Abstract:
The objective of this study is to examine the impact of the interest rate spread of
financial performance on listed commercial bank in Sri Lanka. For this study. the
researcher selected 25 listed commercial bank in Sri Lanka. This research is based on
secondary data.Datawill be obtained from the CSE's financial reports and r,vebsites for
the period 2015-2019. STATA, a regression analysis method used to analyze the impact
of variables on data analysis. Retr:rn on Assets (ROA) was considered as proxies for
financial performance.
The conceptual model is developed based on existing literature. Using the Random
Impact Model, the listed commercial bank in Sri Lanka's data study sets were used to
investigate the impact of the interest rate spread of financial performance iisted
commercial bank in Sri Lanka. The random effect model was selected using the
Hausman test results. There is insufficient study in Sri Lanka to identify the impact of
interest rate spread on financial performance. This research helps tq fill this gap.
Stakeholders and managers will be able to use the results of the study and find out the
results of this study so they can make more reliable and effective decisions.
The findings of this research show that the interest rate spread of the Bank of Sri Lanka,
have a positive impact on the return on assets and the type of ownership has a negative
impact on the return on assets. The findings o1'this study help decision makers to
understand the importance of interest rate a key factor that can increase the ability of
firms to maintain their competitive edge.
