HSBC to end its retail banking in Sri Lanka

Colombo, Sep 24 (PTI) Banking giant HSBC will wind up its retail banking operations in Sri Lanka by mid-2026, it was announced on Wednesday. It is one of the island nation's oldest foreign banks.

HSBC is selling its retail banking business to Sri Lanka's Nations Trust Bank (NTB) for SLR 18 billion.

In a letter to the Colombo Stock Exchange, the NTB said it entered “a binding sale and purchase agreement on 24 September 2025 with the Hong Kong and Shanghai Banking Corporation (HSBC) to acquire its retail banking business carried out in Sri Lanka for a consideration of 18 billion Sri Lankan Rupees.” The transaction covers HSBC’s entire retail banking business in Sri Lanka, including the accounts, credit cards, and retail loans of approximately 200,000 customers, according to a press release by the group.

The transaction is expected to reach completion in the first half of 2026.

This follows a strategic review of the business, which concluded that a sale would be the best outcome for the HSBC Group, and its employees and customers, the press release said.

"HSBC is focused on increasing leadership and market share in the areas where it has a clear competitive advantage, and where it has the greatest opportunities to grow and support its clients," it added.

The HSBC is one of Sri Lanka’s oldest foreign banks, having commenced its operations in July 1892. PTI CORR GRS GRS GRS