HATTON NATIONAL BANK

Q: How important are ethical leadership and strong governance in maintaining long-term corporate credibility, particularly in today’s business en­vironment?

A: Credibility – and ultimately, trust – is what can build or break a business. This has always been true but especially in today’s age of instant communication of information (be it accurate or otherwise) it is absolutely fundamental. For any brand to succeed in such an environment, it must be able to state its values, and live by them. This in turn, requires a brand to be grounded in authentically held values. 

For a bank, those values are tested most visi­bly in how it grows. Governance is the discipline that keeps growth consistent with what an institution says it stands for. Having started my career in risk management – and later, working in wholesale banking to support Sri Lankan enterprises to grow and expand globally; and now, as Managing Director and Chief Executive Officer – I have seen firsthand how interlinked growth and risk are. 

You cannot have growth without some ­element of risk. Taking on high levels of risk in pursuit of growth can destroy a business. But refusing to take on any risk at all will almost certainly damage growth; and without growth, a business cannot survive. 

The real test is whether growth also strengthens the balance sheet. In 2025, HNB expanded its loan book while its net Stage 3 ratio improved from 1.88 percent to 1.09 percent. As a domestic systemically important bank, our choices also carry weight for the stability of the wider financial system.  

Our customers rarely see the governance behind a decision. What they see is that we are a bank that keeps its word, and works to support them through good times and bad – and that is what earns their trust. 

Q: In an increasingly unpredictable global economy, what role does resi­lience play in sustaining corporate res­pect?

A: Resilience is what allows an institution to keep its commitments when conditions turn against it, and that dependability is ultimately what people respect. Sri Lanka has learnt the value of resilience the hard way. 

The crisis of 2022 tested capital, liquidity and public confidence at the same time, and the institutions that came through with their credibility intact were the ones that had prepared well before they needed to. 

For a bank, resilience is built quietly, long before it is tested. It requires ensuring that capital and liquidity are comfortably above re­gulatory requirements, even when that capital could be put to work elsewhere, and making provisions early. 

When Cyclone Ditwah struck in late 2025, we set aside Rs. 2.2 billion as a precaution against exposures that could be affected. Just as importantly, it means making sure customers can bank with us as easily on the most difficult day of the year as on an ordinary one. 

The global economy will keep producing shocks. Respect goes to the institutions that remain dependable despite the challenges. 

Q: Consumer trust is becoming one of the most valuable business assets. How does your organisation build lasting trust with customers beyond the products and services it offers?

A: Every engagement with a customer is an opportunity to earn trust. While extraordinary situations provide high stakes oppor­tunities to grow and maintain a relationship, it is often in getting the ordinary, everyday interactions to go smoothly that helps build trust over time. 

Individually, these moments may go un­noticed; but together, they decide whether a customer believes what a bank tells them – especially when it’s important. 

Technology has changed how those moments happen. More than two million of our customers now bank with us digitally, and most of them do so in their native language. Digital access widens reach; but it also raises the stakes – because a customer who cannot see a person across the counter has to trust the system entirely. 

Products can be copied in a matter of months. What takes far longer to build is the confidence that an institution will do what it says it will. HNB has been building that confidence since 1888 and we treat it as something every generation of the bank has to earn again. 

Q:  Sustainability has become a core business priority rather than a stand-alone initiative. How do you see res­ponsible business practices influencing corporate respect?

A: In the past, I would say that sustainability was more of an external imposition, something that was treated as incidental to a business. But especially in view of the unprecedented disruptions that we are now seeing, the issue of sustainability in business – and by extension, banking and finance – has been thrown into sharp relief. 

Customers, investors and regulators have become very good at telling the difference between an organisation that practises sustainability and one that simply reports on it; and credibility follows the first. 

For a bank, the most impactful sustainabi­lity decisions are lending decisions. We weigh environmental and social risks alongside commercial risk in our credit assessments, and we are steadily growing our green and inclusive lending including solar financing for households and small businesses. 

In Sri Lanka, sustainable lending matters well beyond the environment. The country imports all of its oil and around 85 percent of its medicines – so each rooftop solar system and every new local manufacturer eases pressure on the balance of payments. Sustainable finance and economic resilience are all therefore part of the same agenda.