Investment Behaviour of Generation Y Employees in Sri Lanka: An Exploratory Study

Abstract

This study explores the key factors influencing the investment behaviour of Generation Y (Millennials) in Sri Lanka, focusing on employed individuals aged 27 to 43. As Millennials enter their peak earning years, understanding their financial decision-making is vital for developing effective financial products and education programs. Using purposive sampling, data were collected from 1,000 employed respondents through a structured online questionnaire. The study examined four main factors: financial literacy, investment goals, media and information sources, and risk tolerance. Despite the non-probability sampling, the large sample size permitted the use of parametric techniques such as Pearson correlation and multiple regression. Assumptions of normality, linearity, and multicollinearity were tested and met. Findings revealed that financial literacy and media sources had strong positive impacts on investment decisions. Risk tolerance had a modest but significant effect, while investment goals unexpectedly showed a negative relationship, indicating a possible gap between goals and actual planning. These results emphasize the importance of targeted financial education and the influence of digital media. While the findings are not generalizable due to sampling limitations, they offer valuable insights into the investment behavior of working Millennials in Sri Lanka and suggest directions for broader future research.