Bank of Ceylon Delivers Rs. 62.7 billion Profit Before Tax (PBT) for 1H 2026, Strengthening Its Contribution to Sri Lanka’s Economic Progress
- Profit After Tax of Rs. 39.8 billion
- Total Assets base of Rs. 5.4 trillion
- Total Deposit base of Rs. 4.3 trillion
- Gross loans and advances of Rs. 2.8 trillion
- Rs. 39.2 billion contribution to the Government as taxes
Photo Caption: Left: Mr. Kavinda de Zoysa, Chairman - BOC and in Right: Mr. Y A Jayathilaka, General Manager/ Chief Executive Officer – BOC
Bank of Ceylon (BOC), Sri Lanka’s leading financial institution, continued to uphold its enduring legacy as the Bankers to the Nation as it marks 87 years of service to Sri Lanka. During the 1H 2026, the Bank leveraged its financial strength and extensive nationwide network to support the Government, businesses, infrastructure development and communities, while contributing to the country’s economic recovery and sustainable progress. This commitment was underpinned by a strong financial performance, with BOC recording a Profit Before Tax (PBT) of Rs. 62.7 billion, reaffirming its financial resilience and continued contribution to the nation.
Bank of Ceylon Chairman, Mr. Kavinda de Zoysa, stated, “Building on our strong financial base and enduring commitment to the nation, BOC remains dedicated to supporting Sri Lanka’s economic growth and sustainable development. During the 1H 2026, our focus on operational excellence, prudent risk management and customer-centric innovation enabled us to maintain financial resilience while continuing to support the businesses, entrepreneurs and communities across the country. As the Bankers to the Nation, we remain committed to strengthening our contribution to national economic development, expanding financial inclusion, accelerating digital transformation and advancing sustainable banking. Looking ahead, we will continue to leverage our financial strength, extensive nationwide presence and capabilities to support the country’s evolving priorities and create enduring value for our customers, stakeholders and the nation while ensuring that, customer service and experience will be at the heart of everything we do.”
Supporting the Nation, Businesses and Economic Growth
As the Bankers to the Nation, BOC continued to leverage its financial strength to support national priorities and drive economic activity during the 1H 2026. The Bank continued to provide financing to the Government and State-Owned Enterprises, invest in Government Securities and support power and critical national infrastructure projects, while facilitating essential imports including fuel, pharmaceuticals, coal, gas and capital goods. BOC also continued to contribute to Government revenue through taxes and dividend payments. Supporting private-sector growth, the Bank provided financing across key sectors, with particular emphasis on SMEs, agriculture, exporters and entrepreneurs. Through initiatives such as SME Circles, the Export Circle and the country’s first Agri-Banking Unit, together with dedicated programmes for youth and women entrepreneurs, BOC continued to strengthen productive capacity, employment and inclusive economic growth, reinforcing its enduring contribution to Sri Lanka’s economic resilience and development.
Resilient Financial Performance
In 1H 2026, Net Interest Income (NII) reached Rs. 109.4 billion, reflecting the Bank’s continued focus on disciplined balance sheet management, effective management of asset-liability trade-off and optimized funding strategies. Interest income grew by 4% YoY to Rs. 253.7 billion, demonstrating the Bank’s ability to effectively manage its earning assets and sustain income generation through prudent financial management.
Net fee and commission income grew by 17% YoY to Rs. 12.7 billion. The growth was driven by higher transaction volumes across card services, retail banking and remittances, alongside the increasing use of digital banking solutions. Continued investment in digital capabilities and value-added financial solutions, together with the Bank’s established card business and customer-focused offerings, supported the growth of non-interest income and enhanced customer engagement.
Building on its earnings momentum, the Bank recorded total operating income of Rs. 131.4 billion, representing an 9% YoY increase, driven by growth in both net interest income and fee-based income. Operating profit before taxes on financial services reached Rs. 79.0 billion, demonstrating the Bank’s robust underlying earnings capacity and effective management of its core operations. The cost to income ratio stood at 32.67%, reflecting sustained operational efficiency and disciplined management of the Bank’s cost base.
Profit Before Tax (PBT) reached Rs. 62.7 billion after accounting for Value Added Tax (VAT) and the Social Security Contribution Levy (SSCL). Income tax expenses amounted to Rs. 22.9 billion, resulting in a Profit After Tax (PAT) of Rs. 39.8 billion. Extending its contribution beyond financial performance, the Bank contributed Rs. 39.2 billion in total taxes to the Government, making a significant contribution to national revenue.
Prudent Risk Management and Strengthened Portfolio Resilience
BOC maintained a prudent and proactive approach to credit risk management during 1H 2026, navigating heightened geopolitical and economic uncertainties while maintaining a disciplined approach to credit exposures. An impairment charge of Rs. 14.6 billion was recognized on loans and advances, compared with Rs. 12.0 billion in the corresponding period of the previous year, reflecting a cautious assessment of credit exposures across lending segments and the Bank’s continued focus on maintaining portfolio quality.
Asset quality remained resilient, as the Stage 3 loan ratio (Net) improved to 5.01%. The Stage 3 provision coverage ratio also strengthened to 61.79%, reflecting enhanced provisioning buffers and the Bank’s continued focus on maintaining sound asset quality. Strengthened credit evaluation, proactive portfolio monitoring, enhanced recovery mechanisms and disciplined lending practices supported the Bank in maintaining asset quality and effectively managing credit exposures amid evolving economic conditions.
The General Manager/Chief Executive Officer, Mr. Y A Jayathilaka, stated, “As BOC marks 87 years of a legacy of trust and service to Sri Lanka, we continue to build on a legacy of resilience, innovation and an unwavering commitment to the nation’s economic progress. During the 1H 2026, we remained focused on strengthening our financial performance while accelerating digital transformation to make banking more accessible, seamless and customer-centric. The continued advancement of platforms such as BOC Flex, SmartPay QR and digital payment solutions, together with our extensive digital and physical banking network, reflects our commitment to shaping a more connected and inclusive financial ecosystem. Looking ahead, we will continue to invest in technology, strengthen our digital capabilities and deliver innovative solutions that anticipate evolving customer needs, while leveraging our scale and national reach to empower businesses, communities and contribute to Sri Lanka’s sustainable economic development.”
Robust Capital Position and Balance Sheet
As of 30 June 2026, the Bank maintained a robust balance sheet, with total assets of over Rs. 5.4 trillion, gross loans and advances of Rs. 2.8 trillion and a deposit base of Rs. 4.3 trillion, underscoring the Bank’s substantial balance-sheet capacity and financial strength. The Bank recorded a Return on Assets (ROA) of 2.30% and a Return on Equity (ROE) of 20.44%, demonstrating its strong capacity to generate returns from its asset and capital base. The Bank remained well-capitalized, with a Tier I Capital Adequacy Ratio of 13.32% and a Total Capital Adequacy Ratio of 17.22%, comfortably maintaining regulatory capital requirements. Liquidity coverage ratios for both rupee and all currencies remained well above the minimum regulatory thresholds, reinforcing the Bank’s strong liquidity position and financial resilience.
Advancing Financial Inclusion and Digital Connectivity
BOC continued to advance financial inclusion, digital banking and foreign exchange flows during the 1H 2026, strengthening access to financial services across all Divisional Secretariat Divisions while supporting national programmes such as Aswesuma, with more than 700,000 accounts opened for beneficiaries, facilitating convenient access to banking services and digital payments. Through initiatives such as BOC Connect, the Bank continues to bring banking closer to people by empowering communities with accessible financial services. The Bank further enhanced customer convenience through its digital ecosystem, including BOC Flex, SmartPay QR, its Internet Payment Gateway, ATM/CRM, debit card and POS networks, supporting the country’s transition towards a digitally enabled economy. As the largest facilitator of inward remittances, BOC continued to support foreign-exchange inflows and the country’s external financial resilience by providing reliable and convenient channels for Sri Lankans working overseas to remit funds to their families. These initiatives reaffirm BOC’s commitment to inclusive access, digital transformation and sustainable economic progress.
Recognition and Brand Leadership
BOC strengthened its standing on both the local and global banking landscape, being recognised as Sri Lanka’s No. 1 Brand and Most Valuable Brand by Brand Finance Lanka, with a brand value of Rs. 65.5 billion. The Bank also ranked among the Top 1000 World Banks by The Banker (UK), further reinforcing its strong international standing. Further strengthening its global presence, the latest Banking 500 Report 2026 published by Brand Finance placed Bank of Ceylon among the Top 500 Banking Brands globally, making it the only Sri Lankan bank to achieve this prestigious recognition. Adding to these achievements, the BOC FLEX App secured a triple win at the Digital CX Awards 2026 in Singapore, further demonstrating BOC’s leadership in digital banking innovation and customer experience.
BOC maintains a robust domestic presence with a widespread network of over 2,400 direct customer touchpoints including fully-equipped and mobile branches, SME centers, ATMs, CRMs, and BOC Connect Agent Network and the Bank ensures comprehensive financial accessibility across all provinces of the country, reinforcing its commitment to financial inclusion. Internationally, the Bank extends its presence through branches in India, Maldives, and Seychelles, a limited-services branch in Hulhumale, and a fully-owned subsidiary in London, United Kingdom, further strengthening its global footprint.
Fitch Ratings has affirmed the National Long-Term Rating at ‘AA-(lka)’ and the Long Term Foreign and Local Currency Issuer Default Ratings at ‘CCC+’ for Bank of Ceylon.
Looking Ahead with Confidence
As Sri Lanka moves towards a new phase of sustainable economic growth, BOC remains well positioned to support and participate in this journey. Building on 87 years of trust, financial strength and a nationwide presence, the Bank will continue to leverage technology, strengthen customer relationships, support enterprise and investment, and advance sustainable banking. With a clear focus on innovation, resilience and responsible growth, BOC is committed to turning emerging opportunities into enduring value for its customers, stakeholders and the nation. As the Bankers to the Nation, BOC remains ready to finance aspirations, enable progress and contribute to building a stronger, more prosperous Sri Lanka.
