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At the time, Ceylon was a British colony and the then governor Sir Andrew Caldecott ceremoniously opened the bank on 1 August. The English government introduced the banking arm for its government-oriented businesses. Two years later, in , BoC started to expand beyond the city of Colombo. It opened its first branch in Kandy. Thereby in The Central Bank of Sri Lanka has been founded and regulation of all banks are assigned to them, Which they carrying out to-date. This helps the bank and the government to handle the business between two countries easily.