COLOMBO – Nations Trust Bank said it has entered into a sale and purchase agreement with The Hongkong and Shanghai Banking Corporation’s Sri Lanka branch (HSBC Sri Lanka) to acquire its retail banking business for 18 billion rupees, and applicable taxes if any.
The proposed acquisition covers HSBC Sri Lanka’s retail banking business including premium banking customers, credit cards, retail loans and accounts of approximately 200,000 customers.
“This transaction was approved by the Board of Directors of NTB on 23 September 2025, and will be funded by internally generated funds, while maintaining all regulatory ratios,” NTB said in the stock exchange filing.
The transaction is expected to reach completion in the first half of 2026, subject to mandatory regulatory approval from the Central Bank of Sri Lanka and “the satisfaction of other conditions precedent as set out in the Sale and Purchase Agreement,” the bank said.
The transaction includes an offer of employment to staff of HSBC Sri Lanka who are currently supporting its retail banking business.
This will ensure a smooth transition for customers, the bank said.
HSBC’s Corporate and Institutional Banking business in Sri Lanka is not impacted by this decision “given its importance to the bank’s international corporate clients and global network”, HSBC Sri Lanka said.
“HSBC will continue to support its corporate and institutional clients to help drive Sri Lanka’s economic growth and enable two-way trade and investment flows between clients operating in Sri Lanka and around the world.”
The transaction forms part of the simplification of the HSBC Group announced in October 2024.
The two banks will work together over the coming months to support a smooth transition for customers and employees. ECONOMYNEXT
“
