Business
Sampath Bank profit rises 13% despite higher provisions
Sampath Bank posted a 13% year-on-year increase in profit after tax to Rs. 16.6 billion for the six months ended June 30, 2026, despite a sharp rise in impairment charges and higher operating expenses, reflecting continued growth in its core banking business.
The bank’s total operating income increased 17% to Rs. 63.3 billion during the first half, supported by an 11% increase in net interest income and a 26% rise in net fee and commission income. Net interest income reached Rs. 42.8 billion, while net interest margin improved to 4.21% from 4.11% a year earlier.
A particularly strong contributor to non-interest earnings was foreign exchange-related income. Total exchange income surged 198% to Rs. 7.2 billion, helped by the depreciation of the rupee against the US dollar and higher foreign exchange transaction volumes. Non-fund-based income overall rose 30% to Rs. 20.5 billion.
However, the earnings performance was significantly affected by higher provisioning. Sampath Bank recognised a total impairment charge of Rs. 5 billion, up 324% from Rs. 1.2 billion in the corresponding period of 2025. Impairment charges on loans and advances alone increased to Rs. 5.3 billion from Rs. 1.4 billion.
The bank attributed the higher provisions primarily to the rapid expansion of its loan portfolio and a prudent provisioning approach amid continuing geopolitical and macroeconomic uncertainties.
It also increased management overlays and conducted reviews of exposures in higher-risk sectors.
Despite the higher provisioning burden, the bank’s lending business expanded strongly. Gross loans increased by Rs. 226 billion, or 18%, from end-2025 to Rs. 1.449 trillion at June 30. The expansion included Rs. 197 billion in rupee-denominated lending and Rs. 29 billion in foreign-currency loans.
The bank said asset quality remained resilient despite the accelerated loan growth. Its Stage 3 portfolio declined by Rs. 10.8 billion, although Stage 2 exposures increased by Rs. 36.8 billion following a proactive review of the portfolio and the reclassification of selected exposures.
Funding also expanded alongside lending. Customer deposits rose by Rs. 118 billion to Rs. 1.76 trillion, while total assets increased 8% from end-2025 to Rs. 2.13 trillion.
Operating expenses, however, grew 21%, faster than operating income, pushing the cost-to-income ratio to 41.7% from 40% a year earlier. The increase reflected higher staffing and operating costs as well as investments in technology, digital capabilities and business expansion.
The bank’s capital and liquidity positions remained above regulatory requirements. Its Common Equity Tier 1 ratio stood at 13.21% and total capital ratio at 15.62% at June 30. The ratios were lower than at end-2025, largely because of increased risk-weighted assets arising from loan growth.
Sampath Bank subsequently strengthened its capital position by issuing a Rs. 10 billion Basel III-compliant green bond in July, which was oversubscribed.
At group level, Sampath reported profit before tax of Rs. 26.6 billion and profit after tax of Rs. 17.9 billion for the first half.
The bank also recorded a marked improvement in second-quarter profitability, with quarterly profit after tax rising 69%, helped by a 22% increase in operating income and an 89% reduction in impairment charges, including an impairment reversal of more than Rs. 3 billion following recoveries of long-outstanding loans.
Business
Indian business leader urges SL entrepreneurs to tap into India’s rapidly expanding consumer market
By Sanath Nanayakkare
Speaking at the Sri Lanka Economic and Investment Summit 2026, T. Krishnakumar, Chief Executive Officer of Reliance Consumer Products Ltd (RCPL), emphasised that local enterprises can unlock substantial economic benefits by strategically aligning with India’s booming consumer base.
Addressing business leaders and policymakers at the Shangri-La Hotel in Colombo, Krishnakumar highlighted that geographical proximity and rich cultural ties provide a natural foundation for deeper commercial collaboration.
He noted that instead of viewing bilateral trade narrowly, regional partnerships should act as conduits to build robust, scalable enterprises capable of plugging into wide-reaching regional value chains.
“For Sri Lankan exporters dealing in traditional staples as well as value-added goods, accessing India’s rising middle class presents a phenomenal growth window,” he said.
Drawing insights from Reliance Consumer Products’ rapid expansion – which scaled efficiently to thousands of employees and multi-billion-dollar metrics – Krishnakumar stressed that modern corporate success relies on disciplined execution, localised consumer understanding, and smart technology integration.
Furthermore, he underscored that while rapid growth is critical, businesses must consistently anchor their models in affordability and consumer trust.
Concluding his address at the summit, the RCPL chief noted that pairing regional trade integration with resilient business practices and predictable regulatory frameworks will be vital as Sri Lanka transitions firmly toward accelerated economic development.
Addressing the Summit during a subsequent fireside chat, President Anura Kumara Dissanayake underscored that a core concern currently being targeted by the government is developing a critical mass of local entrepreneurs equipped to engage with international enterprise counterparts.
Business
SriLankan Airlines wins prestigious SATA 2026 Visitors’ Choice Award for Leading International Airline
SriLankan Airlines has once again been honoured with the prestigious Visitors’ Choice Award for Leading International Airline at the South Asian Travel Awards (SATA) 2026, reaffirming its continued recognition in the regional travel and tourism industry. The airline, which has received this award in previous years, was the only international airline to be recognised in this category at this year’s event. The 10th anniversary edition of the awards ceremony was held earlier this month at Hotel Barcelo Nasandhura in Male, Maldives.
Recognised as one of the key events on the Maldivian tourism and travel industry calendar, SATA celebrated its 10th anniversary on a grand scale, bringing together prominent industry stakeholders, including Government Ministers, distinguished dignitaries, diplomats and senior representatives from leading airlines and their respective head offices.
Commenting on the achievement, Dimuthu Tennakoon, Head of Commercial, SriLankan Airlines, stated, “We are honoured to receive this recognition at the South Asian Travel Awards 2026. Being named the Leading International Airline in the Visitors’ Choice Awards once again is a meaningful acknowledgement of our commitment to serving our passengers and strengthening our presence in the region. This award inspires us to continue enhancing the travel experience we offer and to build stronger connections with the markets and communities we serve.”
Complementing its commitment to service excellence, SriLankan Airlines offers an extensive flight network with convenient connections to destinations across the globe. In South Asia, the airline operates nearly 130 flights each week to 15 destinations across India, Pakistan, the Maldives, Nepal, and Bangladesh. With schedules thoughtfully designed to suit the needs of travellers, SriLankan Airlines provides seamless connectivity for those visiting Colombo for business or leisure, as well as passengers travelling onwards to destinations worldwide.
Business
JXG enters LMD’s Most Respected Entities in Sri Lanka 2026 for the first time, securing a place among the first 50
JXG (Janashakthi Group), Sri Lanka’s leading financial conglomerate, has been ranked 44th in LMD’s Most Respected Entities in Sri Lanka 2026, marking the Group’s first appearance in the prestigious listing. The recognition places JXG among Sri Lanka’s most respected companies and marks an important milestone in the Group’s master-brand journey.
As the holding company, JXG was also recognised across key attributes including Aspirational Workplace, Business Expansion, Business Innovation, Corporate Culture, Corporate Dynamism, Crisis Management, Employee Wellbeing, Honesty and Integrity, and Leadership Profile. The recognition reflects the growing strength of the JXG brand and the collective contribution of its businesses and people in building trust and confidence among its stakeholders.
JXG’s subsidiaries, including Janashakthi Life and First Capital, have also been recognised in the main table of LMD’s Most Respected Entities 2026 rankings, while Janashakthi Finance has been recognised under the Business Expansion attribute, reflecting the strength of the Group’s individual businesses alongside its growing master brand.
Conceptualised and commissioned by LMD and conducted by PepperCube Research Consultants, the Most Respected Entities special edition recognises companies based on an independent survey of Sri Lanka’s business community.
Commenting on the recognition, Gamika de Silva, Group Chief Marketing Officer at JXG, said, “This is a proud moment for all of us at JXG. We set out to build a Group brand that is not just seen but lived by our people and reflected in everything we do. Ultimately, the true testament to any brand lies in its people, and the credit for this recognition goes to everyone across JXG who brings our values to life every day. This recognition is an encouraging milestone for us, while also reminding us to keep raising the bar and earning the respect of our stakeholders through what we do.”
JXG’s approach to building trust is anchored in its core values of Integrity, Collaboration, Respect, Performance Driven and Innovation. These values guide how its businesses operate, how its people engage with one another and how the Group serves its customers and wider stakeholders.
As JXG continues to expand its businesses, the Group remains focused on strengthening its market presence, creating long-term value and contributing to the growth of Sri Lanka’s financial services sector, guided by its purpose, Breaking Barriers, Forging Futures.
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