Abstract:
The interactive connection of Digital Transformational Leadership (DTL), Organizational
Agility (OA) and Digital Strategy (DS) in guiding Digital Transformation (DT) in banks
within Sri Lanka's Badulla District is analyzed in this study. With digital transformations
revolutionizing the financial sector, especially rural contexts, banks are being driven to
digitalize their operations. But successful digital transformation also relies on the extent to
which leadership pushes innovation, how change sensitive the organization is and to what
level the digital strategy is aligned with institutional goals. A quantitative research design
was employed based on the positivist philosophy. The sample of the study consisted of
executive class employees working in five major banks in the Badulla district. Out of the
estimated population of I,215 staff, a representative sample of 150 participants was
selected through stratified sampling. Data were collected using a structured questionnaire
based on previously pilot-tested measuremenfjle-.rns and were analyzed using SPSS version
25.0. Descriptive statistics, correlation analysis and multiple regression analysis were
employed to cross validate the research hypotheses.
The findings revealed ahigh level of positive and significant correlation among all three
independent variables digital transformational leadership, organizational agility and digital
strategy and digital transformation. All three hypotheses were verified confirming that
DTL, OA and DS are all important in driving digital transformation. Moreover, DTL was
the most predictive, noting the pivotal role that leadership must assume to drive a digital
culture and guide strategic change. These results affirm the significance of an integrated
approach where innovative leadership, organization designs fit for purpose and a
coordinating digital strategy all converge to secure effective digital transformation. The
study offers relevant insights to bankers and policymakers interested in deepening digital
adoption in less advanced regions to facilitate more inclusive and technology-facilitated
financial services in Sri Lanka.
Keyworcls: Digital Transformation, Digital Transformational Leadership, Organizational
Agility, Digital Strateg,t, Banking Sector, Badulla District.
