HSBC Sri Lanka has agreed to sell its retail banking business to Nations Trust Bank PLC (NTB) in a landmark deal valued at LKR 18 billion. The transaction, announced today, includes HSBC’s entire retail banking portfolio in Sri Lanka—covering accounts, credit cards, and personal loans of approximately 200,000 customers.
The sale follows HSBC’s strategic review of its operations, which concluded that divesting the retail business would be the best outcome for the Group, its employees, and customers. HSBC’s Corporate and Institutional Banking operations in Sri Lanka will remain unaffected, given their importance to the bank’s global network and international corporate clients.
“This decision is part of HSBC’s global simplification strategy, allowing us to focus on markets and businesses where we have a clear competitive advantage,” said Mark Surgenor, CEO of HSBC Sri Lanka. “We remain fully committed to supporting our corporate and institutional clients and contributing to Sri Lanka’s economic growth and international trade flows.”
As part of the deal, NTB has agreed to extend employment offers to all HSBC Sri Lanka staff currently supporting its retail business, ensuring continuity for both employees and customers.
In its disclosure to the Colombo Stock Exchange, NTB confirmed that the acquisition will be funded through internally generated funds, while maintaining all regulatory ratios. The bank highlighted that the move will reinforce its leadership in retail and premium banking.
“This acquisition is a strategic opportunity that strengthens our presence in premium retail banking and enhances our ability to deliver exceptional value to clients,” NTB said in a statement.
The transaction is expected to be completed in the first half of 2026, subject to regulatory approval from the Central Bank of Sri Lanka and satisfaction of other conditions precedent. HSBC said the sale will generate an immaterial pre-tax gain at the Group level upon completion.
Until the handover is finalized, HSBC customers can continue to use their existing products and services without disruption. Both banks pledged to work closely to ensure a smooth transition.
HSBC, which has operated in Sri Lanka since 1892, will continue to maintain its corporate banking operations and its Global Service Centre in Colombo, which supports HSBC clients across 42 countries and territories.
