Sri Lanka, Nov. 21 -- Fitch Ratings has placed Housing Development Finance Corporation Bank of Sri Lanka's (HDFC) National Rating of 'BB+(lka)' and State Mortgage & Investment Bank's (SMIB) National Rating of 'BB(lka)' on Rating Watch Positive (RWP). HDFC's rating was previously on a Negative Outlook.
Key Rating Drivers
Acquisition on the Cards: The rating action follows the announcement by the government on 11 November 2025 that the cabinet of ministers granted approval for the proposal to transfer all the state-owned shares of HDFC and SMIB to Bank of Ceylon (BOC; CCC+/AA-(lka)/Stable) and People's Bank (Sri Lanka) (PB; AA-(lka)/Stable), respectively. The modalities and resolution of the intended acquisitions are not yet known.
The RWP...