The purpose of the study is to find out the significant mean difference in the capital structure among the corporate governance practices, and secondary objective of the study is to suggest the listed Manufacturing companies in the Sri Lankan context to adopt corporate governance practices towards the capital structure.

This study has analyzed cash position and profitability among listed telecommunication firms in Sri Lanka over a period from 2005 -2011. The objective of the study was to establish the causality that exists between the profitability and cash position. This was prompted by the need to unravel the mystery on whether profits are driven by cash position or the vice versa. The study was carried out by analyzing the two firms' profit measured by return on assets and return on equity as the dependent variable and the cash position as liquidity measure in relation to the sales, total assets and current liabilities as the independent variables. Pearson correlation analysis was used to find out the relationships between these variables and regression analysis was used to find out the impact of cash position on profitability. SPSS was utilized to support the analysis and to provide a basis for the conclusions drawn.

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