Fitch places HDFC’s and SMIB’s National Ratings on Rating Watch Positive on proposed acquisition

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).

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HDFC’s rating was previously on a Negative Outlook.

The rating action follows the announcement by the government on November 11, 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.