Impact of Electronic Banking on Operational Performance of Commercial Banks in Sri Lanka

The banking industry has experienced a dramatic change resulting from the adoption of Information Communication Technology. The data was gathered from 2014-2019 concerning internet banking, branch network and Automated Teller Machine, based on the annual reports of selected ten banks. Regression analysis was done for the period to determine the effects of e-banking on commercial banks’ operations. Data is stationary at the level and normally distributed. Under the fixed-effect model, this study found a positive significant relationship among Internet Banking return on Assets, negative significant with Return on Assets and Branch Network, Automated Teller Machine. Also, an insignificant relationship between Return on Equity and Internet Banking so, internet banking is familiar with a recent year in Sri Lanka. Cost to Income and Internet Banking have a negative significance and other all variables are a significant relationship with Cost to Income. overall models statistically significant. Results suggest that E-banking has significantly improved the bank operational performance in Sri Lank from 2014 to 2019.