The IBSL was first established in 1964 in the name of Bankers' Training Institute (Ceylon) by the Central Bank of Sri Lanka and re-incorporated in 1979 by an Act of Parliament, as Institute of Bankers of Sri Lanka (Incorporation) Act No. 26 of 1979. The IBSL, as a professional body discharges four primary mandates according to the act.

1.To provide instruction and training for employees of banking institutions and employees of the Central Bank of Sri Lanka.

2.To teach the theory and practice of banking.

3.To provide all facilities including lectures, discussions and library facilities.

4.To enroll as members on completion of the requirements.

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