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BOC’s new GM/CEO confident about Bank’s inward remittances hitting USD 4 billion in 2023

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BOC new GM/CEO Russel Fonseka assumes duties at the BOC Head Office in Colombo yesterday with some members of the BOC management in the background along with his wife and daughter. Pic by Saman Ranaweera

Also positive on steering the country’s largest bank successfully as it navigates turbulent conditions

by Sanath Nanayakkare

The Bank of Ceylon (BOC), the leader of inward remittance business in Sri Lanka, is confident that it will be able to regain its past glorious levels of foreign exchange remittances by the end of 2023 or within 2024.

The new General Manager/ Chief Executive Officer of Bank of Ceylon, Russel Fonseka made these comments to The Island Financial Review yesterday after officially assuming duties in the crucial post of the Bank.

“If I remember correctly, BOC recorded its highest foreign remittances of US dollars 4 billion in 2019, and at the rate things are improving currently, we believe that we should be able to reach the same level of inward remittances by the end of 2023 or within 2024,” he said.

Having joined the BOC in 1990, Fonseka has notched up 33 years of service with the banking giant and was serving as the Additional General Manager and the CFO before assuming duties as the 23rd General Manager of the Bank.

Russel Fonseka has successfully steered and given leadership to the various divisions that came under his purview. He has held the positions of Chief Financial Officer, Head of Finance and Planning, Head of International, Treasury and Investments, Head of Retail Banking and Head of Corporate and Offshore Banking. The exposure to many areas of banking would be a distinct advantage as he faces the task of steering the premier bank in Sri Lanka during what looks to be the most turbulent period the country and the globe has faced in recent times.

Fonseka said that he took up the challenge not only because of his confidence to steer the Bank through the turbulent times and give crucial support to the national economy, but also due to his confidence in the capabilities and commitment of the senior management and staff that he is supported by.

Responding to a question by the media about the Bank’s ability to provide US dollars to its customers for their international trade transactions, he said,” After the Central Bank of Sri Lanka (CBSL) effected the relaxation on exchange rate, we have been able to fulfill the dollar requirement of our customers. In addition to that, many other Sri Lankan customers come to BOC for their foreign currency requirement and we oblige them too.”

He pointed out that the exchange rate relaxation helped minimise the gap between the official and the unofficial exchange rate of the US dollar.

“In this backdrop, now a lot of expatriate workers have turned back to remitting their earnings through formal banking channels. This has increased BOC’s inflow of foreign remittances. In the last couple of months, we were able to contribute a huge sum of foreign exchange to the national economy to finance the import of fuel and other essential commodities. We think that we will be able to further increase this capacity and elevate our ability to match the foreign exchange requirement of the country.”

When asked about high lending rates, he said,” While new loans will have to be worked out at current market rates, the business loans we had given some time back are still effective at lower rates. This means still there are business customers who are enjoying 12%-18% rates depending on the rates regime they had chosen at the time. For hardly any customers have we increased our lending rates to 30%.” he said.

“Our non-performing loans (NPLs) compared to the industry are at a very low level because of our unique loan recovery concept. We don’t want to take our non-paying borrowers who are genuinely in trouble to court. Instead we collaborate with them and help them constantly for the recovery of their businesses,” he said.

Giving his thoughts about the trajectory of interest rate movements in the future, he said, “Even though the current interest rate in the market is 30% as influenced by the T-bill and T-Bond rates, we have taken some initiatives to moderate it. We have a small cartel in the banking industry and we have decided not to pay more than 26% for fixed deposits. In the time to come, we are planning to decrease it further. We hope this will help us reduce our lending rates to businesses and entrepreneurs and achieve real growth in the economy through export-oriented manufacturing and providing of services to the key markets of the world.”



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HNB partners IDEAL Motors to drive financial freedom through vehicle leasing solutions

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HNB, Senior Vice President/Head of Retail Banking, Kanchana Karunagama and Director of Legal & Corporate Affairs, Nimisha Welgama sharing the MoU, alongside the representatives from both organizations

HNB PLC, the leading private bank in Sri Lanka, has partnered with IDEAL Motors (Pvt) Limited to provide customers with attractive leasing solutions for brand-new vehicles & generators .

The partnership introduces a range of benefits designed to support individuals, entrepreneurs, and businesses seeking reliable vehicle and power solutions. Through this collaboration, customers can access structured lease facilities, special interest rates, free life insurance coverage, and attractive discounts through HNB General Insurance.

Commenting on the partnership, HNB, Senior Vice President/ Head of Retail Banking, Kanchana Karunagama, said, “At HNB, we believe that the right financial support can help people and businesses move forward with greater confidence. This partnership with IDEAL Motors shows our commitment to creating meaningful solutions that make vehicle and power investments more accessible, while helping our customers achieve their personal and business aspirations. By combining HNB’s financial expertise with IDEAL Motors’ industry capabilities, we are creating opportunities that support the ambitions of Sri Lankans and contribute towards a stronger, more connected economy.”

Customers purchasing vehicles through IDEAL Motors will also benefit from exclusive offers including free registration, and discounts on Bolero Maxx Pik-Up, Alfa Plus Load Carrier, Mahindra Pik-Up Single Cab, Mahindra Pik Up Double Cab, XUV 3XO vehicles, creating greater value throughout their ownership journey.

IDEAL Motors (Pvt) Limited, Director Legal and Corporate Affairs, Nimesha Welgama, said, “Our collaboration with HNB represents a shared commitment to supporting Sri Lankans in achieving greater financial independence through accessible ownership solutions. By combining IDEAL Motors’ mobility and power solutions with HNB’s financial expertise, we aim to empower individuals and businesses with opportunities that contribute to economic progress and community development. This partnership highlights our vision of creating lasting value by enabling customers to confidently invest in their future.”

With IDEAL Motors recognised for its diverse portfolio of automotive and power solutions, and HNB’s extensive expertise in financial services, the partnership aims to provide a seamless experience from selection to ownership, supported by flexible financing options and customer focused solutions.

The partnership further strengthens HNB’s commitment to supporting economic progress by providing financial solutions that enable customers to invest in personal mobility, commercial growth, and business continuity. Through collaborations with leading industry partners, HNB continues to expand opportunities for Sri Lankans while delivering a banking experience built around accessibility, trust, and value.

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Sri Lanka Insurance Corporation General and the Ministry of Education committed to protect Sri Lanka’s schoolchildren

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Sri Lanka Insurance Corporation General Ltd (SLICGL) and the Ministry of Education, Higher Education and Vocational Education share a commitment to protect Sri Lanka’s children throughout their school education. The pledge is delivered through the Suraksha Student Insurance Scheme, which protects over 4 million school children.

The Government of Sri Lanka, through the Ministry of Education, Higher Education and Vocational Education, provides the Suraksha Student Insurance Scheme free of charge to schoolchildren throughout the country. SLICGL is proud to partner with the Ministry in delivering this national initiative, which helps safeguard students against the financial impact of unforeseen circumstances.

Eligible students include those aged 5-21 years in Grades 1-13 from government schools, government-approved private schools, and Pirivena education, as well as students aged 4-21 years in assisted special schools.

The scheme provides hospitalisation, outpatient and critical illness cover, as well as personal accident cover for permanent and temporary disability, together with a life insurance benefit for children from low-income families on the death of a parent. Cover applies to incidents within and outside school premises.

For a child, an illness or accident can be far more than a temporary setback. It can place added pressure on a family and, in some circumstances, disrupt schooling. Suraksha acts as a safety net, giving children and their families greater peace of mind and helping them stay in school despite life’s uncertainties. The scheme is easily accessible through SLICGL’s islandwide network of 200 branches and customer service centres.

Children’s Day is a celebration of hope, the hope for every child to have the opportunity to learn, grow and build a better future. Celebrating children also means protection, not for a single day but for every day they spend in the classroom.

Commemorating Children’s Day, SLICGL extended support towards the educational needs of children at an underprivileged school. The project highlighted the company’s belief in protecting the future not only by being supportive when the unexpected happens, but also in helping create an environment in which children can learn, grow and fulfil their potential.

As Sri Lanka’s National Insurer, SLICGL’s role goes further than protecting people against risk. It is also about contributing to a stronger, safer and more resilient country as children’s education, wellbeing and aspirations contribute directly to help build the journey ahead.

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Vietjet launches Hanoi to Prague route via Almaty, expanding to Central Asia and Europe

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Inaugural celebrations for the new Prague to Almaty and Prague to Hanoi services mark an important milestone in Vietjet’s intercontinental network expansion

Vietjet, which already flies between Colombo and Ho Chi Minh City, has officially launched new services connecting Hanoi with Almaty, Kazakhstan, and Prague, Czech Republic, as well as Almaty with Prague, expanding its intercontinental network and marking its entry into the European Union. The new air links offer more affordable travel options while fostering greater tourism, trade and cultural exchange between Asia and Europe.

For Sri Lanka, the new routes widen the network that Vietjet is building out of Colombo. The airline has operated non-stop flights between Colombo and Ho Chi Minh City since August 2026, three times a week on Tuesdays, Thursdays and Saturdays, while its new Ho Chi Minh City to Maldives service via Colombo is scheduled to begin on 5 December 2026. With Hanoi now linked to Central Asia and Europe, Sri Lankan travellers have a growing choice of destinations reachable through Vietjet’s extensive network.

The inauguration ceremonies took place at Almaty International Airport and Václav Havel Airport Prague on 10 October, amid a warm welcome from local leaders, residents and visitors. The inaugural flights were greeted with traditional water cannon salutes and performances showcasing local cultural heritage, marking the beginning of new journeys connecting the three regions and welcoming international travellers to Vietnam. Passengers on the inaugural flights also received commemorative gifts from Vietjet and the airports, adding a special touch to their journeys.

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