News & market updates

Union Bank of Colombo PLC partnered with Evolution Auto to offer exclusive EV auto loans and leasing financing covering up to 90% of vehicle value, aimed at making electric vehicle ownership more accessible in Sri Lanka.

ASPI rose 84.3 points (+0.5%) to 15,926 on low turnover of about Rs.1.7bn while foreigners were net sellers of Rs.35.1m; gains were led by counters including CINS, MELS, COMB and SPEN, with Food, Beverage & Tobacco and Banking driving activity.

The SEC, with ADB technical support, released a regulatory framework enabling issuance and trading of Green, Blue, Social and Sustainability‑Linked (GSS+) bonds on the Colombo Stock Exchange, allowing sovereigns and corporates to raise capital for environmental and social projects.

Union Bank of Colombo (UBC.N0000) posted Rs.285 million profit before tax for 1Q ended 31 Mar 2025, with net loans up 14% YoY and total assets of Rs.161 billion. Group PBT was Rs.329 million; stage-3 impairment ratio fell to 11.0%, deposits were Rs.106 billion and CAR 14.33%.

Union Bank of Colombo PLC posted a profit before taxes of LKR 285 million for Q1 2025. Net loans rose 14% YoY and total assets increased 10% to LKR 161 billion, stage 3 impairments fell to 11.0%, and Group PBT was LKR 329 million.

The Trade Finance Association of Bankers held its 28th AGM on 19 February and re‑elected Shyam De Silva of Hatton National Bank as President; the body unveiled a new Vision/Mission and emphasised digital innovation, industry collaboration, global standards and professional development in trade finance.

NDB Bank has signed the Women Entrepreneurs Finance Code, committing to expand access to finance for women-led micro, small and medium enterprises as Sri Lanka adopts the Code nationally.

Union Bank of Colombo (UBC.N0000) appointed Shanka Abeywardene as Chief Financial Officer; he brings over 30 years' experience including a CFO role at SANASA Development Bank and senior positions at NDB, Mashreq and Standard Chartered.

Union Bank of Colombo hosted a delegation from the Singapore Sri Lanka Business Association to discuss commercial opportunities and seamless banking facilitation on the sidelines of the Invest Sri Lanka Capital Market Summit.

Hatton National Bank (HNB) will introduce 0% Merchant Discount Rate for LANKAQR transactions below Rs.10,000 for HNB-appointed merchants from 1 April to 30 June 2025. The move targets higher digital uptake during the Avurudu season and to capture cross-border tourist payments via LankaQR's UPI/UnionPay/Alipay links.

Hatton National Bank will waive Merchant Discount Rates on LANKAQR transactions under Rs.10,000 for HNB-appointed merchants from 1 April–30 June 2025. The three-month offer targets more than 30,000 HNB merchants to boost digital payments during the Avurudu season and leverage LankaPay/UPI/Alipay integrations.

Union Bank (UBC) signed a strategic bancassurance agreement with HNB General Insurance to offer HNBGI's motor and non-motor general insurance products through Union Bank's network, expanding insurance access for the bank's customers.

Union Bank of Colombo (UBC.N0000) signed a strategic bancassurance agreement with HNB General Insurance to sell HNBGI’s motor and non-motor insurance products through Union Bank’s network. HNB General Insurance is a subsidiary of HNB Assurance and part of the HNB Group.

CBSL Governor Nandalal Weerasinghe urged banks to tighten controls ahead of Sri Lanka’s upcoming AML/CFT evaluation and said a mock assessment by Dr. Gordon Hook will be conducted in March 2025. Regulators and the FIU highlighted expanded AI, digital controls and staff training to boost detection and compliance.

Budget 2025 raises Capital Gains Tax to 15% for individuals/partnerships and to 30% for other entities. HNB Stockbrokers noted the current CGT definition does not include gains from trading listed equities.

John Keells Properties' VIMAN Street Cricket Cup 2025 concluded on 2 Feb 2025 at BOI Cricket Ground, Katunayake, promoting grassroots women's cricket with Devi Balika Vidyalaya (U16) and Anula Vidyalaya (U19) crowned champions. Sponsors included Union Bank of Colombo, Hatton National Bank and Ceylon Cold Stores (Elephant House), and the event ties into the VIMAN Ja-Ela property project.

Sri Lanka's central bank says it excludes excess reserves from the reported monetary base, citing the IMF manual. The clarification and the use of unremunerated excess reserves have caused large swings in reported reserve money and raised concerns about banking liquidity, credit expansion and rupee depreciation.

Fitch upgraded People’s Bank’s National Long-Term Rating to 'AA-(lka)' from 'A (lka)' after a recalibration following Sri Lanka's sovereign upgrade. The upgrade highlights the bank’s strengthened credit profile and could bolster sentiment across Sri Lankan banks.

Visa forecasts Sri Lanka's digital payments market at $9.98bn in 2024, growing at a 14.49% CAGR to exceed $17bn by 2028. Visa highlighted a 35% surge in debit-card use during the last Avurudu, expansion of tap-to-pay and wearables, and a partnership with Hatton National Bank for a festive campaign.

Nations Trust Bank (NTB.N0000) appointed Dr. Roshan Perera as an Independent Non-Executive Director. She has three decades of experience in economics, risk management and central bank supervision and currently serves as an Independent Director of Senkadagala Finance and formerly of Union Bank of Colombo.

Fitch upgraded the national long-term ratings of 10 Sri Lankan banks and affirmed five after recalibrating the national rating scale following a sovereign upgrade; most outlooks remain Stable. Union Bank and Cargills Bank carry Negative Outlooks due to capital-buffer and parent-support risks.

Fitch upgraded the national long-term ratings of 10 Sri Lankan banks and affirmed five after recalibrating the national rating scale following Sri Lanka's sovereign upgrade on 20 December 2024.

C.W. Mackie PLC appointed Indrajit Asela Wickramasinghe and Shrihan Blaise Perera as Independent Non-Executive Directors effective 30 December 2024. Wickramasinghe is the former CEO of Union Bank and Perera holds board/audit committee roles at Teejay Lanka and has senior FMCG experience.

Union Bank of Colombo has implemented a cloud-based, multi-channel contact centre solution delivered by Dialog Enterprise (Dialog Axiata PLC) to upgrade its customer service, improve scalability, operational efficiency and regulatory compliance.

Bank of Ceylon has been reappointed as the settlement bank for Sri Lanka’s USD Online and UITS systems for a further three-year term from 2024. The renewal reinforces BOC’s role in remittances and USD clearing infrastructure, affecting other domestic banks that use these systems.

The Association of Professional Bankers Sri Lanka held a felicitation ceremony honoring six senior bankers, including Hatton National Bank MD/CEO Damith Pallewatte and Union Bank Director/CEO Dilshan Rodrigo. The event celebrated their contributions to the banking sector.

Mahesh Nanayakkara has joined the Board of Union Bank of Colombo PLC as an Independent Non-Executive Director. He is currently CEO of Citizens Development Business Finance PLC and has over 30 years' experience in financial services.