Business

‘LOLC Finance poised to fuel economic resurgence’

Published

4 years ago

2022/06/1

In one of the most historic mergers in Sri Lanka, LOLC Finance PLC, the largest NBFI in the country merged with its sister company, Commercial Leasing & Finance PLC (CLC), to become the largest Non-Banking Financial Institution (NBFI) in Sri Lanka earlier this year. The market capitalization of the merged LOLC Finance PLC stands at over Rs. 180Bn, placing it among the top 3 companies on the Colombo Stock Exchange by market capitalization.

This strategic amalgamation yet again reflects the far-thinking vision of the LOLC Group, one of the most profitable globally diversified entities in Sri Lanka and the first off the starting blocks in taking strategic initiatives, which gives it a strong growth momentum. Propelled ahead with its powerful synergies, the combined entity delivered a pro forma colossal Profit Before Tax (PBT) of LKR. 25.6 Bn and Profit After Tax (PAT) of LKR. 23.5Bn as at 31st March 2022, which places LOLC Finance PLC among the highest value creating institutions in the country.

The merged entity, LOLC Finance, is boosting investor confidence in the Sri Lankan economy at this critical juncture. As an inclusive financial services provider to the micro, small & medium enterprises providing thrust to many economic sectors such as agriculture, manufacturing, transportation, tourism and exports, LOLC Finance is now ideally placed to empower existing and new businesses to upscale and expand, and drive financial inclusion to uplift living standards and boost entrepreneurism, building on its ethos of non-discrimination and its women entrepreneur empowerment. An idea of the company’s powerful financial standing is evidenced by the fact that while total assets of the NBFI sector stood at LKR. 1,488 Bn by end-2021, representing 21% of Sri Lanka’s financial system, LOLC Finance’s assets stand at LKR.311.6Bn, clearly dominating the NBFI sector with healthy performance risk management indicators across every key parameter including capital, capital adequacy, business performance and thereby maintaining utmost investor confidence. It is further noteworthy that the company maintains a very high standard of integrity, transparency and customer protection principles.

LOLC Finance promises a secure NBFI with a mammoth balance sheet size of LKR.311.60Bn with total advances of LKR.206.83Bn which makes it resilient to economic shocks, thereby encouraging more businesses to avail of loans due to its well capitalized nature and its asset backed products.

The strategic amalgamation by two of the largest NBFIs in the country, both within the LOLC Group, signals the dynamic role the merged entity LOLC Finance will play in supporting the economic recovery of the nation. This historic merger also conforms to The Central Bank of Sri Lanka (CBSL)’s Master Plan for Consolidation of Non-Bank Financial Institutions Sector to stabilize the financial sector even further. The entity is further strengthened with CLC’s takeover of Sinhaputhra Finance PLC (SFL), once again under the consolidation master plan.

The birth of new entity, LOLC Finance, has many beneficial implications for stakeholders in general as it will give rise to massive efficiencies due to the combined expertise, branch network and technology platforms including iPay, LOLC Finance’s digital payment platform, which is winning accolades and fast becoming the number one preferred payment platform and lifestyle fin-tech product. In addition, as the most technologically advanced NBFI, LOLC Finance offers Credit Cards, Online and Mobile Banking Services, and the entire spectrum of Lending and Deposits, earning a reputation for being the largest MSME financier and provider of Islamic Finance, and the leading factoring and agricultural equipment financier in the industry.

LOLC Finance now commands a network of 210 branches, a burgeoning customer base of over 600,000, total lending portfolio of over LKR. 200 Bn, and an impressive deposit base of over LKR. 150 Bn, which accounts for nearly 20% of the entire industry. This amply reflects the trust and confidence placed by depositors in the financial stability and professional management of LOLC Finance.

The prudent financial discipline demonstrated by the Company is evident in the fact that LOFC successfully maintained its Non-Performing Loan (NPL) ratio at 6.69% as at 31st March 2022, which is less than half of the industry average, thus reflecting the healthy portfolio of the company. The merger also implies that the combined technical expertise and goodwill in the industry of LOLC Finance is multiplied many times over.

With industry leadership comes recognition on both local and international platforms. In 2021/22, LOLC Finance was awarded the Most Valuable Consumer Brand 2022 (Financial services) by Brand Finance Sri Lanka; Most Innovative Financial Services Brand Sri Lanka 2021 and Most Trusted Financial Services Brand Sri Lanka 2021 at the Ninth Edition of the Global Brand Awards 2021; Financial Services Brand of the Year at the SLIM-Kantar Peoples Awards 2022; and Gold awards for NBFI of the Year for Financial Inclusivity, NBFI of the Year for Excellence in Customer Convenience, Financial Institution of the Year for Best Digital Payment Strategy, Best Mobile Application for Retail Payments Via Just Pay (Banks and NBFI), Overall Award Excellence in Inter-Bank Digital Payments (NBFI) and a Merit Award for the Most Popular Digital Payment Product (Banks and NBFI-Mobile Payment App) at the 4th edition of the LankaPay Technnovation Awards by Lanka Clear.

One of the highlights of LOLC Finance will be how it leverages on its unique business model and advanced technology platforms to power business growth and profitability. The merger has also boosted capital markets as both are listed entities and some of the blue chip stocks on the Colombo Stock Exchange (CSE).

As the largest NBFI in the country, LOLC Finance is uniquely positioned to drive economic growth by financing grassroots businesses to expand while supporting the nation’s trading and export communities to seize opportunities for growth and diversification.

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Business

A Historic First: Sri Lanka’s capital market leaders bring investor forum to Saudi Arabia

Published

11 hours ago

2026/02/6

Thilina Walpola

Key dignitaries at the Saudi investor forum

The Securities and Exchange Commission of Sri Lanka (SEC) and the Colombo Stock Exchange (CSE), in association with the Embassy of Sri Lanka to the Kingdom of Saudi Arabia, successfully convened an investor forum on Saturday 24th January 2026 at the Radisson Blu Hotel, Riyadh Convention & Exhibition Center. Alongside the forum, the SEC and CSE facilitated a meeting with the Public Investment Fund (PIF) which is Saudi Arabia’s main sovereign wealth fund.

The forum was organized to engage directly with the vibrant Sri Lankan expatriate community in the Kingdom and international investors, highlighting compelling opportunities within Sri Lanka’s capital market following the country’s successful exit from sovereign default and restoration of macroeconomic stability.

The forum was marked by the presence of several senior level policy officials, market leaders and market regulators including; Dr. P. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka (CBSL); Chathuranga Abeysinghe, Deputy Minister of Industry and Entrepreneurship Development; Ameer Ajwad Ambassador of Sri Lanka to the Kingdom of Saudi Arabia.; Senior Prof D.B.P.H. Dissabandara, Chairman of the SEC; Ray Abeywardena, Director of CSE; and Dr. Naveen Gunawardane, Co-Founder and Managing Director of Lynear Wealth Management.

In his welcome address, Ameer Ajwad stated, that a significant opportunity remains in broadening public participation in the capital market of Sri Lanka. As financial literacy and investment awareness among potential investors are limited, the investor forum would serve to bridge the knowledge gap. The forum offered an excellent opportunity for first-time investors, overseas investors, and those seeking to enhance their knowledge, to learn how to invest prudently, manage risk, and build wealth with discipline and confidence. Ambassador invited participants to make full use of the presence of high-level authorities from Sri Lanka’s key financial institutions, such as the Central Bank of Sri Lanka, the SEC, and the CSE, and to explore investment opportunities in Sri Lanka’s capital market, not only as a pathway to financial growth but also as a meaningful contribution to Sri Lanka’s resilience and long-term prosperity.

Business

CIC Holdings’ 9MFY26 revenue reaches Rs.70 bn

Published

11 hours ago

2026/02/6

Thilina Walpola

Agriculture-rich diversified conglomerate CIC Holdings PLC (CSE: CIC) recorded a consolidated revenue of Rs. 70.28 billion for the nine months ended 31 December 2025 (9MFY26), reflecting an increase of 8.69% YoY compared to the corresponding period of the previous year.

The Group’s gross profit increased by 10.11% to Rs. 18.42 billion, with the gross profit margin for the period under review improving to approximately 26%, supported by disciplined pricing and product mix optimisation. Profit after tax (PAT) increased to Rs. 5.97 billion from Rs. 5.70 billion in the corresponding period of the previous year, despite losses incurred in parts of the Group’s agri operations following the impact of Cyclone Ditwah, which disrupted cultivation activity during the Maha season.

The Group’s Crop Solutions sector remained the largest contributor to consolidated revenue, accounting for approximately 44.7% of total revenue, followed by Livestock Solutions at 21% and Health & Personal Care at 20.18%. The remaining sectors, Industrial Solutions and Agri Produce, contributed 8.6% and 6.4% to Group turnover respectively. Health and Personal Care , particularly export-driven product lines, recorded improved performance during the period, alongside continued growth in feeds, poultry, and veterinary care solutions, which supported the Group’s overall operating results.

Despite cyclone-related disruption to cultivation cycles, the Group delivered a strong operating performance, with EBITDA and operating profit (EBIT) both recording year-on-year growth. Operating profit (EBIT) closed at Rs. 9.67 billion, compared to Rs. 8.62 billion in the corresponding period of the previous year, reflecting the strength of the Group’s diversified portfolio and disciplined cost management.

During the period in review, key Group businesses across the five industry sectors, namely Crop Solutions, Agri Produce, Livestock Solutions, Industrial Solutions, and Health & Personal Care, continued to perform resiliently. Crop Solutions revenue increased from Rs. 28.06 billion to Rs. 32.32 billion, while Livestock Solutions revenue grew from Rs. 13.35 billion to Rs. 14.60 billion. Health & Personal Care revenue improved from Rs. 14.29 billion to Rs. 14.46 billion, supported by herbal health product exports and steady domestic demand. Revenue from Agri Produce increased from Rs. 4.35 billion to Rs. 4.64 billion, while Industrial Solutions revenue rose from Rs. 6.07 billion to Rs. 6.28 billion.

Commenting on the performance, CIC Holdings Group CEO Aroshan Seresinhe said, “Despite the disruption caused by Cyclone Ditwah to agricultural activity during the Maha season, the Group remained focused on supporting farming communities through well clean-up operations, field renovation, and the restoration of cultivation activity.

Business

CSE regains some of its bullish verve as turnover hits Rs.11 billion

Published

11 hours ago

2026/02/6

Thilina Walpola

CSE trading reflected a bullish trend yesterday due to positive quarterly corporate earnings coupled with lower Treasury Bill yields, market analysts said.

Further, institutional participation contributed more than 50 percent to the day’s turnover.

Amid those developments both indices moved upwards. The All Share Price Index went up by 63.67 points, while the S and P SL20 rose by 12.58 points.

Turnover stood at Rs 11.1 billion with10 crossings. The top seven crossings were: JKH 189.5 million shares crossed to the tune of Rs 4.2 billion; its shares traded at Rs 22.70, HNB 3.5 million shares crossed for Rs 1.48 billion; its shares traded at Rs 422, Hemas Holdings 11 million shares crossed for Rs 376.2 million; its shares traded at Rs 34 20, Commercial Bank 1.5 million shares crossed for Rs 336.8 million; its shares traded at Rs 224.50, Sampath Bank 600,000 shares crossed for Rs 93.6 million; its shares sold at Rs 156, Laugfs Gas 868,000 shares crossed for Rs 51.6 million; its shares sold at Rs 71 and Sierra Cables 1 million shares crossed for Rs 36.7 million; its shares sold at Rs 36.70.

In the retail market top seven companies that mainly contributed to the turnover were; Ceylon Land Equity Rs 385 million (20 million shares traded), Commercial Bank Rs 373.9 million (1.7 million shares traded), Luminex Rs 247.2 million (26.7 million shares traded), Colombo Dockyard Rs 152 million (one million shares traded), TJ Lanka Rs 152 million (four million shares traded), Easter Merchants Rs 142 million (8.7 million shares traded) and RIL Properties Rs 116.9 million. During the day 441.3 million share volumes changed hands in 44406 transactions.

It is said that manufacturing sector counters, especially JKH, led the market while the banking sector also performed well, especially HNB and Sampath Bank. Further, the capital goods sector too performed well.Yesterday the Central Bank’s US dollar buying rate was Rs 305.78 and selling rate Rs 313.32.

By Hiran H Senewiratne