HSBC has announced an agreement to sell its retail banking operations in Sri Lanka to Nations Trust Bank. The transaction encompasses HSBC’s complete retail banking business in Sri Lanka, including customer accounts, credit card services, and retail loan portfolios. Financial terms of the deal have not been disclosed. HSBC is a global banking and financial services institution, serving millions of customers through its global businesses. Nations Trust Bank is a major player in the Sri Lankan banking sector.
The sale aligns with HSBC’s ongoing strategy to streamline its operations and reduce its global footprint, which began with a strategic review in October 2024. This review aimed to simplify the bank’s structure and improve profitability by exiting less profitable ventures. The move reflects a broader trend among international banks reassessing their presence in smaller markets to focus on core operations and regions.
The transaction is anticipated to be finalised in the first half of 2026, pending regulatory approvals. HSBC has stated that the sale is not expected to have a significant impact on its overall profit. The London-headquartered bank clarified that its corporate and institutional banking operations in Sri Lanka will remain unaffected by this decision.
As part of the agreement, Nations Trust Bank will offer employment to all staff currently employed within HSBC’s Sri Lanka retail banking division. This commitment aims to ensure a smooth transition for both customers and employees during the integration process. The exit marks a strategic shift for HSBC as it continues to refine its focus on key markets and business segments.
