Financial institution of Ceylon (BOC) has achieved a major milestone in its worldwide credit score scores journey, with Fitch Rankings (Fitch) upgrading the Financial institution’s Lengthy-Time period Overseas-Foreign money and Native-Foreign money Issuer Default Rankings (IDRs) to ‘B-’ from ‘CCC+’, with a Secure Outlook. Fitch has additionally upgraded BOC’s Viability Score (VR) to ‘b-’ from ‘ccc+’ and Quick-Time period IDR to ‘B’ from ‘C’, whereas affirming the Authorities Assist Score (GSR) at ‘ns’.
The improve represents a notable strengthening of BOC’s sovereign credit score profile, reflecting its resilience, market management and enhancing monetary fundamentals amid a thriving working setting. It reinforces the Financial institution’s capacity to interact with worldwide markets and pursue new alternatives whereas persevering with its function as a key monetary associate to the Sri Lankan economic system.
Fitch’s ranking motion follows the improve of Sri Lanka’s sovereign credit score scores to ‘B-’ with a Secure Outlook from ‘CCC+’, reflecting improved macroeconomic stability, structural reforms, strengthened fiscal and exterior positions and lowered exterior financing dangers. The improved sovereign profile is anticipated to help higher financial-market stability and thereby help BOC’s enterprise, threat and monetary prospects.
Fitch has acknowledged BOC’s market management as a key ranking power, upgrading its enterprise profile rating. As Sri Lanka’s largest financial institution, BOC’s in depth community and broad buyer base present a robust basis to seize rising enterprise alternatives as financial situations proceed to enhance.
Fitch has additionally upgraded its assessments of BOC’s threat profile and asset high quality, earnings and profitability, capitalization and leverage, and funding and liquidity. These enhancements mirror the easing of sovereign-related dangers, strengthening financial situations and enhancing monetary resilience, whereas entry to foreign-currency funding is anticipated to regularly widen. Commenting on the ranking improve, Financial institution of Ceylon Chairman, Mr. Kavinda de Zoysa, said, “We welcome Fitch Rankings’ improve of Financial institution of Ceylon’s worldwide scores and are notably inspired by its recognition of BOC’s market management as a ranking power, mirrored within the improve of the Financial institution’s Enterprise Profile rating to ‘b’ from ‘b-’. This acknowledges our place as Sri Lanka’s largest financial institution, with round 22% of sector property and deposits, along with the power of our in depth community and funding franchise.
The broader enchancment in our scores displays each the strengthening sovereign and working
setting and enhancements throughout key areas of the Financial institution’s credit score profile. We stay firmly
dedicated to prudent threat administration, robust governance and monetary resilience, whereas
persevering with to help our clients and Sri Lanka’s sustainable financial progress.”
The improved worldwide credit score standing offers BOC with a stronger platform to deepen
relationships with worldwide monetary establishments, correspondent banks and institutional
traders. It’s also anticipated to help broader entry to foreign-currency funding and
worldwide credit score strains, with extra beneficial phrases and situations.
The improved standing additional strengthens BOC’s function in facilitating worldwide commerce
via commerce finance amenities and associated different foreign-currency companies, supporting
companies engaged in imports, exports and cross-border transactions.
The stronger sovereign credit score profile is anticipated to ease dangers related to BOC’s holdings
of presidency securities and lending to state-owned entities, additional strengthening the
resilience of its asset portfolio. This creates higher scope for BOC to develop private-sector
lending and diversify its enterprise throughout SMEs, corporates, retail and productive sectors, whereas
sustaining disciplined credit score requirements, prudent threat administration and sound capital, liquidity
and asset-quality positions.
The Normal Supervisor/Chief Government Officer, Mr. Y A Jayathilaka, said, “The improve
marks an necessary milestone for Financial institution of Ceylon, reinforcing the Financial institution’s place and
credibility within the worldwide monetary panorama. It offers a stronger platform to develop
our international relationships, entry numerous funding avenues and pursue new alternatives for
sustainable progress. Constructing on this progress, we’ll proceed to strengthen our capabilities,
create lasting worth for our clients and contribute meaningfully to the expansion of the Sri
Lankan economic system.”
BOC’s monetary efficiency through the first half of 2026 additional demonstrates its power and
scale, with Revenue Earlier than Tax reaching Rs. 62.7 billion and Revenue After Tax recording
Rs. 39.8 billion. The Financial institution additionally contributed Rs. 39.2 billion in whole taxes to the Authorities,
highlighting its contribution to nationwide income. As at June 2026, BOC recorded whole property
of Rs. 5.4 trillion, whole deposits of Rs. 4.3 trillion and gross loans and advances of
Rs. 2.8 trillion, reflecting its robust capability to help companies, people and productive
sectors of the economic system.
With greater than 2,200 buyer touchpoints island-wide and a longtime abroad presence
in Chennai, Maldives, Seychelles, Hulhumale and London, BOC continues to attach
clients and companies with monetary alternatives throughout Sri Lanka and past.
Since its institution in 1939, BOC has advanced alongside the nation, remaining steadfast in
its function because the “Bankers to the Nation.” The most recent Fitch improve marks one other defining step in that journey, reflecting the Financial institution’s strengthened place and readiness to embrace the
alternatives rising from Sri Lanka’s financial restoration.
Constructing on this milestone, BOC appears to be like forward with renewed confidence increasing international
partnerships, enabling companies and creating higher alternatives for Sri Lanka’s financial
future.
