During the British rule, ships were docked at the bank of the river Barak. Gradually, a market developed at the bank and became a major place of economic activity. The bank was covered with stones to help dock ships and vessels, and the market was developed at a place that was fully covered with stones. People started to refer to the place as Shiler Chor, meaning "a bank of stones". With the passage of time, Shiler Chor was simplified to Silchar, and ultimately the British officials started to use the name Silchar in their official documents referring to the surrounding area of the market. Thus Silchar became the official name of the place.