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ComBank takes lending to new levels in mission-focused 2025

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Sharhan Muhseen, Chairman, and Sanath Manatunge, Managing Director and CEO of Commercial Bank

The Commercial Bank of Ceylon achieved another performance milestone in 2025, becoming the first private sector bank in the country to expand its loan book beyond Rs. 2 Tn., with a growth of Rs. 541 Bn. over 12 months at a monthly average of over Rs. 45 Bn., demonstrating its commitment to national economic resurgence.

Recording the highest annual loan growth in absolute terms in the history of the institution, the Bank said gross loans and advances for the year ending 31st December 2025 grew by 36.37% to Rs. 2.028 Tn., taking total assets to Rs. 3.258 Tn. This reflected an increase of Rs. 468 Bn. or 16.78% and demonstrated more than double the growth recorded in 2024. The Bank’s net assets value per share improved to Rs. 198.30 from Rs. 170.94 at end 2024.

Deposits grew by 16.65% or Rs. 372 Bn. over the 12 months to end the year at Rs. 2.6 Tn., reflecting an average deposit growth of over Rs. 30 Bn. per month despite relatively lower interest rates, the Bank said. The CASA ratio of the Bank, which is considered to be the industry’s best, stood at 39.65% from 38.07% as at 31st December 2024.

Commenting on the Bank’s performance in 2025, Mr Sharhan Muhseen, Chairman of Commercial Bank said: “We remain focused on the fundamentals that sustain shareholder value: earnings resilience, balance sheet strength, disciplined risk management and a strategy that is responsive to evolving customer and market needs. Our 2025 performance affirms the value of that focus.”

Sanath Manatunge, Managing Director/CEO of Commercial Bank said: “In 2025, we proved that scale and discipline can move together, growing lending and accelerating digital activity while strengthening asset quality and balance sheet resilience. This is how we build durable value, supporting productive growth without compromising governance and risk standards.”

In a filing with the Colombo Stock Exchange (CSE) the Bank said it recorded gross income of Rs. 354.81 Bn. for the year ending 31st December 2025 reflecting growth of 13.70% over the normalised figure for 2024, after adjusting for the impacts of restructuring of Sri Lanka International Sovereign Bonds (SLISBs) accommodated in that year, in order to avoid potential distortion of growth figures. Net gains / (losses) from derecognition of financial assets in the Income Statement for 2024 (as reported) included a derecognition loss on restructuring of SLISBs amounting to Rs. 45.108 Bn.

On the same basis, interest income for the 12 months grew by 8.91% to Rs. 293.61 Bn. helped by substantial growth in the Bank’s loan book. Interest expenses grew by a nominal 1.47% to Rs. 157.32 Bn., enabling the Bank to post a net interest income of Rs. 136.29 Bn., an increase of 18.97%.

The Bank reported net fee and commission income of Rs. 27.50 Bn. for the year, an improvement of 22.05%, with increased income from credit and debit card-related services and commission income from loans & advances and deposits related services as the main contributors to this growth. Other income grew by 119.77% to Rs. 20.24 Bn. after adjusting for the impact of Rs. 45.108 Bn. on debt restructuring on the 2024 figure. Net other operating income including exchange profit on revaluation of assets and liabilities increased by 134.43% to Rs. 17.16 Bn. from the normalised 2024 figure of Rs. 7.32 Bn.

Total operating income improved by 81.87% to Rs. 184.03 Bn. and the Bank’s impairment charges and other losses amounted to Rs. 22.51 Bn. for the year under review. In 2024, the Bank increased its provisioning for impairment on a prudential basis for loans and advances, as a consequence of which impairment charges for 2025 reflected a drop of 19.33% over the previous year’s normalised figure of Rs. 27.90 Bn. Impairment charges and other losses for 2024 included a reversal of Rs. 87.215 Bn. on restructuring of SLISBs (as reported).

As a result, the Bank posted a net operating income of Rs. 161.52 Bn. for the 12 months, an improvement of 36.42% over the normalised figure for 2024. Operating expenses, at Rs. 54.59 Bn., increased by only 9.94% due to prudent cost management initiatives, resulting in operating profit before taxes on financial services growing by a noteworthy 55.55% to Rs. 106.93 Bn. over the normalised figure for 2024.



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A sustained wave of Indian assistance to Sri Lanka showcases defining shift in developmental diplomacy

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Transport Minister Bimal Rathnayake and Indian High Commissioner Santosh Jha at the plaque unveiling ceremony for the Moragahakanda Bridge project, supported by Indian grant assistance.

By Sanath Nanayakkare

An evolving approach to regional diplomacy was brought into sharp focus with the recent foundation-laying ceremony for the Moragahakanda Bridge in Matale.

Jointly launched by Indian High Commissioner Santosh Jha and Minister of Transport, Highways and Urban Development Bimal Rathnayake, this 175-metre span is far more than a routine civil engineering project. It serves as the physical manifestation of a broader USD 450 million reconstruction package deployed by India in the wake of Cyclone Ditwah, which severely fractured the island’s transport arteries.

Foreign aid is too often discussed in cold, macroeconomic abstractions. Yet, every so often, a consistent pattern of targeted assistance alters the landscape of bilateral relations, offering a clear window into how regional partnerships evolve out of necessity and goodwill.

Across the country today, a remarkable narrative of multi-layered cooperation is unfolding.

From critical post-disaster infrastructure and maritime routes to grassroots agricultural uplift and institutional capacity-building, India’s developmental footprint is shifting unmistakably toward an organic, people-centric model of shared resilience.

What distinguishes this latest wave of assistance is its deliberate pivot from emergency support to permanent, climate-resilient transformation. When Cyclone Ditwah initially paralysed regional connectivity, India’s immediate response was marked by the rapid deployment of temporary Bailey bridges.

Today, that swift humanitarian intervention has matured into a structural blueprint: the Moragahakanda project stands as the vanguard of 13 permanent bridges being built across Sri Lanka’s provinces by IRCON International Limited, complemented by upcoming railway upgrades and modern signaling systems backed by a USD 250 million Line of Credit.

The true signature of this diplomatic shift lies in its breadth, operating simultaneously across multiple tiers of society:

Institutional Governance: Delegations of Sri Lankan parliamentarians and senior administrative officers regularly travel to India to study public policy frameworks, legislative systems, and administrative practices.

Economic Lifelines: Financial mechanisms, such as viability gap funding for the Nagapattinam-to-Kankesanthurai passenger ferry service, continue to shrink geographical distances, reviving coastal commerce and tourism.

Grassroots Empowerment: Specialised capacity-building programmes tailored for local stakeholders – ranging from state officials to rural dairy farmers -ensure that development reaches deep into the island’s hinterlands.

By aligning immediate disaster relief with long-term infrastructure, institutional capacity, and human capital, India and Sri Lanka are demonstrating how neighbours can build safer, more connected futures together, grounded firmly in mutual respect and tangible progress.

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Bring your own bag to book fair, CEA urges

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By Ifham Nizam

The Central Environmental Authority (CEA) yesterday urged visitors to the Colombo International Book Fair to bring reusable bags to carry their purchases, as part of a drive to reduce single-use plastic waste at the event.

CEA Director General R. S. P. Kapila Rajapaksha said large quantities of plastic, particularly “sili sili” bags, had been used to carry books at previous book fairs.

“We urge visitors to bring an environmentally friendly, reusable bag when they come to buy books. This simple step can help reduce the use of single-use plastic and protect the environment,” Rajapaksha said.

The book fair opens on September 25, with the CEA and the Sri Lanka Book Publishers’ Association launching an awareness programme targeting book sellers, food vendors and visitors.

The programme will be conducted under the theme “Read Smart, Carry Smart”, focusing on reducing polythene and plastic use throughout the exhibition.

The CEA said the use of plastic bags is also subject to regulations issued under the Consumer Affairs Authority Act. Gazette Extraordinary No. 2456/41, dated October 1, 2025, prohibits the free distribution of handled “sili sili” bags to consumers. Where such bags are sold, the charge must be included in the customer’s bill.

The CEA said food outlets at the book fair would also be required to comply with regulations prohibiting a range of single-use plastic products.

These include plastic straws and stirrers, disposable plastic plates, cups, spoons, forks and knives, as well as polythene-based food wrappers commonly known as lunch sheets.

The CEA said it had discussed the requirements with relevant stakeholders and reached agreement to ensure that prohibited products are not used at food outlets within the exhibition premises.

The authority urged both traders and visitors to cooperate with the initiative and help make this year’s book fair a more environmentally responsible event.

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Japanese investor Yoshimichi Watanabe backs Hunas Holdings

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Yoshimichi Watanabe / Tanaka - Director Hunas Holdings PLC

Partnership signals renewed foreign investor confidence in Sri Lanka as a destination and in the long-term growth of its hospitality sector

Japanese investor Yoshimichi Watanabe has entered into a partnership with Colombo Stock Exchange-listed Hunas Holdings PLC, in a move that comes as the diversified conglomerate prepares a significant expansion of its hospitality and real estate interests in Sri Lanka.

The partnership brings foreign capital and international market experience into one of Sri Lanka’s fastest-diversifying listed groups at a point when the Group is actively building out its pipeline across both sectors. Hunas Holdings is currently evaluating a series of hospitality and real estate developments in Sri Lanka, with further announcements expected in the coming months.

Hunas Holdings PLC operates across hospitality and leisure, real estate, renewable energy and agriculture, with a hotel portfolio that includes Hunas Falls in Elkaduwa

For Sri Lanka, the significance of the partnership extends beyond the two parties. Inbound investment of this nature, from an investor with direct and sustained experience of the market, is a measure of returning confidence in the country as a destination and in the underlying fundamentals of its hospitality sector, at a time when the industry is repositioning towards higher-value, experience-led travel.

Watanabe brings investment experience across e-commerce, hospitality and real estate in Japan and in international markets including Bali, Indonesia. He has also maintained a relationship with Sri Lanka over many years, having made multiple investments in the country, giving him first-hand insight into its business environment, regulatory landscape and long-term potential.

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