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Item The Effect of Climate Risk on Stock Market Performance Evidence from Sri Lanka(Department of Accountancy, University of Kelaniya, Sri Lanka., 2023) Priyadarshani, G. W. Y.; Perera, L. A. S.This study aims to identify the effect of climate risk on stock market performance in Sri Lanka. As an island, the country is frequently affected by climate change variabilities. Due to the higher climate risk exposure of Sri Lanka, it is highly needed to identify the risk at a prior stage. As, this is the first study in Sri Lanka to identify the climate risk impact on stock market performance the primary objective of this study is to identify the climate risk effect on the All-Share Price Index, Standard and Poor’s SL20 index and 20 industry groups according to the GICS classification. The considered climate risk variables are drought, flood, high wind, heavy rain, landslide, and lightning. The findings of the study revealed there is no significant impact from climate risk variables to the All-Share Price Index, and Standard and Poor’s SL20 index. However, the analysis discovered significant impact of several climate risks to certain specific sectors of CSE such as drought significantly impacts automobiles and components, banking and transportation sectors. At the same time, the high wind is a key factor for food, beverage and tobacco. The drought and high wind influence are significant in sectors like capital goods, utilities, consumer durable and apparel, consumer services, healthcare, equipment and services, materials and household and personal products. As well as drought and lightning have a significant impact on the commercial and professional service sector and energy sector while the diversified financial sector is impacted by drought, high wind and heavy rain. Apart from that, sectors like food and staples, retailing, insurance, real estate and telecommunication are unaffected by any climate risk factor. At the same time, the pharmacy and bio-tech industries are impacted by all the climate risk variables except floods. Ultimately, the study's findings will provide direction to decision-makers including potential investors to consider the climate risk in their decisions making processes.Item Impact of Covid-19 on Stock Market Indices: Evidence from Colombo Stock Exchange(Department of Finance, University of Kelaniya., 2023) Adikari, A. A. V. S.; Buddhika, H. J. R.Purpose: The study intends to address the question, “What is the impact of the Covid-19 pandemic on stock market indices in the Colombo Stock Exchange”. This would support potential and existing investors to understand the behaviour of the stock market during the pandemic to make effective long-term decisions since there are only a few studies currently available in Sri Lankan context. Design/Methodology/Approach: A log-linear multiple regression model was executed whereby the dependent variables, All Share Price Index and S&P SL 20 index, were regressed against independent variables, daily new cases and deaths reported, fiscal and monetary policy measures implemented, and island-wide travel restrictions imposed during the period to analyze the impact of Covid-19 on the financial market over 270 days, from 27th January 2020 to 30th April 2021, covering two waves of the pandemic. Findings: The regression analysis revealed a positive relationship between the stock indices and the number of daily cases and deaths and a negative relationship with the travel restrictions imposed during the period. The policy measures implemented by the Government of Sri Lanka were insignificant in the index movements. Based on the results of this study, a positive impact on the stock indices was discovered during the pandemic; hence investors should refrain from panic withdrawals from the market. Originality: This is among the few studies to analyze the stock market performance during the Covid-19 pandemic adapted to the Sri Lankan context. The variables taken in the study can cover various aspects of the pandemic situation.