Two local banks to merge with state banks – Fitch View(s):Fitch Ratings said this week that it believes the Central Bank’s (CB) reintroduction of a consolidation framework for the banking sector is broadly positive for sector credit profiles. Sri Lanka’s banking sector comprises 19 domestic banks, of which 13 are licenced commercial banks and the remainder licenced specialised banks. The current consolidation plan targets licenced banks with assets below Rs. “We believe mergers are most likely to be credit-positive when smaller banks combine with larger, more established banks. Consolidation could also improve cost efficiency through branch rationalisation, which may ultimately support banks’ profitability and reduce costs for borrowers,” Fitch said.

Source: Sunday Times March 01, 2026 09:39 UTC