The primary objective of this study is to examine the impact that capital adequacy risk, credit risk, and liquidity risk have on the financial performance of ten commercial banks in Sri Lanka that have been operating for more than 20 years throughout the period of 2015–2019. The influence that capital adequacy risk, liquidity risk, and credit risk have on a bank’s financial performance is measured by the return on assets. The panel regression analysis of data strategy was used since it was thought to be the most effective method for accomplishing the objectives of the study. While the data was obtained from the annual financial reports of the banks, interesting findings were discovered for both fixed effect and random effect models. It was determined that there were no significant relationships between capital adequacy risks, credit risks, and financial performance for either model. On the other hand, it was discovered that there was a significant relationship between liquidity risk and financial performance for the ten banks selected for the study. Even though this work provides a lot of significant contributions to the existing body of knowledge, it still has limitations that can be addressed in future research. The inquiries are restricted to 10 of the twenty-four recognized commercial banks in Sri Lanka. It is proposed that future studies include both public and private banks. This study does not assess market risk, which includes foreign currency risk and interest rate risk, two additional independent variables that impact the financial performance of banks. It is proposed that future studies incorporate market risk considerations into their investigations.
