Banking System in Sri Lanka

History of Banking in Sri Lanka

When Sri Lanka or then known as Ceylon was under the reign of the Sinhalese Kings and even the Portuguese (1505-1656) and Dutch (1656-1796), banks and banking were still alien to the Sri Lankan culture. It was only during the British colony (1802-1948) that Banking was introduced to Sri Lanka with mainly branches of foreign banks being set up.

What is the first bank in Sri Lanka? Bank of Ceylon (BOC) is the first Bank in Sri Lanka.

Bank of Ceylon (BOC) began on 1st of August 1939 under Bank of Ceylon Ordinance No. 53 of 1938, the Governor of Ceylon, Sir Andrew Caldecott, declared open the maiden office of Sri Lanka's first state-owned commercial bank in Fort, Colombo.

Current Situation in Banking Sector,

The banking sector in Sri Lanka is monitored by the Bank Supervision Department of the Central Bank of Sri Lanka under the Banking Act, Monetary Law Act and the Exchange Control Act.

Three types of financial institutions are permitted under Banking Act and the Finance Companies Act to operate in Sri Lanka by the Central Bank of Sri Lanka. They are;

• Licensed Commercial Banks
• Registered Finance Companies
• Licensed Specialized Banks

Banking System includes the Central Bank of Sri Lanka (CBSL), two large state-owned commercial banks (Ceylon Bank and People’s Bank), eleven private domestic commercial banks, thirteen foreign banks and licensed specialized banks. The Central Bank is responsible for regulation and supervision of Sri Lanka's banking system.  

Private Domestic Commercial Banks

• Amana Bank PLC
• Cargills Bank Ltd
• Commercial Bank of Ceylon PLC
• DFCC Bank PLC
• Hatton National Bank PLC
• National Development Bank
• Nations Trust Bank
• Pan Asia Banking Corporation PLC
• Sampath Bank PLC
• Seylan Bank PLC
• Union Bank of Colombo PLC

Foreign Banks

• Axis Bank PLC
• Bank of China Ltd
• City Bank N.A.
• Deutsche Bank AG
• Habib Bank Ltd
• ICICI Bank Ltd
• Indian Bank
• Indian Overseas Bank
• MCD Bank Ltd
• Public Bank Berhad
• State Bank of India
• Standard Charted Bank
• The Hongkong & Shanghai Banking Corporation Ltd ( HSBC )

Licensed Specialized Banks

• Housing Development Finance Corporation Bank of Sri Lanka
• Lankaputhra Development Bank Ltd
• National Savings Bank
• Pradeshiya Sanwardhana Bank
• Sanasa Development Bank PLC
• Sri Lanka Savings Bank
• Stage Mortgage & Investment Bank