Business
BOC chair optimistic about notable economic growth in 2022
by Sanath Nanayakkare
Bank of Ceylon Chairman Kanchana Ratwatte expects that growth will rebound in 2022 with three primary elements as drivers of the economy, moving forward.
According to his predictions, Sri Lanka should see notable rebound in earnings from tourism, SME sector businesses and foreign remittances.
Speaking at an event held at its Head Office In Colombo yesterday with a multi-religious ceremony to invoke blessings on the staff of the bank, all its customers and all Sri Lankans in general, Ratwatte said, “I see a rainbow on the horizon. Sri Lanka should see a significant rebound in the tourism sector, small and medium enterprises (SME) sector and the country’s foreign remittances base in the first half of the year. The Bank of Ceylon stood as a tower of strength during the Covid-19 pandemic for nearly two years supporting to hold the national economy in place, and will unwaveringly continue to do so until the country gets back to normalcy,” he said.
The following are some excerpts from his speech.
“Today signifies a momentous day in my life. Two years ago, I assumed duties as chairman of this giant organisation which comprises a family strongly bonded with one another. I regard being able to serve for BOC as a great fortune in my life.”
“In the past two years despite challenges caused by the Covid-19 pandemic, BOC was able to give promotions to its employees in compliance with the due process. Also, we absorbed the trainees who had successfully concluded their training into our permanent carder. We were able to give promotions from junior executive ranks up to the echelon of general manager amid the pandemic chaos as a recognition for their dedication and loyalty towards the bank.”
“Most notably, we were able to successfully complete the official process in signing the collective agreement with the trade unions of the bank providing the basis for sound relations between the management and employees.”
“With that said, our happy workforce is not solely because of those motivations but also because of the positive work environment which encourages collaboration and communication; which is a unique feature of the BOC family.”
“BOC’s improved strategies to counter the pandemic saw significant resilience in its foreign remittances base. In 2019, remittances stood at USD 2.5 billion for BOC. In 2020, we managed to reach USD 2.8 billion. Despite the ongoing external challenges, this year we have crossed the USD 3.5 billion benchmark of remittances.”
“We thought the pandemic’s vulnerable conditions would be an opportune moment to launch and implement the BOC Export Circle to support the SME sector to revive the battered businesses and help take the surviving ones to the next level. Last year, BOC placed special emphasis on the revival of businesses through Export Circle.. Thus a revival unit was established to rekindle the businesses hit by the pandemic. I am proud to say that many of these companies have stayed afloat and the BOC has been able to turn around almost Rs. 35 billion worth of assets through this exercise. I see a few smiling faces here who have been served by the Revival Unit of the BOC.”
“BOC managed to overcome most of the issues the pandemic introduced to us out of the blue by ensuring seamless online banking services for our customers. However, most employees reported to work upon ensuring minimised impact of the pandemic on them.”
BOC Chairman Kanchana Ratwatte, General Manager/CEO K.E.D Sumanasiri and CFO Russel Fonseka inaugurate the BOC SME Circle at the BOC Head Office in Colombo yesterday.
Talking about external sector challenges, he said,””A 20-foot container of a particular item that came from Shanghai via Singapore for USD 900 in 2019, costs USD 8000 today. The prices of wheat and petroleum have surged among other commodities. Today a litre of petroleum in India is 104 Indian rupees. It is about LKR 270. The State is still subsidising petroleum products. Has the consumption gone down at current prices? No, it hasn’t. Despite the lockdowns, usage of petroleum increased. Letters of Credit (LCs) opened by the BOC for petroleum imports grew by 20% despite Coronavirus lockdowns. These should be factored into the current situation.”
Talking about revenue from Tourism, he said,” Up to 2019 prior to Easter Sunday attacks, Tourism generated a minimum of USD 4.5 billion. As a result of the pandemic, Tourism sector had to be looked after by other sectors. It was a double whammy on the economy. In contrast, now I see a bright side emerging as more than 200,000 tourists arrived in the country last year.”
“The livelihoods of Sri Lankan migrant workers came to a complete standstill for two years due to travel restrictions imposed globally. Now we see the encouraging trend of them going back to their overseas jobs as well as students going abroad for higher education. On a daily basis, the BOC gets requests from customers to remit amounts ranging from USD 2500 – 20,000 for their children’s higher education requirements. We oblige with that segment of customers regardless of which bank they initially banked with.”
“BOC reached rupees one trillion in its asset base in 2012 – the equivalent of a USD 5 billion worth company when converting the currency at LKR 200 per US dollar. In 2018, it reached two trillion making it a USD 10 billion worth company. In March 2021, we reached the 3 trillion mark which made it a USD 15 billion company. I am proud to say that every year we will be adding USD 5 billion to the asset base of BOC. By next year, we should be a USD 20 billion company. This is the strength on which we continue to serve our customers and the nation at large. Dear customers, let me tell you that BOC is resilient and strong enough to hold the economy until the country gets back to normalcy,” he said.
Emphasising the importance of encouraging Sri Lankan SME and Micro entrepreneurs, the Bank also launched BOC SME Circle yesterday.
In addition to that the Bank launched the BOC Fuel Card. The BOC fuel top-up card is designed to be beneficial to customers who face the hassle in managing their fuel expenses. The card is offered to corporate entities, fleet operators and individuals to add convenience to their daily operations.
Two groundbreaking reports launched by the Pathfinder Foundation in collaboration with the Australian Trade and Investment Commission have laid out a practical vision for Sri Lanka’s economic future, pinpointing the mineral and clean energy sectors as twin engines for sustainable growth and investment.
The reports, unveiled on December 17 in Colombo, present actionable roadmaps for project developers and technology providers, positioning Sri Lanka as an emerging frontier in the global clean energy and critical minerals supply chain.
Key content from the minerals report:
Sri Lanka’s largely underutilised mineral sector holds significant potential, with resources increasingly vital to global industries. The country boasts high-purity graphite, rare earth elements (REEs), mineral sands, and phosphate – all critical for electric vehicles, renewable energy technologies, and high-tech manufacturing.
While current mineral exports are around USD 389 million, the International Trade Centre estimates a potential of USD 778 million, with primary data suggesting the true figure could reach USD 2 billion. To capture this value, the report stresses moving beyond exporting raw materials to domestic refining and beneficiation.
A key strategic recommendation is deeper regional collaboration, particularly under the South Asian Free Trade Area (SAFTA). It highlights an opportunity for Sri Lanka to partner with India’s booming automotive and clean energy sectors, where demand for REEs and permanent magnets is soaring. This could involve upstream Indian investment in Sri Lankan REE resources or exports of rare earth oxides for India’s EV, wind, and electronics industries.
Key content from Clean Energy report:
Parallel to its mineral potential, Sri Lanka is pursuing an ambitious transition to clean energy, targeting carbon neutrality by 2050. The country’s renewable energy sector offers a diverse range of investment and trade opportunities for international stakeholders, spanning large-scale utility projects, distributed generation, and service-based collaborations.
Specific opportunities include utility-scale solar and wind projects, offshore wind resource mapping, and rooftop solar in urban corridors. There is also growing momentum for Battery Energy Storage Systems (BESS) to stabilise the grid, green hydrogen pilot plants, and the development of net-zero industrial parks powered entirely by renewables.
The reports highlight a powerful synergy: Sri Lanka’s minerals are essential for the very clean technologies it seeks to deploy. For instance, its phosphate can be used in lithium iron phosphate (LFP) batteries, while its high-purity quartz is vital for solar-grade silicon.
Australia is identified as a key partner in both sectors. Australian Mining Equipment, Technology, and Services (METS) firms can provide cutting-edge, sustainable mining technology, while Australian expertise in smart grids, BESS, and green hydrogen aligns with Sri Lanka’s long-term energy strategy.
While outlining vast potential, the reports also acknowledge challenges, including regulatory complexities, infrastructure gaps, and the need for enhanced skills development. Proposed solutions include modernising approval processes, developing a national critical minerals strategy, and fostering public-private partnerships.
The consensus from keynote speakers at the event – including Pathfinder Foundation Chairman Bernard Goonetilleke, Australian High Commissioner Matthew Duckworth, and senior representatives from academia, government, and Austrade – was clear. Their collective insight underscored the reports’ central thesis: Sri Lanka is presented with a unique, synergistic opportunity. By strategically developing its mineral wealth and accelerating its clean energy transition in tandem, the nation can attract significant foreign investment, create high-value jobs, and secure a competitive position in the Indo-Pacific’s sustainable economic future.
By Sanath Nanayakkare ✍️
The Commercial Bank of Ceylon has signed a Memorandum of Understanding with Prime Lands and Prime Land Residencies to provide up to 100% financing for customers purchasing condominium units or gated houses developed by the Prime Group, demonstrating the Bank’s unwavering commitment to empowering more Sri Lankans to achieve their dream of home ownership.
The agreement enables prospective homeowners to seamlessly access Commercial Bank’s home loan facilities with tripartite agreements involving the developer, the buyer and the Bank. As the market leader in home loans, Commercial Bank brings unmatched expertise and flexibility to borrowers seeking to invest in properties developed by one of Sri Lanka’s most trusted names in real estate.
Commenting on the partnership, S. Ganeshan, Deputy General Manager – Personal Banking at Commercial Bank said: “This agreement with Prime Lands and Prime Land Residencies creates an excellent opportunity for us to expand our housing loan portfolio while enabling more Sri Lankans to realise one of their life goals. Commercial Bank’s strong home loan offering, combined with Prime Group’s reputation as a leading developer, ensures customers benefit from both financial strength and quality of construction.”
The Prime Group, which positions itself as the leader of real estate artistry in Sri Lanka, comprises subsidiaries associated with lands, houses, finance and condominiums. With over 30 years of trust and excellence and a base of more than 300,000 customers, the Group says it is driven by its evergreen vision: ‘Committed to Creating a Better Place on Earth,’ which continues to inspire its passion to deliver homes that bring customers’ dreams to life.
Mahogany Masterpieces, a Sri Lankan luxury furniture brand, has launched the “An Ode to Grain” collection. This showcase honors mahogany’s natural beauty and the brand’s craftsmanship. The philosophy is to let the wood’s grain guide the design, creating timeless pieces that respect the material. The collection includes new architectural elements like architraves, paneling, and corbels, designed to bring lasting warmth and character to interiors.
Visitors can view the full collection at the Mahogany Masterpieces Showroom and Design Studio which is located at No. 87, Dr. Lester James Peiris Mawatha (Dickman’s Road), Colombo – 05. www.mahoganymasterpieces.com
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