Financial Sustainable Growth Research Articles

How volatility in the oil market and uncertainty shocks affect Saudi economy: a frequency approach

In this study, spectral Granger causality analysis is employed to investigate the spectral dynamics of uncertainty transmission and its impact on economic growth and financial development in Saudi Arabia from 1993 to 2020. We examine the relationships between crude oil volatility, geopolitical risk, global economic uncertainty, financial development (measured by market capitalisation, MCGDP, Financial Institutions Access Index, FIAIX) and economic growth. The empirical results show that negative shocks in crude oil volatility have a significant impact on financial development as measured by the MCGDP, with capital flight and reduced domestic investment playing key roles, despite the effective contribution of increased government spending to mitigate these effects. In this study, spectral Granger causality analysis is employed to investigate the spectral dynamics of uncertainty transmission and its impact on economic growth and financial development in Saudi Arabia from 1993 to 2020. We examine the relationships between crude oil volatility, geopolitical risk, global economic uncertainty, financial development (measured by market capitalisation, MCGDP, Financial Institutions Access Index, FIAIX) and economic growth. The empirical results show that negative shocks in crude oil volatility have a significant impact on financial development as measured by MCGDP, with capital flight and lower domestic investment playing a key role, despite the effective contribution of increased government spending in mitigating these effects. However, looking at the FIAIX, crude oil volatility has a different impact, with positive shocks having no significant impact on financial development. In contrast, negative shocks show long-term causal effects, which emphasises the vulnerability of the banking sector to oil price fluctuations. Geopolitical risk has a significant long-term impact on the MCGDP due to uncertainty shocks caused by regional and global geopolitical measures. For geopolitical risk, the results are mixed with a significant causality of negative shocks on the FIAIX over certain frequencies, emphasising the sensitivity of the banking sector to geopolitical tensions. In contrast, the world economic uncertainty has only a limited direct impact on the FIAIX, indicating the resilience of the Saudi financial sector to fluctuations in global uncertainty. In terms of economic growth, positive shocks have a greater impact than negative shocks due to the volatility of crude oil. However, shocks resulting from geopolitical risks, whether positive or negative, have little effect on economic growth. The industrial production index, a measure of the resilience of the Saudi economy, indicates that it is susceptible to positive shocks from fluctuations in oil prices over a range of time periods. Our study’s findings can assist Saudi Arabia’s authorities in fortifying the country’s financial and economic resilience against the spread of uncertainty. For strong financial development and sustainable economic growth, these uncertainty elements must be well monitored.

Effect of Credit Risk Management Techniques on Financial Performance of Deposit Taking SACCOs in Kenya

Financial performance is crucial in the realm of finance. The requirement to explain why two organizations operating in the same environment perform differently is a puzzle, and various financial research works have been devoted to solving this puzzle. Co-operative societies in Kenya are recognized as a significant contributor to national development since their presence can be traced in virtually all sectors of the economy. Although significant progress has been made by the deposit taking SACCOs in Kenya, their performance and sustainability has been debatable. The objective of this research was to assess the effect of financial risk management techniques on financial performance of deposit taking SACCOs in Kenya. The specific objective was to determine the effect of credit risk management techniques on financial performance of deposit taking SACCOs in Kenya. The study was based on Credit Risk Theory. A descriptive survey design was adopted. The population of the study was the 175-deposit-taking SACCOs in Kenya as of 31st December 2022. Due to relative population nature, sampling was not conducted and therefore the study was a census. The respondent was the risk manager of each deposit-taking SACCO. The study utilized primary data. The data was collected using a structured questionnaire. Data was analyzed using descriptive statistics such as the mean and standard deviation and inferential statistics which included correlation and regression analysis. Reliability tests were conducted on the variables each meeting the 0.7reliability threshold with validity tests being confirmed by the Bartlett’s test that confirmed validity of the variables being measured. The regression analysis revealed significant insights into the relationship between financial risk management techniques and the financial performance of deposit-taking SACCOs in Kenya. Credit risk management techniques were found to have a positive impact on financial performance with a regression coefficient of β = 0.238 and a significant value of P <0.005. In conclusion, the study provides compelling evidence of the importance of comprehensive risk management frameworks in driving the financial performance of deposit-taking SACCOs in Kenya. By implementing effective risk management practices tailored to address credit risk, SACCOs can enhance their stability, profitability, and resilience in a dynamic operating environment. These findings have significant implications for policymakers, practitioners, and stakeholders in the SACCO sector, highlighting the need to prioritize investments in risk management capabilities to promote sustainable financial growth. The study recommended that SACCOs should focus on enhancing their credit risk management frameworks. This can be achieved by implementing robust credit risk assessment mechanisms, such as comprehensive credit scoring models and regular analysis of customer credit histories.

The Moderating Role of Islamic Financing Access in the Impact of Islamic Financial Knowledge and Financial Confidence on Financial Well-being among MSME Owners

Research aims: This study aims to explore the relationship between Islamic financial knowledge, financial confidence, and financial well-being, with access to Islamic financing as a moderating variable, specifically targeting MSME owners in Lampung Province, Indonesia.Design/Methodology/Approach: Data was collected from MSME owners through surveys in Lampung Province, Indonesia. The study employed Jeffreys's Amazing Statistics Program (JASP) for data analysis, examining correlations between variables and assessing moderation effects.Research findings: The findings reveal positive correlations between Islamic financial knowledge, financial confidence, and financial well-being among MSME owners in Lampung Province, Indonesia. Additionally, access to Islamic financing was found to positively moderate the relationship between Islamic financial knowledge, financial confidence, and financial well-being.Theoretical Contribution/Originality: This research contributes to the existing literature by filling a gap and offering fresh insights into the factors influencing financial well-being among MSME owners, particularly within the context of Islamic finance. By uncovering the mechanisms underlying financial well-being in this demographic, it advances knowledge in the field.Practitioners/Policy Implications: Practitioners can develop targeted financial literacy programs and innovative financing products for MSME owners. Policymakers can streamline regulations and incentivize financial institutions to expand Islamic financing options, promoting financial inclusion and sustainable MSME growth in Lampung Province and beyond.Research Limitations/Implications: Despite its contributions, this study has limitations that should be acknowledged. The findings are based on data collected from MSME owners in Lampung Province, Indonesia, which may limit the generalizability of the results. Future research could expand the sample size and geographical scope to enhance the external validity of the findings.

Development and Future Trends of Green Finance from an ESG Perspective

The rapid evolution of green finance, particularly under the Environmental, Social, and Governance (ESG) framework, has significantly reshaped global financial landscapes. This paper aims to provide an in-depth analysis of the current status and future trends of green finance through an ESG lens. Emphasizing the synergy between sustainability and profitability, it highlights key drivers, challenges, and emerging trends in green finance. The paper concludes with a discussion on policy recommendations and strategic actions to foster sustainable financial growth.

Dividend Announcements and Share Price Dynamics: Unraveling the Connection

This research paper delves into the dynamic landscape of dividend decisions in 2023, exploring the intricate interplay between market price of select equity shares and dividend announcements. In the ever-evolving global economy, firms face multifaceted challenges and opportunities that shape their dividend policies. Employing a comprehensive analysis of recent data, this study investigates the influence of dividend decisions and their implications on shareholder value. Through meticulous examination of dividend patterns across various industries, this research uncovers novel insights into the shifting paradigms of dividend distribution. The paper strives to establish a connection between market price in taking dividend decisions, shedding light on the delicate balance companies must strike between rewarding shareholders and ensuring sustainable financial growth. Incorporating recent data, this paper contributes to the academic discourse on corporate finance and also offers practical implications for businesses navigating the complex terrain of dividend decisions.

Do Dividend Announcement Impact Share Price?

This research delves into the intricate landscape of dividend decisions in 2023, exploring how declaration of dividends impact share price. In today's dynamic global economy, companies encounter multifaceted challenges and opportunities that influence their dividend policies. Using recent data analysis, this study investigates the dividend decisions and their effects on both firm performance and shareholder value. By meticulously examining dividend patterns across various industries, this research uncovers fresh insights into the evolving strategies of dividend distribution. Additionally, the paper analyzes how investor sentiment and market volatility influence dividend policies, emphasizes the delicate balance companies must strike between rewarding shareholders and ensuring sustainable financial growth. Using quantitative data, this research offers a nuanced understanding of the contemporary factors guiding dividend choices, presenting valuable insights for corporate leaders, investors, and policymakers. Through the incorporation of recent data and subsequent analyses this paper contributes not only to the academic discourse on corporate finance but also provides practical implications for businesses navigating the intricate terrain of dividend decisions in 2023.

Natural resources management efficiency: The role of green innovation for digital government

Natural resource management efficiency is currently one of the key issues that policy makers are trying to address via digital government efficiency. To address the challenges of ecological degradation, this research scrutinizes the nexus of green innovation and CO2 emissions in Saudi Arabia from 1990 to 2022. It also incorporated the role of financial development (FD), economic expansion (GDP), renewable energy consumption (REC), and oil revenue (ORNT). Moreover, pertinent time-series practices include ADF with structural breaks to find the covariates of static at level or first difference and the Johansen equilibrium test for long-run equilibrium during the least squares method with structural breaks as a primary method in the study. For robustness, the research included simple quantile regression to check the outcomes in both settings of the techniques. The results show that the covariates are static at the first difference and that long-run equilibrium exists among the variables. Moreover, the empirical outcomes reveal that FD and GDP increase CO2 emissions despite the structural breaks applied in the research. Moreover, green innovation has a significant negative influence on CO2 emissions in both models with and without the role of income. It is suggested that emerging economies increase investments in renewable technologies and green energy to reduce their reliance on fossil fuels and increase environmental sustainability. Moreover, REC has a significant and negative influence on CO2 emissions, while ORNT has a positive but weak influence on CO2 emissions in both models. The robustness protocols provide similar and robust outcomes because oil revenues are a curse for CO2 emissions in the upper quantiles. Ultimately, enhancing green innovation, increasing the utilization of renewable energy, and effectively managing financial resources, natural assets, and sustainable economic growth can serve as the foundation for bolstering environmental sustainability.

An Evaluation of Costing Systems to Promote Sustainable Financial Growth within Small-Medium Enterprises

An Evaluation of Costing Systems to Promote Sustainable Financial Growth within Small-Medium Enterprises

Intersecting Dynamics: The Role of International Carbon Markets and Private Credit in Reshaping Global Financial Systems

This paper explores the dynamic interplay among the development of international carbon markets, the ongoing global retirement savings crisis, and the rising prominence of private credit. The growth of carbon markets as a cornerstone of climate policy initiatives is reshaping global financial landscapes, influencing investment strategies, particularly within pension funds, and enhancing the appeal of private credit as an alternative investment avenue. This comprehensive analysis addresses how the integration of carbon markets with environmental, social, and governance (ESG) criteria into investment decisions is pivotal in resolving the retirement savings shortfall while fostering sustainable financial growth.

THE MODERATING ROLE OF IFRS ADOPTION SPEED IN THE RELATIONSHIP BETWEEN CAPITAL INFLOWS AND INCLUSIVE GROWTH IN SUB-SAHARAN AFRICA

Purpose: This study investigates how the speed of International Financial Reporting Standards (IFRS) adoption condition the capital inflows and inclusive growth nexus in Sub-Saharan Africa. While existing literature primarily examined IFRS impacts at the firm level, this study filles a significant gap by focusing on the macroeconomic effects of IFRS adoption speed, particularly its role in enhancing the benefits of capital inflows such as Foreign Direct Investment (FDI), Foreign Portfolio Investment (FPI), and Foreign Aid. Methods: This study employs a dynamic panel data analysis using the Generalized Method of Moments (GMM) to examine how the speed of IFRS adoption impacts capital inflows and fosters inclusive growth across Sub-Saharan African countries. The study leveraged a dataset spanning from 2005 to 2019, covering 48 countries in the region. By analysing the relationship between IFRS adoption speed, capital inflows, and inclusive growth, the study offers new insights into the macroeconomic benefits of adopting IFRS. Findings: Findings suggest that speedy IFRS adoption significantly enhances the positive impact of capital inflows on inclusive growth, underlining the importance of swift and effective implementation of IFRS for equitable economic development. Implications: This study contributes to the existing literature by providing a macroeconomic perspective on IFRS adoption and highlighting the importance of financial reporting standards in achieving inclusive growth in Sub-Saharan Africa. Originality: This study introduces a novel approach by examining how the speed of International Financial Reporting Standards (IFRS) adoption moderates the impact of capital inflows on inclusive growth in Sub-Saharan Africa. Bridging the gap in existing literature, it shifts the focus from firm-level effects of IFRS and direct impacts of capital inflows on economic growth to a nuanced exploration of how financial reporting standards' adoption speed can enhance a country's ability to utilize foreign investments for inclusive economic development. Unique in its regional focus, this research provides critical insights into the macroeconomic benefits of IFRS in Sub-Saharan Africa, offering valuable implications for policymakers and contributing significantly to the discourse on financial innovation, regulatory frameworks, and sustainable economic growth in emerging markets.

Navigating transformation: unveiling the synergy of IoT, multimedia trends, and AI for sustainable financial growth in African context

Navigating transformation: unveiling the synergy of IoT, multimedia trends, and AI for sustainable financial growth in African context

Financial Record Keeping and Sustainable Growth of Agribusiness Enterprises in Rwanda: A Case Study of Moozays Dairy and Crop Farm Limited

Maintaining valid financial records is critical to making informed decisions about its operations. With no clear record-keeping incentives, farmers should miss important data on income, expenses, profitability, and financial health. The main objective of this research study was to assess the effects of proper financial record-keeping and sustainable growth of agribusiness enterprises in Rwanda (case study: Moozay’s Dairy and Crop Farm Limited). The specific objectives of this study included assessing the effect of purchase bookkeeping on sustainable growth of agribusiness enterprises in Rwanda, analyzing the effect of sales bookkeeping on sustainable growth of agribusiness enterprises in Rwanda, and determining the effect of cash bookkeeping on sustainable growth of agribusiness enterprises in Rwanda. This study is based on agency theory, double-entry bookkeeping theory, and accounting theory. A mixed-methods research design of descriptive and correlational studies was employed to collect both quantitative and qualitative information for analysis. The primary data were gathered by distributing questionnaires to a randomly chosen group of employees working in the finance department at Moozay's Dairy and Crop Farm Ltd. The targeted population of this study was equal to 100 respondents, and the sample population of this study is equal to 80 respondents. The data analysis procedure involved both quantitative and qualitative processes. Purchase book keeping (β=0.248, t=2.654), sales book keeping (β=0.330, t=3.321), and cash book keeping (β=0.337, t=3.331) indicate that for every one-unit increase in these variables, there is a corresponding increase in the sustainable growth of agribusiness enterprises in Moozay's Dairy and Crop Farm Limited. Furthermore, the significance values (Sig. 0.010, 0.001, 0.001) associated with these financial record-keeping variables are all notably below the typical significance level (0.05), demonstrating their strong statistical significance and emphasizing their significant roles in contributing to the sustainable growth of agribusiness enterprises in Rwanda. Also, the findings showed an R value of 0.855, an R square value of 0.731, and an adjusted R square value of 0.720, which indicates that the model adequately accounts for 73.1% of the variation in project success. Overall, Moozay's Dairy and Crop Farm Limited's research revealed strong agreement among respondents about the significant impact of financial record-keeping, which includes purchase, sales, and cash book keeping, on the sustainable growth of agribusiness enterprises in Rwanda. The study recommended Moozay's Dairy and Crop Farm Limited to provide periodic training and capacity building for staff to enhance cash bookkeeping practices in agribusinesses in Rwanda. Moozay’s Dairy and Crop Farm Ltd. is recommended to set policy action to enforce financial record keeping. Additionally, lawmakers should pass and strictly enforce a law on financial records in agribusinesses and other businesses. Moozay’s Dairy and Crop Farm Ltd. should be highly concerned about purchase bookkeeping as one of the tools to improve and increase its financial performance.

Does digital financial inclusion forecast sustainable economic growth? Evidence from an emerging economy

The emergence of digital financial inclusion has initiated a debate about whether it is the next frontier of sustainable economic growth, especially for developing economies. This study aims to verify these contentions by examining the impact of digital financial inclusion on sustainable economic growth. Accordingly, we created automated teller machines and debit card holders (Debit) as the proxies of digital financial inclusion and examined their impact on sustainable economic growth through the proxies of gross domestic product (GDP) growth and carbon dioxide (CO2) emissions. The empirical data between 2011 and 2020 was retrieved from Indonesia and was analyzed using the generalized method of movements (GMM) technique. The findings confirm that digital financial inclusion’s proxies (automated teller machines and Debit) have a significant positive (strong) effect on GDP growth and a significant positive (moderate) effect on CO2 emissions. This study may motivate developing countries to accelerate their digital financial inclusion initiatives to achieve sustainable economic growth.

Unleashing Synergies: Interplay between Human Resource Management, Strategic Marketing, and Corporate Financial Performance

This research explores the confluence of Human Resource Management (HRM), Strategic Marketing Management (SMM), and Corporate Financial Performance (CFP), offering a comprehensive understanding of their synergistic effects on organizational success. The study provides empirical evidence supporting the theory that a strategic blend of HRM and SMM is instrumental in enhancing financial performance. Efficient HRM practices, which improve productivity and innovation, coupled with effective SMM strategies that strengthen market positioning and revenue flows, are shown to be significant drivers of sustainable financial growth. The managerial implications of this integration are profound, underscoring the need for business leaders to consider investments in human resource development and strategic marketing as pivotal to the company's long-term success rather than as mere departmental functions. Through a quantitative analysis using SMARTPLS with a sample size of 150, the research contributes to management literature by highlighting the often-overlooked functional interconnections between HRM and SMM divisions. It challenges the conventional compartmentalization of these functions and advocates for a more integrative approach within corporate strategies. The findings indicate that companies embracing this integrated approach tend to report superior financial performance. This study addresses a gap in existing literature by demonstrating the collective impact of HRM and SMM on CFP across various industries, organization sizes, and cultural contexts, emphasizing the strategic amalgamation of these practices as a source of competitive advantage and financial enhancement.

Enterprise Management and Risk Assessment Analysis Practice

Finance is the core competitiveness of the country. Since the reform and opening up, China's financial industry has developed rapidly and made historic achievements, but there are still many contradictions and problems that make it difficult to meet the requirements of high-quality economic development. First, the debt problem: China's enterprises, local governments and household sectors are all facing considerable debt pressure. Some enterprises and local governments have hidden debts, and the debt of the household sector is also increasing. This poses a risk to the stability of the financial system.Second, financial institution risk: Some financial institutions have risks, including credit risk and liquidity risk. Some non-bank financial institutions have relatively low capital adequacy ratios and are potentially at risk of default.Third, financial chaos: some financial chaos problems still exist, such as illegal fund-raising, online financial fraud and so on. These issues challenge the effectiveness of financial regulation and public trust in the financial system.Fourth, structural problems in the financial system: there are some structural problems in China's financial system, such as insufficient interaction between the banking sector and the capital market, and relatively low efficiency of financial resource allocation. These problems constrain the development of the financial system and sustainable economic growth.

Organizational and economic aspects of managing financial policy, sustainable growth and development of the corporation

An attempt was made to develop recommendations on ways to optimize the organizational and economic mechanism of corporations, including the radio electronic industry. The study is a continuation of the work of Liberova A.A. and Tatarinets S.G. on the financial policy of organizations, sustainable economic growth and development of companies in the non-financial sector of the economy. Methods of decomposition and system analysis are applied in the evidentiary part of the study. The hypothesis is based on empirically identified functional features of corporate governance organizational structures by public and non-public joint stock companies. It is about the number, content of functions, authority, corporate responsibility of intra-corporate executive bodies: departments, offices, divisions. Public data is mostly obtained from the Interfax disclosure server. Interfax is an official analytical agency accredited by the Government and the Central Bank of Russia. According to the authors, the building of organizational and managerial structures significantly affects the results of the financial policy of the company and prospects for sustainable development. The authors formulated problems and gave recommendations on optimizing the organizational potential of the economic block for the phased implementation of the financial policy of a large company. Significant attention is paid to the relationship of the organizational mechanism to the success of financial policy in the field of financial planning. The hierarchical structure of organization of strategic planning with the purpose of optimization of financial policy of organizations is offered. The article analyses approaches to building the structure of organizational management of sustainable development. Some results of corporate movement towards sustainable development goals are shown.

Spatial patterns and influencing factors of financial agglomeration in Guangdong-Hong Kong-Macao Greater Bay Area.

The Guangdong-Hong Kong-Macao Greater Bay Area (GBA) represents a significant economic zone with a diverse financial landscape. Understanding the spatial distribution of financial resources within this area is crucial for promoting balanced economic growth and financial development. This study investigates the spatial patterns of financial agglomeration in the GBA, identifying key influencing factors and assessing their impact on the region's financial landscape. We employ the entropy value method to evaluate financial agglomeration levels across the GBA's cities. Additionally, we use spatial econometric techniques to analyze the spatial correlations and the Geo-Detector model to determine the primary factors influencing financial agglomeration. The analysis reveals an overall increase in financial agglomeration, with significant disparities among cities. Key factors driving this agglomeration include transportation infrastructure, overseas trade, foreign direct investment (FDI), and technological advancements. Hong Kong and Shenzhen display notable unevenness in the distribution of financial industries. The interplay between finance, technology, and industrial sectors suggests considerable development potential. Understanding and optimizing the spatial distribution of financial resources is essential for fostering high-quality financial development and sustainable economic growth in the GBA. This study provides insights that can inform policy decisions aimed at enhancing financial integration and cooperation within the region.

The Impact of Capital Structure on Firm Financial Performance in Oil and Gas Sector in Sultanate of Oman

This study examines the relationship between capital structure and financial performance within the oil and gas sector in the Sultanate of Oman, focusing on companies listed on the Ministry of Energy and Minerals over the period of 2021-2023. The research investigates how different capital structure components, such as debt-to-equity ratio, leverage, and debt maturity, influence various financial performance indicators, including profitability, liquidity, and shareholder value. The study aims at offering insights into the best capital structure strategies for oil and gas firms in Oman to improve their financial performance and sustainable growth using quantitative analysis methodologies, such as regression analysis and financial ratio analysis. It is anticipated that the research’s conclusions will add to the body of knowledge already available on capital structure and financial performance, with important ramifications for investors, financial managers, legislators, and other industry participants in Oman’s oil and gas sector and beyond.

Оцінка стратегічного планування через призму аналізу фінансових показників на прикладі АТ «Ощадбанк»

The article is devoted to the study of the impact of strategic planning on the financial indicators of a banking institution on the example of JSC «Oschadbank». In a dynamic market environment and increasing competition in the banking sector, strategic planning is becoming a key tool for ensuring the stable development and improving the efficiency of financial institutions. The aim of the study is to assess the efficiency of strategic planning through the analysis of key financial indicators of the bank, which allows to determine the impact of strategic decisions on the financial stability and competitiveness of the bank. The methodology of the study includes a comprehensive analysis of scientific literature on strategic management, as well as a quantitative assessment of the financial indicators of JSC «Oschadbank». The article examines in detail the theoretical aspects of strategic planning, its tasks and stages, which creates a solid basis for further analysis. Particular attention is paid to the specifics of strategic planning in the banking sector and its adaptation to modern economic challenges. A profound analysis of key financial indicators, including return on assets (ROA), return on equity (ROE), net interest margin (NIM) and cost-to-income ratio (CIR) for the period 2021–2023 was carried out. This made it possible to assess the dynamics of the bank’s financial efficiency in the context of the implementation of its strategic plans. The results of the study showed a significant improvement in the bank’s financial indicators in 2023, including a significant increase in ROA and ROE, as well as a noticeable decrease in CIR, which indicates the efficiency of the implementation of strategic plans, especially in a difficult external environment caused by geopolitical factors and economic instability. On the basis of the analysis, it is concluded that flexible strategic planning is critical to ensure the financial stability and competitiveness of the bank in conditions of economic uncertainty. The study emphasizes the need for constant adaptation of strategic plans to changes in the external environment and internal capabilities of the bank to achieve sustainable financial growth.

Reforming State-Owned Enterprises (SOES) to Facilitate the Economic Recovery of Sri Lanka

The economic downturn and escalating debt levels prompted Sri Lanka to seek assistance from the International Monetary Fund (IMF), resulting in the formulation of the 17th IMF program. This program, aimed at fiscal consolidation and restructuring, designates SOEs as a pivotal element in the nation's economic recovery strategy. This policy brief addresses the imperative need for reforming State-Owned Enterprises (SOEs) in Sri Lanka. A historical overview reveals the evolution of Sri Lanka's SOEs, from their establishment during World War II to a surge in numbers in the 1980s. Despite their vital role in the economy, SOEs have faced operational inefficiencies, financial struggles, and governance issues, leading to a privatization policy in 1988. The document explores international experiences in SOE reform, drawing insights from successful models in Singapore, China, and India. Current policy measures in Sri Lanka encompass various reform strategies, such as corporatization, restructuring, and commercialization, focusing on enhancing financial transparency and accountability. The establishment of the State-Owned Enterprise Restructuring Unit (SRU) reflects a commitment to effective implementation, with international support from entities like the International Finance Corporation (IFC). In conclusion, the path to economic recovery in Sri Lanka hinges on the successful transformation of SOEs, ensuring financial viability, transparency, and sustainable growth.