The Bank of Ceylon (BOC) celebrated the listing of its first Basel III-compliant Tier II Sustainability Bond with a bell ringing ceremony at the Colombo Stock Exchange. This event marked the largest sustainability bond issuance in Sri Lankan history and the first by a state-owned bank.
Attendees included the Chairman, members of the Board of Directors, the Acting General Manager/Chief Executive Officer, senior management of BOC, the Chief Executive Officer of the Colombo Stock Exchange, and other representatives from BOC and CSE, along with key stakeholders of the bond issuance. The ceremony highlighted the introduction of a landmark sustainable instrument into Sri Lanka’s listed debt market, demonstrating growing investor confidence in structured, transparent capital market solutions.
BOC’s sustainability bond, which was oversubscribed and closed on its opening day, December 22, 2025, is seen as a significant development for Sri Lanka’s capital markets amid heightened climate vulnerability and liquidity constraints due to modest pressure on interest rates.
During the ceremony, Mr. Kavinda de Zoysa, Chairman of the Bank, stated, “This bell ringing marks a historical achievement for the Bank of Ceylon and for Sri Lanka’s sustainable finance journey as it is the largest issuance in the history of Sri Lanka. The oversubscription points to investor confidence in the Bank’s balance sheet, governance standards, and its role in financing development that delivers both economic and social value. Our objective was to set a benchmark in structure, transparency, and credibility. The successful listing of this sustainability bond sends a clear signal about the direction in which Sri Lanka’s largest state-owned bank is heading. We are deeply grateful for all the stakeholders to this landmark issuance and our investors for their enthusiastic participation in our sustainability journey.”
The sustainability bond was issued in accordance with international sustainability bond principles and Sri Lanka’s Green Finance Taxonomy. Proceeds will be allocated to a portfolio of eligible green and social projects under the Bank’s Sustainable Finance Framework, supported by reporting commitments and independent external review. Eligible sectors include renewable energy, energy efficiency, sustainable water and waste management, and social sectors such as agriculture, micro, small and medium enterprises, healthcare, education, and basic infrastructure.
Mr. Y. A. Jayathilaka, Acting General Manager and Chief Executive Officer, commented, “This listing highlights the depth of the Bank’s internal capabilities across framework development and execution, as well as the market’s confidence in our ability to deliver sophisticated transactions within the domestic capital market. The proceeds from this bond will support lending to priority sectors while strengthening the Bank’s capital position.”
The Colombo Stock Exchange played a facilitative role throughout the listing process, providing guidance on regulatory and disclosure requirements and supporting engagement with development partners. The Asian Development Bank extended technical assistance in the development of the Sustainable Finance Framework, while KPMG served as the Independent External Reviewer, and People’s Bank acted as Trustee to the issue. The Auditor General of Sri Lanka served as the Auditors and Reporting Accountants. The bonds were rated ‘AA-’ with a Stable outlook by Lanka Rating Agency Limited.
Mr. G. A. Jayashantha, Deputy General Manager (International, Treasury and Investment), stated, “During the year 2025, Bank of Ceylon raised LKR 35 billion, representing 26% of the total debt issuances through the Colombo Stock Exchange, which is the highest amount of debt among all listed entities. These issuances were exclusively structured and managed by our investment banking team who possess a wealth of expertise in structuring innovative capital market (debt) instruments.”
BOC’s sustainability bond listing builds on a period of strong financial performance by the Bank. The Bank recorded a profit before tax of LKR 87.7 billion during the first nine months of 2025, while increasing its total assets to LKR 5.5 trillion. In 2025, BOC was ranked as the leading Sri Lankan bank among the Top 1000 World Banks by The Banker magazine, was named the Most Valuable Brand in Sri Lanka by Brand Finance Lanka, and was recognized with the prestigious super brand status, a position earned through trust, service, and generations of commitment to the nation. Fitch Ratings has affirmed the Bank’s National Long-Term Rating at ‘AA- (lka)’ and its Long-Term Foreign and Local Currency Issuer Default Ratings at ‘CCC+’.
Guided by purpose and strengthened by the choice of the people, Bank of Ceylon continues to shape the future of Sri Lanka.
