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Thilakaweera, B., Harvie, C. & Arjomandi, A. (2015). Bank ownership and efficiency in post-conflict era of Sri Lanka: evidence from aggregate efficiency technique. Proceedings of the 4th Global Business and Finance Research Conference (pp. 1-22). Australia: World Business Institute.

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Global Business and Finance Research Conference


Deviating from conventional methods in comparing the group performance of banks this study extends the established literature to compare efficiency between foreign and domestic banks, by employing comprehensive weighted aggregate efficiency measures derived through bootstrap simulations for the banking sector for the post - confli ct era of Sri Lanka. The study also compares the banking sector performance between initial and later parts of the post - conflict period, using weighted aggregate efficiency measures. At the end of the armed conflict between LTTE 1 and Sri Lankan government forces the banking sector experienced considerable expansion in terms of banking density and services volume, concurrent with overall economic expansion. T his study concludes that there was no significant difference in the efficiency levels between domesti c and foreign banks operating in Sri Lanka in the post conflict era. Further, it reveals that banking sector efficiency during the period 2010 - 2013 outperformed efficiency during the period 2008 - 2009. The major findings from this study are of importance to policy makers, as they enable evaluation of banking efficiency dynamics when the banking sector records higher expansion during a period of rapid economic growth.

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