As Sri Lanka’s only fully government-guaranteed bank, the National Savings Bank (NSB) blends scale, stability, and inclusion to reach millions of customers in urban centres and remote rural villages alike. With a legacy stretching back nearly 200 years, NSB has combined conservative financial stewardship with pioneering digital tools to deliver secure, accessible banking nationwide. From QR-enabled mobile apps to doorstep deposit collection and digitised post offices, the Bank continues to extend formal finance to the country’s farthest corners. Dr. Harsha Cabral, PC, Chairman of NSB, and Ms. Shashi Kandambi, General Manager / Chief Executive of NSB, share how the Bank is deepening its legacy of trust while shaping a more inclusive financial future.
NSB’s history stretches back nearly 200 years. How does this legacy shape its identity as a modern savings bank?
Harsha: NSB’s roots go back nearly 200 years, beginning with institutions like the Ceylon Savings Bank and Post Office Savings Bank, before officially becoming National Savings Bank in 1972. This legacy isn’t just a badge of honour, it’s the foundation of who we are today: a trusted, future-ready bank.
The trust we’ve built over generations is our greatest asset. As the only bank in Sri Lanka with a 100% government guarantee, we’re seen as the safest place to save, something that still defines us. From day one, financial inclusion has been at the heart of our mission. With 262 branches and more than 4,000 postal network access points, we’ve made sure even the most remote communities are covered. Today, we serve over 14 million customers, proof of our reach and reliability.
We’re also embracing change. From launching NSB Pay to pioneering blockchain-based eKYC, we’ve gone digital in a big way. Our systems now handle over LKR 100 billion in transactions, and we have moved to the T24 core banking platform to introduce virtual cards, transit payments, and more. Alongside this, strong governance has anchored our journey. We’ve held a AAA credit rating, earned public admiration, and posted record profits in 2024, with over Rs.26 billion in pre-tax earnings. Our legacy gives us the trust to lead with innovation. That’s what makes NSB unique: a historic bank with a modern soul, staying true to our roots while building the future.
With a AAA credit rating and a government-backed deposit guarantee, NSB is considered one of Sri Lanka’s safest banks. How does the bank maintain that trust?
Shashi: As a AAA-rated institution with a full government-backed deposit guarantee, NSB is widely regarded as Sri Lanka’s safest and most reliable bank. This trust has been earned and sustained through a disciplined approach to governance, financial stewardship, and national responsibility, anchored by a legacy that spans nearly 200 years.
A cornerstone of NSB’s trusted status is its strong financial foundation and conservative governance. NSB has consistently maintained a AAA long-term national rating from both Fitch Ratings and Lanka Rating Agency for over a decade. This rating reflects the Bank’s lowest credit risk and proven reliability, even in times of economic volatility. In 2024, the Bank recorded a group profit before tax of Rs.28.52 billion and grew its asset base to Rs.1.75 trillion, demonstrating strength and discipline during a challenging macroeconomic period.
Further reinforcing depositor confidence is NSB’s explicit government guarantee. Under the National Savings Bank Act, NSB is the only financial institution in Sri Lanka whose deposits carry a 100% government guarantee. This ensures every rupee deposited is fully protected. Independent credit assessments highlight NSB’s systemic importance and note that the government would step in if necessary.
NSB maintains strong impairment coverage and high asset quality, with around 60–70% of deposits invested in low-risk government securities. We have also made significant digital upgrades, including RTGS capabilities, a new core banking system, and the NSB Pay app. With 262 branches and over 4,000 postal agents, NSB ensures nationwide reach. Combined with transparency and GRI-aligned reporting, these measures sustain the trust of millions.
What internal systems and cultural values help ensure that NSB consistently prioritises stability over risk?
Shashi: As Sri Lanka’s only fully state-owned savings bank, NSB is firmly committed to prioritising stability over risk. This is achieved through a multi-layered approach that blends modern technology with a culture of prudence and accountability.
At the heart of our risk management is a robust fraud and security infrastructure. The bank uses advanced systems to monitor all digital transaction channels, including cards, mobile apps, and internet banking. The ACI Worldwide enterprise risk platform enables end-to-end monitoring and early detection, while MasterCard’s Employees receive regular training on cybersecurity, compliance, and risk profiling via the Bank’s Learning Management System (LMS). Risk awareness is embedded into daily operations, making stability a core value and a lived practice.
Expert Monitoring Solutions provide real-time, AI-based fraud scoring. These tools minimise breaches and false positives, ensuring security and a seamless customer experience.
We also follow a conservative approach to asset and liability management while maintaining high regulatory ratios. These figures include a Tier 1 capital adequacy ratio of 22.6%, a Liquidity Coverage Ratio (LCR – all currency) of over 347%, and a Net Stable Funding Ratio (NSFR) of around 200% by the 1st quarter of 2025, positioning NSB as one of the most resilient banks in the country. Strong internal controls and accountability further support this discipline. A 124% year-on-year increase in profit after tax during Q1 2025 reflects this strength, backed by over a decade of maintaining a AAA credit rating.
We continue to invest in secure digital infrastructure, with recent upgrades like the T24 core-banking system, NSB Pay app, blockchain-based eKYC, and ISO 27001 and PCI DSS certifications ensuring secure, continuous service. Just as important is our culture of compliance. Employees receive regular training on cybersecurity, compliance, and risk profiling via the Bank’s Learning Management System (LMS). Risk awareness is embedded into daily operations, making stability a core value and a lived practice.
From Hapan for children to Gaurawa for senior citizens, how does NSB design its products to meet the needs of consumers across different age groups?
Shashi: We recognise that financial needs evolve throughout life, which is why we’ve developed a broad range of savings products tailored to every stage, from childhood to retirement. Our aim is to encourage good financial habits, provide security, and support longterm goals.
One of our most recognised offerings is the Hapan Children’s Savings Account, launched in 1998. With a minimum deposit of just Rs. 5, it is designed to be accessible to families across the country. Children over the age of 7 can manage their own accounts, promoting financial responsibility from an early age, while younger children can begin saving through “Punchi Hapan,” managed by guardians. Hapan offers interest rates around 3.5% per annum and includes educational incentives like gift schemes, annual rewards, and scholarships for high-achieving students in the Year 5 exam.
For senior citizens, we offer the Gaurawa account, which provides special interest rates among other benefits. Seasonal fixed deposit options, such as the “Pas Avurudu” scheme, give older savers added flexibility. Like all NSB products, Gaurawa is backed by the 100% government deposit guarantee, offering peace of mind. Beyond these, we provide several products for young adults, working professionals, women, and retirees. Accounts like Ithuru Mithuru, NSB Neo, Sthree, Extra XL, and Pension+ are tailored to individual life goals, from education and entrepreneurship to long-term financial planning. This product strategy reflects NSB’s role as a lifelong banking partner, committed to supporting every Sri Lankan at every stage of life.
How have the bank’s solutions evolved to meet the needs of younger, more digitally engaged customers?
Harsha: We’ve transformed our offerings to meet the expectations of younger, digitally engaged Sri Lankans. With convenience, security, and accessibility in mind, the bank has embraced mobile-first banking, reshaping its services to match the lifestyle of today’s tech-savvy customer. A key milestone in this shift was the launch of NSB Pay in 2021, a user-friendly mobile platform that allows customers to make QR-code payments via LankaQR, transfer funds, pay bills and loans, and manage their accounts from a single app. These features have helped attract over 300,000 users, with transaction volumes exceeding Rs.100 billion monthly.
We also introduced blockchain-enabled eKYC to simplify onboarding and reduce paperwork, while ISO 27001 and PCI-DSS certifications reinforce its data security credentials. Behind the scenes, infrastructure upgrades, like SD-WAN technology with Cisco, have boosted connectivity and digital reliability across the branch network. This digital evolution builds on a long history of innovation. More recently, we have begun digitising our extensive postal network, enabling over 4,000 post offices to provide online and mobile banking access, including in underserved areas.
Looking ahead, we are investing in virtual transit cards, Mastercard’s Pay by Account solution, and the T24 core banking system to deliver features like tap-to-pay and virtual cards. By actively listening to user feedback and improving services in response, NSB continues to evolve as a digital-first bank, ready to meet the needs of the next generation.
Shashi Kandambi, General Manager/Chief Executive of National Savings Bank
With over 4,000 service points across the island, how does NSB maintain consistency and trust at such scale?
Shashi: With so many service points across Sri Lanka, NSB ensures consistency and trust through centralised systems, clear governance, and a deep investment in operational discipline. Whether in a city branch or a rural sub-post office, customers experience the same reliable banking standards.
This consistency is underpinned by a centralised IT infrastructure that connects 262 branches and over 4,000 postal outlets, which are supported by a countrywide ATM and CDM network. Real-time transaction processing, interest calculations based on actual balances, and seamless service availability are enabled by this shared digital backbone, which extends banking access far beyond traditional hours.
An important part of this infrastructure is our partnership with Sri Lanka Post, which makes it possible to deliver full banking services to remote communities. Regular technical audits and on-site support help ensure smooth functioning across even the most decentralised locations.
Supporting this network is strong central oversight. A unified core banking system standardises product delivery, risk monitoring, and compliance across all service points. Dedicated recovery and non-performing loan teams help ensure that credit control policies are applied consistently across the country.
Customer experience is a key focus. While reviews often highlight our reliability, we remain responsive to feedback, resolving issues, refining systems, and strengthening support. Trust at this scale isn’t achieved through any single element, but through the combined effect of integrated infrastructure, disciplined operations, and a commitment to service that spans the entire island.
NSB Head Office
What role does NSB play in promoting financial inclusion among underserved or rural populations?
Harsha: NSB plays a vital role in expanding financial inclusion across Sri Lanka, particularly for underserved and rural communities. Through a mix of partnerships, outreach, and tailored products, NSB ensures that even the most remote areas are connected to formal banking. Our collaboration with Sri Lanka Post extends full banking capabilities to thousands of rural locations. Backed by significant investment in digitisation, these outlets now support account openings, deposits, withdrawals, and remittances, bridging the gap for communities far from urban centres.
To make banking accessible, we offer zero-maintenance accounts and low minimum deposit requirements, encouraging savings among low-income earners. Products like “Punchi Hapan” for children, youth-oriented savings, and agri-linked accounts reflect local financial habits and promote long-term resilience.
We also facilitate rural remittances and bill payments through our wide footprint, and support digital access through our role in the LankaPay ATM network. As a leading issuer of debit cards in the country, it continues to drive digital inclusion in underserved markets. Aligned with national initiatives like the GovPay project, NSB’s efforts ensure every Sri Lankan, regardless of income or geography, has access to reliable, modern, and secure financial services.
How is NSB building a long-term foundation for success through financial inclusion, innovation, and national outreach?
Harsha: NSB is building a long-term foundation for success by combining financial inclusion, innovation, and nationwide accessibility. Our strategy is centred on integrating the underserved communities into the formal banking system while modernising services for a broader, digitally engaged population.
A longstanding partnership with Sri Lanka Post has enabled us to extend our reach to thousands of rural locations. Customised savings products for children, youth, women, and farmers reflect local financial behaviours and help nurture a savings culture across generations. At the same time, NSB is accelerating digital adoption. Through our participation in the LankaPay ATM network and being a leading issuer of debit cards in the country, the Bank is making modern financial tools widely available. By aligning innovation with national outreach and inclusive practices, NSB continues to position itself not just as a bank for today, but as a long-term financial partner for every Sri Lankan.
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