The Bank of Ceylon had provided deposit and gold related services of more than 500 million rupees as displaced people in camps in northern Sri Lanka sought the safety of the bank, a top official said.

Bank of Ceylon (BoC) Chairman Gamini Wickramasinghe, said more than 10,000 people had opened accounts in refugee camps in the last month alone.

He said the bank had over 40,000 accounts inside several camps where more than 200,000 displaced civilians in from former Tamil Tiger controlled territories are now accommodated in northern Sri Lanka.

Most of the cash deposits received by the bank had been in a damaged and soiled condition.

"You can imagine the condition the IDP's (internally displaced persons) are living in the conflict area and the cash they carry is also in a dilapidated state," said Wickramasighe.

"Some of the money we get is soaked when we receive it and we have to iron it and take it."

Wickramasinghe said the bank had collected cash and also conducted pawning business, where people pledge gold and borrow money from the bank totaling about 500 million rupees.

"They have opened accounts for well over 300 million rupees they had and these pawning and other services for a large amount," Wickramasinghe said.

Bank of Ceylon is providing custodian services for displaced people to secure whatever valuables possessions they were able to take at the time when they were forced to flee, Wickramasinghe said.

Traditionally gold is a favoured asset of South Asian communities with all female members of the community having some types of gold jewelry.

"What we have is a custodian services for jewelry and documents free of charge," said Wickramasinghe.

"Some people were afraid of keeping their valuables. The main reason behind this (pawning) is that they have a peace of mind that there jewelry is safe."

Bank of Ceylon now operates 25 permanent branches in the north and the east of Sri Lanka. It also ran branches in former Tamil Tiger controlled areas, along with state run Peoples' Bank and National Savings Bank.

"BoC has been operating throughout the conflict years in Mankulam, Killinochchi and Mullativu," said Wickramasinghe.

"That’s why the people from this area have confidence in our bank. We have been with the people of the north-east through thick and thin."