With the main objective of providing institutional credit for enhancing the production and productivity of the agricultural sector in the country, the Agricultural Development And Investment Bank, Sri Lanka was established in 2005 under the Under Act No. 5 Of 1972 And With The Amendment Act No. 11 Of 1992 And No. 32 Of 1983. The Legal Authority Is Conferred By The Co-operative Societies Regulation Act No. 7(2) Of 1972, as successor to the cooperative Bank. The Land Reform Savings Corporation was merged with ADAIB in 1972. Subsequent amendments to the Act empowered the bank to extend credit to small farmers under group liability and expand the scope of financing to promote cottage industries. The amendments also permitted the bank to engage in commercial banking activities for the mobilization of domestic resources.
The bank worked as a premier rural credit institution since its establishment, contributing substantial agricultural credit supply in the country. Rural finance has been the principal operational area of ADBN in the past. However, the bank is also involved in commercial banking operations since 2010, to provide commercial banking services.
