http://repo.lib.jfn.ac.lk/ujrr/handle/123456789/119 Sat, 01 Aug 2026 01:05:41 GMT 2026-08-01T01:05:41Z 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. Thu, 01 Jan 2026 00:00:00 GMT http://repo.lib.jfn.ac.lk/ujrr/handle/123456789/12773 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. Thu, 01 Jan 2026 00:00:00 GMT http://repo.lib.jfn.ac.lk/ujrr/handle/123456789/12760 2026-01-01T00:00:00Z http://repo.lib.jfn.ac.lk/ujrr/handle/123456789/12753 Title: Psychological Determinants of Financial Behaviour in Jaffna District, Sri Lanka: Examining the moderating role of gender. Authors: Tharshiga, P.; Fernando, J.M.R.; Pathirawasam, C. Abstract: Financial behaviour plays a critical role in individual and household financial well-being, yet limited empirical evidence exists regarding its psychological determinants in regional and developing contexts such as Northern Sri Lanka. Drawing on the Theory of Planned Behaviour (TPB), this study examines the influence of attitude, subjective norms, and perceived behavioural control on three dimensions of financial behaviour: saving, borrowing, and investment, among residents of the Jaffna District. The study further investigates the moderating role of gender in these relationships. A quantitative research design was employed, and data were collected from 384 respondents using a structured questionnaire. The data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) and Multigroup Analysis (MGA). The measurement model demonstrated satisfactory reliability, convergent validity, and discriminant validity. The findings revealed that perceived behavioural control was the strongest predictor, significantly influencing all three dimensions of financial behaviour. Attitude positively influenced saving and borrowing behaviour, but did not significantly affect investment behaviour. Subjective norms significantly influenced borrowing and investment behaviour but had no significant effect on saving behaviour. Gender moderated only the relationship between perceived behavioural control and saving behaviour, with the effect being stronger among male respondents. The findings support the applicability of TPB in explaining financial behaviour within the Jaffna context and highlight the importance of strengthening financial capability, leveraging community-based financial initiatives, and enhancing women's financial empowerment. The study contributes context-specific evidence to the financial behaviour literature and provides practical insights for policymakers and financial institutions operating in Northern Sri Lanka. Thu, 01 Jan 2026 00:00:00 GMT http://repo.lib.jfn.ac.lk/ujrr/handle/123456789/12753 2026-01-01T00:00:00Z http://repo.lib.jfn.ac.lk/ujrr/handle/123456789/12752 Title: Stock price prediction using ARIMA model: Evidence from Colombo Stock Exchange Authors: Tharshiga, P.; Paranika, T.; Subramaniam, V.M. Abstract: Purpose: The core objective of the research is to investigate the forecasting capability of the Autoregressive Integrated Moving Average (ARIMA) model for predicting short-term stock prices in the Colombo Stock Exchange (CSE) of Sri Lanka. Design/Methodology/Approach: The data gathered on a daily basis through the CSE Price Index, ranging between July 1, 2014, and June 30, 2024, was analyzed by using the Box-Jenkins approach. The selection of the optimum models was based on the minimum of Akaike Information Criterion and Schwarz Bayesian Criterion. The Autocorrelation Function, Augmented Dickey-Fuller Test, and error test measures, such as Mean Absolute Percentage Error, were considered for validation and for assessing the goodness of fit of the forecasting results. Findings: From the Autoregressive Integrated Moving Average (ARIMA) model analysis, the ARIMA (2,1,1) model was the best, with an MAPE of 3.9%, indicating strong forecasting performance. For the Autoregressive and the Moving Regression tests, both were highly significant at the 1% level, supporting the idea that past price variations contain useful information for predicting prices. Results suggest that partial weak-form inefficiency exists in the Sri Lankan Stock Market. Research limitations/ Future research directions: The study uses a univariate linear approach and does not account for exogenous variables, nonlinearity, or structural breaks. The findings of this approach would be more relevant to short-term linear predictability. The approach would not account for non-linear phenomena that could be prevalent in an emerging economy. Originality: The current research is among the first 10-year empirical validations of the ARIMA model's predictive accuracy in the Sri Lankan market, as the study’s results provide theoretical and practical insights into predictive modelling and market efficiency Thu, 01 Jan 2026 00:00:00 GMT http://repo.lib.jfn.ac.lk/ujrr/handle/123456789/12752 2026-01-01T00:00:00Z