Commercial Bank of Ceylon PLC has secured an upgrade of its National Long-Term Rating to ‘AA(lka)’ from ‘AA-(lka)’ by Fitch Ratings, reinforcing its position among Sri Lanka’s strongest financial institutions.

The upgrade, effective October 30, 2026, reflects the bank’s strong market position, funding advantages and sustained financial resilience, while also following Fitch’s recalibration of Sri Lanka’s national rating scale subsequent to the country’s sovereign rating upgrade in September.

Fitch said the recalibration had created greater scope to differentiate Commercial Bank’s credit profile positively from those of other large private-sector banking peers.

The ‘AA(lka)’ rating denotes very high credit quality and very low default risk relative to other issuers in Sri Lanka, reflecting the bank’s financial strength and capacity to meet its obligations.

In its assessment, Fitch recognised Commercial Bank’s position as the country’s largest private-sector bank, supported by its established business franchise, strong funding profile and ability to maintain a relatively low cost of funds compared with other major private-sector lenders.

The rating agency also noted that the bank’s asset quality, profitability and capital coverage of net impaired loans had generally remained among the stronger levels across rated domestic banks.

Commercial Bank Chairman Sharhan Muhseen said the upgrade was significant for the bank’s customers and other stakeholders, providing further assurance of its financial stability and strength.

He said the improved rating also reinforced the bank’s institutional creditworthiness and funding advantages, supporting its ability to offer competitive financing solutions to businesses and individuals.

Managing Director and CEO Sanath Manatunge described the upgrade as an affirmation of the bank’s financial resilience, disciplined risk management and sustained strength.

He said it reflected the confidence placed in the institution by customers, investors and international partners, while strengthening its capacity to support businesses, households and the wider economy.

The improved credit standing is also expected to reinforce the bank’s international correspondent banking relationships, which are important for cross-border transactions, trade finance and capital repatriation services.

Although the rating action was directly prompted by the recalibration of the national rating scale following Sri Lanka’s sovereign upgrade, it also highlights Commercial Bank’s ability to maintain sound financial fundamentals through periods of economic volatility.

The bank's relatively strong balance sheet, funding efficiency and risk management framework have helped it maintain a favourable position within the domestic banking sector.

Commercial Bank was the first Sri Lankan bank to achieve a market capitalisation exceeding US$1 billion and was ranked the country's number one bank in the 2026 edition of The Banker magazine's Top 1000 World Banks ranking.

It also has the highest capital base among Sri Lankan banks and is one of the country's largest private-sector lenders.

The bank operates more than 270 branches and an extensive network of automated banking machines across the island. Its international operations include 21 branches in Bangladesh, a majority stake in a Tier I bank in the Maldives, a microfinance company in Myanmar and a representative office at the Dubai International Financial Centre.

Its wholly owned subsidiaries, CBC Finance PLC and Commercial Insurance Brokers (Pvt) Ltd, provide additional financial services through their respective branch networks.