aspg-1-756-1791417654 20261008000054 American Scientific Publishing Group admin@americaspg.com American Scientific Publishing Group American Journal of Business and Operations Research AJBOR 2770-0216 2692-2967 2021 4 1 Nadhira Mahath University of Kelaniya, SRI LANKA Maha Saad Metawea College of Business Administration, Delta University for Science and Technology, Gamasa City, Dakhliya, Egypt There are considerable arguments in favour of and against the positive relationship between free cash flows (FCF) and financial flexibility. The aim of the study is to determine the impact of free cash flows on the financial flexibility of the banks listed in the Colombo Stock Exchange (CSE). The free cash flow will measure according to the model in Journal of Finance: Agency costs and ownership structure in 2000 and financial flexibility will determine using the financial leverage based on the model captured according to the Accounting Horizons Journal: Financial flexibility and investment decisions in 2007 . The population of the study is the banks listed in the CSE. The sample consists of 60 observations covering 12 banks for a period of over 05 years from 2015 to 2019. The panel regression model has been used to test hypotheses. The results indicate that there is a positive significant relationship between free cash flows and the financial flexibility of the banks listed in CSE. 2021 23 27 756 https://creativecommons.org/licenses/by/4.0/ 10.54216/AJBOR.040102 https://www.americaspg.com/journal/1/article/756 https://www.americaspg.com/storage/8795.pdf