PIERS 2025

Permanent URI for this collectionhttps://ir.lib.pdn.ac.lk/handle/20.500.14444/6561

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Assessing the impact of digital connectivity and ICT trade on black carbon emissions in Sri Lanka from 2000 to 2022
(University of Peradeniya, Sri Lanka, 2025-09-11) Samarasinghe, K. T. B. Y.; Pinnawala, P. A. P. S.; Samarasingha, N. N. S.; Iroshima, W. L. P. P.; Yapa, S. R.; Dharmapriya, W. D. N. M.
Introduction: This study investigates the impact of digital connectivity and information and communication technology (ICT) trade on black carbon emissions (BCE) in Sri Lanka over the period 2000–2022. Addressing a notable research gap that extends beyond the commonly studied CO₂ emissions, the research specifically examines how mobile penetration, broadband penetration, ICT goods exports, and ICT goods imports influence BCE. Using secondary time-series data obtained from the World Bank and Our World in Data, the study employs descriptive statistical analysis and a Multiple Linear Regression (MLR) model estimated using STATA. The empirical results reveal that broadband penetration and ICT goods exports have a statistically significant and negative effect on black carbon emissions, suggesting that enhanced digital infrastructure and export-oriented ICT activities contribute to emission reductions, potentially through mechanisms such as telecommuting, digital service delivery, and less pollution-intensive production processes. Although mobile penetration and ICT goods imports also exhibit negative relationships with BCE, these effects are not statistically significant. The findings further indicate that Sri Lanka’s recent economic instability, financial constraints, and political challenges may have moderated the environmental impacts of ICT adoption and trade. The study concludes that strengthening broadband infrastructure, promoting the export of energy-efficient ICT goods, and facilitating cleaner ICT imports can play a meaningful role in mitigating black carbon emissions and associated health risks in Sri Lanka. Policy measures focused on digital literacy, sustainable ICT trade, and support for remote work are recommended to align environmental protection with economic recovery and long-term sustainable development goals.
Analysing the determinants of 10-year government bond yield in Sri Lanka
(University of Peradeniya, Sri Lanka, 2025-09-11) Yatipansalawa, Y. G. H. K. B.
Introduction: This study investigates the determinants of the 10-year government bond yield in Sri Lanka over the period 2015–2024, aiming to understand the short-run and long-run dynamics between macroeconomic and financial variables and long-term government securities. Utilizing monthly data on inflation (CCPI), exchange rate (USDLKR), bank rate (BR), industrial production (IIP), stock market performance (ASPI), and budget balance (BB), the study applies unit root tests, Johansen cointegration, Granger causality tests, and a Vector Error Correction Model (VECM) to examine the relationships. Empirical results indicate that, in the short run, inflation, exchange rate, and budget balance have a significant positive effect on bond yields, while stock market performance exerts a significant negative effect, and the bank rate shows a slight negative effect. Industrial production does not exhibit any significant short-run impact. In the long run, exchange rate and budget balance maintain a positive relationship with bond yield, while the bank rate has a significant negative effect. Other variables, including inflation, industrial production, and stock market performance, do not show significant long-term effects. The model explains approximately 74% of short-term variations in bond yields. Granger causality analysis reveals bidirectional causality between bond yields and inflation, exchange rate, and stock market indices. The study underscores the importance of understanding macroeconomic and financial drivers of long-term government securities for both policymakers and investors. Insights from this research can guide monetary and fiscal strategies, debt management, and investment decision-making in Sri Lanka’s government bond market.
AI and student entrepreneurship: perceptions, practices, and challenges in the path to sustainable innovation
(University of Peradeniya, Sri Lanka, 2025-09-11) Schiopu, C.; Constantin, S.; Foris, T.
This study examines the role of artificial intelligence (AI) in student entrepreneurship, focusing on students’ perceptions, current practices, and challenges in using AI for innovative and sustainable business development. The main objectives are to explore how students involved in entrepreneurial activities perceive and utilize AI tools, to assess the contribution of AI to creativity, innovation, and sustainability-oriented ventures, and to generate insights relevant for higher education curriculum development. A mixed-methods research design was adopted, combining quantitative data from an online survey administered to students enrolled in entrepreneurship and business programmes with qualitative data from semi-structured interviews conducted with student entrepreneurs who have integrated AI into their startups. This approach enabled a comprehensive understanding of both general trends and individual experiences related to AI adoption in entrepreneurial projects. The findings indicate that most students recognize the usefulness of AI, particularly for automating routine tasks and supporting business planning. However, the use of advanced AI applications, such as machine learning and predictive analytics, remains limited due to skills gaps, insufficient training, and restricted access to technical resources. Students engaged in sustainability-focused projects tend to view AI as a significant enabler of innovation and environmental impact. The study concludes that AI has strong potential to enhance student entrepreneurship by improving efficiency, fostering innovation, and supporting scalable and sustainable solutions. To fully realize this potential, higher education institutions should update curricula to include practical AI training, ethical considerations, and interdisciplinary approaches, while also improving access to digital infrastructure. These measures are essential for empowering the next generation of student entrepreneurs in an AI-driven economy.
A study of the economic crisis associated with international trade and the living standards of the people in Sri Lanka: with special reference to state sector people.
(University of Peradeniya, Sri Lanka, 2025-09-11) Bandara, K. M. S. L.; Weragoda, L.
Introduction: Sri Lanka has experienced a series of interconnected economic crises in recent years, closely linked to international trade disruptions, which have significantly affected living standards within export-oriented sectors. This study examines the socioeconomic impacts of the Easter Sunday attacks (2019), the COVID-19 pandemic (2020–2021), and the post-COVID economic crisis on individuals engaged in the tea industry, with special reference to the Harangala Tea Factory in the Nuwara Eliya District. The main objective is to identify and compare the positive and negative effects of these crises on the living conditions of different stakeholder groups within the tea sector. A mixed-methods approach was employed, utilizing both primary and secondary data. Primary data were collected through structured questionnaires and semi-structured interviews with management employees, estate owners, and factory workers, while secondary data were obtained from official national statistics and factory records. Descriptive statistical techniques and thematic qualitative analysis were used to assess changes in income, employment stability, and overall living standards during the crisis periods. The findings reveal uneven impacts across stakeholder groups. Management-level employees and many estate owners experienced income gains, largely due to currency depreciation and higher commodity prices. In contrast, factory workers faced severe income losses resulting from factory closures, reduced working hours, and transport disruptions, leading to increased indebtedness and livelihood insecurity. Despite these hardships, some adaptive responses, such as home gardening, emerged among workers. The study concludes that international trade-related economic crises intensify existing structural inequalities within Sri Lanka’s tea industry. It emphasizes the need for inclusive and context-specific policy interventions, including social protection mechanisms, livelihood diversification, and rural development strategies, to enhance resilience and protect vulnerable groups during future economic shocks.
A comparative analysis of rice industry productivity and export strategies: evidence from Sri Lanka and Thailand from 2003 - 2023
(University of Peradeniya, Sri Lanka, 2025-09-11) Gunawardhana, T. P. U. M.
This study presents a comparative quantitative analysis of rice industry productivity and export strategies in Sri Lanka and Thailand over the period 2003–2023. The primary objective is to evaluate differences in productivity performance and international competitiveness and to derive policy-relevant lessons for enhancing Sri Lanka’s rice export potential. Using secondary data from FAO, World Bank, IRRI, national statistical agencies, UN COMTRADE, and WTO sources, the study measures productivity through yield per hectare, total production, and labour productivity, while export performance is assessed using export volume, value, unit price, destination markets, and the Revealed Comparative Advantage (RCA) index. The analysis employs descriptive statistics, compound annual growth rates, and correlation analysis, with monetary values adjusted for inflation and exchange rate fluctuations. The results reveal a clear divergence between the two countries. Although Sri Lanka records higher average yields per hectare, Thailand outperforms Sri Lanka in total production, labour productivity, and export performance. Thailand maintains a strong and persistent comparative advantage in global rice trade, reflected by high RCA values and strong positive correlations between productivity indicators and export outcomes. In contrast, Sri Lanka’s rice exports remain negligible, with weak competitiveness and a limited link between domestic productivity and international trade performance. These disparities are attributed to differences in mechanisation, post-harvest infrastructure, institutional quality, and export-oriented policy frameworks. The study concludes that yield improvements alone are insufficient to ensure export competitiveness. Thailand’s experience highlights the importance of aligning productivity growth with market-oriented strategies, institutional reforms, and global value chain integration. For Sri Lanka, the findings underscore the need for coherent agricultural and trade policies that balance food security with export development, strengthen quality control and logistics, and promote value addition to achieve sustainable competitiveness in the rice sector.
Hidden burdens: exploring the economic impact of domestic violence in Sri Lanka’s Tea estate sector (Nuwara Eliya district)
(University of Peradeniya, Sri Lanka, 2025-09-11) Rajendran, S.
This study investigates the economic impact of domestic violence (DV) on female tea plantation workers in Nuwara Eliya, Sri Lanka. Using a qualitative-dominant mixed-methods approach grounded in feminist economics and care theory, field research was conducted across five tea estates with 40 participants, including 30 women and 10 men. Data collection involved in-depth interviews, focus group discussions, key informant interviews, and health record verification. The study measured DV incidence and types, estimating direct and indirect economic costs such as lost income, reduced productivity, healthcare expenditures, and increased unpaid care work. Findings reveal that 70% of women experienced DV, primarily physical (62%) and psychological (57%) abuse, resulting in significant economic losses of LKR 36,000–72,000 per worker annually due to missed workdays. Healthcare costs and informal borrowing further exacerbated financial vulnerability. Survivors reported increased time spent on unpaid care work, leading to “time poverty” and reduced opportunities for income diversification. Male participants highlighted alcohol use, financial stress, and patriarchal norms as key drivers of DV, reflecting entrenched social attitudes. The research underscores the systemic and hidden costs of DV, which are largely absent from policy considerations and economic analyses. The study concludes that DV is both a human rights violation and a structural economic issue in the tea estate sector. Addressing its impact requires gender-sensitive estate policies, accessible reporting mechanisms, psychosocial support, flexible leave structures, and integration of DV considerations into national labour and social protection policies. Recognizing the hidden economic costs of DV is crucial for promoting gender equity, enhancing women’s economic participation, and ensuring the sustainability of the plantation economy.
Assessing the impact of firm attributes on the adoption of innovations in Sri Lankan SMEs
(Department of Economics and Statistics, Faculty of Arts, University of Peradeniya, Sri Lanka, 2025-09-11) Abeyrathne, G.A.K.N.J.; De Mel, Suresh
Introduction Small and Medium Enterprises (SMEs) are widely acknowledged as the engine of sustainable economic development in both developed and developing economies. They play a crucial role in utilizing local resources efficiently, mobilizing savings, providing workforce training and supporting multinational and transnational corporations in many ways, including tired supply, subcontracting and service outsourcing. SMEs also contribute to building local technological capacity and globally account for 95% of all businesses. They represent 90% of all enterprises, including microenterprises in Asia. Despite these strengths, SMEs are often highly vulnerable. In developing Asian countries, 60% of SMEs failed in their first year and around 70% of them were closed shortly after starting. This fragility is largely attributed to global competition, rapid technological changes, and sustainability challenges within the globalized economy (Noe et al., 2017). To survive and grow, SMEs must adopt appropriate strategies—among them, innovations take first place. Schumpeter (1934) recognized that innovations have been as central to the long-term success of SMEs, and Kotler (2003) warned that firms neglecting innovation face high risks. SMEs not only rely on innovations for survival but also contribute significantly to their diffusion. SMEs are more active than larger firms in introducing new products, processes, and organisational methods. According to the ILO (2007), SMEs stimulate local economies by introducing innovations that drive growth and development. This study explores the determinants of SME innovation using the OECD Oslo Manual (2005) framework, which defines innovation in four aspects: product, process, marketing, and organizational. Drawing on Abderrezzak et al. (2016) and Hue (2017), the study classifies determinants into organizational (firm characteristics and owner characteristics), institutional and geographical factors. Using a resource-based approach (Soon et al.,2017), the analysis attempted to investigate the impact of firm attributes on adopting innovations.
Is the European Union more national than supranational ? – an economic and political perspective of EU
(Department of Economics and Statistics, Faculty of Arts, University of Peradeniya, Sri Lanka, 2025-09-11) TESCAȘIU, Ana-Cristina
Introduction During its evolution, the European Union faced a series of challenges, both in terms of economic aspects as well as political and ideological aspects. During the last decades, a new challenge for the European construction has resided in the rise of nationalism. The elections for European Parliament revealed that new ideological approaches have become increasingly important in the European decisional architecture. Even though the autonomy of the member states is recognized as a fundamental value, there are some situations where giving up part of sovereignty become a real aspect that must be faced. In these circumstances, the relation between the national and over-national levels of governance becomes a real challenge to deal with by the European institutions and the member-states.
Assessing the impact of firm attributes on the adoption of innovations in Sri Lankan SMEs
(University of Peradeniya, Sri Lanka, 2025-09-11) Abeyrathne, G. A. K. N. J.; De Mel, S.
This paper investigates how firm-level attributes influence the adoption of product, process, organizational and marketing innovations among Sri Lankan small and medium enterprises (SMEs). Drawing on the OECD Oslo Manual framework and a resource-based perspective, the authors use primary survey data from 115 SMEs across five provinces collected in 2022 and estimate Ordinary Least Squares (OLS) regressions to assess the impact of firm size, sector, competition, export orientation, registration status, access to bank loans, diversification, product customization and a set of control indices (owner characteristics, institutional support and a geographical index). Owner characteristics were condensed via factor analysis, institutional support was measured as a composite of 17 indicators, and geographical characteristics were standardized from three location measures; analyses were performed in STATA 13.0. Key findings show that access to bank loans and the degree of product customization are robustly and positively associated with all four types of innovation, while export orientation is associated with lower product innovation. Smaller firms tend to adopt more process innovations, and greater competitive intensity diminishes process innovation. Notably, measured institutional support is negatively associated with process and organizational innovations, suggesting a misalignment between public programmes and SME innovation needs. The authors conclude that strengthening innovation-linked financing, reorienting institutional support to be more demand-driven and localized, and promoting cluster-based collaboration and customer-centric business models would better foster SME innovation in Sri Lanka.

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