Recording another first in the local banking sector, the Bank of Ceylon (BOC) is to diversify its operations in the United Kingdom (UK) by upgrading its London branch to a fully fledged bank aimed at using it as a platform for global banking and to attract more foreign investment to the country.
Outlining new strategies of the bank to the Business Times, Chairman BOC Gamini Wickramasinghe said that it would introduce new products and financial instruments for British customers and Sri Lankan expatriates through the Bank of Ceylon UK after fulfilling the conditions required by British authorities.
The banking business of the London branch of Bank of Ceylon has been allowed to be transferred to a new unit, Bank of Ceylon (UK) Ltd, he said.
He disclosed that the Bank of Ceylon UK regulated by the Financial Services Authority UK will set up its branches in countries like Canada, Japan, and Australia securing the status of the BOC as a financial powerhouse with global reach. "This will see the Bank of Ceylon's business at its best - innovating to meet the challenges of a fast-changing world, and delivering truly sustainable prosperity for Sri Lanka," he said. The bank branch now operated as an exchange house for lending and trade financing activities as well as taking deposits and making remitences. Sri Lankan expatriates in European countries will be encouraged to invest in the country's capital market through the Bank of Ceylon UK as Sri Lanka is now a good place to make investments, he said.
Meanwhile at a press conference, Mr Wickramasinghe said that taking advantage of the dramatic shift of the economic potential of post-war Sri Lanka, the BOC has launched a medium-term corporate plan aimed at achieving a Rs 1 trillion Balance Sheet and Rs.10 billion in profits by year 2012.
He said the new strategy is based on current world banking dynamics in which commercial banking and interest based revenues become relatively less prominent and other fee based incomes are explored more actively. The whole bank including its senior managers, branch managers and through them the staff has reached a unified understanding of this 3-year strategic transformation, he said.
A specialized investment banking unit has been set up to support new services in local and international investments, alternative investments, debt and equity distribution, corporate advisory services, and global research. An umbrella of innovative investment opportunities is to be taken to an islandwide customer base through the investment bank.
Mr Wickramasinghe said, "We will focus on mergers and acquisitions in our journey towards a one trillion balance sheet. We have already earmarked certain industries and companies of interest to achieve the synergies and asset growth necessary. The whole bank will carry out this transformation strategy and keep in line with its strategies which impact various economic sectors." |
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