Abstract:
Internet banking plays a major role in banking sector. It seems that commercial banks has not yet
attracted sufficient customers to use internet banking when compared with the other developed and
developing countries in the South Eastern Region part of Sri Lanka. This study examines the factors
influencing the adoption of internet banking services by commercial banks in the South Eastern
region in Sri Lanka. The data were collected through questionnaire. The methodology espoused for
this study is case study research approach for which the data gathered were quantitative. Theory was
developed to identify the factors that influence the adoption of Internet banking. 227 respondents in
South Eastern Region part of Sri Lanka were involved in this study. 51 were adopters who use
internet baking. 176 were non adopters who do not use internet banking. Factor analyses and
regression technique are used to study the relationship. The results of the model tested that use of
internet banking in South Eastern Region part of Sri Lanka. The adoption/ non-adoption decision is
highly influenced by attitude toward Change, Perceived benefits, perceived risks, Occupation, Users’
IT knowledge except Information on online Banking. Only information on online banking did not affect
intention to use internet banking service in the mentioned research area. The results also propose that
age, gender and occupation are significantly relate with internet banking behaviour. Finally, this
paper recommend that understanding the factors influencing the adoption of internet banking is very
significant to the commercial Banks and Bank managers can make use of these information to advance
appropriate strategies to attract new customers to use Internet banking in future.
