News
People’s Bank achieves pre-tax profit of Rs 43.7 Bn for nine months ended 30 Sept.
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.”
Interdicted Deputy Director at the National Hospital, Sri Lanka (NHSL) Dr. Rukshan Bellana yesterday (29) alleged that the powers that be moved against him for seeking the CIABOC (Commission to Investigate Allegations of Bribery or Corruption) investigation into a massive fraud at the NHSL laboratory.
Dr. Bellana said so in response to The Island query regarding the circumstances the Health Ministry interdicted him on 18 December, through a letter, as directed by the Health Committee of the Public Service (PSC) Commission. “That letter has been signed by an Additional Secretary, as Health Secretary Dr. Anil Jasinghe was overseas,” Dr. Bellana said.
Dr. Bellana stated that the government had paid for reagents, contaminated or close to expiry dates, obtained from a leading local medical supplier, since 2022. He emphasised that his complaint to the CIABOC, and subsequent complaint to the Criminal Investigation Department (CID), were entirely based on the issues raised by the National Audit Office (NAO).
Responding to another query, Dr. Bellana said that the public funds, amounting to Rs. 900 mn, had been spent on chemical reagents past expiry dates. Regardless of the intervention made by the NAO, the NHSL continued to procure supplies from the same company, Dr. Bellana said, adding that he had received the unconditional support of the civil society. Among them were Dr. Chamal Sanjeewa, President of Medical and Civil Rights Professional Association of Doctors (MCPA), President of Academy of Health Professionals Ravi Kumudesh, and leader of Mage Rata Sanjaya Mahawatta.
Dr. Bellana said that he had complained about the scam to the CIABOC in June this year.
Dr. Chamal Sanjeewa, who also lodged a complaint with CIABOC, regarding the same matter, is on record as having said in September this year that the reagents had been procured over a three-year period without the proper approval of the Medical Supplies Division of the Ministry. Dr. Sanjeewa has alleged that some of the reagents were either contaminated or close to expiry dates, while contracts had been given to a single company at unapproved prices.
Dr. Bellana said that had there been a proper system for CIABOC and law enforcement authorities to act on findings made by the NAO they wouldn’t have personally intervened in the NHSL laboratory matter. “Parliament should look into this. Did Parliament take up the NHSL laboratory matter at the relevant watchdog committee or at the Sectoral Oversight Committee that handled health?” Dr. Bellana asked.
Asked whether the letter that informed him of his interdiction gave any specific reason for the action taken, Dr. Bellana said the Ministry had found fault with him for speaking to the media. The irate ex-official said that he never hesitated to take a stand against injustice. “When former Health Minister Keheliya Rambukwella was accused of corruption, pertaining to medical procurement, I condemned the Minister. Lambasted those responsible for wrongdoings.”
Dr. Bellana said that the NAO had dealt with mega crime involving the public and private sector. “That is the undeniable truth. Parliament should look into this as public money is its responsibility. Having vowed to stamp out corruption, the NPP was allowing and encouraging those who had been making money at the expense of the sick, Dr. Bellana said.
Dr. Bellana said that as many as 10,000 tests were conducted daily at the NHSL. The racketeers had been active during Aragalaya as the NHSL and the private supplier reached agreement in 2022 and the process continued even after the last presidential election, conducted in September 2024.
Dr. Bellana said that the long delay in finalising the Auditor General’s appointment exposed the government. If those holding high political office were genuinely interested in fighting corruption, they wouldn’t have allowed that Office of AG stay vacant even for a day.
Dr. Bellana noted the tough statements issued by the Bar Association, Transparency International Sri Lanka and the Committee on Public Finance demanding the immediate appointment of AG.
Health Ministry officials were not available for comment.
By Shamindra Ferdinando
BIA unions, including those affiliated to political parties, are demanding bonuses equal to five months’ basic salaries.
A group of workers yesterday (29) protested outside BIA urging the Airport and Aviation Services Sri Lanka (Private) Ltd to increase their bonuses. They claimed that the Chairman of Airport and Aviation Services Sri Lanka (Private) Ltd., Air Vice Marshal (Retd) Harsha Abeywickrama, had assured them that they would be paid bonuses worth five times their basic salaries.
The SriLankan Nidahas Sewaka Sangamaya (SLNSS) of the airport, the Podujana Sewaka Sangamaya, the Pragathishili Sewaka Sangamaya, the Jathika Sevaka Sangamaya, and the SLNSS of SriLankan Airlines joined the protest.
The Sri Lanka Mahaweli Authority has issued an urgent safety warning to residents living along the banks of the Kotmale Oya and the Mahaweli River, as water levels in the Kotmale Reservoir are reaching maximum capacity.
According to a special weather advisory issued by the Department of Meteorology on December 26, 2025, heavy rainfall is expected in the catchment areas over the coming days.
In response, the Mahaweli Authority released a statement on December 27, warning that spill gates may have to be opened to manage the water flow.
Eng. A.M.A.K. Seneviratne, Resident Engineer and Deputy Director of the Kotmale Reservoir, stated that the opening of spill gates would lead to a significant rise in the water levels of both the Kotmale Oya and the Mahaweli River.
Areas on Alert
Residents in the following Divisional Secretariat divisions are urged to remain extra vigilant:
• Nuwara Eliya District: Kotmale West and Kotmale East.
• Kandy District: Udapalatha, Udunuwara, Doluwa, Pasbage Korale, and Ganga Ihala Korale.
Authorities have advised the public in these low-lying and river-adjacent areas to monitor the situation closely and take necessary precautions to ensure their safety and the protection of their property.
By S.K. Samaranayake
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