The Regional Development Bank will not only financially strengthen existing network of banks but also be able to improve efficiency. The new bank will be targeting regional entrepreneurs to start and advance in their businesses. In addition, the Bank hopes to expand to the North and East as well.

‘Sri Lanka’s emerging entrepreneurs need to be given as much encouragement as possible as the government highly values their contributions to the national economy’, stated President Mahinda Rajapaksa sending in a message for the launch.

‘The Bank’s plans to expand to the Northern and Eastern Provinces serve well with the Government’s mission to rebuild and develop the areas ravaged by decades of terrorism and improve the livelihoods of people living there’, he added.

"The provincial banks are already close to the people of rural Sri Lanka. All we intend to do is to bring their strengths together. These are profitable banks and enjoy brand equity, which is unknown in the Western Province, and we will focus our strengths as one entity to develop our human resources in to an efficient and customer friendly team, invest and expand our IT capabilities and create a single marketing strategy," Chairperson of the Regional Development Bank, Ms. Janaki Kuruppu said.

According to the Ministry of Finance and Planning, the six banks’ combined after-tax-profit for 2009 amounted to Rs. 407 million. Total deposits amounted to Rs. 30.9 billion while none-performing loans amounted to 4.4 percent of total loans, better than seven percent industry average.

The Regional Development Bank would have 250 branches to make it the third largest bank in the country in terms of branch network, and plans are being finalised to open 10 to 12 new branches in the North and East. The banks would focus on providing credit to the self employed and the SME sector.