Abstract:
Digital finance is increasingly used by small and medium enterprises to manage payments,
banking transactions, business records, and routine financial activities. This study
examines how mobile application services, internet banking services, service efficiency,
and digital adoption rate are associated with SME growth and sustainable practices in the
Colombo District of Sri Lanka. A quantitative cross-sectional survey was conducted among
200 registered SMEs, while 163 complete responses were used for regression analysis after
data screening. The findings show that mobile application services are the strongest
predictor of both SME growth and sustainable practices, followed by internet banking
services and service efficiency. However, digital adoption rate is not statistically significant
once these functional and efficiency-related dimensions are included. The results suggest
that SME outcomes are associated more strongly with the quality, usefulness, and routine
integration of digital finance than with adoption frequency alone. The study contributes to
SME digital finance literature by showing that digital finance can be understood as an
operational capability that supports growth and sustainability through transaction speed,
record discipline, financial control, and traceability.
