Sri Lanka’s Seylan Bank projects 18-pct profit growth next year under steady interest rates

ECONOMYNEXT – Sri Lanka’s listed private lender Seylan Bank expects a strong 18 percent growth in 2018 provided the current interest rates remain steady, its Chief Executive Officer Ramesh Jayasekara said on Tuesday (03).

Announcing the milestone of achieving Rs. 1 trillion asset base by end September this year, Jayasekara said the Bank sees challenges from geopolitics and climate change for the strong growth it has projected.

“So, looking ahead, I would say even in 2027, we are expecting strong growth. The growth might be around 18% we expect in 2027,” he told reporters at a media round table.

“And if interest rates remain at these levels, we see another strong year for the sector. So again, we are bullish into 2027 as well. We feel that growth momentum will remain in the industry, and there will be appetite.”

The Bank posted a net profit growth of 9.5 percent to Rs. 9.1 billion in the first nine months of this year compared to the same period in 2025.

However, Jayasekara cautioned over possible risks next year.

The key challenges I think are geopolitics. I would say climate risk and geopolitics is something that we can’t control. I mean, if the war erupts again or if Sri Lanka goes through a big drought, those are things out of our control,” he said when asked the key challenges for the next year.

“We need to be prepared. Those two are big unknowns that we need to factor into strategy. And as long as you factor that in and have kept sufficient room for that, that’s okay, because I see the country growing at least 4% plus.”

He said the credit growth has been strong this year though he expects it to be slower next year given tight monetary policy.

“We are still bullish, though there could be some head winds.”

Sri Lanka’s Central Bank has raised the key policy rates by 100 basis points in May this year while the country is expected to see a sluggish growth owing to higher inflation and expensive fuel following the Middle Eastern conflict.

Jayasekara said the monetary tightening has already slowed down the credit growth in August and September.

The Bank saw 14.8 percent growth in loans and advances and 10,2 percent increase in deposits in the first nine months of this year.

Jayasekara  said digital penetration has risen from 16% in 2023 to over 52% with more than half of the customers are connected via internet banking or the mobile apps.

 The bank has introduced rapid digital services such as “Loan on FD” (loans against fixed deposits), pawning top-ups/part-settlements, easy payment plan conversions, limit enhancements, and advance salary requests—all accessible in just a few clicks.

The CEO said the Bank reduced turnaround times for loans to Small and Medium Enterprises (SME), which make up about 23% of their book, by providing a definitive decision on SME loan applications within 72 hours (3 days).

It is also in the process of launching a dedicated push into private banking and wealth management early next year, including opening two specialized private banking centers in Colombo to capitalize on the market gap left by exiting foreign banks and growing middle-income wealth. (Colombo/November 03/2026)