In a strategic move to accelerate its digital transformation, the Bank of Ceylon (BOC) is gearing up to establish a dedicated Information Technology Institute BOC IT Solutions Ltd. aimed at upgrading its digital infrastructure, optimizing IT operations, and enhancing customer experience in an increasingly competitive banking environment.
The initiative, approved by the Cabinet of Ministers this week, marks a major shift in the state banking giant’s approach to technology management and innovation.
The proposal was submitted by President Anura Kumara Dissanayake in his capacity as Minister of Finance, Planning, and Economic Development, underscoring the government’s renewed focus on modernising public-sector financial institutions.
According to Cabinet Spokesman Dr. Nalinda Jayatissa, the institute will not only handle BOC’s internal digital needs but also develop advanced information and communication technology (ICT) solutions to support broader digital initiatives across the banking and financial ecosystem.
“The establishment of BOC IT Solutions Ltd. reflects the bank’s long-term vision to transform its operational framework and adapt to the rapidly changing technological landscape,” he said during the post-Cabinet media briefing.
The move effectively revives BOC Management and Support Services Ltd, a subsidiary created in 1992 to handle the bank’s manpower and support services but discontinued in 2007.
This revival, however, comes with a sharper focus on IT innovation, digital resilience, and cybersecuritya key concern for the financial sector amid rising cyber threats and data breaches.
BOC, Sri Lanka’s largest state-owned commercial bank with over Rs. 4.5 trillion in assets, has long been under pressure to keep pace with private banks that have aggressively adopted digital platforms,
AI-driven customer services, and online banking tools. The establishment of a specialised IT arm is expected to strengthen the bank’s competitiveness by improving transaction efficiency, automating legacy systems, and expanding mobile and online banking services for both retail and corporate customers.
However, financial analysts note that while the initiative is commendable, its success will depend heavily on BOC’s execution capacity and governance framework.
The bank’s previous attempts at digital modernisation have been hampered by bureaucratic inertia, skills shortages, and slow procurement processes issues that could undermine the new entity’s effectiveness if not addressed.
“Creating a separate IT arm is a promising strategy, but it must operate with autonomy, agility, and accountability. Otherwise, it risks becoming another bureaucratic appendage rather than a true driver of innovation,” a senior banking consultant said . .
The institute’s success will also hinge on attracting and retaining skilled IT professionals at a time when Sri Lanka faces a growing talent drain in the tech sector. BOC insiders admit that offering competitive remuneration and fostering a results-driven culture will be critical if the new venture is to deliver on its promise.
As Sri Lanka’s banking landscape pivots toward digitalisation, the BOC’s latest initiative represents both an opportunity and a test case whether a state-owned institution can reinvent itself for the digital era while overcoming entrenched inefficiencies. If executed effectively, BOC IT Solutions Ltd. could mark the dawn of a new era in public-sector banking innovation.
