Effects of Non-Performing Loans & COVID-19 Pandemic on the Performance of Commercial Banks in Sri Lanka
Abstract
The COVID-19 pandemic has significantly impacted the global economy, and the non-performing loans (NPLs) have become a pressing issue for commercial banks in Sri Lanka. It is doubtful how the NPLs and COVID-19 Pandemic have affected the performance of commercial banks in Sri Lanka. Thus, the purpose of this study is to investigate effects of non-performing loans & COVID-19 pandemic on the performance of Sri Lankan commercial banks for the period of 2011 - 2021. The panel data regression analysis was used to investigate the effects of non-performing loans & COVID-19 pandemic on the financial performance of Commercial Banks. The results of the analysis revealed that non-performing loans and the pandemic period have a negative impact on the profitability of commercial banks in Sri Lanka. Thus, this study is useful for bank management officials to protect banks from crises and create ideas to enhance the performance of banks.
DOI: https://doi.org/10.4038/ija.v3i2.57 | Journal eISSN: 2738-2249
Language: English
Page range: 103 - 121
Published on: Apr 7, 2024
Published by: Department of Accountancy, University of Kelaniya
In partnership with: Paradigm Publishing Services
© 2024 M. T. M. Silva, W. T. N. M. Perera, H. G. I. Madhushani, published by Department of Accountancy, University of Kelaniya
This work is licensed under the Creative Commons Attribution 4.0 License.