Business
BOC’s new GM/CEO confident about Bank’s inward remittances hitting USD 4 billion in 2023
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.”
The inaugural Sri Lanka Fintech Summit 2025 concluded with industry leaders and regulators establishing two critical national priorities: a bold target to reduce physical cash usage and a push for consolidated regulatory oversight.
In a key decision, participants set a clear three-year goal to lower the ratio of cash in circulation to GDP from 4.5% to 3.5%. The strategy will focus on digitizing high-cash sectors like transport, utilities, and SME payments, while expanding digital access through post offices and cooperatives.
For the long-term health of the ecosystem, stakeholders agreed to lobby for the creation of a single, unified regulatory authority dedicated to fintech oversight. This aims to streamline approvals and provide clearer guidance for innovators.
“Our members needed to leave with concrete action points,” said Channa de Silva, Chairman of the Fintech Forum, Sri Lanka. The summit, designed as a series of closed-door roundtables with regulators including the Central Bank, produced actionable frameworks. “It was about defining KPIs, setting targets, and giving the industry a shared direction,” de Silva explained.
The outcomes signal a concerted shift from discussion to execution, aiming to build a more inclusive, efficient, and secure digital financial economy for Sri Lanka.
By Sanath Nanayakkare ✍️
A new force in Sri Lanka’s food industry, Kukus Group, is gaining momentum with a clear vision to deliver authentic cuisine, high hygiene standards, and affordability. Founded by young entrepreneurs Nadeera Senanayaka, Lakmini Gurusinghe, and Randila Gunasinghe, the group has successfully launched its pilot outlet and is now preparing for a significant nationwide expansion.
The inaugural in Kotte has served as a successful proof of concept. Operating for five months, this modern street-food outlet has garnered a strong customer response, confirming market demand and providing the confidence to fund the group’s ambitious growth strategy.
The inaugural in Kotte
“The positive reception has been overwhelming and has solidified our plans,” said Lakmini Gurusinghe and Randila Gunasinghe. “Our Kotte outlet is the operational model we will replicate – ensuring consistent quality, disciplined operations, and excellent service across all future locations.”
The group’s expansion strategy is built on three distinct thematic brands:
Kukus Street: Targeting young urban customers, these outlets offer a vibrant, casual dining experience with a menu of Sri Lankan rice and curry, kottu, snacks, and BBQ, with most meals priced under Rs. 1,500. Services include dine-in, takeaway, and delivery.
Kukus Beach: Planned for coastal areas, beginning in the South, this concept will feature an urban-style beach restaurant and pub designed for relaxed social dining.
Kukus Bioscope: Celebrating Sri Lanka’s cinematic heritage, this dedicated restaurant concept will create a nostalgic cultural space inspired by the golden eras of Sinhala cinema, with the first outlet slated for Colombo.
The immediate plan includes transforming the flagship Kotte location into Kukus Pub & Bar, pending regulatory approvals. The long-term vision is to develop 18 outlets nationwide: 10 Kukus Street locations, 5 Kukus Beach venues, and 3 Kukus Bioscope establishments.
“Kukus Group is more than a hospitality brand; it’s a celebration of Sri Lankan flavors and culture,” the founders concluded. “Our mission is to build trusted, recognizable brands that connect deeply with communities and offer lasting cultural value alongside authentic cuisine. We are dynamic and excited to proceed with this strategic expansion,” they said.
By Sanath Nanayakkare
Fcode Labs marked its seventh anniversary by hosting its annual Awards Night 2025 at Waters Edge, celebrating team achievements and reinforcing its organizational values.
The event featured keynote addresses from Co-Founders & CEOs Buddhishan Manamperi and Tharindu Malawaraarachchi, who reflected on the company’s annual progress and future strategy. Chief Operating Officer Pamaljith Harshapriya outlined operational priorities for the next phase of growth.
Awards were presented across three key categories. Prabhanu Gunaweera and Dushan Pramod received Customer Excellence awards for partner collaboration. Performance Excellence awards were granted to Munsira Mansoor, Thusara Wanigathunga, Thushan De Silva, Adithya Narasinghe, Avantha Dissanayake, Amanda Janmaweera, Sithika Guruge, and Sandali Gunawardena. The Value-Based Behaviour awards were given to Thilina Hewagama, Udara Sembukuttiarachchi, and Kavindu Dhananjaya for exemplifying company values.
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