Relative to other sectors, service sector contribution towards economic development process shows a progress.
Service sector contribution which remained at 34% in1950 has grown up to 46% in 1977 and further grown up to 50% during 1991-2000 decade and recorded a value of 57.7% in2009.
Service sector is expanding further within economy.
Importance of expanding the Services sector
When a country is moving towards a fast economic growth the elasticity of demand for services will takes a value of greater than one which would leads to services sector progress.
Service sector expansion is important for a small country like Sri Lanka, as the natural resources required for services remain at a very low level comparing to other sectors.
As a result of protecting natural capital includes in the concept of sustainable development the expansion of services sector takes place within globalization process which will leads to achieve high benefits.
Services sector records a high productivity relative to agricultural and industrial sectors.
It is important in generating income sources for increasing population.
As the most efficient sector, the contribution of services sector is important to generate assets on agricultural and industrial sector.
Services sector helps in expanding choices of public by coordinating the fields of production, distribution and consumption.
