THE IMPACT OF GREEN FINANCE ON THE SUSTAINABILITY PERFORMANCE OF THE BANKING SECTOR IN BATTICALOA DISTRICT

Abstract

In the rapidly evolving landscape of the banking sector, green finance has emerged as a critical driver of organizational success and innovation. This study investigates the impact of green finance on the sustainability performance of the banking sector in the Batticaloa District. In addition to this, the researcher identified the level of these variables, their impact, and relationship between them. While there has been lack of research conducted in this area. Utilizing a sample of 270 banking employees, data were collected through structured questionnaires and analyzed using (SPSS 26.0 Version). The findings reveal a significant and strong positive relationship between green finance practices and sustainability performance of the banking sector in the Batticaloa District. Specifically, the implernentation of green finance across its social, economic, and environmental dimensions contrilru.tes nieaningiirlly to organizational sustainability outcomes. These results undersc',rre ihat wiren banks prioritize green l.inance, they create a foundation t"or sustainrible grorrlh. imllrovecl reputalion. anci alignrlrent rvith nationaland global ciimate goals. These findings underscore the impcr.an0c of ir-nplementing. green t-tnance across sociai, economic, and environnrental dimensioirs to strerrgthen sustainability performance in banking institutions. 'fhe study ofl-ers valuable insights for banking leaders and financial regulators striving to align operations u,ith climate goals and sustainable development priorities. It reinforces the significance of aligning financial decisionmaking with ethical and environmental priorities, thereby nurturing a culture of responsible banking and accelerating the transition toward low-carbon, inclusive growth in regions like the Batticaloa District. Keywords: Social dimension of Green Finance, Economic dimension of Green Finance, Environmental climension of Green Finance and Sustainabitity Performance.