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People’s Bank achieves pre-tax profit of Rs 43.7 Bn for nine months ended 30 Sept.

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People’s Bank Chairman Prof Narada Fernando and CEO/GM Clive Fonseka

People’s Bank announced its financial performance for the nine months, ended September 30, 2025, delivering the best-ever results in the institution’s history. With seven out of 10 Sri Lankans banking with People’s Bank and one out of every five retail and business loans in the country originating from the Bank, this exceptional performance reinforces its position as the most trusted and influential financial services provider in Sri Lanka.

The Bank’s solo performance was the primary driver of this record-breaking achievement. People’s Bank reported a standalone post-tax profit of LKR 28.8 billion, marking the highest nine-month profit in its history. This exceptional performance was recorded in spite of booking a significant amount as impairments on behalf of few SOE’s. Solo operating income stood at LKR 121.9 billion, a substantial 99.4% increase, supported by exceptional core earnings. Net interest income nearly doubled to LKR 103.9 billion, driven by effective asset–liability repricing amid changing market conditions, resulting in an improvement of the Bank’s net interest margin to 4.0%, compared to 3.4% in December 2024. The Bank also recorded its highest-ever net fees and commissions for the period, reaching LKR 12.2 billion, reflecting strong customer activity and strengthened transactional volumes.

The balance sheet continued to expand steadily, with total solo assets rising to LKR 3.6 trillion, deposits to LKR 3.2 trillion, and net loans to LKR 1.6 trillion, underscoring the Bank’s central role in national credit intermediation. Capital adequacy ratios remained strong, with Tier I at 11.5% and Total Capital at 16.0%, even after incorporating all prudential deductions, including those related to the State-Owned Enterprise restructuring. Liquidity levels remained well above regulatory minimums, with the Rupee Liquidity Coverage Ratio standing at 287.0%

While the Bank’s solo results formed the foundation of its record performance, the Group’s consolidated results also remained strong. Consolidated post-tax profit reached LKR 30.5 billion, with operating income amounting to LKR 139.5 billion, an 85.0% growth over the previous year. Consolidated gross income rose to LKR 312.8 billion, and consolidated assets increased to LKR 3.9 trillion, further demonstrating the Group’s resilience and the underlying strength of its subsidiaries. Consolidated net interest margins improved to 4.3%, supported by prudent margin management and heightened operational efficiency.

People’s Bank continued to demonstrate leadership in digital transformation, recording 5.7 million digital onboardings and 4.0 million mobile banking app registrations by end-September 2025. These figures reflect the rapid adoption of its enhanced digital platforms and reaffirm the Bank’s position as Sri Lanka’s most accessible and inclusive financial institution.

Commenting on the results of the Bank and the Group, the Chairman of People’s Bank, Professor Narada Fernando, stated that: “We are pleased to present the third-quarter results for 2025, which reflect the Bank’s sustained strength and resilience. The steady normalization of previously challenged areas demonstrates the depth of the progress made, positioning People’s Bank to support the government’s economic agenda while maintaining consistent and responsible profitability as a strong state institution. Despite ongoing macroeconomic complexities, we remain firmly committed to advancing our strategic priorities, driving innovation, and enhancing collaboration to deliver secure, seamless, and modern financial services to our customers.

Our focus on expanding financial inclusion continues to guide our efforts to ensure that all Sri Lankans can benefit from the country’s economic recovery. Our vision is to be the nation’s foremost financial services provider-setting new benchmarks in service excellence, innovation, and contribution to national development. By staying focused on long-term priorities and strengthening partnerships at every level, we are confident in our ability to support a more inclusive, resilient, and prosperous future for all.”

Commenting on the Bank’s record-breaking nine-month performance, Chief Executive Officer/General Manager Clive Fonseka stated: “I am proud to share that our third-quarter results mark the highest performance in our institution’s history—an achievement that reflects the strength of our shared purpose and the dedication of our teams across the country. Importantly, these results were delivered while the Bank was undergoing a robust business model transformation, shifting from a long-standing emphasis on state-sector financing toward competing more vigorously for private-sector business. This strategic repositioning, supported by operational excellence, customer-centric transformation, and strategic digital investments, has strengthened our foundation and enhanced agility, enabling us to deliver greater value to customers and stakeholders.”



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Navy seizes an Indian fishing trawler poaching in Sri Lankan waters north of Talaimannar

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During an operation conducted in the wee hours of Tuesday (23 Dec 25), the Sri Lanka Navy seized an Indian fishing trawler  and apprehended 12 Indian fishermen, while they were poaching in Sri Lankan waters north of Talaimannar.

Recognizing the detrimental effects of poaching on marine resources and the livelihoods of local fishing communities, the Sri Lanka Navy continues to conduct regular operations as
proactive measures to deter such activities. These efforts underscore the collective robust approach steadfast commitment to safeguarding the nation’s marine ecosystems while ensuring the economic security and wellbeing of its citizens.

The fishing trawler along with the fishermen held in this operation was handed over to the Fisheries Inspector of Mannar for onward legal proceedings.

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India’s External Affairs Minister meets Sri Lanka PM

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India’s External Affairs Minister, Dr. Subramaniam Jaishankar, met with the Prime Minister of Sri Lanka, Dr. Harini Amarasuriya, on 23 December at Temple Trees, during his visit to Sri Lanka as the Special Envoy of Indian Prime Minister Shri Narendra Modi.

The meeting took place as part of the official visit aimed at holding discussions with Sri Lanka’s top leadership, at a time when the nation commenced reconstruction efforts following the devastation caused by Cyclone Ditwah.

During the discussions, the Minister of External Affairs of India reaffirmed readiness to extend support for Sri Lanka, including assistance in rebuilding railways, bridges, and strengthening of the agricultural sector in the country. He also highlighted the importance of having effective systems in place to respond to disaster situations, supported by strong legislative, administrative, and institutional frameworks. Both sides reviewed ongoing relief efforts and explored avenues to further strengthen bilateral cooperation in disaster response and recovery.

The Prime Minister commended the Government of India for the continued support, noting that the recovery process following the devastation caused by Cyclone Ditwah include beyond immediate relief efforts to long-term measures such as resettlement, and reconstruction of habilitation and infrastructure.

The Prime Minister further stated that steps have been taken to reopen schools as part of the process of restoring normalcy, with close monitoring in place. The Prime Minister emphasized the need to ensure stability, reduce vulnerability, and strengthen protection mechanisms highlighting the solidarity of the people, their strong spirit of volunteerism, and collective action demonstrated during the emergency situation.

The event was attended by the High Commissioner of India Santosh Jha, Additional Secretary (IOR), MEA  Puneet Agrawal, Joint Secretary (EAMO), MEA  Sandeep Kumar Bayyapu, Deputy High Commissioner Dr. Satyanjal Pandey, and representing Sri Lankan delegation, Secretary to the Prime Minister  Pradeep Saputhanthri, Additional Secretary to the Prime minister Ms.Sagarika Bogahawatta, Director General (South Asia), Ministry of Foreign Affairs Samantha Pathirana, Deputy Director, South Asia Division, Ministry of Foreign Affairs Ms.Diana Perera.

[Prime minister’s media division]

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Sri Lanka’s coastline faces unfolding catastrophe: Expert

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Sri Lanka is standing on the edge of a coastal catastrophe, with the nation’s lifeline rapidly eroding under the combined assault of climate change, reckless development and weak compliance, Director General of the Department of Coast Conservation and Coastal Resource Management (DCC&CRM) Dr. Terney Pradeep Kumara has warned.

“This is no longer an environmental warning we can afford to ignore. The crisis is already unfolding before our eyes,” Dr. Kumara told The Island, cautioning that the degradation of Sri Lanka’s 1,620-kilometre coastline has reached a point where delayed action could trigger irreversible damage to ecosystems, livelihoods and national security.

He said accelerating coastal erosion, rising sea levels, saltwater intrusion and the collapse of natural barriers, such as coral reefs and mangroves, are placing entire coastal communities at risk. “When mangroves disappear and reefs are destroyed, villages lose their first line of defence. What follows are floods, loss of homes, declining fisheries and forced displacement,” he said.

Dr. Kumara stressed that the coastline is not merely a development frontier but the backbone of Sri Lanka’s economy and cultural identity. “More than half of our tourism assets, fisheries and key infrastructure are concentrated along the coast.

If the coast fails, the economy will feel the shock immediately,” he warned.

Condemning unregulated construction, illegal sand mining and environmentally blind infrastructure projects, he said short-term economic interests are pushing the coastline towards collapse. “We cannot keep fixing one eroding beach while creating three new erosion sites elsewhere. That is not management—it is destruction,” he said, calling for science-driven, ecosystem-based solutions instead of politically convenient quick fixes.

The Director General said the Department is intensifying enforcement and shifting towards integrated coastal zone management, but warned that laws alone will not save the coast. “This is a shared responsibility. Policymakers, developers, local authorities and the public must understand that every illegal structure, every destroyed mangrove, weakens the island’s natural shield,” he added.

With climate change intensifying storms and sea surges, Dr. Kumara warned that Sri Lanka’s vulnerability will only worsen without urgent, coordinated national action. “The sea has shaped this nation’s history and protected it for centuries. If we fail to protect the coast today, we will be remembered as the generation that allowed the island itself to be slowly eaten away,” he went on to say.

By Ifham Nizam

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