Sri Lanka’s leading state-owned bank, Bank of Ceylon (BOC) successfully closed its historic Basel III compliant Tier 2 Debenture Issue, being oversubscribed 3.8 times over its initial issue of Rs. 10 billion on the opening day, 3 November 2026.
The Bank issued 100 million Basel III compliant Tier 2, Listed, Rated, Unsecured, Subordinated, Redeemable Debentures with Non-Viability Write-Down features, at an issue price of Rs. 100/- each, to raise up to Rs. 10 billion, with options to increase the amount up to Rs. 20 billion and subsequently to Rs. 30 billion in the event of oversubscription. The Bank received applications exceeding Rs. 38 billion making it the largest-ever listed debenture issue in Sri Lanka’s capital market history.
Commenting on this historic achievement, BOC Chairman Mr. Kavinda de Zoysa said:
“Oversubscription of this landmark issuance on the opening day itself reflects the strong confidence placed by our investors in BOC’s financial strength, resilience and governance.
With a legacy spanning more than eight decades, BOC has operated at the centre of Sri Lanka’s financial ecosystem, supporting national development while adapting to changing economic and social realities. BOC continues to lead and set new benchmarks for others to follow.
The funds raised through this issuance will be utilised to fuel productivity-driven sectors that will define the nation’s future. We are deeply grateful to all our investors for their enthusiastic participation in this landmark issuance to support a stronger and more resilient nation.”
As Sri Lanka’s largest Domestic Systemically Important Bank, BOC’s responsibilities extend well beyond traditional banking. Serving more than 16 million customers, from individuals to large corporates, the Bank plays a pivotal role in advancing Sri Lanka’s economic progress and social well-being.
Sharing his views, the General Manager/Chief Executive Officer of BOC, Mr. Y. A. Jayathilaka, stated:
“The overwhelming investor response to this issuance reaffirms the trust our loyal customers and investors have placed in BOC.
This fresh capital augmentation will enable us to expand lending to key sectors, including agriculture, tourism, export-oriented manufacturing, logistics, infrastructure and digital services.
Mobilising capital towards productive sectors will undoubtedly contribute towards achieving inclusive and sustainable economic growth.
We remain dedicated to delivering an exceptional banking experience to all our stakeholders, ensuring growth and reliability for all who place their trust in us.”
The Investment Banking Division of BOC served as the Manager and Registrar to this landmark Basel III-compliant debenture issue, while the Bank’s Legal Division acted as the lawyers to the issue.
The successful execution of this large-scale capital market transaction demonstrates BOC’s extensive in-house expertise, institutional capabilities and commitment to developing Sri Lanka’s debt capital market. The Basel III-compliant debentures were assigned a rating of AA (stable) by Lanka Rating Agency Limited.
BOC is a Corporate Finance Advisor licensed by the Securities and Exchange Commission of Sri Lanka (SEC). The Bank’s Corporate Finance Advisory unit coming under the Investment Banking Division offers a comprehensive suite of advisory services that extend beyond traditional banking, including financial advisory for listed and unlisted debt issues such as debentures, perpetual bonds, GSS+ bonds, and equity transactions. The Rs. 20 billion Basel III-compliant Tier II Sustainability Bond structured and managed by the Corporate Finance Advisory unit in 2025, received international recognition at the Environmental Finance’s Sustainable Debt Awards 2026, winning the award for Innovation, Sustainability Bond Structure in Asia and the Pacific (APAC).
With this issuance, total listed debt issued by the BOC to the market has increased to Rs. 138 billion and thereby positioning BOC as the largest issuer in the Sri Lankan debt market. All these debt instruments were structured and managed exclusively by the bank’s Corporate Finance Advisory unit of the Investment Banking Division.
BOC is an Investment Manager licensed by the SEC and the Division operates a dedicated business unit for wealth management clients.
Bank of Ceylon is a Professional Clearing Member of the Colombo Stock Exchange (CSE) and the Investment Operations unit of the Investment Banking Division provides trustee and custodian services for unit trust funds and corporate clients, with funds exceeding Rs. 500 billion.
Senior Deputy General Manager/Head of Global Markets, Mr. G. A. Jayashantha, who heads the Investment Banking Division stated:
“This historic issuance strengthens BOC’s Tier 2 capital while demonstrating the depth of expertise we have built within the Bank to structure and execute large-scale capital market transactions.
We are sincerely grateful to our investors and customers, for their continued confidence and trust in BOC. The strong demand for this issuance, encourages us to continue developing innovative financial solutions, further deepen Sri Lanka’s capital market and support the evolving financing needs of the wider economy.”
The largest-ever Basel III debenture issue underscores BOC’s strong financial performance.
The Bank recorded a profit before tax of Rs. 62.7 billion during the first half of 2026, reflecting its financial resilience and sustained operational strength.
In 2026, BOC was recognised as the only Sri Lankan bank among the world’s top 500 banking brands by internationally renowned brand valuation consultancy Brand Finance.
The Bank was also recognised as Sri Lanka’s Most Valuable Brand 2026 by Brand Finance Lanka, reaffirming its position as the country’s most valuable banking brand.
Fitch Ratings upgraded the Bank’s National Long-Term Rating to AA+(lka), with a Stable Outlook, on 30 October 2026, following the recent upgrade of the country’s sovereign rating.
By raising capital through the Colombo Stock Exchange (CSE), BOC continues to reaffirm its commitment to transparency, value creation and stakeholder confidence.
This achievement reflects the Bank’s resilience, strength across multiple dimensions and enduring commitment to supporting national progress and contributing to the country’s long-term economic development.
The successful completion of Sri Lanka’s largest-ever listed debenture issue marks not only a historic milestone for Bank of Ceylon but also establishes a new benchmark for the scale, depth and maturity of Sri Lanka’s domestic debt capital market.
