Fitch Ratings has affirmed the National Long-Term Rating of Citibank N.A. – Colombo Branch (CitiSL) at ‘AAA(lka)’, reflecting its strong alignment with Citigroup’s strategic objectives and robust operational integration within the group. The branch’s balance sheet remains highly liquid, and Fitch expects it to maintain strong capital buffers.
CitiSL’s focus on top-tier corporates and multinational clients has effectively shielded it from the asset-quality pressures affecting the broader sector.
Fitch Affirms Citibank N.A. – Colombo Branch at ‘AAA(lka)’; Outlook Stable
Fitch Ratings – Colombo – 20 Feb 2026: Fitch Ratings has affirmed Citibank N.A. – Colombo Branch’s (CitiSL) National Long-Term Rating at ‘AAA(lka)’. The Outlook is Stable.
Key Rating Drivers
High Likelihood of Head Office Support: CitiSL’s rating is underpinned by Fitch’s view that support from its head office, Citibank, N.A. (Citi, A+/Stable/a), is highly probable if needed, subject to regulatory conditions on fund transfers into Sri Lanka. As a branch, CitiSL is part of the same legal entity as Citi.
Fitch’s assessment also considers CitiSL’s strong alignment with Citigroup’s strategic goals and its robust operational integration within the group. Moreover, the branch’s size is very small relative to Citi—around 0.01% of total assets—making any required support insignificant for the parent company.
Strong Credit Profile: Citi’s Long-Term Issuer Default Rating (IDR) significantly exceeds Sri Lanka’s Long-Term Local-Currency IDR of ‘CCC+’, making CitiSL’s credit profile—primarily driven by anticipated head-office support—among the strongest of Sri Lankan rated entities. This positions CitiSL at the top of the Sri Lankan National Rating scale.
High Liquidity Maintained: CitiSL’s balance sheet remains highly liquid, with government securities and balances/placements within the wider Citi network accounting for about 65% of total assets, and an additional 18% placed with the Central Bank of Sri Lanka. Fitch expects loans to stay a small part of assets (9.6% at the end of 3Q25), though the ratio could grow modestly as the branch explores selective lending opportunities.
Robust Capital Buffers: Fitch anticipates CitiSL will continue to maintain strong capital buffers despite annual profit repatriations. The branch repatriated all its 2024 profits in October 2025, and this practice is expected to persist in the near to medium term, subject to stricter single borrower requirements. The branch’s common equity Tier 1 (CET1) ratio was at 33.8% at the end of 3Q25, prior to the profit transfer (around 9% of risk-weighted assets) and excluding 9M25 earnings (around 3% of risk-weighted assets).
Asset-Quality Resilience: CitiSL’s emphasis on top-tier corporates and multinational clients has helped protect it from the asset-quality challenges impacting the wider sector. The bank reported zero non-performing loans, although a substantial portion of its loans remains classified as Stage 2 due to sovereign-related risks.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade: CitiSL’s rating could be downgraded if Fitch’s expectation of support from Citi significantly weakens, due to a change in the branch’s legal status or divestment. A downgrade of Sri Lanka’s Long-Term Local-Currency IDR, or other factors impairing the branch’s ability to meet its obligations, could also trigger a multi-notch downgrade of CitiSL’s National Rating.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade: There is no rating upside for the National Long-Term Rating, as it is already at the highest point on the scale.
(Colombo/Feb20/2026)
