Licensed Commercial Banks in Sri Lanka: A Comprehensive Guide
If you’re looking for information on commercial banks in Sri Lanka, you’ve come to the right place. In this comprehensive guide, we’ll cover everything you need to know about commercial banks in Sri Lanka, including their history, regulations, and services.
History of Commercial Banks in Sri Lanka
Commercial banks have been an integral part of Sri Lanka’s economy since the early 1900s. The first commercial bank in Sri Lanka was the Colombo Savings Bank. The government established it in 1832. Over the years, the government established more commercial banks, and by the mid-20th century, several commercial banks were operating in the country.
In 1963, the government established the Central Bank of Sri Lanka. It became the regulatory body for all financial institutions in the country. Since then, commercial banks have played a vital role in the development of Sri Lanka’s economy. It provides essential financial services to individuals, businesses, and government organizations.
Regulations Governing Licensed Commercial Banks in Sri Lanka
Under the Banking Act No. 30 of 1988, the Central Bank governs commercial banks in Sri Lanka. The act outlines the requirements for obtaining a license to operate a commercial bank in Sri Lanka, as well as the regulations and guidelines that commercial banks must adhere to.
Some of the key regulations governing commercial banks in Sri Lanka include:
Capital Adequacy Requirements:
Commercial banks in Sri Lanka maintain a minimum capital adequacy ratio of 10% to ensure that, they have enough funds to cover any losses.
Reserve Requirements: Commercial banks in Sri Lanka maintain a reserve ratio of 4% of their total deposits to ensure that, they have enough funds to meet any unforeseen expenses.
Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) Regulations: Commercial banks in Sri Lanka must comply with AML and CFT regulations to prevent money laundering and the financing of terrorism.
Commercial Banks in Sri Lanka Offer a wide range of services.
Commercial banks in Sri Lanka offer a wide range of services to individuals, businesses, and government organizations. Some of the most common services are:
Savings and Current Accounts
Commercial banks offer savings and current accounts to individuals and businesses. Banks allow them to deposit and withdraw money, as well as earn interest on their savings.
Loans and Credit Facilities
Commercial banks offer loans and credit facilities to individuals and businesses. Banks allow them to finance their purchases and investments.
Foreign Exchange Services
Commercial banks offer foreign exchange services, allowing individuals and businesses to buy and sell foreign currencies.
Credit and Debit Cards
Commercial banks offer credit and debit cards, allowing individuals and businesses to make purchases and withdraw cash.
Online Banking
Commercial banks offer online banking services, allowing individuals and businesses to access their accounts and perform transactions online.
Licensed Commercial Banks in Sri Lanka
Licensed commercial banks are financial institutions authorized to accept deposits from the public and provide loans, overdrafts, and other banking services. Sri Lanka has 25 licensed commercial banks, each offering a range of services and benefits. Below are some of the top licensed commercial banks in Sri Lanka:
Bank of Ceylon
Bank of Ceylon is one of the oldest and largest banks in Sri Lanka, founded in 1939. It has a wide network of over 600 branches and provides various banking services, including personal and corporate banking, loans, insurance, and investment services. The bank has also launched mobile banking services, enabling customers to perform transactions using their mobile devices.
Pros:
Wide network of branches and ATMs
Offers a variety of banking services
Mobile banking services are available
Cons:
High fees for some services
Poor customer service in some branches
Commercial Bank of Ceylon
Commercial Bank of Ceylon is another popular licensed commercial bank in Sri Lanka, with a network of over 270 branches and 830 ATMs. The bank provides various banking services, including personal and corporate banking, loans, insurance, and investment services. It also offers mobile banking services, enabling customers to access their accounts and perform transactions on the go.
Pros:
Large network of branches and ATMs
Provides a variety of banking services
Mobile banking services are available
Cons:
High fees for some services
Poor customer service in some branches
People’s Bank
People’s Bank is a government-owned licensed commercial bank in Sri Lanka, with a network of over 700 branches and 550 ATMs. The bank provides a range of banking services, including personal and corporate banking, loans, insurance, and investment services. It also offers mobile banking services, enabling customers to perform transactions using their mobile devices.
Pros:
Wide network of branches and ATMs
Offers a variety of banking services
Mobile banking services are available
Cons:
Poor customer service in some branches
Hatton National Bank
Hatton National Bank is a leading licensed commercial bank in Sri Lanka, with a network of over 250 branches and 600 ATMs. The bank provides various banking services, including personal and corporate banking, loans, insurance, and investment services. It also offers mobile banking services, enabling customers to perform transactions using their mobile devices.
Pros:
Large network of branches and ATMs
Provides a variety of banking services
Mobile banking services are available
Cons:
High fees for some services
Banking Services; Commercial Banks in Sri Lanka
Licensed commercial banks in Sri Lanka offer a wide range of services, including personal and corporate banking, loans, insurance, investment services, and more.
