Business

Vallibel Finance Profit After Tax soars to Rs. 1.7 billion

Published

5 years ago

2021/07/8

NPL ratio improves to 4.48%

Vallibel Finance PLC has again demonstrated its time-tested resilience and industry leadership status by achieving impressive results in all its KPIs across fixed deposits, lending portfolio and profitability, while recording positive growth as compared to the negative growth recorded by the overall financial services industry in the 2020/21 financial year.

The Company recorded a Profit before Tax of Rs. 2.3 billion which was an increase of 28.3% and its Profit after Tax soared to Rs. 1.7 billion from Rs. 1.2 billion in the previous year, supported by an aggressive strategy to optimize costs, focus on collections and seek new business avenues, all the while supporting customers to tide over the crisis.

The strong management expertise in the Company is evidenced in Non-Performing Loans (NPL) ratio improved to 4.48% from 5.01% in the previous year despite a rash of defaulted payments against industry average rate of 13.9%.

This positive result for the Company reflects the recovery and collection drive embarked upon during the year despite the challenging impact on many customers linked to sectors such as tourism, vehicle imports etc., which were badly affected during the year.

The Company grew its Gross Loan Portfolio to Rs.50 billion in the period under review, from Rs. 42 billionin the previous year, reflecting a growth of 19.0% as a result of the company’s aggressive growth strategy. Vallibel Finance served customers mindfully during this difficult period, helping to rehabilitate them by extending loans as per the government stipulated moratorium and even going beyond these norms to grant concessions to customers engaged in industries which were hit particularly hard.

Pre-tax Profits for the year under review achieved a notable all-time high of Rs. 2.8 billion, expanding by 17.1% from the figure of Rs. 2.4 billion in the previous year, which is a testimonial to the Company’s prudent management and wealth of experience in the financial services industry, in particular, managing in the face of adversity.

The public confidence in the Company was evident in the success achieved in deposit mobilisation during the year. Deposits soared to Rs. 32 billion, a commendable growth by 10% from Rs. 29 billion in the previous year. Total Assets increased to Rs. 55 billion, expanding by 7.4% from the previous figure of Rs. 51 billion.

“We are proud of the financial performance that Vallibel Finance has delivered despite the challenges posed by the pandemic, which resulted in an economic slowdown, while the vehicle import ban impacted the financial services industry. Powering positive growth across all parameters is a fitting achievement that has been brought about by a dedicated and professional team.The entire team at Vallibel Finance has shown exceptional commitment to achieving set targets,” said Managing Director of Vallibel Finance, Jayantha Rangamuwa.

Generating wealth for shareholders, the Company’s Earnings per Share increased to Rs. 29.36 from Rs. 21.29 in the previous year.

Commenting further, Dhammika Perera, Chairman Vallibel Group said, “Year after year, despite severely challenging operational environments and a global pandemic, Vallibel Finance continues to deliver unfailingly on its commitment to safeguard and create wealth and prosperity for all its stakeholders and shareholders, while making a valuable contribution to the Vallibel Group as the flagship company of the highly diversified conglomerate.”

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Business

ADB approves $100 million loan to boost skills development and jobs for youth in Sri Lanka

Published

17 hours ago

2026/10/2

Thilina Walpola

The Asian Development Bank (ADB) has approved a $100 million results-based loan to help Sri Lanka transform its technical and vocational education and training (TVET) system, equip more young people with industry-relevant skills, and strengthen the country’s competitiveness and inclusive growth.

The Skills Development System Transformation Program will support the Government of Sri Lanka’s efforts in improving the quality and relevance of skills training, strengthening links between training providers and industries, and expanding employment opportunities for youth. The program will increase women’s employment opportunities in nontraditional jobs in fields including automotive technology, engineering, information and communications technology, construction, and renewable energy.

“A skilled workforce is essential to Sri Lanka’s long-term economic transformation and competitiveness,” said ADB Country Director for Sri Lanka Shannon Cowlin. “This program will help create stronger pathways from education to employment by making training more responsive to industry needs, expanding opportunities for young people and women, and ensuring that graduates have the skills required by a modern and evolving economy.”

Though Sri Lanka’s economy is recovering, it faces skills shortages in priority sectors, high youth unemployment, and low female labor force participation. Many employers report difficulty finding workers with the skills needed in a changing economy.

Aligned with the Government of Sri Lanka’s Technical and Vocational Education and Training Sector Strategic Framework 2026–2035, the nationwide program will be implemented from 2027 to 2031 and is expected to directly benefit more than 100,000 young people through improved access to quality, employment-oriented training.

Business

USD 40.84m pipeline to secure aviation fuel supplies to BIA

Published

18 hours ago

2026/10/2

Thilina Walpola

By Ifham Nizam

The government has cleared a USD 40.84 million and Rs. 8,548.75 million contract to build a dedicated aviation fuel pipeline from Muthurajawela to Bandaranaike International Airport (BIA), alongside a massive new fuel storage facility with a capacity of 92,000 cubic metres.

Energy Minister Anura Karunatilaka said the project represented a major investment in strengthening the infrastructure underpinning Sri Lanka’s aviation fuel supply and ensuring more reliable fuel availability at the country’s main international airport.

‘This project will provide the infrastructure required to strengthen the reliability and continuity of aviation fuel supplies to Bandaranaike International Airport, Karunatilaka said.

The contract has been awarded to China Petroleum Pipeline Engineering Company Limited, following an international competitive procurement process in which three bids were received.

The project will see a new aviation fuel storage tank complex constructed at Muthurajawela, together with the associated infrastructure required for handling and transferring aviation fuel.

Business

CSE activity up, turnover weak at Rs. 1.4 billion

Published

18 hours ago

2026/10/2

Thilina Walpola

By Hiran H Senewiratne

Trading activity on the Colombo Stock Exchange (CSE) gathered pace yesterday as global fuel prices began to show signs of easing, according to market analysts.In this context, both indices moved upwards. All Share Price Index up by 67.97 points while S and P SL20 up by 8.30 points.

Turnover stood at Rs 1.4 billion with seven crossings. Those crossings were reported in Sampath Bank 1.7 million shares crossed to the tune of Rs 238 million and its share price traded at Rs 140, Access Engineering two million shares crossed to the tune of Rs 159 million and its share price traded at Rs 79.50, LOLC one million shares crossed to the tune of Rs 129 million and its share price traded at Rs 129, HNB 100,000 shares crossed to the tune of Rs 38.4 million and its share price traded at Rs 384, JKH 1.9 million shares crossed to the tune of Rs 35 million and its share price traded at Rs 18.60, Hayleys 100,000 shares crossed to the tune of Rs 22.50 million and its share price traded at Rs 225 and Richard Pieris 847,000 shares crossed to the tune of Rs 22 million and its share price traded at Rs 25.50.

In the retail market top seven companies that have mainly contributed to the turnover were Sampath Bank Rs 114 million (813,000 shares traded), JKH Rs 100 million (5.3 million shares traded) LB Finance Rs 49 million (325,000 shares traded), HNB Finance Rs 30 million (27 million shares traded), HNB Rs 27 million (70000 shares traded), NTB Rs 25 million (82000 shares traded ) and Lanka IOC Rs 21 million (666,000 shares traded). During the day 65 million shares volumes changed hands in 10433 transactions.

The Banking and manufacturing sector counters performed well. In the banking sector Sampath Bank let the market while manufacturing sector especially JKH also significantly performed well. With the fuel revision Land IOC also a significant stock at the floor.

Meanwhile, First Capital Treasuries said that Ramesh Schaffter resigned as a Non-Independent Non-Executive Director with effect from October 1, to facilitate the restructuring of the company’s board.

Yesterday the Central Bank announced the US Dollar rate as against rupee. The rupee was quoted flat at Rs 330.65/80 to the US dollar in the spot market , while bond yields dropped, dealers said.