CBC Finance listing on the Colombo Stock Exchange signals a renewed wave of confidence in Sri Lanka’s debt capital market. The milestone debut, marked by a bell-ringing ceremony, followed a strongly oversubscribed debenture issue that underscored robust investor appetite.
CBC Finance listing highlights investor confidence and capital market growth
The CBC Finance listing on the Colombo Stock Exchange (CSE) represents a significant development for Sri Lanka’s non-bank financial sector, reflecting both institutional strength and renewed momentum in the domestic capital market. The listing was formally commemorated with the ceremonial ringing of the market opening bell at the CSE trading floor, coinciding with the successful issuance of LKR 1.5 billion in listed debentures.
CBC Finance Ltd, a fully owned subsidiary of Commercial Bank of Ceylon PLC, raised the funds on 27 November 2025 through an issue of 15 million rated, unsecured, subordinated, redeemable debentures. The five-year instrument carries a fixed annual interest rate of 11.50 percent, payable annually, with a par value of LKR 100 per debenture. The issue achieved oversubscription, a clear indicator of sustained investor confidence despite prevailing market volatility and tighter liquidity conditions.
The debentures were assigned a rating of “BBB+(lka)” by Fitch Ratings Lanka Limited, reinforcing CBC Finance’s credit standing and prudent risk management framework. Oversubscription at this level signals a strong appetite for well-structured fixed-income instruments backed by credible financial institutions, particularly those aligned with systemically important banking groups.
Speaking at the event as keynote speaker, Chairman of CBC Finance Ltd and Commercial Bank of Ceylon PLC, Mr. Sharhan Muhseen, emphasised the broader economic implications of the listing. He highlighted the essential role played by capital markets in driving sustainable economic growth, noting that debenture issues such as this encourage wider investor participation while mobilising long-term funding for productive economic activity. His remarks positioned the listing not merely as a corporate achievement, but as a contribution to the deepening of Sri Lanka’s financial ecosystem.
The Colombo Stock Exchange, represented by its Chief Regulatory Officer Ms. Nilupa Perera, reiterated its commitment to product innovation and market diversification. In her welcome address, she outlined the expanding suite of instruments available to issuers, including Shariah-compliant securities, green and social bonds, blue bonds, sustainability-linked instruments, perpetual bonds, and high-yield debentures. Her comments reflected the CSE’s strategic objective of positioning itself as a comprehensive capital-raising platform capable of meeting evolving issuer and investor needs. The expectation expressed was that CBC Finance would continue to leverage these instruments as part of its long-term funding strategy.
CBC Finance’s corporate journey adds further context to the significance of the listing. Originally incorporated in 1987 as Indra Finance Ltd, the company later became Serendib Finance Ltd before being acquired by Commercial Bank of Ceylon PLC in 2014 and rebranded under its current name. Since then, the institution has undergone steady transformation, aligning its governance, risk controls, and operational standards with those of its parent bank.
Today, CBC Finance operates a network of 21 branches across the island, serving both individual and small and medium enterprise customers. Its product portfolio spans leasing, loans, deposits, and other financial services tailored to support entrepreneurship and consumer finance. The company currently holds an “A (lka) Stable” rating from Fitch Ratings Lanka Limited, reflecting its financial resilience and consistent performance.
Financial results further reinforce the narrative of stability and growth. During the 2024 financial year, CBC Finance reported a net profit of LKR 82 million and expanded its total asset base to LKR 17 billion. These figures demonstrate measured growth in a challenging operating environment, supported by disciplined credit underwriting and close alignment with its parent institution’s strategic direction.
The listing also indirectly highlights the strength of Commercial Bank of Ceylon PLC, Sri Lanka’s largest private-sector bank. The parent company’s recognition as Sri Lanka’s Best Trade Finance Bank at the Euromoney Transaction Banking Awards 2025 adds reputational weight to CBC Finance’s market presence, enhancing investor perception and confidence.
In a broader sense, the CBC Finance listing underscores the continued relevance of debenture markets in Sri Lanka’s financial architecture. As banks and finance companies seek diversified funding sources, listed debt instruments provide transparency, liquidity, and access to a wider investor base. For investors, such offerings present opportunities to secure predictable returns from rated issuers with established track records.
As Sri Lanka’s capital market evolves, transactions of this nature signal cautious optimism. They demonstrate that, despite macroeconomic pressures, well-governed institutions with credible sponsors can successfully attract capital. The CBC Finance listing therefore stands as both a corporate milestone and a reflection of gradual rebuilding in market confidence.