Banking Sector

The banking sector in Sri Lanka, which comprises Licensed Commercial Banks (LCBs) and Licenced Specialized banks (LSBs), dominates the financial system and accounts for the highest share of the total assets in the financial system. Banks play a critical role within the Sri Lankan financial system, as they are engaged in provision of liquidity to the entire economy, while transforming the risk characteristics of assets.

Banks also engaged in providing payment services, thereby facilitating all entities to carry out their financial transactions. On the other hand, banks can create vulnerabilities of systemic nature, partly due to a mismatch in maturity of assets and liabilities and their disconnectedness. Therefore, the soundness of banks is important, as it contributes towards maintaining confidence in the financial system, and any failure may have the potential to impact on activities of all other financial and non-financial entities, and finally the economy.

In terms of the asset base and the magnitude of services provided, the LCBs are the single most important category of financial institutions within the banking sector. LCBs dominate the financial system with the highest market share of the entire financial system's assets. Therefore, the health of Sri Lankan financial system depends to a large extent on the soundness of the LCBs, primarily on the performance and financial strength of the six largest LCBs, generally referred to as the Systemically Important Banks (SIBs).

The systemic importance of the LSB sector is relatively low in comparison to the LCBs, both in terms of size and their impact on the financial system, as it does not play a major intermediary role in the payment cycle.

 Licensed Commercial Banks

• Amana Bank
• Axis Bank Ltd
• Bank of Ceylon
• Bank of China Limited
• 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
• 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 Hong Kong and Shanghai Banking Corporation Ltd (HSBC)
• Union Bank of Colombo PLC
• Bank of Saantham PVT

Licensed Specialized Banks

• Housing Development Finance Corporation Bank of Sri Lanka (HDFC)
• Lankaputhra Development Bank Ltd.
• National Savings Bank
• Regional Development Bank (Pradheshiya Sanwardhana Bank) (RDB)
• Sanasa Development Bank PLC (SDB bank)
• Sri Lanka Savings Bank Ltd (SLS Bank)
• State Mortgage & Investment Bank (SMIB)

Licensed Finance Companies

• Saantham Market Private Limited
• Abans Finance PLC
• Alliance Finance Co. PLC
• AMW Capital Leasing and Finance PLC
• Arpico Finance Co. PLC
• Asia Asset Finance PLC
• Associated Motor Finance Co. PLC
• Bimputh Finance PLC
• BRAC Lanka Finance PLC
• Central Finance Co. PLC
• Central Investments & Finance PLC
• Citizens Development Business Finance PLC
• City Finance Corporation Ltd.
• Colombo Trust Finance PLC
• Commercial Credit & Finance PLC
• Commercial Leasing & Finance PLC
• ETI Finance Ltd.
• HNB Grameen Finance Ltd.
• Ideal Finance Ltd.
• Kanrich Finance Ltd.
• L B Finance PLC
• LOLC Finance PLC
• Melsta Regal Finance Ltd.
• Mercantile Investments & Finance PLC
• Merchant Bank of Sri Lanka & Finance PLC
• Multi Finance PLC
• Nation Lanka Finance PLC
• Orient Finance PLC
• People's Leasing & Finance PLC
• People’s Merchant Finance PLC
• Richard Pieris Finance Ltd.
• Sarvodaya Development Finance Co. Ltd.
• Senkadagala Finance PLC
• Serendib Finance Ltd.
• Singer Finance (Lanka) PLC
• Sinhaputhra Finance PLC
• Siyapatha Finance PLC
• Softlogic Finance PLC
• Summit Finance PLC
• Swarnamahal Financial Services PLC
• The Finance Co. PLC
• The Standard Credit Finance Ltd.
• TKS Finance Ltd.
• Trade Finance & Investments PLC
• U B Finance Co. Ltd
• Vallibel Finance PLC