HSBC Electronic Data Processing Lanka (Pvt) Ltd (HDPL), the bank's global service centre, is winding down its Sri Lankan operations due to mounting costs and scaling constraints. The closure marks another major withdrawal for HSBC in the country, following its decision to exit Sri Lanka's retail banking sector earlier this year.

HDPL launched its operations in April 2004 at the World Trade Centre in Colombo 1. To support its expanding footprint, the centre relocated to Rajagiriya in 2005, Union Place in 2022, and opened its current premises at Mireka Tower in Colombo 5 in 2023.

Initially established to support UK and US banking operations, HDPL evolved into a comprehensive business hub serving customers across 24 markets in North America, Europe, the Middle East, and the Asia-Pacific region. In 2023, HSBC Global Service Centres processed approximately 460 million transactions worldwide, with over 13 million executed directly by the Sri Lankan hub.

Its core functional responsibilities encompass:

• Core Financial Services: Banking transaction processing, fund administration, customer due diligence, financial crime risk screening, lending operations, and trade transactions.
• Support & Digital Production: Local HR, IT, and finance support, alongside global digital production services for websites, print, and cross-media communications.

Employees at the Mireka Tower office were initially advised during an August all-hands meeting that a decision regarding local operations would be finalized and shared in October. On October 7, staff were formally notified that operations will wind down across four retrenchment phases through late 2027:

• December 2026: First retrenchment batch
• May 2027: Second retrenchment batch
• August 2027: Third retrenchment batch
• December 2027: Final retrenchment batch and completion of exit

HDPL had already begun reducing local headcount prior to this announcement as select responsibilities were transferred elsewhere. The remaining workload will be relocated to service hubs in India, the Middle East, and the Philippines.

The planned departure has sparked significant political concern. Opposition Leader Sajith Premadasa highlighted the announcement in a post on 'X,' warning that the exit will eliminate 3,000 direct and 500 indirect jobs. Premadasa warned that the move represents a "significant economic setback for our motherland".