HSBC will become the first foreign bank to open a branch in Jaffna, the war-torn northern peninsula of Sri Lanka that only six months ago was synonymous with the long-running conflict with the separatist Tamil Tigers.
The plan by the UK-based banking group to open the branch by January is the strongest vote of confidence yet in the economy's emergence from decades of civil war.
“The fact that the HSBC logo is going to be on display up in Jaffna sends a powerful signal to the international investment community,” said Nick Nicolaou, HSBC chief executive for Sri Lanka and the Maldives.
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