Abstract:
Access to public sector banking services is vital for financial inclusion and economic
empowerment in rural Sri Lanka. However, communities in Pupurassa and Meethalawa,
Kandy District, face significant barriers. This study examines the determinants of banking
access, focusing on financial literacy, socioeconomic status, banking infrastructure, and
language barriers, especially among estate and rural populations. Using a quantitative
approach, a probit regression model analyzes bank account ownership among 148
respondents selected through stratified random sampling. Data were collected via structured
questionnaires translated into Tamil and Sinhala, covering socioeconomic characteristics,
financial behaviors, and perceptions of banking services. Descriptive statistics, frequency
analysis, and marginal effects support the model. Results show that low financial literacy,
particularly among Tamil-speaking estate residents, significantly limits engagement with
banking services. Socioeconomic constraints such as low income and education reduce
access, while distant branches and poor digital connectivity increase costs. Language barriers
further limit access, as services are mostly in Sinhala or English. Marginal effects suggest
that improving financial literacy and infrastructure proximity can significantly raise the
likelihood of account ownership. The study recommends localized financial education,
multilingual support, mobile banking units, and infrastructure development. These findings
contribute to the financial inclusion discourse and support Sri Lanka’s efforts toward
equitable growth in underserved rural areas.
