Organisational overview

Commercial Bank of Ceylon PLC operates as a robust and well-diversified financial institution, with a strong domestic franchise and a growing international footprint. Our expansive network includes 272 branches across Sri Lanka, supplemented by international operations in Bangladesh, the Maldives and Myanmar, establishing ourselves as a prominent regional player. Additionally, extensive correspondent banking relationships in North America, Europe and Australia, combined with 10 Business Promotion Officers, underscore our strategic efforts to facilitate seamless cross-border financial services and strengthen international partnerships.

Higher-tier domestic systemically important bank

Commercial Bank of Ceylon PLC is the only private sector bank in Sri Lanka designated by the CBSL as a Higher-Tier Domestic Systemically Important Bank (D-SIB). This recognition underscores our critical role in safeguarding the stability of Sri Lanka’s financial system.

With total Group assets of Rs. 2.876 Tn. as at December 31, 2024, we remain the largest private sector bank and the third largest bank in Sri Lanka. Our presence spans across multiple geographies, with six subsidiaries, an associate and branch networks, offering a comprehensive range of financial services locally and internationally.

Business volumes and market share of the Bank are given below.

Business volumes and market share Table 01

Indicator	Currency	December 31, 2024	Market share (%)	December 31, 2023	Market share (%)
Gross Loans & advances	Rs. Bn.	1,487	13.22	1,266	11.49
	USD Mn.	5,075		3,903
Deposits	Rs. Bn.	2,237	12.90	2,085	12.54
	USD Mn.	7,633		6,430
Total assets	Rs. Bn.	2,790	13.16	2,580	12.65
	USD Mn.	9,521		7,958
Import volumes	USD Mn.	2,368	14.30	1,475	11.40
Export volumes	USD Mn.	2,709	21.20	2,248	18.90
USD/LKR exchange rate	LKR	293.00		324.25

What sets us apart

Our distinctive strengths lie in a unique blend of financial prowess, a century-old legacy, a growing international presence and our steadfast commitment to sustainability and innovation. Key elements that set us apart include:

Over a century of legacy

Tracing its roots back to 1920, the Bank has grown from a modest entity on Chatham Street, Colombo, into Sri Lanka’s largest private sector bank. Marking over 50 years under its current name, our journey is defined by resilience, innovation and an unwavering focus on customer-centric banking.

Today, with over 5,000 employees and a customer base exceeding 4 million, the Bank serves both retail and corporate clients through a vast network of branches, subsidiaries and digital platforms.

Growing international footprint

Our strategic foray into international markets began with the acquisition of Crédit Agricole Indosuez’s Bangladesh operations in 2003. Since then, we have steadily expanded our international presence, establishing subsidiaries in the Maldives and Myanmar, alongside 20 branches/outlets in Bangladesh.

Our international operations now account for 15.04% of the Group’s consolidated assets and 22.21% of consolidated profit before taxes.

Risk profile

The Bank is known for its conservative risk profile, which is anchored in a robust risk management framework and prudent risk-taking practices. This cautious approach has enabled the Bank to remain resilient in challenging market conditions while safeguarding stakeholder interests and maintaining a healthy balance sheet. Through disciplined credit underwriting, proactive asset quality monitoring and prudent provisioning, the Bank effectively manages credit, market and operational risks with a long-term perspective.

In January 2025, following the upgrading of the sovereign rating, Fitch Ratings upgraded the Bank’s National Long-Term Rating to AA-(lka), reflecting its robust financial fundamentals, strategic capital augmentation plans, strong domestic franchise, intrinsic credit strength and operational resilience amid a gradually improving economic environment. The affirmation acknowledged the Bank’s capital strengthening efforts, liquidity management initiatives and recovery in profitability. Additionally, our Bangladesh operations continued to maintain the highest credit rating of AAA from Credit Rating Information Services Ltd. for the 14th consecutive year.

The Bank’s risk governance framework, supported by regular stress testing and capital adequacy assessments, ensures resilience against macroeconomic volatility while a well-diversified portfolio mitigates concentration risks, safeguarding sustainable growth.

Diversified for resilience

Diversification is at the heart of our strategy, ensuring balanced growth across business segments and geographies and enabling resilience amidst economic volatility. Our diversified operations mitigates concentration risk and enhances financial stability.

The Bank’s well-diversified portfolio encompasses various parameters, including:

• Business segments: Corporate Banking, Personal Banking, Treasury and International Operations.
• Customer segments: Corporate, SME, Micro, Agri and Retail.
• Geographical presence: Operations in Sri Lanka, Bangladesh, the Maldives and Myanmar.
• Currency mix: Operations across multiple currencies.
• Products and services portfolio: Comprehensive offerings ranging from savings and loans to trade finance and investment solutions.
• Funding profile: A balanced mix of retail deposits, corporate deposits and wholesale funding.
• Economic sectors: Exposure across a multitude of sectors.
• Revenue streams: A mix of interest income, fee-based income and investment income.

Vibrant financial intermediation

As a leading financial intermediary, we play a pivotal role in channeling funds to drive economic growth. With over 80% of total assets funded by customer deposits and a loans-to-deposits ratio of 66.48% as at December 31, 2024, we maintain a strong balance sheet.

Our industry-leading CASA ratio of 38.07% as at end-2024 further demonstrates our ability to attract low-cost deposits, providing a competitive edge in a challenging interest rate environment.

Capital position

In August 2024, the Bank raised Rs. 22.54 Bn. through an equity infusion aimed at strengthening its core capital and improving the Tier I capital ratio. This strategic move ensured continued compliance with regulatory capital requirements while providing a strong foundation to support future growth and absorb potential risks in an uncertain macroeconomic climate. A Rs. 20.00 Bn. Basel III-compliant subordinated debenture issue enhanced the Bank’s Tier II capital in July 2024. The long-term debt issuance, with tenures of up to ten years, was geared towards funding growth opportunities, optimising the balance sheet and maintaining a healthy asset-liability profile.

The above initiatives coupled with the net impairment reversal of Rs. 46.39 Bn. to the net profit before taxes following the conclusion of restructuring of International Sovereign Bonds (ISBs) in December 2024, helped the Bank to strengthen the capital position in 2024, further reinforcing its financial stability and resilience in a challenging environment. As of December 31, 2024, the Bank’s Tier I Capital Ratio at 14.227% and Total Capital Ratio at 18.142% remained comfortably above the regulatory minimum thresholds of 10.0% and 14.0% respectively, required for a higher-tier D-SIB.

Commitment to compliance

Commercial Bank places a strong emphasis on regulatory compliance, always adhering strictly to both local and international standards. Our comprehensive Compliance Policy outlines the processes for identifying, monitoring and managing compliance risks, supported by a dedicated compliance function reporting to the Board of Directors through the Board Integrated Risk Management Committee (BIRMC).

Efforts to strengthen our compliance framework include:

Commitment to ESG and sustainability

We recognise the evolving expectations of our stakeholders regarding ESG factors and broader sustainability. Our sustainability journey is guided by a comprehensive framework, which balances financial growth with environmental stewardship, social responsibility and governance excellence. We continued to strengthen our internal policies and practices, ensuring alignment with global sustainability standards and frameworks. We aim to deepen our engagement with stakeholders, including customers, employees, regulators and the community, to promote shared responsibility in achieving sustainable development goals. Our Sustainability Framework (refer page 72), embodying our commitment to ESG spheres, is anchored on the three pillars of sustainable banking, responsible organisation and community engagement, balancing financial performance with positive societal and environmental outcomes.

While the Bank’s Business Model and operations do not inherently produce significant negative environmental impacts, we remain vigilant of our indirect environmental footprint, particularly through the business activities of our borrowers. This consciousness is reflected in the Bank’s ongoing commitment to sustainability, which is integrated into our decision-making processes, product offerings and operational practices. Our efforts to balance growth with environmental sustainability are evident through such key initiatives as green financing, social & environmental screening of credit proposals, investments in energy-efficient technologies to enhance operational efficiency and progress towards achieving carbon neutrality independently.