- Completion expected in first half of 2026
- Transaction covers HSBC’s entire retail banking operations in country
- NTB has agreed to make an offer of employment to all staff of HSBC Sri Lanka, who are currently supporting its retail banking business
The Hongkong and Shanghai Banking Corporation Limited Sri Lanka branch (HSBC Sri Lanka) has entered into a binding agreement to sell its retail banking business to Nations Trust Bank PLC (NTB) for Rs.18 billion, the two lenders announced yesterday.
The transaction covers HSBC’s entire retail banking operations in the country, including the premium banking customers, credit cards, retail loans and accounts of about 200,000 customers.
“This follows the completion of 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,” HSBC Sri Lanka said in a statement.
In a disclosure to the Colombo Stock Exchange, NTB confirmed the agreement was signed on September 24, 2025, with the board approval granted on September 23.
The deal will be funded through internally generated funds while maintaining all regulatory ratios. Completion is expected in the first half of 2026, subject to approval from the Central Bank of Sri Lanka and other conditions precedent.
“As part of the transaction, NTB has agreed to make an offer of employment to all staff of HSBC Sri Lanka, who are currently supporting its retail banking business,” HSBC said, adding that both banks would work together to ensure a smooth transition for the customers and employees.
HSBC asserted that its 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.
The lender said it would “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 the clients operating in Sri Lanka and around the world”.
The sale forms part of HSBC’s global simplification strategy announced in October 2024, which focuses on increasing the market share where the bank has “a clear competitive advantage and where it has the greatest opportunities to grow and support its clients”.
The transaction is estimated to generate an immaterial pre-tax gain for HSBC by completion.