Determinants of Cryptocurrency Investment Intention Among Sri Lankan Individual Investors: The Moderating Role of Financial Literacy within the UTAUT Framework

Cryptocurrency, defined as a digital or virtual currency that uses cryptography for security, has emerged as a significant innovation in the financial sector. In Sri Lanka, cryptocurrency investment faces legal prohibitions and regulatory restrictions; nevertheless, interest in digital currency investment continues to grow. This study explores the applicability of the Unified Theory of Acceptance and Use of Technology (UTAUT) in understanding the factors influencing cryptocurrency investment intention among Sri Lankan individual investors. Additionally, it examines the moderating role of financial literacy in shaping these intentions within the context of existing legal constraints. The study employed a quantitative research methodology using primary data collected through an online self-administered questionnaire. An online convenience sampling approach was adopted, with the survey distributed via cryptocurrency-related forums, social media groups, and online communities. The final sample comprised 384 Sri Lankan individuals with experience or interest in cryptocurrency investments. The research hypotheses were tested using Hierarchical Multiple Regression Analysis in SPSS. The results reveal that performance expectancy and social influence significantly influence cryptocurrency investment intention among Sri Lankan investors, while effort expectancy and facilitating conditions are statistically insignificant predictors. Financial literacy significantly moderates the relationships between performance expectancy, effort expectancy, facilitating conditions, and investment intention. Notably, the moderating effect between facilitating conditions and investment intention is negative, indicating that such conditions are more influential for individuals with lower levels of financial literacy. However, financial literacy does not significantly moderate the relationship between social influence and investment intention. Given the legal and regulatory sensitivity surrounding cryptocurrency activities in Sri Lanka, participant anonymity and informed consent were strictly ensured to uphold ethical research standards. However, the findings may not generalize beyond online cryptocurrency communities, indicating a key limitation and scope for future research.