The objective of this study is to examine the relationship between service
quality and customer satisfaction in an extreme environment. Correlation and
Regression analysis were used to assess data collected from 117 National Savings Bank
customers in Jaffna district. Data for the study were gathered by employing well
designed questionnaire addressing the SERVQUAL measurement instrument with an
overall response rate of 97.5 %. Findings of the study indicated that service quality and
customer satisfaction variables are positively correlated significantly, i.e. service
quality- customer care, service quality -customer value increases customer satisfaction
also increases. Further, the findings of this study revealed that service quality has a
greater impact on customer satisfaction; that is service quality -customer value has
greater impact on customer satisfaction than service quality- customer care. Analysis of
the demographics variables revealed that gender; significantly contributed variations in
the level of customer satisfaction. Research implication of this study is that the sample
used in this study is specific in nature, it constituted of National savings bank. Thus, the
results should be interpreted accordingly. On the basis of these findings, implication of
the study was highlighte
