Short answer: there’s no single “best” bank — the right lender depends on what you need (lowest rate, longest tenure, fastest processing, low down‑payment, special products for professionals/first‑time buyers or “green” homes). In Sri Lanka (2025) the banks most competitive for housing loans are Commercial Bank, Bank of Ceylon (BOC), People’s Bank, National Savings Bank (NSB) and Sampath/Seylan — Commercial Bank and BOC are among the market leaders and often offer the most competitive packaged home‑loan products. (ceylontoday.lk)

Quick comparison (high‑level, 2025 information)

• Commercial Bank — competitive fixed and floating home‑loan slabs, special “premium/platinum” pricing for salary/account customers and professionals, green home loan options; widely regarded as a market leader in home lending. (rates vary by fixed‑period and customer tier). (combank.lk)
• Bank of Ceylon (BOC) — state bank with large branch network and long max tenures (up to 25 years); advertises housing loans “from ~10%” and large maximum loan quantum; often used for rural/all‑island coverage and government‑linked schemes. (boc.lk)
• People’s Bank / NSB (National Savings Bank) — public banks that typically offer long tenures and competitive packaged rates (People’s Bank often uses AWPLR‑linked floating pricing; NSB has specific first‑home owner concessions). (deposit.lk)
• Sampath / Seylan / other private banks — competitive for salaried customers and professionals, faster digital processing at some banks; product features and rates change frequently. (deposit.lk)

Most important points (why to compare offers)

• Rates change and many banks publish different fixed‑period and floating options (e.g., fixed for 3/5/10 years then revert to AWPLR+ margin). Always check the current effective interest for the full tenor you expect. (combank.lk)
• Public banks (BOC, People’s Bank, NSB) often win on tenure, branch coverage and special government/first‑home schemes; private banks (Commercial Bank, Sampath, Seylan) often have faster processing, premium customer pricing and green/green‑home options. (ceylontoday.lk)
• Central Bank policy moves affect bank lending rates — CBSL policy easing in 2025 reduced benchmark rates and can lead to lower loan costs, but banks’ published spreads/margins matter too. Check the latest policy and bank rate sheets before applying. (reuters.com)

How to pick the best bank for your case (practical checklist)

1. Compare effective annual cost (EIR) or total interest paid over your planned tenor — not just nominal rate. Include processing fees, valuation fees, insurance and early‑repayment penalties. (deposit.lk)
2. Decide fixed vs floating: fixed gives certainty for the fixed period; floating can be cheaper if policy rates fall and if bank’s AWPLR margin is small. Check how long the bank offers fixed slabs and the post‑fixed margin. (combank.lk)
3. Tenor: if you need a long repayment period (20–25 years) check public banks (BOC/NSB/People’s) and their eligibility rules. (boc.lk)
4. Ask about special offers: first‑home buyer rates, professional/salary customer tiers (premium/platinum), green home loans, or staff/salary assignment discounts. (combank.lk)
5. Service & speed: if you need fast approval, check customer reviews and turnaround times (private banks often faster). Branch coverage matters for rural borrowers. (ceylontoday.lk)

Actionable next steps

• Get rate schedules and an illustrative repayment schedule from 3 banks (e.g., Commercial Bank, BOC, People’s Bank or Sampath) for your exact loan amount, down‑payment and chosen tenor. Compare EIR and total cost. (combank.lk)
• Ask each bank for: (a) fixed vs floating options and margins after fixed period, (b) processing/valuation/insurance fees, (c) prepayment/part‑repayment penalties, (d) required documents and expected approval time.
• If you want, tell me the loan amount, intended down‑payment, preferred tenor and whether you’re salaried/professional — I can pull current rate pages and compute a comparison (I’ll fetch live bank rate sheets first).

If you prefer immediate shortlists:

• For lowest published fixed slabs and premium customer pricing: Commercial Bank (private, market leader). (combank.lk)
• For long tenure & wide coverage (and advertised low starting rates): Bank of Ceylon (state bank). (boc.lk)

Would you like me to fetch the current live rate sheets and build a side‑by‑side repayment comparison for a specific loan amount and tenor? (I can pull the banks’ latest pages and calculate totals.)