Business
Lending rates are basically decided by customers: BOC GM/ CEO
By Sanath Nanayakkare
Veteran banker Russel Fonseka who is the General Manager/ CEO of Bank of Ceylon said last Thursday that it is basically the customer who decides the lending interest rate according to the profitability and financial viability of their business operations.
He said so in response to a question posed by The Island Financial Review at a press conference where the BOC announced a new SME loan quantum of Rs. 5 billion for small and medium enterprises (SMEs) and startups.
“The Central Bank’s independence in making its monetary policy is a positive thing for the financial market as well as our customers because the Central Bank will be making those decisions according to market conditions. At the end of the day, interest rates are decided by the market. Even BOC’s lending rates are basically decided by our customers. If they are not okay with the interest rates we offer when they compare with their sales targets, profitability and other financial aspects of their operations, they will make their own decision. In most of the cases, our lending rate is decided by the customer. Our customer is the person who gives the interest rate. They would say, ‘this is the interest rate we can afford to pay. If you can offer it, we will take it, or otherwise, we will go to other banks. So, our task is to see whether we can match the customer’s requirement and do business with them, “he explained.
“BOC has the largest deposit base, so we have the ability to offer better lending rates. Further, as the Central Bank has decided to reduce the Statutory Reserve Ratio (SRR) applicable on all rupee deposit liabilities of Licensed Commercial Banks (LCBs) by 200 basis points, from 4.00 per cent to 2.00 per cent, that will accrue great improvement in BOC’s liquidity levels as well,” he pointed out.
When asked by how much exactly the favorable SRR would raise BOC’s liquidity levels, he replied,” We are getting a significant amount because of the reduction in SRR,” without disclosing an exact number.
Responding to how BOC could offer Rs. 5 billion worth SME loans 5% below current market rates, he said,” Although we offer the new SME loan scheme loans at 12.0 for applicants with collateral and at 12.5% for applicants with no collateral, our funding cost is a little bit higher. But when we compare this Rs. 5 billion loan quantum with BOC’s total exposure in lending which is about Rs. 2,300 billion, this Rs. 5 billion is nothing for BOC. That is why we are in a position to offer this Rs. 5 billion quite comfortably to support the recovery and growth of SMEs.”
Referring to non-performing loans (NPLs), BOC GM said,” Because of the economic conditions, our NPLs at 6%, is a little bit high, but the key thing here is we haven’t written off any loan facilities given in the past 10- 15 years.”
When asked about the Domestic Debt Optimization (DDO) and, repayment of Sri Lanka Development Bonds in LKR, a senior official of BOC said,” We have been given different options. We have carefully analyzed the operational environment. We have made the required provisioning and there won’t any impact on our performance as a result of the DDO. We will be releasing our 2Q financial report this week. The challenges from NPLs are abating now as our customers are having improved cash flows, so we can maintain our asset quality position which you will see in our 2Q financial report.”
BOC is analyzing which treatment of debt exchange would best suit the Bank and the Bank’s senior management and the Board of Directors would decide on which option to take. The Bank affirmed this important decision would be an internal decision.
Business
HNB Assurance Elevates ‘Liya Harasara’ 2026 with Unmatched Benefits to Honor the Spirit of Womanhood
HNB Assurance PLC launched the 2026 edition of Liya Harasara, its flagship annual initiative dedicated to celebrating and empowering women in line with International Women’s Day. Recognized as one of the most anticipated campaigns of the year, Liya Harasara continues to evolve, delivering meaningful protection and exclusive privileges designed to support women in every stage of life.
This year’s edition introduces the most rewarding benefits in the history of the initiative. Women who sign up for eligible Regular Premium Life Insurance policies will receive a Free Life Cover of up to Rs. 2 Million for one year, along with a Free Critical Illness Benefit of up to Rs. 500,000, providing enhanced financial security and reassurance when it matters most. Additionally, female policyholders are also entitled to pregnancy related hospitalization cash benefit for Life Insurance Policies with in-force Hospitalization Benefit, for a maximum of three days per annum.
Commenting on the significance of this year’s campaign, Lasitha Wimalarathne, Executive Director / CEO of HNB Assurance, stated: “As we mark our 25th year as a trusted life insurer, we wanted Liya Harasara 2026 to reflect the strength of the journey that brought us here. For 25 years, women have been at the heart of our story, as leaders, advisors, customers and changemakers. This special edition is our way of honoring that partnership and reaffirming our commitment to protecting their aspirations for the future. When women progress, families prosper and communities thrive and we are proud to stand by them with meaningful protection and lasting assurance.”
Sharing his thoughts, Dinesh Yogaratnam, Chief Marketing and Customer Experience Officer of HNB Assurance, added, “Liya Harasara has grown into more than just an annual campaign, it is a tribute to the Spirit of Womanhood, to resilience, ambition and strength. The 2026 edition has been thoughtfully enhanced to deliver greater value and deeper impact, ensuring women receive protection that truly supports their ambitions and wellbeing. We remain committed to creating solutions that empower confidence and provide peace of mind, enabling women to focus on achieving their goals without compromise.”
Business
Seven decades of sartorial excellence: The legacy of Linton Master Tailors in Kandy
In the 1950s, Linton Wimalasena Udagagedara served as the tailoring instructor at the rehabilitation unit of the Bogambara Prison. Known affectionately by all as “Linton Master,” he laid the foundation for a legacy that would eventually redefine men’s fashion in the hill capital.
In 1958, Linton Master ventured into private business by renting a small shop in Trincomalee Street, Kandy, under the name “Linton Master Tailors.”
Supported by a handful of employees and the unwavering strength of his wife, Srima Alwala, the business began its humble journey. In those early days, Linton Master would travel from Kandy to Pettah, Colombo, walking miles to handpick high-quality fabrics at affordable prices. Though the initial years were a struggle, he never compromised on quality.
Due to his commitment to superior craftsmanship and impeccable finishing, “Linton Master’s Shop” in Trincomalee Street soon became a household name across the Kandy region. By the 1970s, the thriving business moved to Yatinuwara Veediya. As the enterprise grew, Linton Master eventually purchased the rented building and the adjacent premises. In the 1990s, the brand reached its zenith, becoming a hallmark of excellence.
Following the passing of Linton Master in 2009, the business transitioned into a new era. Today, it stands proud at the same familiar location in Yatinuwara Veediya, rebranded as “Linton & Sons Master Tailors.” His legacy is carried forward by his children; while one son manages a printing press and a daughter runs a bridal wear brand under the Linton name, his son Nidarshana Udagagedara has significantly expanded the core tailoring business.
Today, Kandy is home to three main institutions bearing the prestigious Linton brand. Linton & Sons Master Tailors, now employing around 20 skilled professionals, is a nationally recognized name. Known for their international standards, it is said that anyone who gets a full suit tailored at Linton & Sons invariably returns for their second.
The business that once started with fabric handpicked from Pettah now utilizes world-renowned international brands. Linton & Sons is currently the only tailor shop in Kandy that creates garments using prestigious fabrics such as Raymonds, Pacific Gold, Medici, and Macone.
Current Chairman Nidarshana Udagagedara notes that they serve a loyal customer base, with complete groom’s suit packages ranging from Rs. 30,000 to Rs. 90,000. With a highly experienced team, they now offer an exclusive one-day service, allowing customers to have bespoke designs created to their exact specifications in record time.
Spanning seven decades, the Linton lineage, which has brought fame to Kandy, has now successfully expanded from the second generation to the third, ensuring that the master’s stitch continues to define elegance for years to come.
By S.K. Samaranayake
Business
LANKATILES Captivates Architect 2026 with a Spectacular Celebration of Fine Living
At the prestigious Architect 2026 Exhibition, LANKATILES unveiled an immersive Concept Studio of contemporary design, where every surface spoke in allusive ways of exquisite craftsmanship and architectural vision.
Among a host of outstanding participants, the Concept Studio was recognized with two of the exhibition’s highest accolades: Overall Best Stall and Best Trade Stall Displaying Local Products. This is a resounding testament to five decades of trust, quality, and innovation.
The Concept Studio was thoughtfully zoned to evoke the ambiance of curated interiors and sophisticated entryways, unveiling the latest designs introduced to the market. Visitors were guided through a seamless spatial journey, beginning with the Living Zone, where expansive surfaces harmonized durability with refined design to elevate everyday living. The Kitchen Ambience Zone presented a contemporary culinary environment enriched with elegant finishes, demonstrating how functionality and elevated aesthetics coexist in modern homes.
The experience continued into the Bedroom Zone, an intimate and serene setting curated with soothing palettes and luxurious surfaces to create a tranquil retreat defined by comfort and understated elegance. Complementing this was the Bathware Zone — a sanctuary of calm showcasing precision-crafted porcelain surfaces that seamlessly blended purity of form with superior performance, redefining modern bathroom sophistication.
Extending beyond interiors, the Poolside Zone highlighted elegant outdoor settings framed by resilient, high-performance tiles, where aesthetic excellence met enduring strength in expressive interpretations of contemporary luxury. Featuring the latest Mosaic designs alongside the grand large-format tile series, Majestica, each zone illustrated how LANKATILES transforms raw materials into architectural poetry, reinforcing its leadership in innovation and design excellence.
Another defining feature of the Concept Studio was the AI-powered Tile Visualizer; an advanced digital interface designed to offer architects and homeowners an intelligent and immersive visualization experience that redefines the way interiors are selected and conceptualized. Within minutes, users can upload an image of their dream space and instantly explore precisely matched tile designs and colour palettes tailored to their aesthetic preferences.
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