The Sri Lankan bank took over the Bangladesh operations of Credit Agricole Indosuez, a France-based multinational bank, which was in operation for 20 years in Bangladesh.

Credit Agricole had two branches -- one in Dhaka and another in Chittagong -- and two booths -- one at Gulshan and another at Pan Pacific Sonargaon Hotel -- in Dhaka. But the bank wound up its activities few months ago under its new global strategic plan.

Bangladesh Bank Governor Fakhruddin Ahmed and governor of the Central Bank of Sri Lanka, AS Jayawardena, were present at the launching ceremony of the Commercial Bank of Ceylon held at Gulshan in Dhaka.

Bank Chairman MJC Amarsuriya, Managing Director AL Gooneratne, Country Manager S Renganathan and senior officials of Credit Agricole were present.

Speaking at the function, the Bangladesh Bank governor said people have kept their confidence in the banking services operated through 6,100 branches across the country.

Expressing his satisfaction over the performances of the banks in Bangladesh, he said the banks had disbursed industrial loans of Tk 40 billion last year.

The governor said Bangladesh has successfully introduced floating exchange rate and the country's tariff rates are now at a rational level.

The Sri Lankan central bank governor said the banking sector of his country is open. He invited Bangladeshi banks to initiate operations in Sri Lanka.

Commercial Bank Chairman Amarsuriya said the bank had started its operation in Sri Lanka in 1920. Besides corporate banking activities, the bank is now expanding its operation in retail banking, he added.

Currently the Commercial Bank has 130 branches in Sri Lanka with more than 150 automated teller machines (ATMs) across the country.

The bank's managing director said the bank has received the best bank award of Sri Lanka for the third consecutive year in 2002 by The Banker, a London based magazine.

Vanik, a non-banking financial institution, is the first Sri Lankan financial institution to invest in Bangladesh.