Bridging the Digital Divide: Technology-Organisation-Fit and Digital Literacy as Catalysts for Digital Adoption in Sri Lankan Financial Services

The rapid digitization of financial services has created unprecedented challenges for traditional institutions seeking to balance technological advancement with organizational alignment. This study examines the complex interplay between technology-organization-fit dimensions and digital adoption in Sri Lankan state owned financial institutions, with digital literacy serving as a crucial moderating variable. Employing a quantitative research design, data were collected from 80 employees across three major state owned financial institutions: People's Bank, Bank of Ceylon, and Sri Lanka Insurance Corporation (SLIC). The study utilized advanced statistical techniques including correlation analysis, multiple regression, and moderation analysis using PROCESS Model 1 to investigate the hypothesized relationships. Results revealed significant positive correlations between technology-organization-fit dimensions and digital adoption, with the overall model explaining 72% of the variance in digital adoption (R² = 0.720). Notably, digital literacy emerged as a significant moderator (β = 0.2037, p = 0.0337), enhancing the relationship between technology-organization-fit and digital adoption. These findings contribute to the evolving discourse on digital transformation in emerging economies and provide actionable insights for organizational leaders navigating the digital transition.