Impact of Psychological Capital on the Academic Performance of Undergraduates in Management Faculties in Colombo District in Sri Lanka

Abstract

This study investigates the impact of Psychological Capital (PsyCap) comprising self-efficacy, hope, resilience, and optimism on the academic performance of undergraduates in Management Faculties in Colombo District, Sri Lanka. Using a quantitative research design, data were collected from 370 undergraduates through a structured questionnaire. Correlation and multiple regression analyses were applied to test the relationships between PsyCap dimensions and academic performance. The findings reveal a significant positive association between overall PsyCap and students’ academic performance, with regression analysis which showed that PsyCap explained 77.6% of the variance in academic performance (R² = 0.776, p < 0.05). Among the four dimensions, self-efficacy emerged as the strongest predictor (β₁ = 0.606, p < 0.01), while hope, resilience, and optimism also showed positive but comparatively weaker effects. These results confirm that higher levels of psychological resources enhance students’ ability to cope with academic stress, maintain motivation, and achieve superior outcomes. The study contributes to the literature by contextualising PsyCap in Sri Lankan higher education and offers practical implications for university administrators. Specifically, interventions such as resilience training, self-efficacy enhancement workshops, and counselling programmes can strengthen students’ psychological capital, thereby fostering long term academic success and employability