The Bank of Ceylon has delivered a landmark financial performance in the first nine months of 2025, posting a Profit Before Tax (PBT) of Rs. 87.7 billion—a growth of 133% over the previous year. This dramatic leap highlights the bank’s rapid digital transformation, renewed lending appetite, and deepening support for the small-business sector.

Chairman Kavinda de Zoysa said BOC’s strategy focuses on aligning financial strength with national development goals. “Profitability must translate into empowerment. Our mission is to widen access to finance, foster entrepreneurship, and strengthen economic resilience,” he said.

A significant driver of BOC’s growth was the 62% rise in Net Interest Income, reaching Rs. 153.2 billion due to better margins and steady expansion in lending. The bank’s interest income recorded Rs. 368.1 billion, outpacing the decline in interest expenses and supporting sustainable profitability. Non-fund income, including fees from cards, retail transactions and remittances, grew 11%, continuing the bank’s shift towards digital-based revenue streams.

Operating income surged to Rs. 181.1 billion, while operating expenses rose modestly to Rs. 51.8 billion. BOC’s cost-to-income ratio improved significantly, demonstrating tight cost discipline and efficiency gains.

After tax obligations amounting to Rs. 55.3 billion, the bank posted a Profit After Tax (PAT) of Rs. 55.7 billion. CEO Y.A. Jayathilaka described the results as proof of customer confidence and the bank’s long-term strategy of sustainable expansion. “Our commitment is not just to financial growth, but to broad-based opportunity and community impact,” he said.

BOC’s asset base crossed Rs. 5.5 trillion, marking an 11% year-to-date rise, primarily through investments in government securities and resale agreements. The loan book expanded to Rs. 2.5 trillion, signalling improving economic sentiment, while deposits climbed 9% to Rs. 4.6 trillion.

The bank continued to maintain strong credit risk controls, recognising Rs. 18.7 billion in impairments and keeping Stage 3 loan coverage at 56.24%. Capital ratios remained well above regulatory requirements, and liquidity stood at some of the highest levels in the sector.

Digital transformation remained a core focus. The launch of the BizPlus Credit Card in partnership with Mastercard targeted MSME financing needs, while BOC Flex and Smart Remit strengthened digital access for both domestic and overseas customers. The bank also expanded solar generation across branches and joined the Partnership for Carbon Accounting Financials to step up sustainability reporting.

BOC widened its physical reach by opening 50 new Agent Banking Centres and operating community-focused Gammana centres. These initiatives, the bank said, are essential to increasing rural financial inclusion.

With international rankings, brand leadership titles, and reaffirmed credit ratings, BOC enters the final quarter of 2025 poised to sustain growth through expanded digital services, risk-balanced lending, and nationwide inclusion programmes.

Sri Lanka’s flagship Port City Colombo development has gained a fresh boost as a Singapore-led consortium announced a major investment in a new 34-storey commercial tower, marking one of the most significant international commitments to the project this year. The announcement comes at a time when Port City’s broader development activity has accelerated during the first ten months of 2025, offering a glimmer of optimism for a country still navigating its economic recovery.

A consortium headed by Canary Wharf Holdings Pte Ltd has signed an agreement with CHEC Port City Colombo (Pvt) Ltd to develop the Colombo Gateway Tower One, a Grade-A office complex that will introduce 28,000 square metres of premium commercial space. The tower—located on Plot 01-10-04 will span 28 serviceable office floors and include modern retail and leisure facilities aimed at positioning Port City as a competitive business hub in South Asia.

The land on which the tower will rise is part of the reclaimed 269-hectare landscape constructed by CHEC Port City Colombo. The memorandum of understanding was signed by Sharhan Musheen, Chairman of Canary Wharf Holdings Pte Ltd, and Xiong Hongfeng, Managing Director of CHEC Port City Colombo.

While these details form the foundation of the project, the broader context is far more significant: Port City has seen heightened investor engagement and land negotiation activity in the first ten months of this year, signalling renewed foreign interest in Sri Lanka’s post-crisis economic trajectory.

Several parcels within the Financial District and International Island have been under active discussion, with developers looking at opportunities in hospitality, logistics, financial services, and offshore professional services.

Economic analysts point out that this resurgence reflects a shift in investor sentiment following macroeconomic stabilisation, improved foreign reserve levels, and ongoing structural reforms. Port City, designated as a Special Economic Zone with its own regulatory framework, has become a focal point of Sri Lanka’s medium-term growth strategy.

The Canary Wharf-led tower is therefore not just another real-estate project; it is viewed as a bellwether for Port City’s ability to attract sustained, high-value investment. If completed as scheduled—construction is expected to begin in May 2026 with completion slated for June 2029the tower will be among the first large-scale office complexes to become operational in the enclave.

The anticipated spillover benefits include increased employment in construction and professional services, higher demand for business-support industries, and strengthened investor confidence—an essential element for a country seeking to position itself as a regional financial and logistics hub.

For Sri Lanka, which remains under IMF oversight and is pushing hard for export diversification and investment inflows, the momentum in Port City offers a rare but meaningful economic opening. As one senior official privately noted, “Every project that breaks ground in Port City echoes beyond the site it helps reset the country’s investment narrative.”

With more development proposals expected to move to execution in 2026, the Colombo Gateway Tower One may mark the start of Port City’s long-awaited transition from reclaimed land to functioning economic zone, carrying with it significant implications for the national economy in the years ahead.

Public Security and Parliamentary Affairs Minister Ananda Wijepala yesterday dismissed allegations that the government has banned the release of information on drug-related raids following the arrest of a National People’s Power (NPP) Urban Councillor’s husband over drug smuggling.

Clarifying the matter, the Minister stressed that no circular has been issued prohibiting the dissemination of information to the media, contrary to claims circulating on social media and in political circles.

He explained that the recent police circular—issued after a video went viral showing the arrest of a suspect linked to the Weligama Pradeshiya Sabha Chairman’s murder—only instructs officers not to release information in a manner that could hinder ongoing investigations.

“There is no ban on releasing information on drug raids. What we have said in the circular is simply that information should not be released in ways that obstruct investigations,” Minister Wijepala stated.

He noted that legal experts and civil society groups have repeatedly raised concerns about police releasing videos of suspects on mainstream and social media immediately after arrests, warning that such actions could compromise investigations and potential prosecutions.

The Minister emphasised that the circular aims to ensure professionalism and protect the integrity of investigations—not to limit media access to information.

The government plans to expand the “Suwa Seriya” ambulance fleet to 500 vehicles, integrating the service with the latest technologies, Minister of Health and Mass Media Dr. Nalinda Jayatissa announced.

He revealed this while addressing a special training programme aimed at enhancing the skills of Emergency Medical Technicians (EMTs) at the Suwa Seriya Foundation.

Dr. Jayatissa stated that measures are already underway to modernize the ambulance service by incorporating advanced global technologies to improve efficiency and emergency response capacity.

He further noted that discussions are ongoing with the Indian government to procure 100 additional ambulances for the service.

In addition, the Asian Development Bank (ADB) is expected to provide 20 ambulances under loan assistance and another 25 ambulances as a grant, he said.

Colombo, Nov. 13 – The United States and Sri Lanka today signed a Memorandum of Understanding (MOU) at the Ministry of Defense, officially establishing a defense partnership between the Montana National Guard, U.S. Coast Guard District 13, and the Sri Lankan Armed Forces under the U.S. Department of Defense’s State Partnership Program (SPP).

The agreement was signed by U.S. Ambassador Julie Chung, Brigadier General Trenton Gibson, Adjutant General of the Montana National Guard, and Sri Lanka’s Secretary of Defense Air Vice Marshal Sampath Thuyacontha, marking a historic advancement in bilateral defense ties.

A Strengthened Commitment to Indo-Pacific Security

In a statement, the U.S. Embassy said the MOU underscores both nations’ commitment to regional stability, maritime security, and professional military cooperation across the Indo-Pacific.

Ambassador Julie Chung emphasized the significance of this partnership:

“This partnership with Sri Lanka strengthens our shared resolve for a secure Indo-Pacific—building trust, readiness, and lasting peace through partnership.”

Defense Secretary Thuyacontha called the agreement a “progressive initiative” to enhance Sri Lanka’s defense capabilities, noting decades of cooperation in training, disaster relief, and military exchanges.

Brig. Gen. Gibson stated:

“Together, we’ll build strength, trust, and lasting bonds that enhance the security of both our nations.”

Background: A Growing Partnership

The Montana–Sri Lanka partnership, established in 2021, has since expanded through:

• Joint training
• Expert exchanges
• Disaster response exercises
• Reciprocal visits

Key recent engagements include:

• ATLAS ANGEL 2024
• PACIFIC ANGEL 2025
• Joint oil spill response training in Seattle with the U.S. Coast Guard District 13

Sri Lanka now becomes part of a global network of 115 partner nations linked with U.S. state National Guards under the SPP.

What Comes Next

The first activities under the new MOU are scheduled for summer 2026, focusing on:

• Disaster response and crisis readiness
• Maritime domain awareness
• Professional military education
• Aviation operations
• Humanitarian assistance and military engineering
• Military–civilian disaster coordination

The Montana National Guard, known for both its state and federal missions, will bring extensive expertise in homeland defense, disaster management, and international security cooperation.

Sri Lanka has welcomed 82,270 tourists in November to date, according to the latest data released by the Sri Lanka Tourism Development Authority (SLTDA).

India continues to be the largest source market, with 20,217 arrivals, accounting for 24.6% of total visitors so far this month. Other key markets include:

• Russia – 10,668 arrivals
• Germany – 6,312
• United Kingdom – 5,765
• France – 3,506

Meanwhile, total tourist arrivals for 2025 have reached 1,972,957, reflecting continued growth in the sector.

Of the cumulative arrivals this year:

• 443,622 visitors are from India
• 180,592 from the United Kingdom
• 144,308 from Russia
• 123,053 from Germany
• 115,400 from China

The SLTDA notes that the upward trend highlights strengthening global confidence in Sri Lanka as a travel destination.

SriLankan Airlines’ Airport and Ground Services division, the exclusive ground handling provider at the Bandaranaike International Airport (BIA), has expanded its self-check-in facilities ahead of the anticipated surge in winter-season travel.

With more than 300,000 tourists expected to arrive in Sri Lanka in December, authorities say the expansion is aimed at improving efficiency and easing passenger flow at the airport.

Last month, 20 new self-check-in kiosks were installed at the BIA departure terminal, increasing the total number of kiosks to 28. The upgraded system—developed by SriLankan Airlines’ in-house IT team—enables passengers to complete several processes independently, including:

• Check-in
• Seat selection
• Boarding pass printing
• Bag tag generation

The airline says the enhancement will significantly reduce queues and help decongest the terminal, providing a smoother travel experience as Sri Lanka prepares for a busy tourism season.

The low-level atmospheric disturbance still persists to the East of the island.

Under its influence, showers or thundershowers will occur at times in Northern, North-central and Eastern provinces. Heavy falls about 100 mm are likely at some places in Northern and Eastern provinces.

Showers or thundershowers will occur at several places in the other areas of the island after 1.00 p.m.

Showers may occur in Uva province and in Hambantota district during the morning too.
Fairly heavy falls above 75 mm are likely at some places in Western, Sabaragamuwa, Central, Southern and Uva provinces.

Cloudy skies are expected over the Northern, Eastern, North-central, Uva and Central provinces.

Misty conditions can be expected at some places in Western, Sabaragamuwa, Central and Southern provinces during the early hours of the morning.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.

Sri Lanka’s fiscal outlook for 2026 appears to be entering a cooling phase, with revenue growth expected to slow sharply following an exceptional 2025 performance driven largely by vehicle import duties. 

The warning comes from the Committee on Public Finance (COPF), which recently reviewed the draft report on the 2026 Appropriation Bill under the chairmanship of Dr. Harsha de Silva, MP.

According to the draft report prepared by the COPF’s technical team in line with Standing Order 121(5)(i) of Parliament the 2026 Budget has been formulated in compliance with the Public Financial Management (PFM) Act, the Public Debt Management (PDM) Act, and commitments under the International Monetary Fund (IMF) Extended Fund Facility (EFF).

The report cautions that, despite the record fiscal performance in 2025, a moderation in revenue growth is imminent due to the government’s anticipated restrictions and policy adjustments on vehicle imports.

The 2025 fiscal year saw total government revenue exceed projections by over Rs. 100 billion, largely owing to the one-off windfall from resumed vehicle imports.

 Customs data indicate that vehicle import taxes alone contributed around Rs. 680 billion to state coffers, a dramatic increase from just Rs. 50 billion in 2024 when imports were tightly controlled.

This surge helped Sri Lanka Customs surpass its annual revenue target of Rs. 2.115 trillion, a historic high for the department and a key pillar in the government’s revenue recovery strategy.

However, the COPF report underscores that such windfalls are unsustainable, as the government does not intend to maintain the same level of vehicle imports in 2026.

This slowdown is expected to trim customs duties, excise taxes, and VAT collections, all of which are heavily dependent on import activity. Preliminary projections suggest that revenue growth, which expanded by nearly 40% in 2025, could fall to single-digit levels in 2026, posing a challenge to the Treasury’s fiscal consolidation plans.

Economists have warned that the anticipated decline could tighten the government’s fiscal space, complicating efforts to meet IMF targets for debt reduction and primary surplus maintenance.

 With the 2026 Appropriation Bill expected to allocate significant funds toward debt servicing estimated at over Rs. 6 trillion, or nearly half of total expenditure the state may face pressure to either broaden its tax base or enhance non-tax revenue streams.

The COPF’s deliberations also included consultations with civil society representatives, who raised concerns about budget transparency, equitable sectoral allocations, and policy consistency. 

Many argued that while the 2025 revenue uptick offered short-term relief, it failed to address deeper structural weaknesses in public finance, such as inefficiencies in tax administration and the absence of a coherent investment strategy.

Chairman Dr. Harsha de Silva stated that these observations would be formally conveyed to the Ministry of Finance for review.

 He emphasized the need for “credible and sustainable revenue sources” rather than dependence on temporary import-related gains, calling for reforms in tax policy, public sector efficiency, and digital revenue tracking mechanisms.

As Sri Lanka braces for 2026, fiscal planners face a delicate balancing act sustaining growth, meeting IMF obligations, and maintaining social spending all amid a potential revenue downturn. 

The decline in vehicle imports, while intended to stabilize foreign reserves, could expose the fragility of a revenue system still reliant on trade taxes rather than long-term, productivity-based growth.

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.