This paper analyses competition in the banks and its contribution to financial sector development in Sri Lanka during 1960 - 2010. Competition is analyzed by considering trends in the identified indicators for state banks and other banks, and it observes that there has been an intensified competition among the commercial banks. The paper recognizes that banks’ competition has positively contributed to improve services and the products of the financial sector. However, it concludes that favorable developments in the financial sector are not only due to competition but also due to other macroeconomic and policy changes, which cannot be separately measured and the financial sector has grown remarkably in Sri Lanka.
Sri Lanka Journal of Advanced Social Studies Vol. 2 - No.1 Page 68-92
How to Cite:
Hemachandra, W., 2013. Competition and Financial Sector Development in Sri Lanka. Sri Lanka Journal of Advanced Social Studies, 2(1), pp.67–92. DOI: http://doi.org/10.4038/sljass.v2i1.5119