The regulator said plans to implement a micro-finance scheme to make funds available for entrepreneurs in the newly freed Northern Province will speed-up development.
"The resulting expansion in business will strengthen the financial position of the banks as well," the Central Bank said.
State owned Bank of Ceylon and People's Bank are the only two commercial banks offering regular banking services in former Tamil Tiger controlled areas.
Government forces last month ended the 25-year ethnic war by cornering Tiger remnants in the north east and wiping out its top leadership.