Ravi K appeals to HSBC to consider winding down HDPL in Sri Lanka

Opposition MP Ravi Karunanayake 

• Global banking giant cited a global operating-model review, not local performance, in its 7 Oct. notice
• Headcount was 1,659 on 30 Sept. against a peak of about 4,500
• MP who lobbied for the 2004 entry seeks urgent, time-bound talks; offers to marshal Govt. support while sitting in Opposition
• Says cost, recruitment, training, infrastructure and policy can be negotiable

Opposition MP Ravi Karunanayake has written personally to HSBC Holdings Group Chairman and Group Chief Executive appealing for the closure of HSBC Electronic Data Processing Lanka to be reversed, and offering to help assemble Government support for keeping the operation in the country.

The letter, addressed to both executives and titled a personal and national appeal, runs through the centre’s 22-year history, the bank’s stated reasons for the migration, and the livelihoods attached to 1,659 jobs. Karunanayake asks group leadership to reopen the decision and to talk before the move becomes irreversible.

He rests much of the appeal on the wording of the bank’s own notice. “Your notification of 7 October 2026 expressly states that the proposed migration follows a global operating-model review and does not reflect the performance of the Sri Lankan company. That acknowledgement provides a compelling reason to explore an alternative.”

He puts the workforce at 1,659 as at 30 September, 2026, and says the operation at its best employed about 4,500 young Sri Lankans. “Behind each position is a family, a set of responsibilities and a future built through years of dedication,” he wrote. Closure, he says, means “uncertainty and abandonment of their aspirations for generations children’s education, housing commitments, care for parents and the prospect of continuing a fulfilling professional life in their own country.”

Karunanayake, a former Minister of Trade and Commerce, Finance and Foreign Affairs, traces the investment to his first ministerial tenure between 2001 and 2004. He says he mooted bringing it to Sri Lanka and remains grateful to HSBC “for listening to my representations,  recognising our people’s potential, and translating that confidence into substantial investment and development of the Human Resources in Sri Lanka.”

The centre opened at the World Trade Centre in Colombo 1 in 2004. It later moved into a built-to-suit facility at 439 Sri Jayewardenepura Mawatha, Kotte, in his constituency, followed by Union Place, Colombo 2 in 2022 and Mireka Tower, Colombo 5. He says each was built to the bank’s Base Build Engineering Guidelines and Standards, and that the sites lifted both footprint and headcount.

“What began as an investment became a source of pride and possibility to ‘both’ our small nation and the HSBC brand a forerunner,” he wrote. “It demonstrated that our young people could meet global standards and contribute meaningfully.”

The letter concedes the commercial case rather than dismissing it. Karunanayake notes his later service as Finance and Foreign Affairs Minister and says he appreciates the bank’s responsibilities to shareholders, customers and employees. “Concerns about operating costs, workforce availability, scale and competitiveness merit a serious response. I believe we owe it to this longstanding partnership to examine together whether those concerns can be resolved.”

Though presently outside Government, he pledges to work with the administration and industry on retention. “I will do my utmost to work constructively with the Government, the relevant authorities and industry partners to facilitate every practicable measure that could sustain and renew HSBC’s operations here. I am prepared to advocate vigorously for the fullest support and benefits that can responsibly be made available, and to help address the obstacles to remaining competitive.”

He frames that offer as bipartisan. “Preserving opportunity for our people is a national responsibility that transcends political differences.”

The appeal is made principally on behalf of younger workers, who he says used the centre to acquire knowledge, work across cultures and build careers connected to the wider world. “The decision to exit from this operation would close an important avenue through which young Sri Lankans can realise their ambitions while remaining in their native country. Their aspirations deserve a central place in our deliberations.”

Karunanayake asks for specific negotiations. “I therefore respectfully request that HSBC’s Group leadership reopen this decision and allow an urgent, time-bound dialogue before the planned migration becomes irreversible. Let us identify the specific changes needed in costs, recruitment, training, infrastructure and policy, and work towards a credible proposition for retaining and reinvesting in the Sri Lankan operation.”

He sets the decision against the country’s recovery from its 2022 debt default. “Sri Lanka is striving to overcome profound difficulties, correct longstanding weaknesses and rebuild confidence in its future. This is precisely the moment when the support of established partners as HSBC is most needed.” A reversal, he argues, “would protect livelihoods and send a powerful message that recovery can be achieved through partnership, perseverance and shared endeavour.”

“I ask you, in that spirit, to look beyond the balance sheet of an individual operation and consider the wider national significance of this decision. The commercial questions must be answered, but so too must we recognise the value of the talent, loyalty and experience earned and nurtured here, and the hopes and aspirations that depend upon them.”

He closes on the original decision to invest. “When I initiated the birth of this project to Sri Lanka, I did so with faith in our people and in HSBC’s willingness to see their potential. That faith remains as strong today. Let us pool our talent, our resources and our determination to find a way forward.”