http://repo.lib.jfn.ac.lk/ujrr/handle/123456789/122 2026-09-19T10:20:36Z http://repo.lib.jfn.ac.lk/ujrr/handle/123456789/13058 Title: Moderating Effect of Bank Size on the Factors Affecting the Financial Performance of Domestic Commercial Banks in Sri Lanka Authors: Mithila, G.; Kabishka, T. Abstract: This study examines the impact of internal bank-specific factors on the financial performance of domestic commercial banks in Sri Lanka, with a particular focus on the moderating role of bank size. Employing panel data from thirteen licensed commercial banks listed on the Colombo Stock Exchange over the period 2014 to 2023, the analysis examines the effects of capital adequacy, cost-to-income ratio, liquidity, and non-performing loans on two key performance indicators, which are net interest margin and return on assets. Fixed and random effects panel regression models were estimated, incorporating interaction terms to capture the moderating impact of bank size, and the Hausman test was used to determine model appropriateness. The findings reveal that internal determinants significantly affect bank performance. Higher cost inefficiency and greater credit risk are negatively associated with return on assets, while liquidity demonstrates a positive association. Capital adequacy exhibits a marginally positive relationship with net interest margin, but a significant negative effect on return on assets, indicating a trade-off between financial stability and profitability. Bank size exerts both a direct negative influence on return on assets and a significant moderating effect. Specifically, large banks exhibit reduced sensitivity to the adverse impacts of cost-to-income ratio and non-performing loans and derive diminishing performance benefits from liquidity and capital adequacy. These results suggest that the effectiveness of managerial strategies and regulatory frameworks may vary by institutional scale. The study contributes to the literature by highlighting the conditional nature of internal performance linkages and the importance of scale-sensitive policies in enhancing bank profitability. Future research should explore these dynamics in broader samples and macroeconomic contexts. 2025-01-01T00:00:00Z http://repo.lib.jfn.ac.lk/ujrr/handle/123456789/13057 Title: Financial Literacy and Financial Wellbeing - Empirical Evidence from Recent Graduates in Jaffna Authors: Mithila, G.; Kabishka, T. Abstract: Financial literacy and financial well-being are crucial aspects of individuals' economic empowerment and overall quality of life. The study aims to investigate the impact of financial literacy and its dimensions, namely financial knowledge, financial behaviour, and financial attitude, on financial well-being among recent graduates in the Jaffna district. In addition, the study examines whether there is a difference in financial literacy levels between graduates who have received personal financial education and those who have not. Stratified sampling was used to select the sample, and over 200 questionnaires were distributed via social media, resulting in 125 respondents. Utilizing correlation analysis and multiple regression analysis with SPSS, the study found a significant positive relationship between overall financial literacy and financial well-being. Additionally, financial knowledge, behaviour, and attitude each demonstrated a significant positive impact on financial well-being. Further, the research revealed that graduates lacking personal financial education exhibit lower financial literacy levels than their counterparts with such education. These findings underscore the importance of integrating personal finance courses into educational curricula to enhance financial literacy and well-being among graduates. 2025-01-01T00:00:00Z http://repo.lib.jfn.ac.lk/ujrr/handle/123456789/12773 Title: Optimizing Working Capital Management to Enhance Corporate Profitability: From an Emerging Market Perspective Authors: Mithila, G. Abstract: Efficient working capital management stands at the heart of corporate financial resilience, shaping a firm’s ability to sustain operations, manage liquidity, and generate profits in a volatile emerging market. This study examines the impact of working capital management on corporate profitability, focusing specifically on capital goods companies listed on the Colombo Stock Exchange (CSE). Utilizing panel data from 2015 to 2024, the study examines the impact of key working capital components, namely inventory efficiency, receivable period, payable period, and the overall cash conversion cycle on operating profit margin. The findings reveal cash conversion cycle has the negative significant effect on profitability which suggests that with a shorter cash conversion cycle tend to have higher operating profits as they efficiently manage their cash flow and reduce liquidity constraints. A detailed decomposed method revealed that longer inventory holding periods significantly reduce profitability, affirming global evidence that lean inventory enhances performance. Conversely, extending payables has a positive impact on profit, indicating delaying supplier payments within reasonable limits frees up cash for operations. Liquidity measured by current ratio also shows a strong positive effect on profitability, highlighting the importance of maintaining a sound short term financial position. Firm size is also positively impacting the profit, highlighting the advantages of scale. However, receivable collection period, firm age and leverage show no significant impact, suggesting that cost structures and internal operational efficiencies may play a more critical role in driving returns. This study contributes to financial management theory by reinforcing the trade off and resource-based views, emphasizing how efficient working capital management serves both as a strategic resource and a balancing act between liquidity and profitability. From a practical perspective, the results highlight the importance of vigilant working capital management practices in capital intensive sectors, providing actional insights for financial managers, investors and policymakers seeking to strengthen actional insights for financial resilience and optimize resource allocation in emerging market firms. 2026-01-01T00:00:00Z http://repo.lib.jfn.ac.lk/ujrr/handle/123456789/12760 Title: Financial Access Constraints and Coping Mechanisms among SMEs in Killinochchi District, Sri Lanka Authors: Mithila, G. Abstract: Small and medium-sized enterprises (SMEs) play a key role in rebuilding economies and creating jobs, especially in post-conflict areas. In places like Killinochchi in Northern Sri Lanka, however, many SMEs still face serious difficulties in accessing formal finance. This study explores the financial barriers faced by SMEs in a post-war setting and looks at how they manage when banks and financial institutions do not support them. Using interviews with 20 SME owners, the study uses qualitative thematic analysis to identify five main challenges, namely lack of clear land deeds that stop them from using property as collateral, strict and slow loan procedures, damage to credit history due to group loans and guarantor problems, low trust in institutions due to bad practices by collectors, and working capital shortages when they receive large orders. To survive these challenges, SMEs turn to coping strategies such as borrowing from informal lenders at high interest, using customer payments to fund orders, and limiting their growth. This study shows that such financial behaviour is not simply a choice but a response to exclusion by the system. It also introduces the idea of documentary collateral exclusion, which means SMEs are blocked from loans because they cannot provide legal proof of their land. The paper suggests that policies should focus on improving movable asset lending systems, making credit reports fairer for guarantors, strengthening the regulation of loan collectors, and providing quicker working capital options for small firms. These findings show how post-conflict history, financial rules, and trust in institutions all shape SMEs' financial access in regions like Northern Sri Lanka. 2026-01-01T00:00:00Z