BOC’s international ratings upgraded to ‘B-’ by Fitch

• National Long-Term Rating remains AA-(lka) / Stable

Bank of Ceylon (BOC) has achieved a significant milestone in its international credit ratings journey, with Fitch Ratings (Fitch) upgrading the bank’s Long-Term Foreign-Currency and Local-Currency Issuer Default Ratings (IDRs) to ‘B-’ from ‘CCC+’, with a Stable Outlook. 

Fitch has also upgraded BOC’s Viability Rating (VR) to ‘b-’ from ‘ccc+’ and Short-Term IDR to ‘B’ from ‘C’, while affirming the Government Support Rating (GSR) at ‘ns.’

BOC said the upgrade represents a notable strengthening of the bank’s sovereign credit profile, reflecting its resilience, market leadership, and improving financial fundamentals amid a thriving operating environment.

 It reinforces the bank’s ability to engage with international markets and pursue new opportunities while continuing its role as a key financial partner to the Sri Lankan economy.

Fitch’s rating action follows the upgrade of Sri Lanka’s sovereign credit ratings to ‘B-’ with a Stable Outlook from ‘CCC+’, reflecting improved macroeconomic stability, structural reforms, strengthened fiscal and external positions, and reduced external financing risks. The improved sovereign profile is expected to support greater financial-market stability and thereby support BOC’s business, risk, and financial prospects.

Fitch has recognised BOC’s market leadership as a key rating strength, upgrading its business profile score. As Sri Lanka’s largest bank, BOC’s extensive network and broad customer base provide a strong foundation to capture emerging business opportunities as economic conditions continue to improve.

Fitch has also upgraded its assessments of BOC’s risk profile and asset quality, earnings and profitability, capitalisation and leverage, and funding and liquidity. These improvements reflect the easing of sovereign-related risks, strengthening economic conditions and improving financial resilience, while access to foreign-currency funding is expected to gradually widen. 

BOC Chairman Kavinda de Zoysa said: “We welcome Fitch Ratings’ upgrade of BOC’s international ratings and are particularly encouraged by its recognition of BOC’s market leadership as a rating strength, reflected in the upgrade of the bank’s Business Profile score to ‘b’ from ‘b-’.”

“This recognises our position as Sri Lanka’s largest bank, with around 22% of sector assets and deposits, together with the strength of our extensive network and funding franchise. 

The broader improvement in our ratings reflects both the strengthening sovereign and operating environment and improvements across key areas of the bank’s credit profile. We remain firmly committed to prudent risk management, strong governance and financial resilience, while continuing to support our customers and Sri Lanka’s sustainable economic growth,” the Chairman added. 

The enhanced international credit standing provides BOC with a stronger platform to deepen relationships with international financial institutions, correspondent banks and institutional investors. It is also expected to support broader access to foreign-currency funding and international credit lines, with more favourable terms and conditions.

The improved standing further strengthens BOC’s role in facilitating international trade through trade finance facilities and related other foreign-currency services, supporting businesses engaged in imports, exports and cross-border transactions.

The stronger sovereign credit profile is expected to ease risks associated with BOC’s holdings of Government securities and lending to State-owned entities, further strengthening the resilience of its asset portfolio. This creates greater scope for BOC to expand private-sector lending and diversify its business across small and medium enterprise (SMEs), corporates, retail and productive sectors, while maintaining disciplined credit standards, prudent risk management and sound capital, liquidity, and asset-quality positions.

BOC General Manager/Chief Executive Officer Y.A. Jayathilaka said: “The upgrade marks an important milestone for BOC, reinforcing the bank’s position and credibility in the international financial landscape. It provides a stronger platform to expand our global relationships, access diverse funding avenues and pursue new opportunities for sustainable growth. Building on this progress, we will continue to strengthen our capabilities, create lasting value for our customers and contribute meaningfully to the growth of the Sri Lankan economy.”

BOC’s financial performance during the first half of 2026 further demonstrates its strength and scale, with Profit Before Tax reaching Rs. 62.7 billion and Profit After Tax recording Rs. 39.8 billion. The bank also contributed Rs. 39.2 billion in total taxes to the Government, highlighting its contribution to national revenue. As at June 2026, BOC recorded total assets of Rs. 5.4 trillion, total deposits of Rs. 4.3 trillion, and gross loans and advances of Rs. 2.8 trillion, reflecting its strong capacity to support businesses, individuals and productive sectors of the economy.

With more than 2,200 customer touchpoints islandwide and an established overseas presence in Chennai, Maldives, Seychelles, Hulhumale, and London, BOC continues to connect customers and businesses with financial opportunities across Sri Lanka and beyond.

Since its establishment in 1939, BOC has evolved alongside the nation, remaining steadfast in its role as the “Bankers to the Nation.” The latest Fitch upgrade marks another defining step in that journey, reflecting the bank’s strengthened position and readiness to embrace the opportunities emerging from Sri Lanka’s economic recovery.

Building on this milestone, BOC looks ahead with renewed confidence expanding global partnerships, enabling businesses, and creating greater opportunities for Sri Lanka’s economic future.