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Lending rates are basically decided by customers: BOC GM/ CEO

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Russel Fonseka, General Manager/CEO of Bank of Ceylon

By Sanath Nanayakkare

Veteran banker Russel Fonseka who is the General Manager/ CEO of Bank of Ceylon said last Thursday that it is basically the customer who decides the lending interest rate according to the profitability and financial viability of their business operations.

He said so in response to a question posed by The Island Financial Review at a press conference where the BOC announced a new SME loan quantum of Rs. 5 billion for small and medium enterprises (SMEs) and startups.

“The Central Bank’s independence in making its monetary policy is a positive thing for the financial market as well as our customers because the Central Bank will be making those decisions according to market conditions. At the end of the day, interest rates are decided by the market. Even BOC’s lending rates are basically decided by our customers. If they are not okay with the interest rates we offer when they compare with their sales targets, profitability and other financial aspects of their operations, they will make their own decision. In most of the cases, our lending rate is decided by the customer. Our customer is the person who gives the interest rate. They would say, ‘this is the interest rate we can afford to pay. If you can offer it, we will take it, or otherwise, we will go to other banks. So, our task is to see whether we can match the customer’s requirement and do business with them, “he explained.

“BOC has the largest deposit base, so we have the ability to offer better lending rates. Further, as the Central Bank has decided to reduce the Statutory Reserve Ratio (SRR) applicable on all rupee deposit liabilities of Licensed Commercial Banks (LCBs) by 200 basis points, from 4.00 per cent to 2.00 per cent, that will accrue great improvement in BOC’s liquidity levels as well,” he pointed out.

When asked by how much exactly the favorable SRR would raise BOC’s liquidity levels, he replied,” We are getting a significant amount because of the reduction in SRR,” without disclosing an exact number.

Responding to how BOC could offer Rs. 5 billion worth SME loans 5% below current market rates, he said,” Although we offer the new SME loan scheme loans at 12.0 for applicants with collateral and at 12.5% for applicants with no collateral, our funding cost is a little bit higher. But when we compare this Rs. 5 billion loan quantum with BOC’s total exposure in lending which is about Rs. 2,300 billion, this Rs. 5 billion is nothing for BOC. That is why we are in a position to offer this Rs. 5 billion quite comfortably to support the recovery and growth of SMEs.”

Referring to non-performing loans (NPLs), BOC GM said,” Because of the economic conditions, our NPLs at 6%, is a little bit high, but the key thing here is we haven’t written off any loan facilities given in the past 10- 15 years.”

When asked about the Domestic Debt Optimization (DDO) and, repayment of Sri Lanka Development Bonds in LKR, a senior official of BOC said,” We have been given different options. We have carefully analyzed the operational environment. We have made the required provisioning and there won’t any impact on our performance as a result of the DDO. We will be releasing our 2Q financial report this week. The challenges from NPLs are abating now as our customers are having improved cash flows, so we can maintain our asset quality position which you will see in our 2Q financial report.”

BOC is analyzing which treatment of debt exchange would best suit the Bank and the Bank’s senior management and the Board of Directors would decide on which option to take. The Bank affirmed this important decision would be an internal decision.



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Stealer malware leaked over 2 million bank cards

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The number of infections with data-stealing malware, 2020-2024 (Source: Kaspersky Digital Footprint Intelligence)

Kaspersky Digital Footprint Intelligence estimates that 2.3 million bank cards were leaked on the dark web, based on an analysis of data-stealing malware log files from 2023-2024. On average, every 14th infostealer infection results in stolen credit card information, with nearly 26 million devices compromised by infostealers, including more than 9 million in 2024 alone. Kaspersky released its report on the infostealer threat landscape while the technology world gathers at MWC 2025 in Barcelona.

Kaspersky experts estimate that approximately 2,300,000 bank cards have been leaked on the dark web. This conclusion is based on an analysis of the log files from data-stealing malware, dated 2023-2024, that were leaked on the dark web market. While globally the share of leaked cards is well below one percent, 95% of the observed numbers appear technically valid.

Infostealer malware is not only designed to extract financial information, but also credentials, cookies and other valuable user data, which is compiled into log files and then distributed within the dark web underground community. An infostealer can infect a device if a victim unknowingly downloads and runs a malicious file, for example one disguised as legitimate software, such as a game cheat. It can be spread through phishing links, compromised websites, malicious attachments in emails or messengers and various other methods. It targets both personal and corporate devices.

On average, every 14th infostealer infection results in stolen credit card information. Kaspersky Digital Footprint Intelligence experts found that nearly 26 million devices running Windows were infected with various types of infostealers in the past two years.

“The actual number of infected devices is even higher. Cybercriminals often leak stolen data in the form of log files months or even years after the initial infection, and compromised credentials and other information continue to surface on the dark web over time. Therefore, the more time passes, the more infections from previous years we observe. We forecast the total number of devices infected with infostealer malware in 2024 to be between 20 million and 25 million, while for 2023, the estimate ranges between 18 million and 22 million,” says Sergey Shcherbel, expert at Kaspersky Digital Footprint Intelligence.

In 2024, Redline remained the most widespread infostealer, accounting for 34% of the total number of infections.

The most significant surge in 2024 was in infections caused by Risepro, whose share of total infections increased from 1.4% in 2023 to almost 23% in 2024. “RisePro is a growing threat. It was first discovered two years ago but seems to be gaining momentum. The stealer primarily targets banking card details, passwords and cryptocurrency wallet data, and may be spreading under the guise of key generators, cracks for various software and game mods,” explains Sergey Shcherbel. Another rapidly growing stealer is Stealc, which first appeared in 2023 and increased its share from nearly 3% to 13%.

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UTE Delivers Sri Lanka’s Largest Cat D8 Tractor to NEM Construction

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(From left to right) Deepthi Hewageegana (CEO - UTE), Mani Rajan (Director Distribution - India), Joe Moscato (Vice President - Distribution - Japan & Asia South (India & SE Asia) Caterpillar Inc), Raja Nanayakkara (Chairman / MD - NEM Construction), Prasan Fernando (Chairman - UTE), Priath Fernando - (Director - UTE), Duminda Perera (Senior General Manager - Operations)

Caterpillar equipment dealer UTE has delivered the country’s largest Cat D8 Track-Type Tractor to NEM Construction Pvt. Ltd., marking a significant milestone in heavy machinery. This delivery strengthens the long-standing partnership between UTE and NEM Construction, which spans over 45 years. The Cat D8 is expected to boost operational efficiency in large-scale projects. As the sole authorized dealer for Caterpillar in Sri Lanka, UTE continues to provide top-tier machinery and after-sales support. The handover is particularly notable as Caterpillar celebrates its 100th anniversary. NEM Construction’s Chairman, Raja Nanayakkara, praised the Cat D8’s superior performance and UTE’s unmatched service and parts support, which have been key to the company’s long-term collaboration. This purchase highlights the continued trust in both Caterpillar and UTE’s expertise in supporting Sri Lanka’s construction industry.

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ComBank’s 2023 Annual Report tops Banking sector at ACCA Sustainability Reporting Awards

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Commercial Bank Chief Operating Officer S. Prabagar and members of the senior management accepting one of the ACCA awards.

The Commercial Bank of Ceylon’s prowess in comprehensive disclosure of sustainability-related information to stakeholders has won its 2023 Annual Report two top awards at the 2025 Sustainability Reporting Awards presented by the Association of Chartered Certified Accountants (ACCA).

The Bank was adjudged the overall runner-up and the winner in the Banking category at these awards, repeating the achievement of its 2022 Annual Report which was similarly honoured by the ACCA last year.

The ACCA Sustainability Reporting Awards recognise Annual Reports that clearly acknowledge and explain the economic, environmental and social impacts of the business to internal and external stakeholders, demonstrating the organisation’s policies, targets and long-term objectives towards the goal of sustainable development.

Commercial Bank’s 2023 Annual Report also won two Golds, a Silver and a Bronze at CA Sri Lanka’s ‘TAGS’ Awards 2024, excelling in the key aspects recognised by the awards programme which is dedicated to Transparency, Accountability, Governance, and Sustainability – TAGS.

The Bank won the Gold for ‘Corporate Governance Disclosure’ in the Financial Services sector, the Gold for the Best Annual Report among the private sector banks, the Silver for ‘Digitally Transformative Reporting’ across all sectors, and the overall Bronze award for Excellence in Corporate Reporting.

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