Business

‘Mission focus’ helps ComBank Group end tough 2021 with solid growth

Published

4 years ago

2022/02/28

Sahan Weerasooriya

Net interest income up 30.56% to Rs 66.416 billion

Bank’s CASA ratio strengthens further to 47.83%, an industry benchmark

Bank’s Cost to Income Ratio (excluding VAT on Financial Services)

improves to 31.61% from 33.95% at end 2020 and 38.51% at end 2019

Total taxes increased to Rs 14.512 billion

Impairment charges increased by 17.37% to Rs 25.140 billion

The Commercial Bank Group has ended 2021 with gross income of Rs 163.675 billion, an improvement of 7.70%, with interest income accounting for more than 80% of the top line in a year of mixed fortunes.

The Group, comprising the Commercial Bank of Ceylon PLC – Sri Lanka’s largest private sector bank – its subsidiaries and the associate, reported interest income of Rs 132.818 billion for the year ended 31st December 2021, reflecting a growth of 7.04%. With interest expenses for the year reducing by 9.31% to Rs 66.402 billion, the Group achieved net interest income of Rs 66.416 billion, an increase of 30.56%.

The final quarter of the year saw interest income growing by 17.84% to Rs 36.592 billion and accounting for more than 83% of the Group’s three-month gross income of Rs 43.625 billion, which was up 13.76% over the fourth quarter of 2020. This was despite interest expenses increasing by 4.30% to Rs 17.709 billion in the final quarter due to an increase in interest rates.

Total operating income for the year under review grew by 21.98% to Rs 93.598 billion, and the Group’s impairment charges and other losses increased by 17.37% to Rs 25.140 billion.

Net operating income for the full year improved by a healthy 23.77% to Rs 68.458 billion, but grew by a comparatively lower rate of 7.89% to Rs 17.504 billion due to the higher impairment charges provided in the fourth quarter, the Bank said. Total operating expenses increased by 12.93% to Rs 29.658 billion consequent to an increase in personnel expenses following the signing of a Collective Agreement effective January 2021, while general cost increases resulted in other operating expenses for the year growing by 18.01% to Rs 9.638 billion.

Operating profit before VAT on Financial Services grew by a noteworthy 33.58% to Rs 38.801 billion and the Group’s VAT on Financial Services for the year increased by 28.99% to Rs 5.845 billion, while profit before income tax for the year improved by 34.41% to Rs 32.957 billion. With income tax charges increasing at a relatively lower rate of 16.60% to Rs 8.667 billion due to the reduction in the income tax rate, the Group posted a profit after tax of Rs 24.290 billion for the year, achieving a growth of 42.16% before providing for the proposed Surcharge Tax, which had not been enacted in Parliament at the time of reporting. It has therefore not been provided for in the year reviewed.

Taken separately, Commercial Bank of Ceylon PLC reported a profit before tax of Rs 32.001 billion for the year under review, achieving a robust growth of 36.11% and profit after tax of Rs 23.606 billion, recording an improvement of 44.17%.

Commenting on these results, Commercial Bank Chairman Justice K. Sripavan said: “The performance of the Group can be described as exceptional when the external challenges of the year are factored in. Our focus on the core mission and the needs of the hour resulted in emphasis being placed on enhancing customer experience, and we are proud of the ways in which our teams served with utmost dedication, putting our customers first as they have done for the past 101 years.”

Commercial Bank Managing Director and Group CEO S. Renganathan pointed out that the Bank was able to improve on its key performance ratios in 2021, to become even more financially stable and better-positioned to continue its mission as a systemically important bank. “In the face of uncertainty, we continued to build on our last year’s momentum and relief programs, emerging as the leading lender for COVID-19 relief among private sector banks in Sri Lanka,” he said. “We have continued to demonstrate remarkable operating resiliency throughout the pandemic through customer focus, digital engagement and operational excellence.”

Total assets of the Group grew by Rs 221 billion or 12.54% over the year to reach Rs 1.983 trillion as at 31st December 2021.

Gross loans and advances of the Group increased by Rs 133 billion or 13.83% to Rs 1.095 trillion, recording a monthly average growth of Rs 11 billion over the 12 months.

Total deposits of the Group recorded an improvement of Rs 186 billion or 14.46% in the 12 months reviewed at a monthly average of Rs 15.5 billion to reach Rs 1.473 trillion as at 31st December 2021.

A noteworthy achievement of the year under review was the continuing improvement of the Bank’s CASA ratio, an industry benchmark. For the year ended 31st December 2021, the Bank’s CASA ratio stood at 47.83% improving from 42.72% at the end of 2020.

Elaborating on some of the highlights of the income performance for the year under review, the Bank said that net fee and commission income of the Group improved by a steady 24.64% to Rs 12.242 billion, while net other operating income grew by 28.72% to Rs 10.002 billion, helped by exchange gains of Rs 1.4 billion. The Group posted a net gain of Rs 1.936 billion from trading and a net gain of Rs 3.002 billion from de-recognition of financial assets, the latter figure reflecting a decline due to a reduction in gains from the sale of Treasury Bonds and Sovereign Bonds.

In other key indicators, the Bank’s basic earnings per share improved by 33.49% from Rs 14.81 to Rs 19.77, while its net assets value per share increased to Rs 138.08 from Rs 134.67 as at end 2020.

The Bank’s Cost to Income Ratio before VAT on Financial Services improved to 31.61% at the end of the year under review from 33.95% at the end of 2020 and 38.51% at the end of 2019. The Cost to Income Ratio inclusive of VAT on Financial Services improved to 37.97% from 39.96% at end 2020 and 49.41% at the end of 2019.

The Bank’s Tier 1 Capital Adequacy Ratio (CAR) stood at 11.923% as at 31st December 2021, and its Total Capital Ratio stood at 15.650%, compared to the revised minimum requirements of 9% and 13% respectively imposed by the regulator consequent to the COVID-19 pandemic.

The Bank’s gross non-performing loans (NPL) ratio improved to 4.62% from 5.11% at end 2020, while its net NPL ratio improved to 1.44% from 2.18% as at 31st December 2020.

The Bank’s interest margin improved to 3.51% from 3.17% for the year 2020. Similarly, the Return On Assets (before taxes) and Return On Equity too improved to 1.74% and 14.66% respectively for the year ended 31st December 2021 compared to 1.51% and 11.28% a year ago.

All News Advertisement

Business

ADB announces financial support package to help Asia and Pacific

Published

21 hours ago

2026/03/27

Thilina Walpola

The Asian Development Bank (ADB) has announced a financial support package to help its developing member countries (DMCs) mitigate the economic and financial impacts resulting from the conflict in the Middle East.

“ADB will deliver rapid, flexible, and scalable assistance to help countries manage immediate pressures and strengthen long-term resilience, notably fast-disbursing budget support and trade and supply chain finance to secure the import of essential goods, now including oil,” said ADB President Masato Kanda. “This builds on our strong track record of supporting Asia and the Pacific through periods of global uncertainty.”

ADB has ample resources to safeguard existing and planned operations, while expanding emergency support in line with DMC needs, including utilizing its countercyclical lending buffer.

The bank is closely monitoring global market developments and their potential implications for economies across Asia and the Pacific, particularly regarding energy price volatility, inflationary pressures, and external account balances.

The latest ADB analysis indicates that disruptions to shipping routes have already increased costs and delivery times, while supply risks extend beyond energy to key industrial inputs such as petrochemicals and fertilizers, with serious implications for agriculture and food production. Tourism- and remittance-dependent economies face compounding vulnerabilities beyond these initial shocks. Furthermore, the conflict is increasing uncertainty and tightening financial conditions across the region, putting pressure on currencies and capital flows.

In response, ADB is ready to deploy timely financial and technical support to help DMCs manage risks, maintain macroeconomic stability, and protect vulnerable populations. There are two main components to ADB’s intervention. The first is fast-disbursing budget support to help DMCs facing heightened fiscal pressures, notably the use of the bank’s Countercyclical Support Facility to help governments stabilize their economies and mitigate the impact of shocks on the lives and livelihoods of those most at risk.

The second is ADB’s Trade and Supply Chain Finance Program (TSCFP), which supports the private sector to ensure critical imports, including energy and food, continue to flow. The bank has decided to reactivate support for oil imports under the program on an exceptional basis for this limited period. This decision acknowledges that economies and people across the region are being severely affected by the rapid surge in oil prices and supply chain disruptions.

ADB has begun discussions with all severely affected DMCs on possible immediate support and will continue to work closely with governments, development partners, and the private sector to ensure coordinated and effective responses to maintain economic stability and protect the poor and most vulnerable.

ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.

Business

Global GIS celebrates 12th anniversary with grand opening of new office building

Published

22 hours ago

2026/03/27

Thilina Walpola

Jeewan Suranga, Director (L), and Nishshanka De Silva, Managing Director of Global GIS (Pvt) Ltd (R), opening the new head office

Global GIS (Pvt) Ltd, the pioneer of geospatial positioning solutions in Sri Lanka, celebrated its 12th year of successful operations with the grand opening of its new spacious 3-story head office building at 6th Lane, Pagoda Road, Nugegoda. The grand opening was followed by a series of religious events held at the new premises.

“As the pioneer in geospatial solutions in Sri Lanka, we are delighted to be celebrating this significant milestone in our journey by relocating to a more spacious premises warranted by the growth that we have been experiencing over the years. Furthermore, we have designed the new head office premises to add more value to our customers in terms of training, capacity building, and product demonstrations with a state-of-the-art auditorium,” stated Nishshanka De Silva, Registered Licensed Surveyor, Managing Director – Global GIS (Pvt) Ltd.

“This milestone serves as a testament to our dedication to innovation, leadership, and excellence. With our experience, our team of dedicated staff, and with the support of our long-standing partners, we are committed to providing our expertise in line with international best practices in the geospatial services industry,” he added.

“Global GIS operates a high-precision CORS (Continuously Operating Reference Stations) network that covers Sri Lanka, with strategically positioned GPS/GNSS receivers providing users with high-accuracy positioning data in real time”.

Business

NPCI International strengthens UPI Merchant Acceptance in Sri Lanka

Published

22 hours ago

2026/03/27

Thilina Walpola

Ritesh Shukla

For merchants:UPI provides access to a large, digitally savvy customer base, improves cash management, reduces dependence on physical currency and enhances operational efficiency

For travellers:UPI offers the convenience of real-time payments, transparent exchange rates, and a familiar, secure payment experience

NPCI International Payments Limited (NIPL), the international arm of the National Payments Corporation of India (NPCI), has reaffirmed its commitment to expanding Unified Payments Interface (UPI) merchant acceptance in Sri Lanka. The initiative aims to enhance cross-border payment experiences for Indian tourists, support Sri Lanka’s growing digital economy, and further strengthen the deep economic and cultural ties between India and Sri Lanka.

UPI, India’s real-time, account-to-account payment system, enables instant and secure transactions through mobile applications. Processing over 20 billion financial transactions monthly, it has emerged as one of the world’s most advanced digital payment infrastructures. With over 700 million UPI QR- touch points across India, its open, interoperable architecture and strong security framework allows it to integrate seamlessly with international payment ecosystems, including Sri Lanka’s LankaQR infrastructure.

India has consistently remained Sri Lanka’s leading source for tourism. Over 4,16,000 Indian tourists visited the island in 2024, and this number grew to 5,31,000 in 2025, accounting for the highest share of total international arrivals. With this year-on-year growth, the need for seamless and reliable payment solutions has become even more crucial. Indian visitors travel to Sri Lanka for leisure, weddings, shopping, and spiritual tourism, highlighting the importance of smooth, secure, and convenient payment options throughout their journey.

Through the collaboration between NPCI International and LankaPay, Indian tourists can make digital payments across Sri Lanka by simply scanning LankaQR using their preferred UPI-enabled mobile applications, minimising the need to carry or exchange physical cash. UPI payments are now enabled at leading establishments including Cinnamon Hotels, Taj Hotels, Barista, Keells Supermarket and Odel, amongst others.To support this growing corridor, NIPL has been actively engaging with key stakeholders in Sri Lanka, including the Central Bank of Sri Lanka, acquiring banks, and key merchants, to scale UPI acceptance in line with Sri Lanka’s domestic payment framework.

This integration has significant advantages for both merchants and customers. For travellers, UPI offers the convenience of real-time payments directly from their Indian bank accounts, transparent exchange rates, and a familiar, secure payment experience. For Sri Lankan merchants, it provides access to a large, digitally savvy customer base, improved cash management, and reduced reliance on physical currency, driving greater operational efficiency.

Ritesh Shukla, MD & CEO, NPCI International, said, “NPCI International is committed to building trusted, interoperable payment corridors that bring countries closer through technology. Our engagement in Sri Lanka reflects a shared vision to enhance digital payment acceptance, simplify travel and commerce for millions of people, and create value for local businesses and the wider economy. Through our partnership with LankaPay, we are advancing seamless, secure, and real-time transactions that strengthens the economic partnership between India and Sri Lanka.”

As UPI adoption progresses, NIPL will continue working closely with Sri Lankan regulators, ecosystem players, and merchants to extend acceptance across high-frequency sectors such as hospitality, retail, tourism, and essential services. Recognized by the IMF as the world’s largest real-time payment system, powering 49% of global instant payments, UPI presents a significant opportunity for Sri Lankan merchant to elevate the travel experience for Indian visitors, boosting economic activity and enhancing cross-border commerce between the two nations.