Abstract: This paper presents a detailed study about how tokenization and dynamic data masking assist for security of banks. Financial sector is one of the most important sectors in any developing country. In financial sector banks are playing a vital role. All over the world, there are lot of transactions happening in banks per day. Most of the people have choose banks as a safe place to keep their money and valuables safely. To secure those money and valuables are difficult for banks because of frauds and vulnerabilities. As a developing country, Sri Lankan financial sector should have proper security mechanisms to secure information, different encryption methods can be used. When it comes to Tokenization and dynamic data masking together it’s a new face of encryption methods. It does both encryption and Tokenization which provide more security. Technology is developing day by day. To face the future, new technology should be applied. Therefore the need of implementing research of tokenization and dynamic data masking for Sri Lankan banking sector is the purpose of this study. How tokenization and dynamic data masking assist for security of banks in Sri Lanka has been discussed as in results.