Friday Feb 27, 2026
Friday Feb 27, 2026
Friday, 27 February 2026 00:30 - - {{hitsCtrl.values.hits}}
Chairman Kavinda de Zoysa (left) and Acting GM/CEO Y.A. Jayathilaka
Bank of Ceylon (BOC) has concluded the financial year ended 31 December 2025 with a landmark performance, achieving a Profit After Tax (PAT) of Rs. 76 billion, an 18% increase over the previous year, while Profit Before Tax (PBT) reached Rs. 120.8 billion.
Beyond financial growth, this year marked a pivotal shift towards sustainable and inclusive banking, with strategic initiatives in green finance, social development, and digital innovation driving both economic and environmental impact.
BOC’s performance reflects its dual commitment delivering robust returns for stakeholders while championing sustainable development that supports Sri Lanka’s long-term economic and social resilience.
Chairman Kavinda de Zoysa said: “2025 stands as another record-breaking milestone year for BOC, reflecting our resilience, strategic focus, and unwavering commitment to national progress. Our strong financial performance this year demonstrates the discipline with which we have navigated a transforming economic landscape, ensuring stability, sustainable growth, and long-term value creation for our stakeholders. During the year, we further strengthened our commitment to sustainable finance through the successful issuance of a Rs. 20 billion Basel III–compliant Tier II Sustainability Bond. This initiative enhances our capital base while enabling greater support for sustainability, small and medium enterprise (SME) development, and inclusive community investments.
“As we look ahead, our vision remains clear to accelerate digital transformation, deepen financial inclusion, and strengthen our environmental and social governance framework while maintaining robust profitability and balance sheet resilience. BOC is well-positioned to lead Sri Lanka’s transition towards a greener, more inclusive, and globally competitive future guided by purpose, strengthened by performance, and driven by innovation.”
BOC closed the year 2025 with exceptional financial momentum, reflecting disciplined execution, strategic growth, and a commitment to sustainable banking. The bank reported Total Operating Income of Rs. 246.8 billion, a 36% increase compared to the previous year, driven by strong growth in both interest and non-interest income, underscoring the bank’s ability to sustain profitability while maintaining long-term resilience.
Net Interest Income (NII) rose by 24% to Rs. 206.9 billion, propelled by effective asset-liability management, improved interest margins, and optimised funding strategies. Interest income grew by 8% to Rs. 496.2 billion, while interest expenses decreased slightly by 2% to Rs. 289.2 billion, reflecting disciplined balance sheet management.
Diversified income streams further strengthened the bank’s performance. Net fee and commission income increased by 12% to Rs. 23.1 billion, supported by higher digital transactions, card services, trade finance, and remittance flows by reinforcing revenue stability and sustainability.
Total operating expenses increased moderately by 9% to Rs. 73 billion, largely due to strategic investments in technology, human capital, and service infrastructure aimed at enhancing customer experience and operational efficiency. Revenue growth significantly outpaced the increase in operating expenses, resulting in an Operating PBT on Financial Services of Rs. 152.7 billion, a 13% increase compared to the previous year.
After accounting for taxes on financial services of Rs. 31.9 billion and income tax expenses of Rs. 44.8 billion, BOC achieved a PAT of Rs. 76.0 billion. This strong bottom line performance underscores the bank’s ability to balance strategic investment with financial discipline, ensuring sustainable earnings growth and enhanced shareholder value.
Acting GM/CEO Y. A. Jayathilaka said: “Our performance in 2025 reflects the enduring trust of our customers and the dedication of our employees nationwide. Beyond strong financial results, this year is defined by how we have converted resilience into sustainable impact. We have embedded sustainability into our core strategy, expanding green financing, supporting responsible enterprises, and aligning growth with national development priorities. At the same time, we accelerated our digital transformation strengthening cybersecurity, enhancing digital platforms, and delivering seamless, customer-centric banking solutions. As Sri Lanka advances toward economic renewal, BOC remains committed to responsible growth, digital innovation, and long-term value creation. Our focus is clear to drive sustainable progress for our stakeholders while playing a leading role in the nation’s transformation.”
In 2025, BOC continued to demonstrate robust credit risk management while expanding its lending portfolio. The bank recorded an impairment charge of Rs. 20.7 billion on loans and advances, reflecting a prudent and forward-looking provisioning approach in response to evolving macroeconomic conditions and potential exposures from events such as Cyclone Ditwah.
The Stage 3 loan ratio improved to 5.59% from 7.17% in 2024, highlighting the bank’s effective recovery initiatives, disciplined credit monitoring, and strengthened collection efforts. The Stage 3 provision coverage ratio strengthened to 57.91%, underscoring BOC’s commitment to conservative provisioning, portfolio quality, and long-term financial resilience.
As at 31 December 2025, total assets exceeded Rs. 5.5 trillion, reflecting 10% growth compared to the previous year. Gross loans and advances increased to Rs. 2.6 trillion, while the deposit base expanded to Rs. 4.4 trillion, demonstrating sustained customer confidence and strong franchise value. Return on Assets (ROA) before tax improved to 2.31% from 2.28% in 2024. Return on Equity (ROE) after tax moderated slightly to 22.74% from 23.23% in 2024, reflecting enhanced capital strength. Net Interest Margin improved to 3.96% from 3.57%, highlighting effective management of interest-earning assets and liabilities. Capital adequacy ratios remained well above regulatory requirements, with a Common Equity Tier 1 ratio of 11.44% and a Total Capital Ratio of 16.89%. Liquidity coverage ratios for both rupee and all currencies remained comfortably above minimum thresholds, ensuring strong liquidity resilience.
In 2025, BOC successfully issued its inaugural Rs. 20 billion Basel III–compliant Tier II Sustainability Bond, the largest sustainability bond issuance in Sri Lanka and the first by a State-owned bank. Proceeds will use to finance eligible green and social projects, including renewable energy, sustainable agriculture, SMEs, healthcare, education, water management, and essential infrastructure. Independent external review and transparent reporting mechanisms ensure accountability and measurable impact.
BOC strengthened its digital transformation agenda with the establishment of Bank of Ceylon Information Technology Solutions Ltd., a wholly owned subsidiary designed to enhance ICT capabilities and support future-ready banking services. As part of its sustainability initiatives, the Bank introduced Sri Lanka’s first biodegradable banking card, made from corn-based polylactic acid (PLA), providing an environmentally responsible alternative to conventional PVC cards. The bank further strengthened financial inclusion by launching 50 new BOC Connect Agent Banking Centres and enhancing digital platforms such as BOC Flex and SmartPay, ensuring seamless access to modern banking services across urban and rural communities.
Demonstrating strong corporate responsibility, BOC contributed Rs. 500 million to the Government’s “Rebuilding Sri Lanka” Fund to support communities affected by Cyclone Ditwah. The bank and its staff also provided emergency relief valued around Rs. 50 million, reaffirming their commitment to national resilience.
BOC was ranked as the top Sri Lankan Bank among the Top 1000 World Banks by The Banker (UK). The bank was recognised as Sri Lanka’s No. 1 Brand and Most Valuable Brand by Brand Finance Lanka, with a brand value of Rs. 57.4 billion.
BOC maintains a robust domestic presence with a widespread network of over 2,300 direct customer touch-points including fully-equipped and mobile branches, SME centers, ATMs, CDMs, and CRMs and the bank ensures comprehensive financial accessibility across all provinces of the country, reinforcing its commitment to financial inclusion. Internationally, the bank extends its presence through branches in India, Maldives, and Seychelles, a limited-services branch in Hulhumale, and a fully-owned subsidiary in London, United Kingdom, further strengthening its global footprint.
Fitch Ratings has affirmed the National Long-Term Rating at ‘AA-(lka)’ and the Long Term Foreign and Local Currency Issuer Default Ratings at ‘CCC+’ for Bank of Ceylon.
Looking ahead to 2026, BOC remains firmly focused on accelerating sustainable growth through digital transformation, strengthened customer engagement, and strategic lending to priority sectors of the economy. Supported by a solid earnings foundation, resilient balance sheet, and disciplined risk governance framework, the bank is well-positioned to capture emerging opportunities in a transforming financial landscape.
BOC is equally committed to delivering sustainable long-term value to its stakeholders, ensuring consistent returns through prudent capital management, enhanced profitability, and responsible growth strategies. By balancing financial performance with environmental and social responsibility, the bank continues to safeguard stakeholder interests while contributing meaningfully to national development. As Sri Lanka advances along its recovery and growth trajectory, BOC remains well positioned to lead with confidence, innovation, and purpose, strengthening its legacy as the nation’s most trusted financial partner while shaping a more inclusive, resilient, and globally competitive future.
