News & market updates

HDFC Bank (HDFC.N0000) said it diversified in 2024–25 into leasing (Super Draft Leasing), gold purchase loans, personal loans and green financing aligned with the Central Bank's Green Taxonomy. The bank also introduced green deposit products and named Hemal C. Lokugeegana as CEO to drive sustainable growth from 2026.

Housing Development Finance Corporation Bank of Sri Lanka (HDFC.N0000) held its 41st Annual General Meeting on June 26, 2026, at the Sri Lanka Foundation Institute in Colombo; the board, CEO Hemal Lokugeegana and shareholders attended.

HDFC Bank (HDFC.N0000) launched 'HDFC Green Leasing' to finance EVs and green projects and simultaneously conducted a nationwide tree-planting across 39 branches, planting 500 trees. The initiative focuses on environmental awareness and planting jackfruit and pomegranate to support local food security.

DFCC Bank convened a discussion examining how the Middle East conflict could transmit into Sri Lanka’s economy, highlighting energy price, shipping, FX, tourism and remittance channels. The forum emphasised banks’ role in helping clients manage FX exposure, trade finance and liquidity amid rising uncertainty.

APB felicitated members who have risen to CEO roles in the banking sector, including HDFC Bank CEO Hemal Chaminda Lokugeegana. The event at Cinnamon Life highlighted APB's focus on professional development, networking and leadership-building for the banking industry.

Senior bankers at the Association of Professional Bankers convention urged caution, prioritising balance-sheet discipline—liquidity, capital buffers, and managing interest-rate and FX exposure—over rapid expansion. Speakers also highlighted selective growth, risk-adjusted returns, and greater use of digital capability and sustainable debt instruments.

Fitch says the Central Bank of Sri Lanka's reintroduced bank consolidation framework is broadly credit-positive, targeting banks with assets below Rs.400 billion and subjecting banks scoring under 60% in 2026–27 to possible mandatory consolidation. Fitch notes consolidation should strengthen capital and franchises, and identifies HDFC.N0000 as a likely acquisition target.

CBSL's revived consolidation framework targets licensed banks with assets below LKR400 billion and is seen by Fitch as broadly positive for bank credit profiles; HDFC is cited as an expected takeover target. Banks scoring below 60% in assessments from 1 Jan 2026–31 Dec 2027 could face mandatory consolidation.

Banks across Sri Lanka are intensifying AML/CFT controls ahead of the country's third mutual evaluation, warning a negative outcome would damage financial credibility and access to funding. Leading banks such as DFCC and HNB report system upgrades, AI-backed transaction monitoring, stronger KYC/UBO processes and mock evaluations.

Government has consolidated MSME financial facilities into a single digital Rs.95 billion framework and the NCGI will issue Rs.7,000 million in credit guarantees in 2026 to unlock about Rs.10,000 million in MSME lending. Sixteen banks, including HDFC, Commercial Bank, NDB, HNB, Sampath, Seylan, DFCC, Nations Trust and Cargills Bank, will participate in channeling concessional and disaster-relief loans.

HDFC Bank appointed Sujeewa Ranawaka to its Board as a Non-Executive, Non-Independent Director. Ranawaka is a chartered civil engineer with over 30 years' experience in housing, coastal resource management and public-sector engineering.

Sri Lanka's ASPI fell 0.17% to 22,292.57 (down 37.12 points) with turnover of 2.3 billion rupees. Yaden raised its stake in Maharaja Foods to 10.04%; HNB will list debentures offering 10.25% and 11% on Dec 19; HDFC appointed K B Wijeyratne as chairman pro-tem; United Motors set a 10-for-1 share split date; JKH, CTC, BUKI and DFCC were top gainers.

Fitch said the proposed transfer of state-held HDFC to Bank of Ceylon is unlikely to affect the acquirer's ratings and placed HDFC on Rating Watch Positive. Fitch noted HDFC is small relative to acquirers (~1–1.5% of bank-level assets) with large EPF‑backed loans that limit incremental RWAs.

Fitch says the cabinet-approved transfer of state-held HDFC (and SMIB) to Bank of Ceylon and People’s Bank is unlikely to affect the acquirers' ratings; Fitch has placed HDFC on Rating Watch Positive and notes the targets are about 1–1.5% of acquirers' assets.