As Sri Lanka’s largest bank and a State-owned, systemically important institution, Bank of Ceylon’s responsibility towards the Community and Environment is paramount. The Bank is committed to playing a central role in prioritising National development and economic growth. Mainstreaming sustainability is one of five strategic enablers in the Bank’s Strategic Plan, which directs the Bank’s actions towards community and the environment.


LKR 52.6 billion
disbursed to the MSME sector

LKR 5.45 billion
disbursed through microfinancing initiatives

Launched new
green savings and loan products

Branches brought up to
Green Building SL standards

‘‘BoC Gammana”
model village initiatives

of microfinancing facilities disbursed to women-owned/women-headed businesses

LKR 998.5 million
funding for sustainable manufacturing as at 2022

LKR 1.9 billion
outstanding loans to the renewable energy sector at end 2022

LKR 4.7 billion
of financing disbursed after ESMS compliance

3,219.3 Mwh
renewable energy generated (based on estimates)

of energy requirement of operations from renewable sources

total branches solarised

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Green Business Leadership of the Year,
at the Annual Green Building Awards

Operating Context

2022 brought major challenges for communities, the Country, and the environment. Communities were doubly-impacted by rapidly escalating inflation and volatility of the economic environment that threatened businesses and livelihoods.

At the same time, rising threats and risks brought on by climate change have increased focus on consideration of environmental and social factors in financial activities such as lending and investment.

Effects of sovereign default and resulting rating downgrade limited the Bank’s opportunities to access low cost external funding to finance Sustainable Development and Green products. However, the Bank took a strategic decision to continue prioritising these activities utilising the Bank’s own funds.

Operating context

  • Country and communities impacted by knock-on effects of the economic
    crisis – Fuel and energy crisis resulting in shortage, disruptions, and escalating costs for communities.
  • Environmental issues including climate change impacting country and planet.

The Bank’s response

  • Carried out CSR programmes and promoted volunteerism to support rural development
  • Supported rural development and vulnerable communities through credit to MSMEs and Female-headed businesses
  • Prioritised business continuity and supported financial inclusion
  • Launched
    new products and concessionary loans to support a carbon-free future
  • Finalised carbon-management plan for the Bank and focused on reducing environmental footprint
  • Scaled up screening for Environmental and Social factors in
  • Designated a specialised Sustainable Banking Unit to take forward sustainability agenda

National Development

Bank of Ceylon's role in National development amidst unprecedented challenges is highlighted across this Annual Report. The Bank has contributed for stability of the financial sector, provision of essential banking services, supported macro-economic stability, enabled continuity of essential goods and services, and driven economic revival. Information on the above is included in exploration of the operating context, discussions under the Bank’s business lines, performance against stakeholder outcomes and the Bank’s Risk Management report.

Provision of Essential Banking Services

The Bank prioritised business continuity despite challenges and disruptions in 2022, ensuring that all branches remained open and operational. The Bank's large network of branches, and extensive reach via digital platforms, grassroots agent network, and mobile banking units also allowed for continued access to banking services across the Island. Actions undertaken to ensure business continuity are described in the Customer section and in the business line reviews.

Supporting Macro-Economic Stability

USD 3.2 billion
inward remittances facilitated

LKR 31.9 billion
contributed to government revenue in taxes and dividends

Bank of Ceylon has supported implementation of the Government's monetary policy aimed at strengthening the country's economic climate. As the market leader in remittances, the Bank facilitated crucial foreign currency inflows into the country and allocated on priority basis during the year. Additionally, the Bank contributes to the Government's revenue through tax and dividends, as well as investments in the Government securities market.

Continuity of Essential Goods and Services

USD 1.9 billion
financing provided for petroleum and LPG imports

USD 69.9 million
worth pharmaceutical imports were facilitated

Bank of Ceylon’s role in facilitating import of essentials such as petroleum, Liquid Petroleum Gas (LPG), pharmaceuticals, and medical equipment, despite the Country’s stressed foreign currency reserves, is highlighted across this Annual Report. In 2022, BoC financed USD 1.9 billion for petroleum and LPG imports. In addition, the Bank supported operationalisation of bilateral funding lines and lines of credit for import of food, medicine, commodities, and other essential goods.

Throughout, the Bank provided for the foreign exchange needs of its customers: Students studying overseas and businesses struggling to ensure continuity of services amidst challenges with opening Letters of Credit (LCs). The Bank also supported the operations of essential government services by bridging liquidity shortfalls in key state-owned organisations and facilitating salary, pension, and other payments.

Economic Revival

LKR 19.5 billion
disbursed to agriculture, food processing and dairy under development lending

businesses supported under the Bank’s Business Revival scheme

The Bank has made a significant contribution to driving the country's economic revival through various measures. Choosing to helping with crisis-affected customers and support their business sustainability, the Bank provided extended moratoriums and concessions, restructured and rescheduled facilities, and channeled funds towards worst-affected sectors to support their resilience and revival. Actions of the Bank’s Business Revival Unit are detailed in the Customers section

Infrastructure Development

Bank of Ceylon serves as a vital lender to finance Government and private sector infrastructure development, including groundbreaking infrastructure projects that contribute to economic activity and improved standards of living across the Island. At the end of the year, the Bank's exposure to construction and infrastructure projects amounted to LKR 243.6 billion. For more information on key projects and infrastructure development financed by BoC, refer the Bank’s Project Financing performance, as described in the Corporate and Offshore business line review section.

Community Development

LKR 45.9 million
invested in support of key industries and religious and cultural development

model villages supported under the BoC Gammana programme

LKR 60.1 million
investment in CSR

Bank of Ceylon adopts a strategic approach to Corporate Social Responsibility (CSR) and Social Investment, ensuring that individual projects align with BoC’s long-term sustainability agenda, mission, and corporate values. To achieve this, all projects are subject to an evaluation model that is aligned with the Global Goals, which drive meaningful and long-term change. All community engagement and development programmes are monitored by the Bank’s Sustainability Unit, ensuring effective deployment of resources and the fulfillment of project objectives.

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The Bank carried out a number of programmes in 2022, including concerted support for development of three villages through BoC Gammana. The programme provided for the environmental, social, and developmental needs of the community through holistic support, and partnered with other institutions and services to improve the health and welfare of targeted villages. The Bank also provided training to these communities on saving habits, financial literacy, and book-keeping.

Further, the Bank remained responsive to the needs of key segments of society, and invested approximately LKR 45.9 million in support of professional development and entrepreneurship, cultural and religious events, and the spheres of Sport, Education, Healthcare, and Science and Technology. During the year, BoC employees stood out as exemplars, volunteering and organising community development programmes in response to crises or pressing needs in their communities.

Environmental Conservation

LKR 3.2 million
invested in reforestation via the BoC Haritha Arana project

Bank of Ceylon contributes to safeguarding and conserving Sri Lanka’s precious natural resources, as part of its commitment as a responsible corporate citizen, and in line with the government’s efforts to increase extent and quality of forest cover. In partnership with the Department of Forest Conservation, Bank of Ceylon supports a multi-year project to restore 100 hectares of degraded forest in the Hurulu Forest Reserve in Habarana: a UNESCO designated Biosphere Reserve and important habitat for Sri Lankan Elephant and other endangered flora and fauna. In 2022, a sum of LKR 3.2 million was invested towards the project.

Identifying the rising pressures on the environment and ecosystems caused by plastic pollution, a project initiated by the Bank in 2019 in partnership with the Ministry of Megapolis and Western Development, to promote recycling of non-degradable waste in schools across the Western Province continued in 2022 as well.

Sustainable Financing

LKR 5.3 billion
value of sustainable finance disbursed as per CBSL taxonomy

In line with the Roadmap for Sustainable Finance outlined by the Central Bank of Sri Lanka (CBSL), Bank of Ceylon works to manage Environmental and Social (E&S) risks; prioritise E&S considerations in our lending decisions; and actively support socially inclusive and environment/climate-friendly projects, products, and services through various green financing credit lines and support services.

Management Commitment

The Bank has a dedicated Sustainability Banking Unit in place to drive its Sustainable Financing agenda and provide operational and ancillary support to the BoC’s primary business units. The Sustainability Banking Unit was empowered in 2022, with appointment of key management personnel. The Bank’s Sustainable Financing agenda garners management support through a Sustainability Committee, chaired by the General Manager of the Bank, and reporting to the Board.

Bank of Ceylon strictly adheres to the environmental and social impact management requirements of funding agencies and institutions, and follows a comprehensive Environmental and Social Management System (ESMS) policy and procedures with regard to selected loan categories.

Green Financing

LKR 49.6 million
granted for sustainable agriculture

new green financing loans granted in 2022

LKR 1.9 billion
outstanding loans to the renewable energy sector at end 2022

loans to the renewable energy sector in operation at end 2022

Bank of Ceylon has pioneered a number of green financing initiatives, including concessionary funding options aimed at promoting the uptake of renewable energy and clean technologies amongst domestic and commercial users. In 2022, the Bank introduced a number of new products including loans for solar-power systems and biogas systems, and loans and leases for electric transport options that reduce dependency on fossil-fuels, thereby contributing to climate change mitigation via emission reduction.

Despite lacking access to external funding, the Bank allocated funds to grant new green financing facilities amounting to LKR 711.6 million in 2022. As of 31 December 2022, the Bank's outstanding loans to the renewable energy sector amounted to LKR 1.9 billion, demonstrating Bank of Ceylon’s dedication to advancing sustainable energy solutions.

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Value of outstanding loans to the renewable energy sector
(LKR million)
Number of outstanding loans to the renewable energy sector 1,761
Value of new facilities granted for green finance (LKR million) 5,284.0
Number of new facilities granted for green finance 1,809

Responsible Investment

LKR 616,788.2
raised for green financing initiatives through new public investment products

In 2022, the Bank piloted initiatives to raise awareness on climate change and global environmental issues, while driving responsible investment by the public. Two deposit-taking products were introduced during the year: Haritha Kekulu for school children, and e-thuru for other personal and non-personal customers. These specialised investment products allowed customers to designate their funds for green financing initiatives carried out by the Bank.

The Bank carried out a number of activities and programmes alongside the products, whereby students were educated and made aware about global environmental issues and given the opportunity to engage in tree planting and reforestation initiatives supported by the Bank.

Environmental, Social, and Governance (ESG) Integration

LKR 4.7 billion
of financing disbursed after ESMS compliance

loans screened for E&S criteria during the year

officers trained for E&S screening during the year

LKR 711.6 million
sustainable financing disbursed in 2022


The Bank’s integration of ESG considerations with its core business ranges from assessment and management of E&S risk through an Environment and Social Risk (ESR) unit reporting to the Chief Risk Officer; corporate disclosure against standardised ESG metrics and indicators; and responsible lending with comprehensive E&S screening and evaluation of commercial loans and project financing, guided by the Bank’s ESMS policy.

ESG Disclosure

In 2022, BoC publishes its tenth Integrated Annual Report. The Bank’s report follows international reporting frameworks and best practices, and includes external assurance of ESG/Sustainability information. A comprehensive overview of ESG incorporation in corporate disclosure is presented in the section titled “About this Report”.

Capacity Building

Bank of Ceylon continues to invest in capacity building of its cadre, in line with the Bank’s ESMS policy and guided by the dedicated ESMS Unit under BoC’s Independent Integrated Risk Management Division (IIRMD). The Bank carried out a number of activities in 2022 to educate and raise awareness amongst staff; leveraging internal and external resources and experts in the field to train and build awareness and capacity of employees from the highest tiers of corporate management to the Bank’s credit officers and relationship officers.

Responsible Lending and ESG Risk Management

During the year, the Bank screened 841 loan facilities for E&S criteria, representing loan schemes operated under the Consumer and Development Banking Division. During the year, LKR 1.3 billion in loans was disbursed after conforming to ESMS compliance.

Number of officers trained for E&S Screening 153
Number of loans screened for ESMS compliances during the year 841
Value of facilities disbursed after confirming to ESMS compliances during the year (LKR billion) 4.7
Number of loans rejected during the year due to non-compliance with ESMS regulations Nil


As per Bank of Ceylon’s well established ESMS policy that is in accordance with ADB, AIIB, and CBSL guidelines; credit lines and loans rated as A, B, or C are screened for E&S criteria.

The Bank upholds a commitment to not fund projects that damage biodiversity. Additionally, as per regulations upheld by the Central Environmental Authority (CEA) and outlined in the National Environmental Act, projects seeking funding are reviewed for Environmental Protection License (EPL) and prior approval from appropriate authorities.

Financial Inclusion

LKR 52.6 billion
disbursed to the MSME sector

LKR 5.4 billion
disbursed through microfinancing initiatives

new loans provided to the microfinance sector

LKR 4.3 billion
of loans to MSMEs disbursed to women-owned/women-headed businesses

of microfinancing facilities disbursed to women-owned/women-headed businesses

new microfinance loans provided to women-owned/women-headed businesses

other development loans provided to women-owned/women-headed businesses

participants in awareness raising and financial literacy programmes

registered agents under agent banking

As a state bank with the widest reach across the Island, facilitating and ensuring financial accessibility and social and financial inclusion is part of the Bank’s mandate and enshrined in its sustainable business model.

Access to Services

Bank of Ceylon’s contribution to financial inclusion involves ensuring access to finance for the Country’s most remote, vulnerable, and historically underserved segments; primarily through an extensive branch network and wide-reaching customer touch points. The Bank’s reach includes an extensive grassroots agent-banking network via BoC Connect and the Bank’s mobile Branch on Wheels initiative. Details of the extent of customer touch points and reach are described in the Our Reach.


During 2022, in addition to prioritising business continuity and ensuring access to financial services despite challenges, the Bank carried out initiatives throughout the year to improve financial literacy and raise awareness about the Bank’s concessionary products and offering amongst employees and customers. Information on customer training programmes are detailed in the Customers section.

Development Lending

Another key component of the Bank’s contribution is through development lending that supports entire supply chains, encourages entrepreneurship, creates and sustains employment, and contributes to rural and industrial development across the Country.

Focusing on social and financial inclusion and equitable development, Bank of Ceylon provides financial services to some of the most vulnerable sectors and industries that are historically underserved, yet at the heart of Sri Lanka’s economy. The Bank also serves as a Participatory Financial Institute (PFI) for various concessionary funding lines that provide relief to crisis-affected sectors, support vulnerable groups across the Island, and promote adoption of green technologies and businesses.


Through special lending products and its successful microfinancing initiative, BoC Mithuru, the Bank supports and finances entrepreneurial ventures, MSMEs, and cottage industries. In 2022, the Bank was able to allocate its own funds for lending to this segment amounting to LKR 52.6 million, while such outstanding loans to the segment stood at LKR 105.4 million. A further 21,495 microfinance facilities amounting to LKR 5.45 billion were also disbursed during the year, bringing total outstanding loans via microfinance to LKR 13.1 billion at year end.

The Bank’s financial support to these critical segments of the community goes hand-in-hand with advisory services, awareness-raising, and support for market access. In 2022, the Bank pioneered BoC Hela Bojun and BoC Mithuru Pola, providing entrepreneurial support and market access for fresh produce, handicrafts, and other products from BoC Mithuru societies.

The Bank’s other development lending included specialised products and participatory financing and refinancing through CBSL and multilateral agencies such as the Asian Development Bank (ADB). Credit facilities under these schemes were extended to smallholders and MSMEs in key sectors, industries, and segments of society and heavily affected by Sri Lanka’s economic crisis including agriculture, aquaculture, fisheries, dairy, food processing, and tourism. In 2022, such development lending to MSMEs was disbursed through 1,302 loans amounting to LKR 19.7 billion, while the Bank’s outstanding development loan portfolio to MSMEs stood at LKR 105.4 billion.

The Bank also focuses its efforts on improving access to finance for women entrepreneurs and women-headed businesses, enabling thousands of women across the Island to develop and diversify income generation opportunities and livelihoods that can support themselves, their families, and their communities. During the course of the year, the Bank provided 9,211 new microfinance loans amounting to LKR 1.67 billion to female entrepreneurs and women-owned or women-headed businesses. This represented 31% of the Bank’s microfinance lending activity in 2022. Additionally, 4,091 other development loans were disbursed to women-led businesses across a variety of sectors; amounting LKR 2.7 billion, and representing 5% of the Bank’s development lending to MSMEs in 2022.


Number of no-cost retail checking accounts provided to previously unbanked or underbanked customers.

Value of new microfinance lending (LKR million) 5,453.9
Number of new microfinance loans 21,495
Value of microfinance lending to women-headed businesses (LKR million) 1,673.8
Number of new microfinance loans to women-headed businesses 9,211
Value of outstanding loans via microfinancing at year end (LKR million) 13,087.1

Environmental Footprint of Operations

Awarded Green Business Leadership of the Year, at the Annual Green Building Awards

Bank of Ceylon’s wide geographic reach and extensive customer base necessitates strategic and concerted action toward reducing the environmental footprint of operations. BoC aims to achieve this by implementing environmentally friendly practices across operations and by promoting sustainable practices along the Bank’s value chain.

As part of efforts to mainstream environmental-friendly practices, the Bank instills a culture of sustainability across operations and business units. Alongside training and awareness raising activities carried out amongst employees, a sustainability pledge was introduced, and special loan schemes for solar installation made available for staff. A unique initiative to drive home the message of sustainability and garner employee engagement; the Bank pursued home gardening projects at branch-level. In 2022, 328 branches and 148 employees actively engaged in cultivation of local produce within Bank grounds.

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Energy Consumption

branches equipped with solar photovoltaic technology in 2022

Gold awards,
Silver award and
platinum award won by branches by adopting green building concept

3,219.3 Mwh
renewable energy generated

of energy requirement of operations from renewable sources

branches completed as per the green building concept

The Bank is committed to increasing energy efficiency across operations and the branch network, whilst reducing reliance on fossil fuel. Bank of Ceylon’s branch solarisation continued in 2022, with one more branches equipped with solar photovoltaic technology and five branches in the process of solarisation.

BoC has adopted standards and policies that dictate that all new building construction undertaken by the Bank will be carried out according to standards for green buildings issued by the Green Building Council (GBC).

As at the end of 2022, 51 branches (9% of the Bank’s branch network) are solarized. Seven branches are GREENSL® Gold-rated and 01 branch retains Platinum-rating under the GREENSL® Green rating system for built environment. A further 07 branches are in the process of obtaining green building certification.

The Bank employs GBC-certified Engineers, and the Sustainability Unit is empowered by employees with certification from the National Cleaner Production Centre (NCPC). Investing in building skills related to energy efficiency and green technology, the Bank nominated key staff for external training and capacity building in 2022.

The Bank’s achievements toward solarisation and green building certification were recognised at the Annual Green Building Awards 2022, organised by the Green Building Council of Sri Lanka (GBCSL). Bank of Ceylon was awarded the Green Business Leadership of the Year Award 2022 – Bank Section; and the Wadduwa Branch received a Gold Award. BoC’s Electrical Engineer Mr N K B Thilakawardana was felicitated with Honourable Mention under the Outstanding Green Professional of the year category.

Energy Consumed

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2022 2021 % change
Electricity (Mwh) 25,301.4 24,861.4 2
Fuel (m³) 226.9 808.7 (72)
Solar energy (Mwh) 3,219.3 1,758.0 83
GHG emissions (tCO2eqv) 27,332.7 25,010.5 9

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4,471.6 tcO2eqv
Category 1 GHG Emissions

13,394.6 tcO2eqv
Category 2 GHG Emissions

8,186.9 tcO2eqv
Category 3 GHG Emissions

1,279.5 tcO2eqv
Category 4 GHG Emissions

3.3 tcO2eqv
(3 in 2021) GHG emissions intensity

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The Bank assesses and discloses Greenhouse Gas (GHG) emissions based on the ISO 140064:1 standard for quantifying and reporting GHG emissions. In 2022, the Bank finalised a comprehensive Carbon Management Plan and put in place new strategies for measurement, mitigation, and management of BoC’s carbon footprint.

Material Consumption

Furthering the Bank’s impetus toward paperless banking, BoC continued to scale up adoption of process automations. Upgrades to the Document Management System in 2022 continued the trend of reducing paper consumption across the Bank’s operations.

Coupled with Bank of Ceylon’s strategic emphasis on digitalisation, and increasing customer shift to digital channels, the Bank is well set to continue reducing paper consumption in the years to come.

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Waste Management

21.9 MT
of paper recycled

LKR 547.7 million
funding for waste management projects

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The Bank of Ceylon produces two primary types of waste: used paper and e-waste, as a direct result of its operations. The Bank has a waste management policy in place for management of e-waste and recycling of e-waste and used paper is carried out through registered recyclers. A new waste management policy and comprehensive waste management plan are being drafted, and will ensure the Bank remains committed to promoting waste reduction and responsible waste disposal across its operations.

Way Forward

Bank of Ceylon remains committed to adopting a long-term view towards creating value for all segments of society.

A strong proposition for Sustainable Financing lies at the heart of the Bank’s sustainability efforts in the years to come as the Bank’s mandate, strategies, and value proposition are closely aligned with the CBSL Sustainable Financing roadmap. With Bank of Ceylon gearing to support Sri Lanka’s economic revival, development lending, green financing, and financial inclusion promise to be key value drivers that would have a large impact on the community and environment.

The Bank aims to continue facilitating sustainable socio-economic development in line with its areas of operations, while supporting the government's development efforts. Additionally, the Bank will strategically invest in Corporate Social Responsibility (CSR) initiatives to address significant societal issues and drive positive change in its communities.

BoC will continue to promote environmental sustainability within the Bank, across its value-chain, and in the wider community.