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Item The Impact of Credit Risk Management Practices on profitability of the commercial Banks in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Samarasinghe, R.I.M.; Madurapperuma, M.W.Banks are the largest financial institution in Sri Lanka. There are 25 commercial banks in Sri Lanka. Risk management is very essential for the banks to survive in the market. Commercial banks face different types of risks today. Such as: Credit risk, Interest rate risk, Operational risk and Liquidity risk. Credit risk is one of the most significant risks that banks face. Commercial banks face different types of risks today. Such as: Credit risk, Interest rate risk, Operational risk and Liquidity risk. Throughout these risks, credit risk is the major risk face by the commercial bank, because the major incomes of the banks align with creation of credits. Bank break down as a result of poor credit risk management practices of the banks. We have some past experience regarding these situations in our country. The main purpose of this research is to “Identify the impact of credit risk management practices on the profitability of commercial banks in Sri Lanka”. In this study it is expected to find the relationship between the variables that are described below and it is going to analyse regression, correlation and testing hypothesis to understanding the relationships between dependent variable & independent variable. Dependent variable measured through Return on Asset (ROA) and independent measured through variable Capital adequacy ratio (CAR), Loan to Deposit Ratio (LDR), Loans to Assets Ratio (LAR), Leverage ratio (LR), and Loan to Deposit Ratio (LDR). Secondary data collected from secondary sources, employed the period of 2015 to 2019. The data will be analysed using panel data regression model. The results will be of interest to bank costumers, accounting practitioners, accounting preparers, banking investors who are dealing with and seeking to deal with commercial banks in Sri Lanka.Item Factors Affecting the Life Insurance Demand in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Premasiri, K.A.A.G.S.S.; Madurapperuma, M.W.Insurance industry is the one sector in financial system in Sri Lanka. Insurance industry is continuing both long term and general insurance business. Life insurance demand in Sri Lanka has increased significantly in the past decade. Many factors have contributed to the development of life insurance industry including microeconomic and macroeconomic factors. This research, therefore, aimed to study the impact of macroeconomic factors on the life insurance demand in Sri Lanka. Four independent variables were gathered such as GDP Per Capita, Age Dependency Ratio, Inflation Rate and Level of education. (Fortune, 1973; Beenstock, Dickinson, and Khajuria (1986), Fortune (1973), Truett and Truett (1990), Beck and Webb (2003) from the literature to do this study. Further, factors were selected to be statistically examined for their potential impacts on life insurance demand, which was represented by the amount of all directly earned premium of total life insurance demand by all insurance companies in Sri Lanka, were gathered from Central Bank Annual Report. Secondary data resources from 2013 to 2020 will be employed. Unit roots, cointegration and error correction model will be used to analyze the data. The findings of this study will be useful for the Policy makers in order to get the better decision relating to regulate and maintain life insurance industry in the Sri Lanka.Item Foreign Direct investment and Economic Growth in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Jayarathna, S.P.H.S.; Madurapperuma, M.W.Foreign Direct Investment an increasingly important channel for developing countries to enhance their economic growth. Sri Lanka is also not an exclusion to this exercise. Existing studies shows that FDI inflows are useful in refining the production process in the host country. In addition to that some studies shows that FDI inflows will contribute to quality exports and the economic growth of Sri Lanka. This research is designed at finding the impact of FDI in promoting economic growth in Sri Lanka by using the time series annual data from 1950 - 2020. Unit root test, cointegration and the Vector Auto Regression models will be employed to estimate the impact of FDI on economic growth. The E-views-08 software were used for data analysis. The foreign direct investment, Gross domestic product Labor force, domestic investment trade openness will be used to investigate the impact of FDI on economic growth. The findings of this study will suggest that how FDI influence on economic progress in Sri Lanka. Finding will further provides a useful indication to the policymakers in order to gear up the barriers for the economic growth of Sri Lanka.Item Impact of Macroeconomic Determinants on Firm Performance: a Study of Tourism Industry in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Gunadasa, G.S.P.; Madurapperuma, M.W.Tourism industry is identified as an umbrella industry which is a fastest growing industry which is the largest service-sector industry in the global economy, and plays a key role in destination development, especially in developing countries in the world. The performance of a tourism industry could not be detached from the impact of macroeconomic factors. Easter attack in 2019, Global economic crisis occurred in 1998, 2008, and 2015 had a significant impact on the performance of tourism industry. Therefore, this research study aims to investigate the macroeconomic determinants on firm performance of tourism sector. The data will be collected from annual reports of Sri Lanka tourism development Authority and central bank of Sri Lanka. The time series data will be collected during the period of 2004-2019. Unit roots, cointegration and error correction model will be used to analyze the data. The findings of the study will provide useful insights to the tourism industry in evaluating whether its stated objective of macroeconomic factors toward firm performance is being accomplished. Further, the results will be of interest to academics, policy makers and the government in order to enhance the efficiency of Tourism sector in Sri Lanka.Item The impact of macroeconomic variables on stock market performance in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Dilhari, L.G.S; Madurapperuma, M.W.The Colombo stock exchange (CSE) operates as the only share market in the economy of Sri Lanka and is responsible for providing a transparent and regulated environment where both institutional and individual investors can operate in the capital market. So, this study investigates relationships between the All Share price index and macro-economic variables in Sri Lankan economy. Colombo stock exchange continued to be underdeveloped during the pre-war period but the peaceful political environment and economic growth in the post war period. So, the recent data can be useful for decision makers to understand about relationship between stock price and macroeconomic variables. The main aim of this study is to analyze the relationship that exits between the All share price index of Colombo Stock Exchange and five macrocosmic variables; namely money supply, interest rate, inflation rate, exchange rate and industrial production index in Sri Lanka. This study is carried out by using monthly time series data from 2010 to 2019. I considered stock price which is calculated by representing all listed companies in CSE. In order to test the long run and short run relationship, this study will employ the unit root, cointegration and panel data regression analysis. The finding of the study may be useful for stock market investors for making effective decisions in order to enhance stock market returns.Item An Analysis of Capital Structure and Its Impact on Performance: with Reference to Financial Institutions in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Balendra, V.; Madurapperuma, M.W.The capital structure of a firm is basically a combination of debt capital and equity capital. Which is deemed as appropriate to enhance its operations. A lot of investigations are being done on the implications of capital structure’s selection on organization’s value and its performance since the seminal work of Modigliani and Miller (1958). A wee little is empirically known about such implications in emerging economies such Sri Lanka. The purpose of this research is to explore empirically the impact of capital structure decisions on the financial sector organizations’ financial performance in Sri Lanka as one of emerging economies. Regression analysis is used in this research to identify the relationship between the leverage level and the performance of the financial institutions. Broad data covering the six year periods from 2009- 2015 of financial institutions in Sri Lanka are gathered and analyzed with the regression analysis. The data all are quantitative in nature and already available on Colombo stock exchange database (secondary evidence). There are sixty Financial Institutions in Sri Lanka and most of them are levered firms. Based on Return on Equity financial performance measurement and financial institutions’ leverage level the results revealed that leverage level has a weak level of negative impact and whilst controlling variable total assets has strong negative impact on organization’s financial performance.Item Determinants of Financial Performance in Micro Finance Institutions of Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Sudharika, W.P.A.; Madurapperuma, M.W.Financial sector plays a key role in the economic development. It is generally agreed that a strong and healthy banking system is a prerequisite for sustainable economic growth. Financial sector includes mainly the banking system and the microfinance institutions in the country. Microfinance promises to reduce poverty. To achieve this amazing objective Microfinance institutions have to developed strong enough in financial performance because donor constancy is not a given. Thus the question is: In what extent the MFIspecific, industry-specific and macroeconomic factors determinants the Sri Lankan micro finance industry financial performance from the period 2010- 2015. The study was based on a six years secondary data obtained from annual reports. Regarding the explanatory variables, operational efficiency ratio, debt to equity ratio and capital assets ratio affect MFIs financial performance significantly. The outcome of the study shows that GDP growth rate and the debt equity ratio have positive relationship. But GDP growth rate statistically insignificant effect on their financial performance. The capital assets ratio, debt equity ratio and operational efficiency ratio have statically significant. The Sri Lankan MFIs policy makers and managers should give high concern to the expense management and also the government and policy makers should work combining both poverty decrease and financial self- sufficiency of MFIs. And also MFIs have to emulate profit-making banking performs by effecting a sound financial management and good managerial governance to assure their financial performance and in the long run sustainability.Item The Relationship between Credit Risk and Bank Performance: A Study of Commercial Banks in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Madushani, B.D.A.; Madurapperuma, M.W.Credit risk is the most important part of all commercial banks performing their works around the world. The objective of this study is to identify the relationship between credit risk and commercial banks performance in Sri Lanka. This study based on secondary data and data were obtained from various sources such as selected commercial banks annual reports, relevant articles, books and magazines etc. The panel data of a ten year period from 2006 to 2015 from the selected ten banks were used to examine the relationship between credit risk and commercial banks performance. Furthermore, Return on Assets (ROA) used as a profitability indicator while Non-Performing Loan to Total Loan Ratio (NPLR), Capital Adequacy Ratio (CAR) and Total Loan to Deposits Ratio (LTDR) used as credit risk indicators. The correlation and regression analysis was used to examine the relationship between credit risk and profitability indicators during the period and study by using E-views software. According to the empirical results, it was observed that NPLR and CAR has negative significant relationship with the commercial banks profitability and LTDR has positive significant relationship with the commercial banks profitability. Then this study concluded the credit risk has a significant relationship with the bank profitability. Therefore, this study recommended the banks to implement an effective tools and techniques to reduce the credit risk of commercial banks in Sri Lanka.Item The Impact of Public Expenditure on Economic Growth in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Wimalasiri, N.P.G.U.S.; Madurapperuma, M.W.The relationship between public expenditure has been one of the most searched issues in both developing and developed countries in the recent years. Public expenditure and policies related to public expenditure are important for a country and its macroeconomic stability. Hence, the objective of this study is to investigate the relationship between public expenditure and economic growth of Sri Lanka for the time period spanning from the year 1985 to 2015. A model developed by Ram (1986), as summarized by (Kweka & Morrissey, 1997) is used for the analysis. Total government expenditure is disaggregated in to three categories for the research purpose of this study as; government investment expenditure, government consumption expenditure and government human capital investment expenditure. Private investment was also added as an independent variable based on the econometric model employed for the study. All three categories of expenditure; government investment expenditure and government human capital expenditure were found to be insignificant in the regression, whereas private investment showed a positive and government consumption expenditure showed a negative significant relationship with regard to economic growth in Sri Lanka.Item Impact of Bank-Specific and Macroeconomic Determinants on Commercial Bank Profitability: with Reference to Systematically Important Private Commercial Banks in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Samarathunga, S.M.D.S.S.; Madurapperuma, M.W.Bank-specific and Macroeconomic factors have substantial repercussions on the performance of commercial banking sector in Sri Lanka, the favorable macroeconomic environment seems to stimulate higher profits. (Weerasainghe V.E.I.W & Perera T.R, 2013).The return on Assets which is a major measure of performance of commercial banks is a function of bankspecific determinants and macroeconomic determinants. A proper functioning of banking system facilitates a rapid economic growth enhancing savings and investments. The performance of the Sri Lankan commercial banks, measured by the Return on Assets (ROA) appeared to be stronger in the recent past without facing any significant fluctuations. This paper examined the impact of bank-specific and macroeconomic determinants on the profitability of licensed commercial banks. The study uses quarterly data from 2010-2015 relating to the bank-specific and macroeconomic indicators of commercial banking profitability by carrying out a multiple panel regression. According to empirical results, Macroeconomic determinants, gross domestic production rate and inflation rate found to be having a significant impact on the bank profitability with a positive relationship between the Return on Assets of a bank. The results further show that bank-specific factors of past period performance, net interest margin, bank size, liquidity risk, credit risk and capital adequacy have contributed significantly to the profitability of the commercial banks. The implication of the study is that efficient management of the bank-specific factors and implementation of favorable economic policies lead to an economic growth can contribute immensely to uplift the performance of the banking industry in Sri Lanka.