The Bank of Ceylon (BOC) listed its first Basel III–compliant Tier II Sustainability Bond at the Colombo Stock Exchange with a bell-ringing ceremony.
This is the largest sustainability bond ever listed in the country and the first such bond issued by a state-owned bank.
The bond closed on December 22, 2025, after receiving full subscriptions on the first day. As a result, market participants view the issue as a positive signal for the capital market during a period of climate risk and interest rate pressure.
Chairman Kavinda de Zoysa said the listing marks an important step in the bank’s sustainable finance journey. He added that investor demand shows confidence in the bank’s financial strength and governance.
Funds to support green and social projects
The bond follows international sustainability bond standards and the national Green Finance Taxonomy. Therefore, the bank will use the proceeds to finance green and social projects.
These include renewable energy, energy efficiency, water and waste management, agriculture, small and medium enterprises, healthcare, education, and basic infrastructure.
The Colombo Stock Exchange guided the bank on regulatory and disclosure requirements. Meanwhile, the Asian Development Bank provided technical support for the Sustainable Finance Framework.
KPMG acted as the independent external reviewer, and People’s Bank served as the Trustee to the issue.
The bonds received an ‘AA-’ rating with a Stable outlook from Lanka Rating Agency.
Financial performance and outlook
Acting General Manager and CEO Y. A. Jayathilaka said the bond shows the bank’s ability to complete advanced market transactions locally. He added that the funds will support priority lending and strengthen the bank’s capital base.
In 2025, the bank recorded a profit before tax of LKR 87.7 billion in the first nine months. It also increased total assets to LKR 5.5 trillion.
Moreover, the bank ranked as the leading local bank among the Top 1000 World Banks by The Banker magazine and was named the Most Valuable Brand in the country by Brand Finance Lanka.
Last modified: February 3, 2026
