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Among Asian countries, Sri Lankan economy occupies an extremely very important position as a mixed economy having share in varied sectors like textile’s sector, the sports goods industry, the agriculture sector, the services sector and other industries. In service sector, Sri Lanka banking sector keeps the largest share and growing very fast. After the Liberalization Privatization Globalization, the banking sector of Sri Lankan has been transformed from an indolent and slow-moving sector to an active, competitive and productive industry. In today’s corporate world, the issue of the emotional intelligence is widely emphasized. Today many organizations and researchers are recognizing that emotional intelligence skills are critical to success. The literature has highlighted that the importance of emotional intelligence leadership for the betterment of the employee satisfaction, commitment, job performance and ultimately, the organizational success (Kappagoda, 2012).

Despite the researchers have produced many programs for prevention of stress and improving emotional balance among employees in developed countries, they are far lacking in developing country like Sri Lanka. In Sri Lanka, the numerous reforms’ programs are just limited to improve the financial performance, innovation of new products, improve the building infrastructure, promotion of modern practices etc., but they are yet to start any reform program, which is relevant to employees’ psychological problems. Banking sector is backbone of any economy, so this study focused on the new yet equally important concept of emotional intelligence among bank employees. Perusal of literature revealed that the rules of work are changing increasingly. With the increasing complexities both in business as well as in human behaviour created the need for not only people with high IQ but people with high EQ also.

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In the present era where the slogan “Customer is the King” prevails in every organization the emotionally imbalanced employees may find it hard to achieve their targets or deliver their reports on time. The way a person feels affects the way he behaves and the way he behaves will not only have relation with his performance, but also affects the performance of those around him. Number of research studies has been conducted on this pressing issue both in developed and underdeveloped countries covering the various aspects of emotions at workplace and the relationship of emotional intelligence characteristics, such as perception, control, use and understanding of emotions, with physical and psychological health and to determine the advantages of the knowledge and application of emotional intelligence. In developing country especially India, there is dearth of literature focusing on this important aspect of emotional intelligence. So, a need arises to study this concept in banking sector which is the back bone of financial system and hence responsible for the overall growth of the economy at a large (Pahuja at el, 2012).

Emotional intelligence contributes to increased organizational performance, increased employee overall performance and increased quality of work. Emotional intelligence has a vital importance for the organizations because of its strapping impact on the performance of an individual as well as of the organization. Studies on investigating the impact of Emotional Intelligence on Job Performance are lacking, and therefore, the literature is deficient in several aspects. In reviewing the literature, it was found that there were few studies conducted on emotional intelligence in Asia. However, studying the impact of Emotional Intelligence on enhancing performance and employees’ outcomes provides a valuable input to the organization (Praveena, 2015).

The banking sector, the dominant sector in the economy plays very positive and important role in the overall economic development of the country. The researcher believes that the prosperity of the banking sector is the prosperity of the country. However, there was no enough empirical evidence on emotional intelligence in Sri Lanka. Thus, this issue may serve as a good research gap for investigation (Kappagoda, 2012). In this research, the main problem is that employees’ emotional intelligence effect on their work performance. This emotional intelligence has a great impact on the performance. Here I hope to examine the impact of emotional intelligence on employee performance in my model.

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