Investigating the Determinants of Financial Inclusion Among Urban Youth: Evidence from Sri Lanka

Abstract

Financial inclusion, defined as equitable access and use of affordable financial services is crucial for fostering economic growth. This study investigates the determinants of financial inclusion in urban youth in Sri Lanka, addressing the critical gap in the literature. Utilising the data from 384 respondents across selected urban areas, the research employs a web-based questionnaire and applied Partial Least Square- Structural Equation Modelling (PLS-SEM) to assess the relationships between financial inclusion and key determinants such as Peer Influence, Government Policies, Mobile Banking Usage, Telecommunication Network Quality and Financial Literacy. The findings identify Financial Literacy as the most significant determinant of financial inclusion followed by positive correlations with other variables. The study offers practical insights for financial institutions and policymakers to improve financial literacy and design targeted strategies for enhancing financial inclusion among urban youth. However, the study’s focus on urban youth limits its generalisation to rural population where access and inclusion may differ significantly.