Commercial Bank of Ceylon: Building trust, expanding investment in Bangladesh

Commercial Bank of Ceylon (CBC), one of Bangladesh's most trusted foreign commercial banks, has shared its outlook on the country's economy, investment potential, and the future of banking. In an exclusive Q&A, Sanath Manatunge, global managing director of Commercial Bank of Ceylon PLC, outlined the bank's strategy to navigate challenges while reinforcing its long-term commitment to the market.

Bangladesh's economy has faced numerous obstacles, including poor GDP growth, high inflation, and dwindling investments. What is your bank's business strategy for addressing these challenges?

Economic challenges are not new; they are part of every nation's growth story. Bangladesh has proven its resilience in the face of past crises and continues to show signs of recovery. With its young workforce, strong apparel exports, and achievements in women's empowerment, the country has the fundamentals to sustain growth.

CBC sees these challenges as opportunities. By maintaining one of the lowest non-performing loan ratios in the sector (0.60%) and earning 15 consecutive years of AAA credit rating in Bangladesh, we have demonstrated financial discipline, resilience, and trustworthiness. 

Our strategy remains focused on strengthening confidence, supporting businesses, and contributing to Bangladesh's economic progress. And it's noteworthy to mention that we have been amongst the world's Top 1000 Banks for over a decade now, which is a remarkable achievement considering the regional challenges that we face from time to time. 

Also, we have similar experience in Sri Lanka, and as a bank, we navigated these challenges successfully by supporting the customers and the overall economic recovery. CBC is well-positioned to leverage such experience to support our Bangladesh customers in the next wave of growth, and we are investing in our internal capacity to seize potential opportunities.

 Bangladesh's forex market has stabilised following prolonged volatility, and dollar reserves are increasing. What effect will this have on foreign investment?

Stability in the foreign exchange market is vital for both investors, customers and the overall economy. The rebuilding of reserves to $31.17 billion in August 2025, supported by record remittances and prudent policy actions, is a strong signal of confidence and stability.

For investors, this creates a more predictable and stable environment, which improves the country's risk-return profile. For local customers, it means a stronger banking sector capable of meeting foreign exchange needs. CBC is well-positioned to facilitate capital inflows and provide reliable risk management solutions, benefiting both domestic clients and international stakeholders.

 Bangladesh has seen a significant drop in foreign investment over the last few years. What regulatory support does banks require to attract new capital?

While foreign direct investment has softened, the share of reinvested earnings shows that existing investors remain confident in Bangladesh's long-term potential. To attract new inflows, regulatory clarity is essential. Strengthening property rights, ensuring timely dispute resolution, and maintaining consistent policies on taxation and profit repatriation will foster greater trust. 

We also need to closely watch the country rating and improve the macroeconomic stability to maintain or improve such ratings, which is a key factor for FDIs. These measures will not only encourage international investors but also enhance confidence among local businesses and customers, who benefit from a stronger, more predictable financial ecosystem.

 The banking sector has struggled with corruption and institutional weaknesses. How does this affect the role of foreign banks?

Bangladesh's banking sector is at a critical turning point. Weaknesses in governance and asset quality are challenges, but they also present opportunities for well–capitalised and well-managed banks to strengthen the system. As done in Sri Lanka, a crisis can also be an opportunity to implement governance-related reforms in the financial sector.

CBC stands out with a CRAR OF 56.91%, far above the regulatory minimum of 12.50% which includes the capital buffer. This positions us to continue serving both international investors and local customers with unmatched financial strength. For foreign banks, the key lies in balancing risk with opportunity, while for customers, our role is to provide a safe and stable banking partner they can rely on.

 Political uncertainty is currently the most pressing issue in Bangladesh. How does this impact banking?

Political instability has caused disruptions in trade finance, investment appetite, and credit growth. However, we are happy to note the stability created during the past few months, which will be a good platform not only for economic recovery but also to create long-lasting stability in the political arena. However, periods of uncertainty also allow stronger institutions to stand out by supporting business and individuals with stability and trust.

At CBC, our focus is on resilience and commitment to the Bangladesh economy. We maintain strict due diligence and prudent financial practices, ensuring that customers' deposits remain safe and investors' capital is managed responsibly, even during turbulent times.

 Rising default loans are a growing concern in the industry. How does CBC maintain its strong position?

Non-performing loans have risen sharply across the sector, but CBC continues to maintain one of the lowest default ratios in the market. This is due to our disciplined lending practices supported by a well-defined risk appetite framework, governance and close engagement with clients to ensure sustainable growth.

For investors, this means confidence in our financial stability. For customers, it reflects our commitment to responsible banking and long-term trust.

 What potential do you see for the banking industry in Bangladesh in the near future?

We are optimistic about Bangladesh's banking sector. Private sector credit growth is a fundamental factor to support economic revival and growth in Bangladesh. GDP growth is expected to rebound above 5% in FY2026, supported by reforms, governance improvements, and the return of political stability. This will create opportunities for renewed credit growth, investments, and profitability.

In addition, the increasing focus on green and sustainable financing opens exciting avenues for both global investors and local businesses. At CBC, we see ourselves playing a central role in this transformation – strengthening trust among our customers while helping investors unlock new opportunities in a rapidly evolving market.