Connect with us

Business

‘LOLC Finance poised to fuel economic resurgence’

Published

on

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.



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Hour of reckoning comes for SL’s power sector

Published

on

Eng. Pubudu Niroshan

By Ifham Nizam

A long-delayed reckoning in Sri Lanka’s power sector is finally beginning to take shape—driven less by choice and more by necessity.

At a time when the country’s fragile economic recovery hinges on stability, the electricity sector—long plagued by inefficiency, political interference, and costly dependence on imported fuel—has re-emerged as both a risk and an opportunity.

It is within this context that The Institution of Engineers, Sri Lanka will host a timely and potentially consequential forum on April 2 at the Wimalasurendra Auditorium, focusing on a “Pragmatic Approach to Electricity Sector Reforms in Sri Lanka and the Way Forward.”

This is not just another technical discussion. It is, in many respects, a reality check.

The keynote address by Eng. Pubudu Niroshan—who stood at the centre of recent reform efforts as Director General of the Power Sector Reforms Secretariat—comes at a moment when the gap between policy ambition and execution has become impossible to ignore.

For over three decades, Sri Lanka has spoken the language of reform. Yet, time and again, progress has been derailed by institutional resistance, political hesitation, and an entrenched reluctance to dismantle inefficient structures.

The result is a sector that continues to bleed financially while passing the burden onto consumers and the broader economy.

High electricity tariffs, supply vulnerabilities, and operational inefficiencies are no longer isolated technical issues—they are macroeconomic threats. Industries struggle to remain competitive, investors remain cautious, and households continue to bear rising costs. The over-reliance on imported fossil fuels has only deepened this vulnerability, exposing the country to global price shocks and geopolitical disruptions.

The economic crisis of 2022 briefly forced a shift in thinking. Under severe fiscal pressure, reform was no longer optional. The passage of the Sri Lanka Electricity Act, No. 36 of 2024 was seen as a breakthrough—an acknowledgment that structural change could no longer be postponed.

But legislation alone does not transform systems.

What has followed is a more grounded, outcome-driven approach—one that attempts to move beyond policy rhetoric. Within a relatively short span, the first phase of restructuring has been pushed through, including the repeal of the decades-old CEB Act, No. 17 of 1969, and the unbundling of the monolithic utility into six state-owned entities.

This is, by any measure, a significant structural shift.

Yet, the real test lies ahead.

Unbundling without genuine market discipline risks becoming another cosmetic exercise.

The promise of a competitive National Electricity Market—long discussed but never realized—will depend heavily on regulatory strength, transparency, and political consistency. Without these, the same inefficiencies could simply be replicated across multiple entities.

Moreover, reform cannot succeed in isolation.

Sri Lanka’s energy transition must be anchored in a broader economic strategy—one that aligns power sector reforms with industrial growth, environmental sustainability, and investment policy.

The proposed “Energy Transition Act,” now under consideration, will be a critical piece of this puzzle. If executed with clarity and discipline, it could provide the legal backbone for a coherent and forward-looking energy framework.

The reference to an Integrated Economic Development Framework (IEDF) in the 2026 Budget underscores this necessity. Energy is not a standalone sector—it is the foundation upon which economic recovery will either stand or falter.

What makes this moment different is the absence of alternatives.

Sri Lanka can no longer afford half-measures or delayed decisions. The cost of inaction is too high, and the margin for error too narrow. Reform, in this sense, is no longer a policy preference—it is an economic imperative.

The upcoming forum at The Institution of Engineers, Sri Lanka is therefore more than a professEng. Pubudu Niroshanional gathering. It is a critical platform where technical expertise must confront political reality, and where long-standing assumptions must be challenged.

For years, Sri Lanka’s electricity sector has been caught in a cycle of discussion without delivery. The shift toward a pragmatic approach signals an understanding that outcomes—not intentions—will define success.

The question now is whether that realization will finally translate into sustained, irreversible change.

Because this time, failure is not just an option—it is a risk the country simply cannot afford.

Continue Reading

Business

Dialog introduces Samsung Galaxy S26 Series with AI-powered camera and 5G Connectivity

Published

on

From left to right: Shiromy Ali, Assistant Vice President, Group Corporate Planning & Strategy, Dialog Axiata PLC; Hemaka Balasooriya, Chief of Dialog Business Services, Dialog Axiata PLC;  Shanaka Fernando, First Pre-order Customer; Sang Hwa Song, Managing Director, Samsung

Dialog Axiata PLC, Sri Lanka’s #1 connectivity provider, announced the availability of the Samsung Galaxy S26 Series in Sri Lanka through its retail and digital channels, bringing Samsung’s latest flagship smartphone lineup to local consumers. The series includes the Galaxy S26, Galaxy S26+, and Galaxy S26 Ultra, combining advanced AI-powered capabilities, premium design and next-generation connectivity for everyday mobile use, with customers able to experience the power of Dialog 5G Ultra on the devices.

The Samsung Galaxy S26 Series introduces an AI-powered camera system featuring a 200MP AI-enhanced rear camera with improved low-light performance, advanced zoom and intelligent editing tools for capturing and refining content directly on the device. The lineup also includes Galaxy AI capabilities, a privacy display that limits viewing angles to protect on-screen information, and steady video functionality for smoother and more stable video recording.

The Galaxy S26 Series features Dynamic AMOLED displays across the lineup, including a 6.3-inch Galaxy S26, 6.7-inch Galaxy S26+, and 6.9-inch Galaxy S26 Ultra, supporting smooth performance for streaming, gaming and everyday productivity. The devices are available with 12GB RAM and storage options of 256GB or 512GB, while the Galaxy S26 Ultra also offers a 16GB RAM variant with up to 1TB storage for users requiring additional capacity.

Continue Reading

Business

Ideal Motors celebrates gala ‘Excellence Awards’ honouring outstanding performance

Published

on

The Mahindra Ideal Excellence Awards ceremony, a grand celebration to recognize dealers and other stakeholders of Ideal Motors, was held at the Wave n’ Lake Banquet Hall & Restaurant in Welisara recently.

The event was graced by the presence of special guests including Nalin Welgama, Founder and Chairman Ideal Motors, Dilani Yatawaka, Group Managing Director/CEO Ideal Motors, Nimisha Welgama, Director Legal and Corporate Affairs Ideal Motors, Sachin Arolkar, Head International Operations, Auto Division Mahindra & Mahindra India. Senthil Selvaraju, Head International Operations and Customer Service Automotive Division Mahindra & Mahindra India, Sujeeth Jayant, Country Head Mahindra & Mahindra India and Shitam Kundu, Head Domestic Services Mahindra & Mahindra India.

Also, in attendance from Ideal Motors were Kasun Fernando, General Manager Commercial Vehicle Sales Division, Sameera Bamunuarachchi, Deputy General Manager Spare Parts, Logistics & Inventory and Prasanna Manamperi, Deputy General Manager After Seles Service.

The Excellence Awards ceremony honoured the top sales dealers at the provincial and national levels. Recipients were presented with awards, certificates of merit, and cash prizes in recognition of their achievements. The three best national‑level sales dealers from the various categories were further rewarded with an opportunity to visit Bangkok, Thailand. In addition, special recognition was extended to banks and financial institutions that partner with Ideal Motors.

Speaking at the event, Nalin Welgama Ideal Motors Founder and Chairman said, “When we began our journey with Mahindra in 2009, the previous company had sold 300 vehicles in the country, of which nearly 150 had various defects. At that time our journey began by engaging with the parent company in India and repairing those vehicles free of charge. That commitment has brought us to where we are today. As we believe, our journey truly begins after the sale. We are dedicated to strengthening our customers, and in doing so, strengthening ourselves. That is how we transformed the after‑sales service experience.”

Continue Reading

Trending