Nations Trust Bank to Acquire Business for LKR 18 Billion in Landmark Deal
In a landmark transaction that reshapes Sri Lanka’s banking sector, HSBC has agreed to sell its retail banking business to Nations Trust Bank (NTB) for LKR 18 billion. The move underscores HSBC’s global simplification strategy while opening new opportunities for NTB to strengthen its presence in premium retail banking.
HSBC Sri Lanka has confirmed the sale of its retail banking portfolio to Nations Trust Bank PLC in a deal valued at LKR 18 billion. The transaction covers HSBC’s entire retail banking operations in the country, including accounts, credit cards, and personal loans held by approximately 200,000 customers.
The sale comes after HSBC conducted a strategic review of its operations and concluded that divesting retail banking was the most effective step for the Group, its employees, and its customers in Sri Lanka. Importantly, HSBC will continue to operate in the country through its Corporate and Institutional Banking division and its Global Service Centre in Colombo, both of which remain integral to the bank’s international network.
Mark Surgenor, CEO of HSBC Sri Lanka, emphasized that the decision aligns with HSBC’s global strategy of simplification and focus. “This decision allows us to concentrate on markets and businesses where we have a clear competitive advantage,” he said. “We remain fully committed to supporting our corporate and institutional clients while contributing to Sri Lanka’s economic growth and international trade flows.”
As part of the acquisition, Nations Trust Bank has agreed to extend employment offers to all HSBC Sri Lanka staff currently involved in retail banking. This ensures continuity for both employees and customers during the transition.
In its disclosure to the Colombo Stock Exchange, NTB confirmed that the acquisition will be funded through internally generated funds, with all regulatory requirements being maintained. NTB described the move as a major step in consolidating its leadership in the Sri Lankan retail and premium banking markets.
“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 its official statement.
The transaction is expected to be finalized in the first half of 2026, subject to approval from the Central Bank of Sri Lanka and the fulfillment of other necessary conditions. HSBC also noted that the sale is expected to generate an immaterial pre-tax gain at the Group level once completed.
Until the handover is finalized, HSBC customers in Sri Lanka will be able to continue using their existing products and services without disruption. Both banks have pledged to work together to ensure a smooth transition, minimizing impact on customers.
HSBC has had a strong presence in Sri Lanka since 1892, making it one of the oldest international banks operating in the country. With this restructuring, the bank will sharpen its focus on corporate banking operations and global service capabilities, supporting HSBC clients across 42 countries and territories.
