Business

BOC’s Rs. 3 trillion asset base, a measure of its contribution to economy – CFO

Published

5 years ago

2021/04/1

by Sanath Nanyakkare

Bank of Ceylon’s assets base grew by 24% to LKR 2.9 trillion by end 2020 and at the point of speaking it has surpassed the 3 trillion mark, and the importance of this financial number is that it has an intrinsic value of our customers’ assets and growth potential, Russel Fonseka, Chief Financial Officer (CFO) of Bank of Ceylon said in Colombo yesterday.

“If anything happens to the national economy it reflects on BOC’s balance sheet. You may think why rupees three trillion asset base is so important. Because it does not tell a monetary value only. Anybody can give asset base numbers. But our asset base of LKR 3 trillion has an intrinsic value in the national economy. The total of this asset base may not be within the bank itself. It may be within the business peripheries of our customers; their establishments, stocks. tea factories, tea estates farms, agriculture produce, they are included in this three trillion asset base.

‘This financial number of BOC represents all sectors of the economy. That is why we are proud of the increase of our asset base and that is why I said our asset base reflects on the nation economy and not just ourselves. We will be expanding on this value in the future as well contributing to the national economy in a meaningful way,” he said.

“Although the profit in 2020 was less than in the preceding year, we have made the largest profit in the banking industry this year. Some people say that the bank industry is making high profit. That is not the truth. We have broad based assets compared to other industries. We mange and administer them. What we reap from that business is our profit. We make less than 1% profit – or about 0.87% from each of these assets. There is no other industry operating on such low profit margin. But as the quantity of assets we manage is huge, we can make profit. This is the truth although people criticise us sayong the banks are making a lot of profit,” he said.

Fonseka said so at a media briefing held by the top management of the bank to announce the Bank’s Financials for the year 2020.

BOC chairman Kanchana Ratwatte speaking at the event said that the bank ended a strenuous year with undisputed leadership position, keeping spotlight on economic revival.

“Bank of Ceylon has once again stamped its resilient leadership position by navigating an exhausting year carefully, but with great strength, continuously powering the wheels of the Sri Lankan economy despite Year 2020 was a year of many unforeseen challenges”, Ratwatte said.

BOC General Manager D.P.K. Gunasekera said that the Bank partnered with the Central Bank of Sri Lanka to maintain the dollar-rupee exchange rate with the backing of foreign remittances it received from migrant workers.

Amidst these unexpected challenges, the bank’s operating profit stood at LKR 29 billion and a reported LKR 23.6 billion as Profit before Tax (PBT) for the year 2020, moving forward with stable performance, while managing headwinds caused by low interest rates, cashflow deferments and operational restrictions. Profit After Tax (PAT) for the year ended was LKR 17.8 billion. The bank’s assets base grew by 24% to LKR 2.9 trillion, primarily backed by an increase of 28% in the loan book.

Reaching another milestone, the bank’s loan book crossed the LKR 2.0 trillion mark during the year and closed with LKR 2.1 trillion gross loans and advances to customers. Both government and private sector lending contributed to growth during the year, while working capital and personal lending showed a boost in all segments, including retail and corporate financing.

The bank’s deposit base (more than 23% of the industry) increased during the year despite low interest rates. The bank’s deposit base of LKR 2.5 trillion represents 35% of the current and saving deposit (CASA) base, which generates funds at low cost. During 2020 the bank successfully executed issuance of its first Additional Tier 1 (AT1) bond, generating LKR 15.0 billion ATI capital. The bank’s Tier I Capital and Total Capital ratio stood at 11.2% and 14.9% respectively by end 2020, which were above regulatory norms. Despite cash flow deferments on loan instalments, the bank was able to maintain better trade -off between liquid assets and liabilities. All liquid level monitoring ratios were maintained positively.

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Business

Constituent Change in the S&P Sri Lanka 20 Index

Published

18 hours ago

2026/06/26

Thilina Walpola

The Colombo Stock Exchange (CSE) announces the following change in S&P Sri Lanka 20 index constituents made by S&P Dow Jones Indices at the 2026 Mid-Year rebalance.

The exclusion and inclusion as announced by S&P Dow Jones Indices, effective from 22nd June 2026 (after the market close of 19th June 2026) are presented below.

The S&P SL 20 index includes the 20 largest companies, by total market capitalization, listed on the CSE that meet minimum size, liquidity and financial viability thresholds. The constituents are weighted by float-adjusted market capitalization, subject to a single stock cap of 15%, which is employed to reduce single stock concentration.

The S&P SL 20 index has been designed in accordance with international practices and standards. All stocks are classified according to the Global Industry Classification Standard (GICS®), which was co-developed by S&P Dow Jones Indices and MCSI and is widely used by market participants throughout the world.

To be eligible for inclusion, a stock must have a minimum float-adjusted market capitalization of 500 million Sri Lankan rupees (Rs), a six-month median daily value traded of Rs 0.25 million and have positive net income over the 12 months prior to the rebalancing reference date. For information, including the complete methodology, please visit: www.spindices.com

Effective from 22nd June 2026 the stocks in the S&P Sri Lanka 20 in alphabetical order are as above.

Business

Teejay Group navigates industry headwinds with financial strength and strategic focus

Published

18 hours ago

2026/06/26

Thilina Walpola

Teejay Lanka Chairman Ajit Gunewardene and CEO Pubudu De Silva

The Teejay Group recorded revenue of LKR 60.04 billion during the period, reflecting a 10% year-on-year decline, primarily due to continued softness in global textile demand. This performance was largely impacted by reciprocal tariffs imposed by the United States, intensified pricing pressures across key markets, and the resulting decline in volumes, all of which collectively weighed on topline growth.

Group Gross Profit declined by 36% year-on-year to LKR 5.02 billion, mainly attributable to lower production volumes, underutilization of plant capacity, sustained pricing pressures, and an unfavorable product mix. Together, these factors adversely affected margin performance amid a challenging operating environment.

The Group reported a Profit After Tax (PAT) of LKR 54.7 million, representing a 98% year-on-year decline. This was primarily driven by higher rupee-denominated costs and non-recurring items, provision for doubtful debts, and restructuring costs associated with right-sizing initiatives.

Ajit Gunewardene, Chairman of the Teejay Group said, “The year was marked by persistent global demand softness and pricing pressures, which impacted results. Despite this, we focused on operational efficiency, cost discipline, and strengthening our financial resilience. These actions position the Group to navigate ongoing uncertainty while remaining committed to long-term value creation for our shareholders.”

Despite these near-term challenges, the Teejay Group continues to maintain a strong financial position, supported by disciplined working capital management and a robust liquidity base. As at 31 March 2026, cash and cash equivalents stood at LKR 8.3 billion, while the Group’s net asset base increased by 3% year-on-year to LKR 32.4 billion, reinforcing the resilience of its balance sheet.

Business

Fairfirst celebrates 7 years of supporting the Sri Lanka Police K9 Unit

Published

18 hours ago

2026/06/26

Thilina Walpola

Fairfirst Insurance has once again partnered with the Sri Lanka Police K9 Unit, continuing its support for the seventh consecutive year. This partnership reflects the company’s long-standing commitment to giving back to the community.

Through this initiative, Fairfirst will provide comprehensive insurance coverage for the highly trained canines attached to the Sri Lanka Police K9 Unit. These dogs play a critical role in supporting police operations across the country, assisting with crime detection, narcotics investigations, search and rescue missions, and public safety efforts.

As a company that believes business should create a meaningful impact beyond insurance, Fairfirst remains committed to initiatives that support communities and recognise the vital contributions of those who help keep society safe. This shared commitment to protection and responsibility continues to drive the company’s long-standing partnership with the Sri Lanka Police K9 Unit.

Commenting on the continued partnership, Ravishankar Wickneswaran, CEO of Fairfirst Insurance, said, “It is a privilege for us to continue supporting the Sri Lanka Police K9 Unit for the seventh consecutive year. These dogs serve the country with incredible discipline and loyalty, often in challenging situations. Supporting their wellbeing is one small way for us to give back, and it reflects the FairfirstWay of standing by those who protect and serve our communities every day.”

Fairfirst looks forward to continuing this partnership and contributing to the wellbeing of the Sri Lanka Police K9 Unit in the years ahead.