micro Finance Institution for sustainability of Micro Finance sector as well as improve the Living standard of Micro Loan Borrower in Thawalama Divisional Secretariate in Galle district. Methodology - This study takes a qualitative – inductive approach, using semi structured interviews with 20 interviewees in Thawalama Divisional Secretariat in Galle District Findings – This study highlights the Credit Risk Management Practices used in Micro Finance Institution as well as Credit Risk Management Practices that can be used to improve the Living standard of Micro Loan Borrower ( Loans are granted on ability to pay, Compulsory Saving, Only Requiring 2-member guarantees, Insurance the loan, Operating Investment account, Flexible Loan Schedule and Distribution of Dividends) Findings will be discussed by linking to the literature also highlight in the study. Conclusion – Insights derived from the study have the potential to inform policymakers, practitioners, and stakeholders in the Micro Finance sector about strategies that positively impact the socio-economic conditions of borrowers. Furthermore, a nuanced understanding of Credit Risk Management Practices can lead to the formulation of policies that encourage responsible lending, thereby fostering a sustainable and inclusive financial environment. Unlike Previous studies that examined what are Credit Risk Management Practices used to mitigate the Credit Risk for Sustainability of Micro Finance Institution. This study contributes to literature by examining the Credit Risk Management Practices that can be used to improve the Living Standard of Micro Loan Borrowers
Exploring the Potential of Social Value Creation through Digital Social Innovation in Sri Lanka: Special Reference to Colombo District
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Marasinghe, H.K.; Weerasinghe, W.D.J.D.
Introduction: This study mainly aims to identify the potential social value creation through digital social innovations & relationship between digital innovation and the social impact of social entrepreneurship. Methodology: This study associates with the inductive method under qualitative research. Moreover, multiple case study technique is use for social entrepreneurs operating in Colombo District for this study. In this research mainly gathered data through the ten in-depth interviews as primary data. Thematic analysis used in analyzing the data. Findings: In this study, the researcher has found that social entrepreneurs have create social value under economic, social and socio-economic. Entrepreneurs are increasingly moving into digitalization either by transitioning traditional businesses or by setting up of old methods. As competition is getting stiffer with each passing day, the factors enhancing a firm's capability to move in the value creation through digitalization is becoming increasingly important. Therefore, the researcher has found how social entrepreneurs manage new technologies to innovation under technology adoption and marketing strategies. Conclusion: In conclusion, social entrepreneurship seeks emerging opportunities and try to solve environmental and social problems to maximize value creation in society. Encouraging social entrepreneurs to utilize collaborative digital platforms where they can share knowledge, resources, and best practices. It will be a positive impact to economy system & society with better solutions.
Exploring the Potential of Social Value Creation Through Digital Social Innovation in Sri Lanka: Special Reference to Gampaha District
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Shalomi, K.H.; Weerasinghe, W.D.J.D.
Introduction: This research explores the potential of social value creation through digital social innovation in Sri Lanka, with a special focus on the Gampaha District. Social entrepreneurship, driven by a combination of entrepreneurial spirit and social innovation, aims to address pressing societal challenges and create innovative solutions. Despite the global attention to social entrepreneurship, there is a dearth of research in the Sri Lankan context, particularly regarding the role of technology in innovation and social value creation. Methodology: The study adopts a social constructivist paradigm and employs the Case Study Methodology (CSM) to investigate ten social enterprises. The research questions examined include how social value is created through social enterprises and how social entrepreneurs leverage new technologies for innovation. Findings: The findings reveal that social value creation in Sri Lanka occurs through economic impact, socioeconomic improvements, social impact, community engagement, and innovative solutions. Moreover, the importance of managing new technologies for innovation is evident, with technology adoption, innovation strategies, skills development, and resource constraints emerging as key factors. Conclusion: This research contributes to the understanding of how social enterprises in Sri Lanka create social value and harness technology for innovation. The findings highlight the need for more support for social entrepreneurs and the integration of digital technologies in their endeavours. The study emphasizes the role of social entrepreneurship in driving positive change and creating social value in Sri Lanka, and the potential for technology to amplify this impact.
Factors Affecting Efficiency in Motor Claim Settlements: Special Reference to a General Insurance Company in Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Chathurangani, K.L.H.; Fernando, J.M.R.
Introduction Every organization is highly concerned about the efficiency of their work processes to achieve their organizational goals successfully. As per the Motor Traffic Act, With the rising usage of vehicles and mandatory third-party insurance, Sri Lanka's motor insurance market is fiercely competitive. Thus, efficient claims settlement serves as a gateway to customer acquisition, retention, and valuable business insights. Thus, this study focuses on key factors impacting motor claim efficiency based on one of the leading general insurance companies in Sri Lanka. Methodology: This study uses deductive approach and quantitative methods to analyze the data. Panel regression was used to examine the impact of system quality, information quality, and service quality(independent variables) on the motor claim efficiency (dependent variable). Data was collected by using a structured questionnaire. Findings: All three variables, system quality, information quality and service quality, show a highly significant impact on the motor claims settlement efficiency, and all were significant at 1% level. Further, study also identifies the challenges faced by the company through the open-ended question used in the questionnaire. The results highlighted that the manual processes, inaccurate information, and inadequate staff allocation are the major roadblocks to efficiency, leading to delays and frustration for customers. Conclusion: The study reveals that insurance companies should pay more attention to existing levels of efficiency in motor claims settlements by improving the system quality, information quality and service quality. By embracing automation, investing in data quality, and empowering staff with the necessary skills and tools, the issues can be overcome. The benefits of prioritizing efficiency are manifold. A positive claims experience fosters customer satisfaction and loyalty, leading to repeat business and positive word-of-mouth recommendations.
Factors Affecting Financial Literacy of Savings Account Holders of Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Indralal, W.R.D.H. M.; Fernando, J.M.R.
Introduction: Financial literacy holds a crucial role in guiding consumer financial decisions, with financially literate individuals displaying a higher propensity for savings and future planning while being less susceptible to over-indebtedness. This study focuses on the determinants influencing the financial literacy of savings account holders, recognizing the positive impact of increased savings on the economy and serving as a safeguard against economic downturns and financial crises. Thus, the study focuses on examining the effect of technical, economic, demographic and cultural factors, assessing their impact on the financial literacy of savings account holders. Methodology: The research methodology involves quantitative techniques, employing both descriptive and inferential statistical analyses. The data collected through questionnaires administered to eligible savings account holders in the Western Province. Data gathered from a sample of 385 respondents analyzed using descriptive statistics, correlation and multiple regression. Findings: The study found positive impact of Technical, Cultural and Economic Factors on Financial Literacy and they are significant at 1% level. Among demographic factors, age and educational level emerge as significant determinants, while gender and marital status exhibit no discernible impact. Conclusion: The study emphasizes the importance of financial literacy as a determinant of savings levels, advocating for the integration of financial education programs into formal education curricula. Such programs can enhance financial literacy among savings account holders with long-term and sustainable effects. The findings underscore the significance of understanding basic financial concepts for sound financial decision-making, encouraging policymakers to prioritize financial literacy initiatives.
Factors and Challenges Affecting the Success of Women Entrepreneurship; A Study in Bakery Products Industry in Northwestern Province of Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Mudalige, M.B.N.; Abeysekera, R.
Introduction: It is frequently recognized that economic growth and wealth are dependent on entrepreneurship and that the number of women entrepreneurs worldwide has significantly increased. The modern world views entrepreneurship as a potent force that promotes productivity, job creation, and economic expansion. This study aims to determine the critical elements and obstacles that impact the performance of female entrepreneurs in Sri Lanka and their ability to manage their businesses and to provide recommendations for the most effective course of action. The primary goal of this study is to identify and analyse the variables and obstacles that could affect how well women entrepreneurs succeed. Methodology: This research followed the social constructivism philosophy to examine the real, and this research is conducted as qualitative research in which data, words, images or objects were collected through the methods of interviews, field notes and participant observations in the evaluations. Also, this study is also associated with the inductive approach. In this research, I used the purposive sampling method. The population is Sri Lankan women business owners who have been active in the bakery products industry in the northwestern province of Sri Lanka for over three years. I identified 10 Sri Lankan women business owners active in the Bakery products industry in the northwestern province of Sri Lanka as a sample. The data collection method is conducting interviews. I could identify four main success factors as main themes, and the findings of challenges are detailed as 20 sub-themes from the interviews conducted. Conclusion: This study goes a step further and explains the factors that influence the success or failure of women entrepreneurs. Hence, it will help women entrepreneurs across Sri Lanka and all stakeholders, like the government, customers, employees, and investors, to make appropriate decisions.
Factors and Challenges Affecting the Success of Women Entrepreneurship; A Study in Salon Industry in Kurunegala District of Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Dissanayake, D.M.K.L.; Abeysekera, R.
Introduction: Women’s entrepreneurship in Sri Lanka grapples with persistent challenges, stemming from intertwined issues that have impeded historical progress. This study aimed to discover the factors and challenges faced by women entrepreneurs in the salon industry in the Kurunegala district. Methodology: Qualitative methods were used to collect data from interviews with women entrepreneurs in the salon industry. The findings show that a significant obstacle is the limited financial capability of women entrepreneurs, constraining their capacity to invest, expand, and compete effectively. Findings: Insufficient governmental and regulatory frameworks exacerbate these challenges, as a lack of robust support structures hampers the growth and sustainability of women-led enterprises. The need for more reliable evidence and data is a key contributing factor to these impediments. The absence of comprehensive information, often influenced by societal rules and customs, complicates the development of targeted policies and initiatives addressing the specific needs of women entrepreneurs. More accurate data is needed to ensure the formulation of informed strategies to uplift and empower women in business. The nation's status further compounds the challenges women entrepreneurs face in Sri Lanka as a developing country. Women managing small and medium-sized enterprises (SMEs) confront a complex interplay of financial constraints, regulatory limitations, and a need for more reliable data. This underscores the urgent need for comprehensive and tailored interventions to address these unique challenges. Conclusion: Bolstering women's entrepreneurship in Sri Lanka requires initiatives encompassing targeted financial support, reforms in governmental and regulatory frameworks, and the generation of reliable data reflecting diverse rules and customs in business environments. By addressing these challenges directly, Sri Lanka can create an environment conducive to the success and sustainability of women-led businesses, contributing to individual economic empowerment and broader societal development.
Factors of Microloan default in Microfinance Institutions- Evidence by Puttalam District, Sri Lanka.
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Fernando, K.M.; Liyanage, M.L.D.C.J.
Introduction: The origin of microfinance was combined with micro-credit. The main reason for this is to provide access to financial and banking services to low-income or poor people who have access to financial services. As is quite common in this net capitalization, microfinance loan defaults have also become the main challenge of microfinance institutions. Although financial institutions involved in microfinance have tried to find solutions, there is a lack of an approach to finding solutions experimentally. There is also a lack of theoretical and written literature on this issue. Considering these issues, the main aim of this study is to identify the factors affecting the default of microloans. Methodology: This study uses deductive and quantitative methods to analyse the data. Data were gathered from 330 micro-loan borrowers from microfinance institutions in Puttalam district, Sri Lanka. The dependent and independent variables were loan default and borrowers' income level, loan amount, loan duration, knowledge of CRIB, borrower age and purpose of the microloan. Descriptive statistics, correlation and panel regression were used to analyse the data. Findings: The study found a strong positive relationship between the income level of borrowers, borrowed loan amount, duration of the loan and knowledge of CRIB with the loan default. However, there was a weak relationship between borrowers' age and the microloan's purpose for microloan default. Conclusion: This research offers actionable insights for microfinance institutions and micro-loan borrowers in Sri Lanka.