Sri Lanka’s Bank of Ceylon to modernize core system for $10mn after the Cabinet approved a proposal to call for tenders for a new core banking platform, marking a major technology upgrade for the country’s largest state-owned bank.
Sri Lanka’s Bank of Ceylon to modernize core system for $10mn with Cabinet approval
The investment is expected to strengthen the bank’s digital infrastructure, improve operational efficiency, and position the institution to better meet the evolving demands of customers and the financial services sector.
Cabinet Spokesman and Minister Nalinda Jayatissa announced that the Bank of Ceylon will invest approximately US$10 million to implement a new core banking system, replacing the institution’s existing International Comprehensive Banking System, which has been in operation for more than two decades.
According to the minister, the new platform is scheduled to be implemented over a five-year period following the completion of the procurement process. Cabinet has already granted approval to invite competitive tenders, paving the way for one of the bank’s most significant technology investments in recent years.
Jayatissa explained that the current International Comprehensive Banking System has served the bank for 22 years, supporting both retail and corporate banking operations across Sri Lanka as well as the bank’s overseas branches. However, advances in banking technology and changing customer expectations have highlighted the limitations of the ageing platform.
He noted that many of the system’s features, functionalities, and underlying technologies are no longer sufficient to support the increasingly complex requirements of modern banking. As digital financial services continue to expand, banks are under growing pressure to provide faster transaction processing, stronger cybersecurity, seamless digital experiences, and improved operational resilience.
The Sri Lanka’s Bank of Ceylon to modernize core system for $10mn initiative follows a recommendation by the bank’s Board of Directors, which concluded that replacing the existing platform would be more effective than continuing to upgrade legacy infrastructure. The board approved the proposal to establish a completely new core banking system capable of supporting the bank’s long-term strategic objectives.
A modern core banking platform is expected to deliver several operational benefits, including enhanced transaction processing, improved integration with digital banking services, greater scalability, and stronger support for regulatory compliance. It will also provide the flexibility needed to introduce new financial products and digital services more efficiently as customer expectations continue to evolve.
For customers, the technology upgrade could lead to improved banking experiences through faster service delivery, enhanced reliability, and better access to digital channels. Modern banking platforms also enable financial institutions to strengthen risk management, improve data analytics capabilities, and enhance overall service quality across branch and online banking networks.
As Sri Lanka’s largest state-owned commercial bank, the Bank of Ceylon plays a critical role in financing businesses, supporting government initiatives, and providing banking services to millions of customers. Investing in a next-generation core banking system reflects the institution’s broader commitment to digital transformation and long-term competitiveness within the country’s banking industry.
The Sri Lanka’s Bank of Ceylon to modernize core system for $10mn project also aligns with broader efforts across Sri Lanka’s financial sector to modernise banking infrastructure as digital payments, online banking, and financial technology continue to reshape customer expectations.
Once procurement is completed and implementation begins, the new platform is expected to become the technological foundation for the bank’s future operations, enabling it to respond more effectively to changing market conditions while maintaining reliable and secure banking services both locally and internationally.