HSBC Plans Sri Lanka Retail Banking Exit Via Nations Trust Deal

HSBC has agreed to sell its entire retail banking operations in Sri Lanka to Nations Trust Bank as part of its global strategy to streamline operations and focus on more profitable markets. The deal includes approximately 200,000 customer accounts, credit cards, and retail loans, with Nations Trust Bank pledging to offer employment to all HSBC Sri Lanka retail staff to ensure a smooth transition. The financial terms have not been fully disclosed, though one source values the deal at LKR 18 billion. The transaction is expected to be finalized in the first half of 2026, pending regulatory approvals, and HSBC's corporate and institutional banking operations in Sri Lanka will remain unaffected. This move reflects HSBC's broader simplification drive initiated in October 2024, which has already led to exits from similar markets like Bangladesh. The sale highlights the fragility of Sri Lanka's financial sector amid ongoing economic challenges, including the aftermath of a sovereign debt default and IMF bailout conditions.