Sarvodaya Development Finance PLC (SDF) delivered a strong financial performance for the year ended 31 March 2026, recording significant growth in income, profitability, portfolio expansion, and asset quality while continuing its commitment to responsible and inclusive finance.

For the financial year under review, SDF reported total income of LKR 6.42 billion, a year-on year increase of 46.8%. Interest income rose by 43.8% to LKR 5.85 billion, driven by business expansion and growth in earning assets. Net Interest Income increased by 35.4% to LKR 3.58 billion, while Total Operating Income grew by 40.8% to LKR 4.15 billion, reflecting the Company’s ability to generate strong and sustainable earnings.

Profitability improved substantially during the year. Operating Profit before Tax on Financial Services increased by 59.9% to LKR 1.82 billion, while Profit Before Tax rose by 63.8% to LKR 1.36 billion. Profit for the Year increased by 73.1% to LKR 820.1 million compared with LKR 473.8 million in the previous year. Earnings per share improved to LKR 5.48, demonstrating enhanced value creation for shareholders.

The Company’s balance sheet expanded significantly, with total assets increasing by 65.8% to LKR 37.37 billion as at 31 March 2026. Financial assets at amortized cost, including loans and receivables, grew by 67.2% to LKR 20.60 billion, while lease rental receivables increased by 34.0% to LKR 9.19 billion. SDF also strengthened its funding profile through debt securities, including Sustainable Bonds, amounting to LKR 2.09 billion.

Commenting on the performance, Chief Executive Officer, Nilantha Jayanetti stated, “The results achieved during FY2025/26 reflect the strength of our business model, disciplined growth strategy, and commitment to delivering responsible financial solutions. We remain focused on creating sustainable value while supporting communities and enterprises across Sri Lanka.”

SDF maintained a strong capital position, with a Tier 1 Capital Adequacy Ratio of 15.48% and a Total Capital Adequacy Ratio of 22.13%, both comfortably above regulatory requirements. Asset quality also improved, with the Gross Stage 3 Loans Ratio declining to 4.93% from 7.88% and the Net Stage 3 Loans Ratio improving to 2.94% from 5.70%. The Stage 3 Impairment Coverage Ratio strengthened to 42.60%.

Operational efficiency improved as the Cost-to-Income Ratio reduced to 42.99%, while Return on Equity increased to 19.60%. Reflecting its stronger financial position, SDF’s external credit rating was upgraded to Lanka Ratings (SL) BBB- Stable.

With a network of 56 branches, SDF remains committed to advancing financial inclusion, supporting sustainable enterprise growth, and contributing to Sri Lanka’s long-term socio-economic development.

Sri Lanka’s apparel and textile exports grew 7.96% in May 2026 to US$394.14 million, the industry’s best single-month performance so far this year and a sign that demand from key markets is beginning to firm up after a difficult start to the year.

The United States led the gain, with shipments rising 15.36% to US$149.96 million. Exports to markets outside the industry’s traditional three core destinations also grew strongly, up 14.61% to US$70.67 million, while the UK posted modest growth of 0.87%. The EU was the only market to soften, dipping 0.3% to US$121.35 million.

The US rebound lands at a pivotal moment for the sector. Sri Lanka is currently engaging with the US Trade Representative the 301 investigation on the prohibition of importation of goods manufactures with forced labour, that will determine an additional tariff of either 10% or 12.5%. The report published in June places Sri Lanka among the 46 countries that are due to have a 12.5% tariff imposed on them. A number of Sri Lanka’s competitor countries (incl. Bangladesh, Cambodia Pakistan and Indonesia) have been given a lower tariff of 10% on account of their already having taken some action with regard to the import of goods manufactured from forced labour. A public hearing on the proposal is set for 7 July in Washington, and industry bodies have until 22 June to request a hearing slot making the coming weeks a critical window for Sri Lanka to make its case.

This is precisely where the policy conversation and the trade numbers intersect. May’s US strength shows that, even under tariff pressure, Sri Lanka remains a market US buyers are actively sourcing from a reflection of the country’s long-standing reputation for quality, compliance and reliability. The opportunity now is to convert that underlying buyer confidence into a more durable trading position by securing a fairer tariff outcome.

The Joint Apparel Association Forum (JAAF) has consistently lobbied for tariffs to be in line with competitor countries.

A successful outcome for Sri Lanka in the current process would help convert May’s encouraging signal into sustained growth.

The cumulative picture for the year still reflects the headwinds the industry has been navigating. Exports for January–May 2026 stand at US$1,926.85 million, down 4.68% on the same period last year, with the US, EU and UK all in negative territory cumulatively. But May’s performance suggests the industry has room to recover ground in the second half of the year, particularly if the tariff question is resolved favourably and buyer confidence continues to build.

The Ceylon Chamber of Commerce is launching the Best Corporate Citizen Sustainability Awards (BCCS) 2026, introducing a refreshed framework that reflects the evolving role of sustainability in business and aligns more closely with global ESG expectations.

In its latest edition, BCCS 2026 moves beyond traditional sustainability reporting to evaluate how environmental, social and governance (ESG) principles are embedded within an organisation’s strategy, operations, value chains and long-term value creation.

The revamped awards aim to recognise organisations that demonstrate leadership in sustainable business practices while encouraging deeper ESG integration across Sri Lanka’s corporate sector. The framework has been designed to benchmark participants against international sustainability standards and investor expectations, while placing greater emphasis on measurable impact, innovation, resilience and future readiness.

BCCS 2026 will continue to recognise excellence across the pillars of People, Planet and Profit, while introducing a new category focused on Strategic ESG Integration. This category will honour organisations that successfully embed sustainability into business decisions, leadership structures and value chain management. New awards include ESG Integration Champion, Sustainable Business Model Leader, ESG Leadership Award, Value Chain Transformation Award and Future-Ready Enterprise Award.

The awards programme also features industry sector awards, stakeholder-focused recognitions and special accolades such as the Sustainability Innovation Award, Best Sustainability Report/Disclosure and Top 10 ESG Leaders.

The evaluation framework is built around four key dimensions of planet, people, profit and strategic ESG integration. Participants will undergo a comprehensive assessment process that includes application review, technical evaluation by an expert panel, shortlisting, and final judging.