Chairman’s message

We remain focused on the fundamentals that sustain stakeholder value: earnings resilience, balance sheet strength, disciplined risk management, and a strategy that is responsive to evolving customer and market needs. Our 2025 performance affirms the value of that focus.

Dear shareholder,

The year 2025 marked a decisive step forward in Sri Lanka’s ongoing economic normalisation. After a period of extraordinary adjustment, the direction of travel became clearer: inflation moderated, monetary conditions began to ease, and business confidence showed early - but meaningful - signs of recovery. While the reform path remains demanding and external shocks remain possible, the overall trajectory is increasingly constructive. In such an environment, our role was not simply to participate in the recovery, but to help make it durable by restoring confidence, supporting productive activity, and safeguarding stability.

Commercial Bank of Ceylon PLC remained steadfast in that responsibility. As Sri Lanka’s largest private sector bank, we recognise that trust is both our greatest asset and our most profound obligation. Throughout the year, we maintained strong capital and liquidity positions, reinforced governance and risk management disciplines, and sustained transparent engagement with regulators and stakeholders. These foundations enabled us not merely to withstand volatility, but also to lead responsibly, supporting growth while protecting resilience.

Leading private sector credit expansion

As economic activity regained momentum, your Bank assumed a clear leadership role in private sector credit expansion.

We supported productive sectors critical to national revival - exports, tourism, agriculture, and small and medium-sized enterprises - while maintaining disciplined underwriting standards and robust risk controls.

At a time when investor and borrower confidence still required reinforcement, the Bank stepped forward to catalyse growth responsibly. By aligning lending priorities with national development needs – within a strong framework of risk discipline – we strengthened our position as a key enabler of Sri Lanka’s private sector resurgence while safeguarding balance sheet resilience. This approach reflects a simple belief that enduring growth must be built on prudence, and prudence is what makes that growth sustainable.

Agility in a changing interest rate landscape

The evolving interest rate environment required strategic agility. As monetary conditions shifted, we actively recalibrated asset–liability management to protect margins while ensuring competitive pricing for customers. We strengthened stress testing and scenario planning within a clear governance framework, enabling disciplined agility without compromising resilience.

In a volatile global environment, adaptability has become a defining institutional capability. Commercial Bank continues to embed flexibility within strong oversight frameworks to ensure decisions remain consistent, disciplined and forward-looking.

Digital acceleration

Digital transformation remained central to our strategic agenda in 2025 as well. We continued to enhance core systems and customer-facing capabilities, investing in automation and analytics to improve efficiency and strengthen the customer experience. At the same time, we further reinforced cybersecurity infrastructure and controls, recognising that in a digital economy, trust is increasingly defined by the safety of customer assets and the integrity of data.

However, technology is only an enabler; trust remains human. Relationship-based banking continues to be a defining feature of our franchise. Our strategy therefore treats innovation as a way to enhance - not replace - the human connection that customers value. In practical terms, this means combining digital convenience with responsive service, ensuring customers benefit from speed and accessibility while retaining the confidence of meaningful engagement.

Strengthening our international footprint

Our overseas operations continued to support diversification and resilience. Our Bangladesh Operations made steady progress during the year, strengthening its balance sheet and expanding its presence in a competitive and growing market. We view the Bangladesh Operation along with our Maldives subsidiary and other foreign operations as an important pillar of our regional strategy and a continued source of earnings diversification.

In a landmark development, Commercial Bank became the first Sri Lankan bank to establish an office in the Dubai International Financial Centre (DIFC) in the United Arab Emirates. This strategic presence strengthens our ability to facilitate trade flows, build correspondent banking relationships, and improve investment connectivity between Sri Lanka, the Middle East, and global markets.

A milestone in market confidence

During the year, the Bank surpassed USD 1 Bn. in market capitalisation – an important milestone reflecting renewed investor confidence in Commercial Bank and, more broadly, Sri Lanka’s improving recovery narrative. This achievement underscores the strength of our franchise, the discipline of our governance, and the credibility of our long-term strategy.

We remain focused on the fundamentals that sustain stakeholder value: earnings resilience, balance sheet strength, disciplined risk management, and a strategy that is responsive to evolving customer and market needs. Our 2025 performance affirms the value of that focus.

Commitment to inclusive and sustainable growth

As the recovery gains traction, it is essential that growth is inclusive and sustainable. Beyond credit expansion, we continued to support financial inclusion, responsible restructuring for viable enterprises, and advisory engagement for businesses adjusting to post-crisis realities, strengthening both portfolio quality and the wider economic ecosystem. A strong banking system must do more than provide finance; it must help customers navigate uncertainty in ways that protect both enterprise continuity and long-term value creation.

Sustainability is increasingly central to strengthening resilience and long-term value – not as a parallel agenda, but as a lens through which risks are managed, opportunities are captured, and confidence is sustained. In 2025, the Bank adopted SLFRS S1 and S2 sustainability-related Financial Disclosure Standards for the first time, enhancing the clarity and decision-usefulness of reporting and deepening the integration of climate-related risks and opportunities into governance and risk management. We also continued to advance sustainable finance, including green lending and the mobilisation of capital for eligible green activities, supported by credible use-of-proceeds and reporting disciplines.

Our people – central to performance and resilience

Our employees remain central to every achievement described in this message. Their professionalism, resilience, and adaptability enabled the Bank to operate with distinction in a demanding and evolving environment. Banking is ultimately a service of trust, and trust is delivered by people, through the quality of judgement, consistency of service, and integrity in execution. On behalf of the Board, I extend my sincere appreciation to every member of our team for their continued dedication.

Performance in 2025

Against the improving macroeconomic backdrop, the Group delivered a strong performance in 2025, recording profit before tax of Rs. 92.787 Bn. (2024: Rs. 97.808 Bn.) and profit after tax of Rs. 60.938 Bn. (2024: Rs. 55.686 Bn.), supported by gross income of Rs. 365.181 Bn. (2024: Rs. 274.507 Bn.). Capital adequacy and liquidity buffers remained prudent, while credit quality was managed through disciplined underwriting and close portfolio monitoring. The Bank actively optimised margins through calibrated asset-liability management, ensuring performance was achieved without compromising resilience.

Acknowledgements

The strength of Commercial Bank lies in the unwavering support of all our stakeholders. I extend my sincere gratitude to my colleagues on the Board of Directors for their guidance, stewardship and oversight. I also take this opportunity to thank Mr Lakshman Niyangoda and Ms Shiromal Cooray for their valued service and contributions during their tenure, and to warmly welcome Ms Romany Parakrama as the newest member of our Board.

I record a special appreciation to Mr Sanath Manatunge, Managing Director/Chief Executive Officer, for his leadership and disciplined execution, and I thank the Corporate Management for their commitment and professionalism. We also acknowledge with gratitude the Governing Board and officials of the Central Bank of Sri Lanka, and other regulators and authorities, for their guidance and constructive engagement that supports a stable and well-regulated financial system.

To our shareholders, customers and all other stakeholders, thank you for your continued trust.

Looking ahead

While the outlook has improved, sustained progress will require continued fiscal discipline, structural reforms and renewed private sector dynamism. Commercial Bank stands ready to play its part.

Looking ahead, our priorities remain clear: preserving capital strength and liquidity leadership to safeguard depositor confidence and sustain resilience; continuing disciplined yet proactive private sector credit expansion aligned to productive sectors and national development priorities; deepening digital transformation while strengthening cybersecurity so that innovation enhances convenience and efficiency without compromising trust; and increasing overseas contributions – strengthening diversification, supporting customers’ cross-border needs and elevating the Bank’s international connectivity.

Confidence, once restored, reduces uncertainty and catalyses investment, hiring and expansion. By combining prudence, innovation and leadership, Commercial Bank of Ceylon is well positioned not only to participate in Sri Lanka’s post-crisis growth story, but to help shape it responsibly.