Question 1

What is Regional Development Bank?

Accepted Answer

Regional Development Bank, also known as Pradeshiya Sanwardhana Bank (PSB), is a state-owned development bank in Sri Lanka. As a fully government-owned national level bank, it operates under the Pradeshiya Sanwardhana Bank Act No. 41 of 2008. With over 6 million customers and a network of 272 service points throughout Sri Lanka, including the Northern and Eastern provinces, RDB specializes in development financing for rural communities and underserved populations. The bank focuses on uplifting micro, small, and medium scale enterprises with particular emphasis on agriculture, livestock, fisheries, and women's empowerment.

Question 2

When was Regional Development Bank founded?

Accepted Answer

The origins of Regional Development Bank trace back to 1985, when 17 Regional Rural Development Banks were established under the Regional Rural Development Bank Act No. 15 of 1985 at the district level. In 1997, these 17 banks were consolidated into six provincial development banks: Rajarata, Ruhuna, Wayamba, Uva, Kandurata, and Sabaragamuwa Development Banks. On 1 May 2010, these six provincial banks were merged into a single national entity, establishing the Pradeshiya Sanwardhana Bank (Regional Development Bank) under its current statutory framework. The bank celebrated its 30th anniversary in 2015, marking three decades of rural development banking.

In 2016, RDB acquired Lankaputra Development Bank Ltd. to enhance its capacity to support Sri Lanka's socio-economic prosperity.

Question 3

Where is Regional Development Bank headquartered?

Accepted Answer

Regional Development Bank is headquartered in Kelaniya, Sri Lanka, at No. 933, Kandy Road, Wedamulla. The head office coordinates operations across the bank's extensive nationwide network of branches and service centers.

Question 4

Where does Regional Development Bank operate?

Accepted Answer

Regional Development Bank operates throughout Sri Lanka with a comprehensive nationwide presence. The bank maintains 272 service points across all provinces, including significant coverage in the Northern and Eastern regions. This extensive network is complemented by 51 automated teller machines (ATMs) and cash deposit machines (CDMs) strategically located to serve rural and semi-urban communities. The bank's reach extends to remote agricultural areas where traditional commercial banks typically have limited presence.

Question 5

What services does Regional Development Bank offer?

Accepted Answer

Regional Development Bank provides a comprehensive range of development-focused banking services. Credit facilities include agricultural loans, livestock financing, trade and industry loans, business and services financing, and personal loans. The bank also offers pawning services tailored to rural customers.

On the deposit side, products include specialized savings accounts such as RDB Kekulu Accounts, RDB Yowun Accounts (for youth), RDB Liya Saviya Accounts, RDB Dorin Dora Accounts, RDB Suba Mangalam Accounts, and RDB Senior Citizens Accounts. Fixed deposit accounts are available with competitive returns to encourage savings habits among rural populations and school children.

Digital services include SMS banking, internet banking, phone banking, and mobile banking platforms. The bank has integrated modern payment systems, including VISA Debit Cards with chip technology and LankaPay services. RDB won the Gold Award as "Best Lanka Pay Card Implementer of the year 2021" at the LankaPay Technnovation Awards 2022.

Money transfer services are available through Western Union Money Transfer and Lanka Money Transfer partnerships, facilitating both domestic and international remittances.

Question 6

What makes Regional Development Bank unique?

Accepted Answer

Regional Development Bank stands out as Sri Lanka's largest state-owned development bank specifically focused on financial inclusion for rural and underserved populations. The bank was originally based on the "barefoot banking concept," providing accessible and affordable credit to those at the middle and bottom of the income pyramid.

Unlike traditional commercial banks, RDB prioritizes development impact over profit maximization, serving sectors often overlooked by mainstream financial institutions. The bank manages five government warehouses located in Mannar, Kilinochchi, Medirigiriya, Upuldeniya, and Buttala, supporting agricultural supply chain infrastructure.

RDB plays a crucial role in implementing government development schemes and provides leadership in granting loan concessions and implementing loan moratoriums under the direction of the Central Bank of Sri Lanka during economic crises. The bank's deep integration with rural communities and its focus on empowering women entrepreneurs make it a vital instrument for regional economic development.

Question 7

What type of financial institution is Regional Development Bank?

Accepted Answer

Regional Development Bank is a state-owned development bank in Sri Lanka, classified as a Licensed Specialised Bank under the supervision of the Central Bank of Sri Lanka. As a development finance institution, it operates with a distinct mandate from commercial banks, focusing specifically on promoting regional economic development through targeted financing for agriculture, industry, trade, commerce, livestock, fisheries, and women's empowerment. The bank is a statutory body established under specific legislation (Pradeshiya Sanwardhana Bank Act No. 41 of 2008), giving it a unique legal and operational framework designed to facilitate inclusive financial services for micro, small, and medium enterprises in rural areas.

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About Regional Development Bank in Sri Lanka