Capital Is Not Enough: How Merger & Acquisition and Foreign Direct Investment Shape Corporate Sustainability in Sri Lanka
DOI:
https://doi.org/10.61656/sbamr.v8i3.483Keywords:
Mergers and Acquisitions, Foreign Direct Investment, Corporate Sustainability, ESG, Sri LankaAbstract
Purpose: This study aims to systematically examine the relationship between Mergers and Acquisitions (M&A), Foreign Direct Investment (FDI), and corporate sustainability practices in Sri Lanka.
Method: This study employs a systematic literature review by synthesizing 21 academic and professional sources published between 2017 and 2026.
Findings: M&A activities in Sri Lanka are influenced by the regulatory framework and the quality of post-acquisition integration. Structured integration, human resource management, and effective corporate governance support corporate sustainability. Meanwhile, the relationship between FDI, economic growth, and technological innovation produces mixed findings, indicating that investment quality and domestic absorptive capacity are important factors. External shocks also affect environmental, economic, and social dimensions of sustainability.
Implications: M&A and FDI can contribute to corporate sustainability when supported by strategic alignment, effective governance, and adequate absorptive capacity.
Originality: This study integrates perspectives on M&A, FDI, corporate governance, and sustainability within the Sri Lankan context.
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Copyright (c) 2026 Jezirah Berlin Nirwana, Bella Anantha Ekytasari, Revi Marsinta, Mesya Fadhilla Mintaraga, Kumala Puspita Sari, Janaka Perera
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