The State Mortgage & Investment Bank being one of the oldest banks of the nation was inaugurated as the Ceylon State Mortgage Bank (CSMB) on 6th December 1931 by Ordinance No. 16 of 1931. State Mortgage & Investment Bank formed by the State Mortgage & Investment Bank Law No. 13 of 1975, amalgamating the Ceylon State Mortgage Bank and the Agricultural and Industrial Credit Corporation, established in 1943. The Bank commenced its operation on 1st January 1979. The Bank was recognized as a Licensed Specialized Bank and the license was issued by the Central Bank of Sri Lanka on 27th April 1998 in terms of the Banking Act No. 30 of 1998.
Since then, deviating from the former lines of business, while paying much attention to the housing needs of the country, the Bank throughout its over eighty years of service, has evolved to become the Housing Bank to the Nation. With the expansion of the Banks activities, the Bank strengthened its resource base by venturing in to various other products. Thus in 1991, the Bank started accepting deposits. In October 2001, Pass-Book Savings product was introduced. The Bank extended its business networks by opening new branches in key locations (at present 24 branches are existence). By spreading its services through branches and facing the challenges and competition of the banking industry the Bank has been able to maintain its position as the “Housing Bank to the Nation”