National Savings Bank and Lanka Rating Agency announce milestone ‘AAA’ rating achievement

Monday, 17 February 2025 04:54 - - {{hitsCtrl.values.hits}}

From left: NSB Senior Deputy General Manager K. Raveendran, General Manager/CEO Shashi Kandambi, LRA CEO Dr. Kenneth De Zilwa, Head of Rating Gayani Ariyawansa, and Financial Analyst Imran Iqbal

In a significant demonstration of financial excellence and market leadership, the National Savings Bank (NSB) and Lanka Rating Agency Ltd., (LRA) have jointly announced the reaffirmation of NSB’s prestigious ‘AAA’ credit rating, marking another year of unparalleled financial strength and institutional stability.

The comprehensive rating assessment, conducted through extensive collaboration between both institutions, highlights NSB’s exceptional position in Sri Lanka’s financial landscape. The ‘AAA’ rating reflects the bank’s outstanding financial fundamentals, marked by industry-leading capital adequacy ratios, sophisticated risk management frameworks, and exemplary governance standards that set benchmarks for the entire banking sector.

NSB General Manager/CEO Shashi Kandambi said: “This rating reaffirmation represents more than just financial strength – it embodies our commitment to excellence in every aspect of our operations. Our strategic engagement with the LRA has complemented our ongoing efforts to uphold our ‘AAA’ rating while further enhancing our risk management framework and governance structures. This continued recognition reflects our unwavering commitment to financial stability and stakeholder confidence, reinforcing our capacity to navigate the evolving banking landscape with resilience and prudence.”

Kandambi highlighted the broader implications of this achievement: “The maintenance of our ‘AAA’ rating, especially in today’s dynamic financial environment, demonstrates our institutional resilience and forward-thinking approach to banking. Our partnership with LRA has been instrumental in refining our strategies and strengthening our market position. This rating isn’t just a metric – it’s a promise of security and excellence to every Sri Lankan who trusts us with their financial future.”

LRA CEO Dr. Kenneth De Zilwa said: “Our longstanding relationship with NSB has evolved into a benchmark partnership that showcases the true value of credit ratings in the modern banking landscape. NSB’s consistent ‘AAA’ rating is not merely a testament to their financial prowess – it serves as a beacon of excellence for the entire banking sector. Through years of close collaboration, we have witnessed NSB’s unwavering dedication to maintaining superior credit standards despite challenging economic conditions over the years. This rating has practical implications for NSB’s cost of capital, as it directly benefits their operations and ultimately their customers. It also sets a powerful precedent for how strong credit ratings can be leveraged to create tangible market advantages.”

Key rating highlights: Industry-leading capital adequacy ratios significantly above regulatory requirements; advanced credit risk management systems and protocols; exemplary corporate governance framework; outstanding transparency in operations and stakeholder communications; consistent excellence in asset quality management, and a superior liquidity position and funding profile.

This joint announcement underscores both institutions’ commitment to fostering financial excellence and market transparency in Sri Lanka’s banking sector.

The ‘AAA’ rating continues to position NSB as a cornerstone of Sri Lanka’s financial system while highlighting the LRA’s role in promoting market efficiency through robust credit assessment frameworks.

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