Financial Innovation and Development of Commercial Banks in Sri Lanka

Abstract

The rising importance of the financial sector in modern economies, as well as the rapid rate of innovation in that sector, has generated a research interest in financial innovation. Technological innovations associated with the development of telecommunication and information technology have spurred financial innovation that has altered bank products and services and production processes. This paper describes how technological change has spurred financial innovations and the innovations in the financial sector develop the commercial banking system in Sri Lanka over the past three decades.

Keywords: Commercial Banks, Financial Innovation, Technological Innovation, Competition

JEL Classification: G20, O33