{"id":61947,"date":"2021-04-14T17:31:40","date_gmt":"2021-04-14T17:31:40","guid":{"rendered":"https:\/\/websitedesigns.com.au\/elankanew\/?p=61947"},"modified":"2021-04-14T17:31:40","modified_gmt":"2021-04-14T17:31:40","slug":"the-bank-of-ceylon-what-it-was-is-and-can-be","status":"publish","type":"post","link":"https:\/\/websitedesigns.com.au\/elankanew\/the-bank-of-ceylon-what-it-was-is-and-can-be\/","title":{"rendered":"The Bank of Ceylon: what it was, is and can be"},"content":{"rendered":"<h1 class=\"mvp-post-title left entry-title\" style=\"text-align: center;\"><span style=\"color: #333399;\">The Bank of Ceylon: what it was, is and can be<\/span><\/h1>\n<p><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-61948 aligncenter\" src=\"https:\/\/websitedesigns.com.au\/elankanew\/wp-content\/uploads\/2021\/04\/boc.jpg\" alt=\"boc\" width=\"503\" height=\"595\" \/><\/p>\n<p><strong><span style=\"font-size: 20px; color: #800080;\">Source:<\/span><\/strong><span style=\"color: #000000;\"><a style=\"color: #000000; font-size: 20px;\" href=\"https:\/\/island.lk\/the-bank-of-ceylon-what-it-was-is-and-can-be\/\" target=\"_blank\" rel=\"noopener noreferrer\">Island<\/a><\/span><\/p>\n<p style=\"text-align: justify;\" align=\"LEFT\"><span style=\"font-size: 20px; color: #000000;\">Arising from the global uncertainties and competitive challenges in socio-economic activities and \u2018New-Normal\u2019 life styles, in the aftermath of the \u2018Covid-19\u2019 pandemic, we as a group of senior retired bankers who have dedicated 30 to 40 years of their working lives to the glory and success of the largest, indigenous Bank of Sri Lanka with a global presence, consider it timely and appropriate to address the attention of all its stakeholders- viz. the government, valued customers, bank staff, trade unions and the public at large. Towards such end, we wish to deal briefly with the bank\u2019s history highlighting a few of its unique performances and achievements particularly during difficult times, by leveraging on its status as the best internationally rated, local bank in Sri Lanka.<\/span><\/p>\n<p style=\"text-align: justify;\" align=\"LEFT\"><span style=\"font-size: 20px; color: #000000;\">A Brief History of the Bank of Ceylon (BOC)<\/span><\/p>\n<p style=\"text-align: justify;\" align=\"LEFT\"><span style=\"font-size: 20px; color: #000000;\">The Bank of Ceylon (BOC) was established in 1939 as the first indigenous State-aided Bank to assist local entrepreneurs and businessmen who were deprived of much needed finances. While meeting its objectives through financial intermediation, the bank\u2019s deposits and advances portfolios grew exponentially withban expanding Import\/export economy; so much so, that BOC opened a Branch in London in 1949. With such signs of fulfilling progress, there was no attempt even after the country\u2019s Independence in 1948 to nationalize the bank.<\/span><\/p>\n<p align=\"LEFT\"><!--more--><\/p>\n<p style=\"text-align: justify;\" align=\"LEFT\"><span style=\"font-size: 20px; color: #000000;\">However, due to a major shift in economic policies, BOC was nationalized in 1961 coupled with protective regulations against foreign banks creating a captive market for state-owned banks. Consequently, the bank in the early seventies was requested to extend its services to the rural areas by opening over 300 islandwide Agricultural Service Centre (ASC) branches under an innovative \u2018mixed banking\u2019 model. It surely expanded the bank\u2019s relationship with the populace as its clients. In implementing this model, the bank introduced a plethora of concessionary credit schemes with refinance facilities from the Central Bank and<\/span><\/p>\n<p style=\"text-align: justify;\" align=\"LEFT\"><span style=\"font-size: 20px; color: #000000;\">credit lines from international funding agencies such as the World Bank, Asian Development Bank (ADB) and International Finance Corporation (IFC) to uplift the economy of the rural farmers, small and medium entrepreneurs as well as self-employed artisans in the semi-urban sector.<\/span><\/p>\n<p style=\"text-align: justify;\" align=\"LEFT\"><span style=\"font-size: 20px; color: #000000;\">With the introduction of the \u2018open economy\u2019 in the late seventies, Sri Lanka\u2019s financial market was liberalized allowing the re-entry of foreign banks creating a fierce competition especially in commercial and international banking. During the decades of eighties and nineties, the bank responded effectively to the growing challenges in a rapidly changing global environment, by introducing techno- savvy innovative products such as credit cards, ATM\/debit cards, in a computerized environment adopting appropriate marketing and human resource development strategies. The bank also expanded its horizons and opened overseas branches in Chennai, Karachi, Male and a joint venture bank in Nepal. With its strong balance sheet and financial performance, the bank was rated high by international rating agencies making it a respected borrower in the international financial markets on behalf of the govt. of Sri Lanka too. BOC was the first local bank that ranked among the top 1,000 banks in the world as per the regular surveys conducted by the reputed UK magazine \u2018The Banker\u2019 and it sustains the status quo to date. The recognition of the bank by a strong global network of over 900 correspondent banks continued to facilitate its international banking operations to the immense benefit of the country\u2019s exporters and importers. In summary, the bank\u2019s vision of being \u2018The Bankers to the Nation with a global presence\u2019 at the time, was satisfactorily achieved by the aforesaid performances.<\/span><\/p>\n<p style=\"text-align: justify;\" align=\"LEFT\"><span style=\"font-size: 20px; color: #000000;\">It is noteworthy, that in addition to being the banker to the millions of the population in all walks of life, through its Islandwide network of branches, the BOC became the de facto banker to the government as well.<\/span><\/p>\n<p style=\"text-align: justify;\" align=\"LEFT\"><span style=\"font-size: 20px; color: #000000;\">For example, when USA imposed an embargo on Iran in 1980, the BOC drawing on its robust international standing was the only bank to continue to negotiate letters of credit for tea shipments to Iran for its customers uninterruptedly and for other banks\u2019 customers too, relying on assurances by Iran\u2019s \u201cCentral Bank\u201d, of payments inclusive of interest for delay, and save the country\u2019s economy while averting a collapse of our tea industry.<\/span><\/p>\n<p style=\"text-align: justify;\" align=\"LEFT\"><span style=\"font-size: 20px; color: #000000;\">On another occasion when ships refused to come to Sri Lanka after LTTE bombed the Colombo harbour, the BOC drawing on its International recognition, arranged a Lloyd\u2019s Insurance guarantee within three working days and paved the way for shipments without disruption and kept the country alive.<\/span><\/p>\n<p style=\"text-align: justify;\" align=\"LEFT\"><span style=\"font-size: 20px; color: #000000;\">In instances as above, BOC was and still is, the only bank operating in Sri Lanka that possesses the will and the \u2018risk taking ability\u2019 to act at short notice for the benefit of the country.<\/span><\/p>\n<p style=\"text-align: justify;\" align=\"LEFT\"><span style=\"font-size: 20px; color: #000000;\">BOC\u2019s active involvement as the \u2018Bankers to the Nation\u2019 and the govt. during the two insurrections and the tsunami, is no secret to the public and the security forces were relieved by the uninterrupted arrangements made by the bank to collect their salaries without any delays.<\/span><\/p>\n<p style=\"text-align: justify;\" align=\"LEFT\"><span style=\"font-size: 20px; color: #000000;\">With the beginning of the new millennium, the bank\u2019s vision was revised to read as \u2018to be the No. 01 Bank in Sri Lanka and to be perceived as such by the general public\u2019. Accordingly, the bank kept step with the rapid changes in technology and introduced customer centric innovative products such as \u2018SLIPS\u2019, SMS Banking, Internet Banking and Smart Banking etc.<\/span><\/p>\n<p style=\"text-align: justify;\" align=\"LEFT\"><span style=\"font-size: 20px; color: #000000;\">Successive BOC managements and staff have consistently laboured to maintain BOC\u2019s position as the No. 01 Bank in Sri Lanka. In the process, the bank has now expanded its network up to 2,000 local customer touch points with customers showing a significant shift from physical banking to digital banking instruments such as B-app, Smart Pay, and Online Banking etc. The bank also strengthened its global presence by opening a new branch in Seychelles and a second branch in Hulhumale \u2013 Maldives. As a result of the said achievements, the bank won Sri Lanka\u2019s No. 01 Banking Brand and No.01 Bank Awards for the last 12 years in succession.<\/span><\/p>\n<p style=\"text-align: justify;\" align=\"LEFT\"><span style=\"font-size: 20px; color: #000000;\">It is pertinent to mention that, with the blessings and support of the successive governments, the bank when necessary, executed a series of reorganization\/re-engineering\/restructuring exercises with the assistance of renowned foreign consultancies, to achieve this remarkable progress.<\/span><\/p>\n<p style=\"text-align: justify;\" align=\"LEFT\"><span style=\"font-size: 20px; color: #000000;\">Towards achieving BOC\u2019s Centenary Vision -2039<\/span><\/p>\n<p style=\"text-align: justify;\" align=\"LEFT\"><span style=\"font-size: 20px; color: #000000;\">Presently, BOC is progressing at an intermediate level in regard to its global presence led by its fully owned subsidiary in London and supported by branches in Chennai, Maldives and Seychelles. With its additional representative presence in the Middle East and South\/East Asia, the BOC\u2019s Vision-2039 projects a \u2018Global Model\u2019 providing a variety of tailored banking solutions to a mature international customer base without compromising its existing commitment towards the upliftment of the unbanked segments of the local society engaged in agriculture, fisheries and allied self-employment activities in the small and medium sectors. Thus, BOC\u2019s Vision -2039 would be a de facto vision for the country too.<\/span><\/p>\n<p style=\"text-align: justify;\" align=\"LEFT\"><span style=\"font-size: 20px; color: #000000;\">The envisaged development of the Colombo Port City as a \u2018Regional Financial Hub\u2019 in close proximity to the iconic BOC head office with \u2018Heritage\u2019 potential as Jaathi\u2018ye Maha Pahan Temba\u2019 (The great beacon light of the nation), will provide a visible, majestic stature to BOC as the leading bank like in all other big cities of the world. It will not only stand in good stead with the changing skyline but also will render BOC with the much needed strategic advantage to link its head office with an extension office in the Port City itself, handling off-shore banking activities along with corresponding changes in the local banking landscape. Having heard certain rumours to the effect that BOC\u2019s head office is earmarked for acquisition in connection with the Port City development, we have proposed to the authorities to ensure that the present strategic location of BOC\u2018s head office be retained in order to fully derive the aforesaid strategic advantages.<\/span><\/p>\n<p style=\"text-align: justify;\" align=\"LEFT\"><span style=\"font-size: 20px; color: #000000;\">The unforeseen global pandemic \u2013\u2018Covid-19\u2019 forcing an array of \u2018New Normal\u2019 practices has in a way, accelerated BOC\u2019s journey towards its centenary Vision-2039, through innovative development of many digital, on-line banking products to meet both local and global demands. Conversely, the global pandemic has affected our country rating as well as that of the bank due to obvious reasons. Against this backdrop, BOC will be hard pressed to face the challenge of sustaining robust ratings by the International rating agencies while maintaining its pre-eminent position as the No.01 Bank in Sri Lanka.<\/span><\/p>\n<p style=\"text-align: justify;\" align=\"LEFT\"><span style=\"font-size: 20px; color: #000000;\">In this context, it behoves the govt. to provide the necessary environment and the impetus to allay any negative impact on the bank\u2019s commitments to the local and foreign clientele especially our long standing and reputed network of foreign correspondents and boost BOC\u2019s reputation as the only Sri Lankan bank that can mobilize international assistance in emergencies.<\/span><\/p>\n<p style=\"text-align: justify;\" align=\"LEFT\"><span style=\"font-size: 20px; color: #000000;\">A Proposal<\/span><\/p>\n<p style=\"text-align: justify;\" align=\"LEFT\"><span style=\"font-size: 20px; color: #000000;\">Towards this end, in addition to Central Bank guidelines, we have proposed that a fresh \u2018Agreement\u2019 be entered into between the Govt. and the BOC, inter-alia permitting the requisite autonomy to the bank to conduct its business like any other private commercial bank conforming to prudential banking norms (BASLE Accord) and other international norms that bear upon its ratings by renowned International rating agencies. Such action will surely buttress BOC\u2019s stride towards its centenary Vision-2039 and ensure achievement of govt.\u2019s own goal of a prosperous Sri Lanka.<\/span><\/p>\n<p style=\"text-align: justify;\" align=\"LEFT\"><span style=\"font-size: 20px; color: #000000;\">We are confident that the internal stake holders of the Bank such as the staff and trade unions would be quite alive to our submissions.<\/span><\/p>\n<p style=\"text-align: justify;\" align=\"LEFT\"><span style=\"font-size: 20px; color: #000000;\">\u201cIn a global financial market, the key financial ratings, supported by the stature and image of a bank are equally critical as its ownership.\u201d<\/span><\/p>\n<p style=\"text-align: justify;\" align=\"LEFT\"><span style=\"font-size: 20px; color: #000000;\">A group of retired members of the Corporate and Executive Management of BOC.<\/span><\/p>\n<p style=\"text-align: justify;\" align=\"LEFT\">\n","protected":false},"excerpt":{"rendered":"<p>The Bank of Ceylon: what it was, is and can be Source:Island Arising from the global uncertainties and competitive challenges in socio-economic activities and \u2018New-Normal\u2019 life styles, in the aftermath of the \u2018Covid-19\u2019 pandemic, we as a group of senior retired bankers who have dedicated 30 to 40 years of their working lives to the [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":61948,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"aside","meta":{"footnotes":""},"categories":[20],"tags":[33869,33868],"class_list":{"0":"post-61947","1":"post","2":"type-post","3":"status-publish","4":"format-aside","5":"has-post-thumbnail","7":"category-articles","8":"tag-jaathiye-maha-pahan-temba","9":"tag-the-bank-of-ceylon","10":"post_format-post-format-aside"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.7.1 (Yoast SEO v25.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Bank of Ceylon: what it 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