The Central Bank said it was also in talks with consultancy firms to get valuation and other services for planned mergers.
Sri Lanka's central bank is trying to shrink the total number of banks and finance firms in the country which will make them larger and easier to regulate.
Following two balance of payments crises in rapid succession in 2008 and 2011, non-bank lenders in particular, that play in the sub-prime market have run into bad loans and capital deficiencies.
Banks usually run into trouble in any country following credit bubbles generated by prolonged periods of low interest rates.
Analysts say while credit cycles, and bank collapses can happens even in the absence of central banks, such as in free banking regimes.
But bubbles and bad loans with central banking have been greater as low interest rates persist for longer periods than in free banking allowing bigger bubbles to be blown, speculative activity and more severe mal-investment to take place.
The two most recent global credit bubble collapses and banking panics in the 1930s (Great Depression) and 2009 (Great Recession) was bigger in scale impact for example than the 1871/72 railway bubble collapse which happened before the US Fed was created.