Business
LOLC Group reports Rs. 41 billion profit and surpasses Rs. 2 trillion in total assets, driven by global growth momentum
LOLC Group has reported a profit after tax of Rs. 41 billion for the financial year 2024/25, reflecting an 89% increase over the previous year, supported by an operating profit of Rs. 48 billion. The robust performance was fueled by steady expansion in financial services, a series of strategic international acquisitions, and improving economic conditions in Sri Lanka.
Now operating in over 25 countries, LOLC continues to solidify its status as Sri Lanka’s most internationally diversified corporate group operating in financial services, agriculture, plantation, automotive, manufacturing, construction, marine, power generation, pharmaceuticals and leisure.
The Group’s total assets climbed 17% to Rs. 2.03 trillion, while shareholder equity advanced to Rs. 343 billion, marking a 15% gain. Its total debt-to-equity ratio improved to 1.05 times from 1.2 times, signaling greater balance sheet strength despite an active investment pipeline.
LOLC’s investment strategy over the past year has prominently featured acquisitions in Africa’s tea sector. Following its 2023 acquisition of Finlays’ Kenyan operations, the Group acquired Lipton’s plantations in Kenya, Rwanda, and Tanzania. These transactions represent LOLC’s deepening interest in real economy sectors and its intention to become a key player in the global tea supply chain.
Domestically, the Group consolidated its presence in industrial manufacturing by converting its minority stake in Sierra Cables PLC into a controlling interest. After the close of the financial year, LOLC also acquired ownership Pussellawa Plantations, and a controlling stake in Tea Smallholder Factories PLC. These steps are expected to enhance vertical integration and operating leverage within the Group’s plantation holdings. With these additions, LOLC Group now operates with an annual production capacity of approximately 100 million kilograms of made tea grown in approximately 100,000 hectares of plantations.
Financial services continue to anchor the Group’s profitability with the segment contributed Rs. 41 billion to the Rs. 52 billion profit before tax from continuing operations, reaffirming its position as the Group’s primary earnings engine.
LOLC Finance PLC led the sector’s growth, recording a pre-tax profit of Rs. 30.8 billion—a 23% year-on-year increase. The company’s loan portfolio surpassed Rs. 305 billion, while customer deposits reached Rs. 225 billion. A sharp reduction in the net non-performing loan ratio from 10.48% to 4.97% reflects a marked improvement in asset quality and credit risk management. This performance is underpinned by a robust capital base of Rs. 150 billion, translating to a capital adequacy ratio of over 25%, well above the regulatory minimum of 17%.
The Group’s financial services network continues to grow across underserved and high-potential markets in South Asia, Southeast Asia, Central Asia, and Africa, where the demand for inclusive lending and microfinance solutions remains strong. Building on this momentum, the Group is now actively evaluating strategic expansion opportunities in South America, with the aim of further extending its global presence and impact in financial inclusion.
Beyond financial services, LOLC’s manufacturing and trading segment posted an operating profit before interest of Rs. 4.2 billion, benefitting from favorable economic indicators in Sri Lanka such as currency stabilization, cooling inflation, and a rebound in GDP growth.
In the tourism sector, the Group’s leisure and entertainment businesses generated Rs. 2.8 billion in operating profit before interest, supported by a recovery in international tourist arrivals. With inbound travel volumes approaching pre-COVID levels, LOLC’s hospitality assets in Sri Lanka, Maldives and Mauritius are poised to benefit further in the coming year. (LOLC)
Business
Pelwatte Dairy commissions Sri Lanka’s largest dairy effluent treatment plant to advance ESG leadership and global market readiness
Pelwatte Dairy Industries Limited has successfully commissioned its state-of-the-art Effluent Treatment Plant (ETP) at its Buttala manufacturing facility, marking a significant milestone in the company’s journey toward environmental stewardship, ESG compliance, and responsible dairy processing.
This facility is the largest Effluent Treatment Plant within a dairy processing operation in Sri Lanka, underscoring Pelwatte Dairy’s commitment to aligning its operations with global environmental standards and strengthening its position in international markets.
Strategic Commitment to ESG and Responsible Growth
This investment reflects a deliberate and forward-looking strategy by the Board of Directors to embed Environmental, Social, and Governance (ESG) principles into core operations. As Pelwatte Dairy continues to scale its processing capacity and expand its export footprint, environmental compliance has become a central pillar of sustainable growth.
The ETP has been designed to meet the increasingly stringent environmental expectations of Western, European, and Far Eastern markets, where compliance with wastewater discharge standards, environmental reporting, and sustainability practices are essential for market access.
Future-Proofed Design for Scalable Growth
The facility has a base treatment capacity of 250 m³ per day, with the engineered capability to handle peak volumes of up to 325 m³, representing approximately 30% additional capacity to accommodate future growth in processing volumes. [ETP Opening | Word]
This future-ready design ensures that Pelwatte Dairy can maintain consistent environmental performance even under high production scenarios, reinforcing the company’s commitment to long-term compliance, operational resilience, and responsible expansion.
Advanced Technology Supporting Global Compliance
The ETP integrates advanced treatment technologies, including:
Integrated Dissolved Air Flotation (IDAF)
Anaerobic and Enhanced Sequential Batch Reactor (AnSBR/eSBR) systems
Dedicated CIP wastewater management
Real-time automated process monitoring
Screw press sludge dewatering
These systems ensure high treatment efficiency and compliance with critical environmental parameters such as Biological Oxygen Demand (BOD), Chemical Oxygen Demand (COD), and nutrient discharge limits.
The plant is fully aligned with Sri Lanka’s stringent Central Environmental Authority (CEA) discharge standards and supports adherence to ISO 14001 Environmental Management System (EMS) practices, reinforcing Pelwatte Dairy’s structured approach to environmental management and continuous improvement.
Regulatory Engagement and Endorsement
The inauguration ceremony was attended by distinguished representatives from the Board of Investment (BOI) Environmental Division and Central Environmental Authority (CEA) provincial and district offices, reflecting strong regulatory engagement and endorsement of the environmental standards achieved through this investment.
Their presence underscores Pelwatte Dairy’s proactive approach in working closely with regulatory authorities to ensure compliance with national environmental frameworks while aligning with global best practices.
Enhancing Global Credibility of Sri Lankan Dairy
With this development, Pelwatte Dairy strengthens its position as a responsible and globally competitive dairy processor, capable of meeting the environmental expectations of leading international buyers and regulatory bodies.
This initiative not only enhances the company’s ESG profile but also contributes to elevating the sustainability standards of Sri Lanka’s dairy industry.
Acknowledgements
Pelwatte Dairy extends its sincere appreciation to its project team, operational staff, consultants, regulatory authorities, and partners for their contributions. Special recognition is extended to Industrial Solutions Lanka (Pvt) Limited for their engineering expertise and successful project delivery.
Business
Port City Colombo Forum in Dubai positions Sri Lanka as South Asia’s gateway for UAE business expansion
Exclusive invitation-only engagement at the Ritz-Carlton DIFC brought together approximately 200 senior UAE business and diplomatic leaders to explore Sri Lanka’s role as a platform for regional growth
The Embassy of Sri Lanka in the United Arab Emirates and the Consulate General of Sri Lanka in Dubai and the Northern Emirates, in collaboration with Colombo Port City Economic Commission and CHEC Port City Colombo Pvt. Ltd., hosted Globalisation and the Sri Lankan Opportunity – From Recovery to Relevance: Sri Lanka’s Moment in the Evolving Global and Regional Economy, an invitation-only diplomatic and investment engagement at The Ritz-Carlton, Dubai International Financial Centre.
The forum brought together approximately 200 senior leaders from across UAE corporates and business chambers alongside Sri Lanka’s most senior diplomatic and investment representatives – among them senior executives from Sobha Realty, Binghatti, Oracle, Emirates Airlines, First Abu Dhabi Bank, JLL, Cushman & Wakefield, CBRE, IFS, Danube and Samana Developers – reflecting the depth of interest from the UAE’s leading industries in Sri Lanka’s evolving economic proposition.
Opening the forum, Prof. Arusha Cooray, Ambassador of Sri Lanka to the United Arab Emirates, set the tone for a morning of substantive dialogue, speaking to the depth and durability of the UAE–Sri Lanka partnership, one built on decades of trade, people, and shared economic ambition, and affirming Sri Lanka’s commitment to taking that relationship into a new chapter defined by what Sri Lanka can offer UAE businesses seeking to grow their presence across South Asia.
The keynote address was delivered by Ghanim Al Falasi, CEO of Falak Tayyeb Platinum and Senior Vice President/Director General’s Office for of Dubai Silicon Oasis (DSO), who drew on over a decade of senior leadership experience in the UAE’s innovation and technology ecosystem to frame the question of what South Asia’s emerging platforms offer to forward-looking UAE businesses. He noted that while Dubai provides global access to capital and logistics, Colombo offers strategic access to South Asia, and that together the two cities can function as complementary platforms serving different but mutually reinforcing roles in the regional economy.
Business
The Ceylon Chamber of Commerce to hold 187th AGM
The Ceylon Chamber of Commerce will convene its 187th Annual General Meeting on Thursday, 25th June 2026, at 5.30 PM at The Forum, Cinnamon Life.
This year’s gathering welcomes His Excellency Andrew Patrick, High Commissioner of the United Kingdom to Sri Lanka, as Chief Guest, who will deliver the keynote address. His presence reflects the close and longstanding ties between Sri Lanka and the United Kingdom, and is especially fitting at a juncture when strengthening trade ties, investor confidence, and sustained economic reform remain front of mind for the nation’s business community.
Chairperson of the Ceylon Chamber, Krishan Balendra, will also address the audience, reflecting on a year of progress and setting out the priorities ahead. His remarks will provide an overview of the Ceylon Chamber’s continued push to sharpen private sector competitiveness, drive evidence-based policy advocacy, and anchor long-term economic stability.
Following the formal proceedings, members and guests are invited to a networking reception.
Ceylon Chamber members wishing to attend may register by contacting Alikie at alikie@chamber.lk / 9411 558 8805.
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