Banking Sector of Sri Lanka

The Banking Sector in Sri Lanka accounts for almost 60% of the assets in financial sector. The Central Bank issues banking licenses for two categories of banks such as,

1.  Licensed Commercial Banks
2.  Licensed Specialised BanksBanks (33)

Licensed Commercial Banks

• LCBS are permitted to operate current account accounts (accept “demand – deposits” from the public)
• LCBs are permitted limited foreign exchange transactions with Central bank’s approvals.
• The 26 LCBs which currently operate through a total of more than 6180 branches and over 4655 Automated Teller Machines machines in the country.
• The minimum cash requirement for starting LCBs are,

1.          Local Banks – 20 Billion
2.          Branches of foreign – 12.5 Billion

Amana Bank PLC                                                       Indian Overseas Bank

MCB Bank Ltd                                                           National Development Bank PLC

Nations Trust Bank PLC                                             Pan Asia Banking Corporation PLC

People's Bank                                                              Public Bank Berhad

Sampath Bank PLC                                                     Seylan Bank PLC.

Standard Chartered Bank                                            State Bank of India

The Hongkong & Shanghai Banking                          Union Bank of Colombo PLC

Axis Bank Ltd                                                             Bank of Ceylon

Bank of China Ltd                                                       Cargills Bank Ltd

Citibank, N.A.                                                             Commercial Bank of Ceylon PLC

Deutsche Bank AG                                                      DFCC Bank PLC

Habib Bank Ltd                                                           Hatton National Bank PLC

ICICI Bank Ltd                                                           Indian Bank

Licensed Specialised Banks

• LSBs are not permitted to accept demand deposits from the public therefore do not maintain current accounts for customers.
• LSBs are not permitted to deal in foreign currency.
• LSBs, which currently operate through a total more than 696 banking outlets and 376 ATMs in the country.
• The minimum cash requirements for starting LSBs are 7 Billion.

Housing Development Finance

Lankaputhra Development Bank Ltd.

National Savings Bank

Pradeshiya Sanwardhana Bank

Sanasa Development Bank PLC

Sri Lanka Savings Bank Ltd

State Mortgage & Investment Bank

Those Banks are regulated and supervised by the Central Bank of Sri Lanka under Banking Act No. 30 of 1988, the Monetary Law Act No. 58 of 1949, the Companies Act No. 7 of 2007 and their amendments and the directions, circulars and other regulations issued by CBSL from time to time.