Commercial Bank Investment Banking: Redefining capital formation in a transforming economy

Commercial Bank Deputy General Manager –Treasury Asela Wijesiriwardane

As Sri Lanka’s financial system evolves, Commercial Bank of Ceylon, the largest private sector bank, backed by its strong balance sheet, extensive client network, and integrated financial capabilities, will lead the way in connecting businesses with investors to optimise capital allocation decisions through its investment banking operations, driving capital formation. The Bank plans to transition from a traditional lender to a full service Bank delivering seamless end-to-end solutions across equity, debt, and advisory services.

By bridging capital seekers and providers, Commercial Bank is not only facilitating growth but also shaping a more dynamic, resilient, and future-ready capital market ecosystem in Sri Lanka, Commercial Bank Deputy General Manager - Treasury Asela Wijesiriwardane discusses in this interview. 

Q: As financial intermediation evolves in emerging markets, how does Commercial Bank position its investment banking platform within Sri Lanka’s broader capital formation landscape?

A: As financial systems mature, the role of banks is increasingly shifting from traditional intermediation toward facilitating efficient capital allocation across the economy. In this context, Commercial Bank’s Investment Banking Unit is positioned as a critical enabler of capital formation in Sri Lanka, bridging the gap between issuers and investors while supporting the transition from bank-led financing to more diversified capital market structures. 

The bank’s approach is centred on delivering integrated capital solutions that extend beyond conventional lending. By offering equity and debt capital market access alongside advisory services, the Investment Banking Unit enables corporates to optimise their capital structures and align funding strategies with long-term growth objectives. This is particularly important in an emerging market context, where deepening capital markets is essential for sustainable economic development.

Through this positioning, Commercial Bank is not merely a participant in capital markets but an active contributor to their evolution.

Q: How does your investment banking model differentiate itself in a market where advisory and capital raising capabilities are increasingly commoditised?

A: In an environment where individual services such as advisory or capital raising can be replicated, differentiation lies in the ability to deliver integrated, end-to-end solutions. Commercial Bank’s investment banking model is built on this principle, combining advisory expertise, execution capability, and balance sheet strength within a single platform. 

What sets the bank apart is its ability to seamlessly integrate investment banking services with its broader commercial and corporate banking franchise. This allows clients to move from strategic advisory to execution and financing without fragmentation. For example, in a capital raising transaction, the bank can simultaneously structure the instrument, underwrite the issuance, manage fund flows, and provide complementary financing solutions.

Additionally, the bank’s extensive client network creates a powerful ecosystem where capital seekers and investors can be effectively matched, enhancing transaction efficiency and outcomes.

Q: In what ways does your corporate finance advisory function support long-term value creation rather than transactional outcomes?

A: The corporate finance advisory function at Commercial Bank is designed to move beyond transactional execution and focus on long-term value creation. This is achieved by aligning capital raising strategies with the strategic objectives of clients, ensuring that funding decisions support sustainable growth rather than short-term liquidity needs.

In debt capital markets, this involves structuring instruments that optimize cost of capital while maintaining balance sheet flexibility. In equity markets, the focus is on facilitating access to long-term capital through IPOs and private placements, enabling businesses to scale and strengthen governance frameworks. The bank’s Green Bond issuance in 2025 was a prime example in which the funds raised were allocated for lending towards eligible green projects further strengthening the bank’s commitment towards sustainable initiatives. The Investment Banking Unit is also supporting external clients in accessing capital with a strong sustainability focus, enabling them to expand their sustainable initiatives beyond the bank. The advisory approach for mergers and acquisitions, is centred on strategic fit, value realisation, and post-transaction integration, rather than merely completing deals. By leveraging its deep client relationships, the bank is also able to create meaningful connections between investors and businesses, further enhancing value creation.

Q: How does Commercial Bank leverage its balance sheet strength to enhance investment banking outcomes?

A: A key advantage of Commercial Bank’s investment banking platform is its ability to leverage the bank’s balance sheet to support transactions. This capability transforms the bank from a purely advisory institution into a full-service financial partner.

In capital market transactions, the bank can act as an underwriter, providing assurance to issuers by absorbing any unsubscribed portions of an issuance. In addition, it can act as banker to the issue, ensuring efficient fund flows and settlement processes.

In strategic transactions such as mergers and acquisitions, the bank is also able to provide acquisition financing, thereby enabling clients to execute transactions more effectively. This integration of advisory and financing capabilities significantly enhances execution certainty and client confidence.

Q: What role does data and macroeconomic insight play in shaping your investment banking strategies?

A: Data and macroeconomic insight are central to the bank’s investment banking approach. The Economic Research Division serves as a key enabler in this regard, providing forward-looking analysis on macroeconomic trends, sector dynamics, and emerging risks. 

These insights inform both internal strategy and client advisory, ensuring that transactions are grounded in a comprehensive understanding of the economic environment. For example, capital raising strategies can be timed and structured based on interest rate cycles, liquidity conditions, and investor sentiment.

This research-driven approach enhances the quality of decision-making and positions the bank as a strategic advisor rather than a transactional intermediary.

Q: How do you see the role of investment banking evolving in Sri Lanka over the next decade?

A: The role of investment banking in Sri Lanka is expected to expand significantly as the financial system continues to evolve. With increasing emphasis on capital market development, banks will play a more prominent role in facilitating equity and debt financing, reducing reliance on traditional lending.

Over time, the market is likely to see greater adoption of sophisticated instruments, deeper investor participation, and increased integration with global capital flows. In this context, institutions like Commercial Bank will play a critical role in driving innovation, enhancing market infrastructure, and supporting the growth of a more diversified financial ecosystem.

Investment banking will therefore transition from a complementary function to a central pillar of financial intermediation.