Article
Commercial Bank
Fitch Ratings has upgraded Commercial Bank of Ceylon PLC’s National Long-Term Rating to ‘AA(lka)’ from ‘AA-(lka),’ effective 30th October 2026, reinforcing the Bank’s position as Sri Lanka’s benchmark private-sector lender and highlighting its enduring financial strength.
The upgrade follows Fitch’s recalibration of Sri Lanka’s national rating low credit scale after the sovereign rating upgrade in September 2026, while also reflecting the scope for greater positive differentiation of Commercial Bank’s credit profile relative to large private-sector banking peers.
The ‘AA(lka)’ rating signifies very high credit quality and very low default risk relative to other issuers in the country, providing an important signal of the Bank’s strong capital adequacy, liquidity, and asset quality to investors, depositors, corporate customers and international banking partners.
Fitch’s assessment recognises Commercial Bank’s longstanding position as Sri Lanka’s largest private-sector bank, its sustained advantages in business generation and funding, and its optimised cost of funds relative to other large private-sector banks. The Bank’s asset quality, profitability and capital coverage of net impaired loans have also generally remained among the stronger levels within the range of rated local banks, the rating agency noted.
“Any rating upgrade of this nature is significant for stakeholders,” Mr Sharhan Muhseen, Chairman of Commercial Bank noted. “For our customers, the upgraded rating provides an additional indicator of the Bank’s stability and financial strength in safeguarding their investments and assets. For businesses and individuals seeking financing, the Bank’s strong institutional creditworthiness and funding advantages underpin its capacity to offer competitive financing solutions and support their diverse growth ambitions.”
Commenting on the upgrade, Mr Sanath Manatunge, Managing Director/CEO of Commercial Bank, said: “This rating upgrade is a powerful affirmation of the financial resilience, disciplined risk management and enduring strength of Commercial Bank. It validates the deep confidence our customers, investors and international partners place in us, and strengthens our capacity to support Sri Lanka’s businesses, households and economic progress.”
The stronger credit profile also reinforces Commercial Bank’s international correspondent banking relationships, supporting the continuity and efficiency of cross-border banking, trade finance and capital repatriation services for customers engaged in international trade, the Bank said.
While the rating action was directly prompted by the recalibration of Sri Lanka’s national rating scale following the sovereign upgrade, it also positions Commercial Bank as a key beneficiary of the country’s macroeconomic recovery, reflecting a balance sheet and risk management framework that remained exceptionally resilient through earlier economic volatility. This underscores the Bank’s ability to sustain strong financial fundamentals through challenging periods and its favourable position within the domestic banking sector, the Bank added.
Commercial Bank was the first Sri Lankan bank to achieve a market capitalisation exceeding US$ 1 billion. The Bank emerged as the No. 1 ranked Sri Lankan bank in the 2026 edition of the prestigious Top 1000 World Banks ranking published by The Banker magazine, UK. The Bank has the highest capital base among all Sri Lankan banks and is one of the largest private-sector lenders in Sri Lanka. Ranked No. 1 in the Business Today Top 40, Commercial Bank is recognised as the most respected and most-awarded bank in Sri Lanka, is a leader in digital innovation and is the country’s first 100% carbon-neutral bank.
Commercial Bank operates more than 270 strategically located branches and an extensive network of automated machines island-wide, and has the widest international footprint among Sri Lankan banks, with 21 branches in Bangladesh, a majority stake in a fully-fledged Tier I bank in the Maldives, a microfinance company in Myanmar, and a representative office in the Dubai International Financial Centre (DIFC). The Bank’s wholly owned subsidiaries, CBC Finance PLC and Commercial Insurance Brokers (Pvt) Limited, also deliver a range of financial services via their own branch networks.
Photo caption:
Mr. Sharhan Muhseen, Chairman, and Mr. Sanath Manatunge, Managing Director/CEO of Commercial Bank.
