Factors affecting the adoption of green banking practices in Commercial Banks in Sri Lanka

Abstract

The purpose of this study is to identify the factors that influence the adoption of green Banking Practices in Commercial Banks in Sri Lanka commercial banks such as Amana Bank PLC Ltd, Bank of Ceylon, Commercial Bank, DFCC Bank, Hatton National Bank (HNB), National Development Bank, Nations Trust hank, Pan Asia Bank, People's Bank, Sampath Bank, Seylan Bank, and Union Bank, by establishing some variables to measure the Economic factors, Management commitment and Support, Customers pressure, Competitors Pressure, Concern for the environment and its extended impact on the adoption of green banking. Objective data were collected from 300 staff of selected bank branches by this study consist research objective of identify the factors influencing the adoption of green Banking practices in Commercial Banks in Sri Lanka. In order to achieve this structured questionnaire. The research framework of the study consists of five variables as Economic Factors, Management Commitment and Support, Competitors Pressure, Customer pressure and Concern for the environment which is used to measure the factors affecting the intention to the adoption of green Banking practices in commercial Banks in Sri Lanka. . ;, Findings of this study show that the Economic Factors, Management commitment and Support, Competitors pressure and Concern for the Environment are highly influenced the Adoption of green banking practices in commercial banks in Sri Lanka. But the Customers pressure moderate level influenced ‘the adoption of Green Banking practices. The results of the hypothesis testing shown there are positive relationship between Economic Factors, Management Commitment, and Support, Competitors Pressure, and Concern for the Environment and to Adoption of Green Banking Practices in Commercial Banks in Sri Lanka. But there is not positive relationship between Customers pressure and adoption of Green Banking practices in Commercial Banks in Sri Lanka.