Hatton National Bank PLC (HNB) has delivered a strong start to financial year 2026, surpassing a significant milestone as total assets crossed Rs 2.5 trillion, underscoring sustained balance sheet expansion and continued customer confidence in a challenging global economic environment.

The Bank reported steady growth across core business lines, with total deposits surpassing Rs 2.0 trillion and gross loans and advances rising beyond Rs 1.6 trillion in the first quarter of 2026. The performance reflects disciplined growth in lending activity supported by a stable and expanding deposit base.

Despite heightened economic volatility, HNB recorded a Profit After Tax (PAT) of Rs 9.95 billion for Q1 2026, while Group PAT stood at Rs 10.35 billion, demonstrating resilience and effective balance sheet management amid global and domestic uncertainties.

Net interest income (NII) rose to Rs 26.9 billion, supported by a 10.0% year-on-year increase in interest income. The improvement was underpinned by disciplined asset expansion and a stable funding structure, with the Net Interest Margin (NIM) improving to 4.45%, compared to 4.26% in the corresponding period last year.

Non-funded income streams also delivered strong momentum. Net fee and commission income surged by 40.9% year-on-year to Rs 6.8 billion, driven by robust performance in leasing, card transactions, and growing adoption of digital banking solutions. Exchange income increased by 6.0% to Rs 1.6 billion, supported by higher customer activity and improved trade flows.

Overall operating income for the quarter rose 17.2% year-on-year to Rs 36.1 billion, compared to Rs 30.8 billion in Q1 2025, reflecting broad-based growth across key revenue lines.

Operating expenses increased by 19.6% year-on-year, driven by higher transactional activity, increased lending operations, and regulatory levies linked to priority-sector lending. However, cost efficiency remained broadly stable, with the cost-to-income ratio recorded at 37.15%.

In line with a prudent risk management approach, the Bank recorded impairment provisions of Rs 2.6 billion in Q1 2026, compared to a reversal in the corresponding period last year. This reflects a cautious stance amid evolving macroeconomic conditions and global uncertainties.

Asset quality indicators remained broadly stable, with the Net Stage 3 ratio marginally increasing to 1.18%, while Stage 3 provision coverage stood at a healthy 73.29%, reinforcing the Bank’s strong buffer against potential credit stress.

Commenting on the performance, Managing Director and Chief Executive Officer of HNB PLC, Mr. Damith Pallewatte, said the quarter reflected the Bank’s commitment to customer partnership and resilience in a volatile operating environment.

He noted that HNB continued to support Retail, SME, Corporate, and Microfinance customers through cost pressures and evolving funding needs, while advancing digital transformation, responsible lending, and financial inclusion initiatives.

“During this period of uncertainty, our focus has remained on maintaining close engagement with customers while ensuring strong risk discipline and balance sheet resilience,” he said. “We remain committed to sustainable growth and long-term value creation for all stakeholders.”

The Bank’s capital and liquidity buffers remained well above regulatory thresholds, with Tier I capital at 15.03%, Total Capital Adequacy at 18.07%, and an all-currency Liquidity Coverage Ratio (LCR) of 194.44%, reflecting significant financial strength and regulatory headroom.

During the quarter, gross loans and advances increased by Rs 113.8 billion, while deposits rose by Rs 61.7 billion, highlighting continued customer confidence and steady business expansion.

HNB’s strong financial position was further reinforced by its credit rating of AA-(lka) by Fitch Ratings Lanka. The Bank also continued to receive significant international recognition, including being named Best Retail Bank in Sri Lanka for the 16th time by The Asian Banker, alongside awards from Global Business Magazine, The Banker (UK), Euromoney, and the Ceylon Chamber of Commerce, reflecting its standing as one of the country’s leading financial institutions.

The Board also expressed its appreciation to Mr. K. V. Nihal Jayawardena, P.C., for his contribution during his tenure, and extended best wishes to Mr. Suresh Shah on his appointment as Chairman.

With sustained asset growth, strong profitability, and reinforced capital strength, HNB continues to consolidate its position as a leading force in Sri Lanka’s banking sector, navigating uncertainty with resilience and strategic discipline.

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Sampath Bank PLC continues to transform Sri Lanka’s banking landscape through the introduction of a fully integrated, AI-driven lending ecosystem, reinforcing its leadership in intelligent, data-led financial solutions. This marks one of the first comprehensive AI-driven lending frameworks in Sri Lanka, enabling seamless, paper-light loan approvals within seconds while setting a new benchmark for speed, simplicity, and accessibility across the industry.

The AI-driven lending model is designed to make accessing finance faster and more straightforward for customers. Existing customers who meet eligibility criteria receive instant loan offers through automated assessments, removing the need for documentation, collateral, guarantors, or salary remittance, while maintaining responsible lending practices. New-to-Bank customers are supported through a digitally enabled process that combines external credit insights with a holistic view of financial activity, allowing faster loan approvals at branch level. The entire journey is delivered through the Bank’s Vishwa digital platform, ensuring a seamless, secure, and transparent experience from application to disbursement.

Commenting on the development, DarshinPathinayake, Chief Business Intelligence Officer at Sampath Bank, stated that “Sampath Bank’s AI-driven lending ecosystem represents a significant step forward in delivering intelligent and responsive banking solutions. The use of advanced analytics enables faster access to finance while maintaining consistency, accuracy, and strong risk discipline, ensuring a superior customer experience across every touchpoint.”

The Bank’s enhanced leasing framework further strengthens its offering through simplified income assessment models and reduced turnaround times, enabling eligible approvals within a significantly shorter period. Personal leasing aligns income estimation to customer profiles, while commercial leasing applies structured evaluations supported by turnover analysis and supplementary income considerations where required, ensuring consistency and reliability across segments.

Sampath Bank continues to strengthen SME financing through AI-driven capabilities that make access to funding faster, fairer, and more transparent. Commenting further, Asanka Liyanage, Deputy General Manager – Consumer & SME Banking at Sampath Bank, stated that “This transformation is centred on making access to finance simpler and more inclusive for individuals and businesses across Sri Lanka. Faster turnaround times, reduced complexity, and a more transparent evaluation process enable customers to move forward with confidence, while ensuring that funding decisions are aligned with their true financial strength and growth potential.” Advanced tools analyse transaction flows and cash movement patterns to build a clear and reliable view of business performance. A structured, data-led evaluation model then applies consistent criteria to assess creditworthiness, ensuring objective assessments across the network while maintaining strong risk oversight.

This transformation enables businesses to access finance based on their true performance, reduces reliance on subjective assessments, and supports more consistent and responsible lending outcomes. Sampath Bank’s continued investment in AI-driven lending reinforces its position at the forefront of digital banking while delivering meaningful value to customers across retail, leasing, and SME segments.

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HNB PLC has been crowned “Bank of the Year Sri Lanka 2025” by The Banker Magazine (UK), earning one of the global banking industry’s most respected accolades.

The award, presented by the London-based Financial Times publication, recognises HNB’s financial strength, resilience, and long-term strategic performance during a year of economic uncertainty.

The Banker’s annual awards assess institutions worldwide on capital strength, innovation, governance, and sustainable growth. HNB’s win follows a period in which the bank made notable gains in balance sheet health, digital adoption, and operational efficiency.

HNB MD/CEO Damith Pallewatte welcomed the honour, saying it reflected the Bank’s commitment to national recovery and customer confidence.

“This award recognises the progress we are making as a bank supporting Sri Lanka’s recovery and long-term growth. Our priority remains strengthening balance sheet stability, improving service reliability, and expanding digital and advisory solutions for our customers,” he said. “These achievements are driven by disciplined execution and the trust placed in us by our customers and partners.”

The recognition comes at the end of a milestone year for HNB, marked by stronger capital and liquidity positions, improvements in asset quality, and growth in SME and transaction banking. The Bank also completed the acquisition of the remaining 50% stake in HNB Investment Bank significantly strengthening its investment banking footprint.

Across operations, HNB has invested in process redesign, data-driven decision-making, and customer-experience improvements across both its branch network and digital channels. These measures have created a more agile platform for future expansion.

As Sri Lanka’s banking sector moves toward greater transparency, modernisation, and digital transformation, HNB’s performance positions it among the region’s top-ranked institutions. The Banker’s accolade underscores its role as a key contributor to the country’s economic recovery and long-term financial stability.

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Seylan Bank PLC announced the appointment of Ranil Dissanayake as its new Chief Operating Officer (COO). Having begun his banking careerwith Seylan Bank, Dissanayake brings over 35 years of experience in banking leadership, strategy, and operational excellence to the role.

Dissanayake’s career spans significant milestones across Branch Banking, Corporate Banking, and SME development. He began his journey managing several of Seylan’s key metropolitan branches, including the flagship Millennium Branch, where he drove consistent growth and service excellence. Rising through the ranks, he went on to serve as Regional Manager for both suburban and metropolitan networks, and later as Zonal Head, overseeing a large branch footprint with a focus on strategic expansion and enhanced service delivery.

His expertise in SME banking has been a defining strength throughout his career. As Assistant General Manager – SME, and Associate Member of the Institute of Bankers of Sri Lanka, he worked closely with global consultants such as the Boston Consulting Group (BCG) to implement structural reforms that enhanced SME lending and processing efficiency. In his most recent role as Deputy General Manager – Branch Credit, Dissanayake oversaw lending operations across the SME sector, aligning credit growth with the Bank’s strategic objectives while upholding risk and portfolio quality standards.

In addition to branch and SME leadership, Dissanayake has played a key role in guiding strategic business units. These include the Bank’s Islamic Banking division, the Credit Monitoring Unit, Margin Trading and Factoring services, Centralized Credit Units and Regional Hubs, as well as the SME Business Development Unit. His contributions have extended beyond operations to spearheading market research, product development, customer acquisition, and industry networking through SME-focused initiatives.

As a Key Management Personnel (KMP), Dissanayake has been instrumental in shaping Seylan Bank’s corporate strategy. His leadership has consistently emphasized financial inclusion, sustainable credit growth, and innovation in banking services. His extensive experience across diverse banking functions positions him well to lead the Bank’s operations into its next phase of growth.

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