ABSTRACT
Government-owned savings banking in Sri Lanka is over 170 years old, dating back to 1832 when the Ceylon Savings Bank was established under a Government Gazette Notification by the then British governor of Ceylon. The Ceylon Post Office Savings Bank (POSB) was established in 1885 by the colonial legislative council for the purpose of serving the general public through the post office system. A total of 2,195 accounts amounting to Rupees (Rs.) 30,300 were opened within a short time. In September 1938 the POSB achieved a milestone in its history with the inauguration of the Savings Certificates section of the Post Master General’s (PMG) Department. In 1941 the management of the Post Office Savings Bank was reconstituted to include the Permanent Secretary to the Minister of Posts, the Deputy Secretary to the Treasury, and the Post Master General.
