Corporate News
View all(37)📈 NDB Reports LKR 1.75 Bn PAT for 1Q26 Amid Fraud Recognition
National Development Bank PLC (NDB) has released its 1Q 2026 results, fully accounting for the financial impact of a previously disclosed fraud. The bank remains focused on core stability and SME sector support despite the LKR 13.20 Bn total estimated impact of the fraud. • Core Financial Performance (1Q 2026): - Gross Income: LKR 26.50 Bn (↑ 15.3% YoY). - Net Interest Income (NII): LKR 9.05 Bn (↑ 13.5% YoY). - Net Fee & Commission Income: LKR 2.19 Bn (↑ 24.9% YoY). - Net Interest Margin (NIM): Stabilized at 3.9%. - Post-Tax Profit (PAT): LKR 1.75 Bn (restated 1Q25: LKR 37.58 Mn). • Fraud Impact & Restatements: - Total fraud impact of LKR 13.20 Bn recognized across FY24, FY25, and 1Q26. - 1Q 2026 specific impact: LKR 2.67 Bn (recorded under operating expenses). - Without fraud impact, 1Q26 PAT would have been LKR 3.20 Bn. • Balance Sheet & Asset Quality: - Total Assets: LKR 977.20 Bn (restated). - Net Loans: LKR 623.11 Bn (↑ 5.0% from end-2025). - SME Loans: LKR 131.74 Bn (↑ LKR 7.09 Bn growth). - Stage 3 Loan Ratio: Improved to 3.2% (from 3.8% in 2025). - Impairment Charges: LKR 1.75 Bn (↓ 33.4% YoY). • Solvency & Liquidity: - Total Capital Adequacy Ratio (CAR): 15.4% (well above regulatory minimum). - Liquidity Coverage Ratio (Rupee): 177.5%. The Bank has commissioned Deloitte for a forensic review to evaluate control lapses and ensure future resilience. Based on provisional restated data.
📈 Overseas Realty (Ceylon) PLC Reports Rs. 1.9 Bn PBT in 1Q 2026
Overseas Realty (Ceylon) PLC recorded a resilient performance for the first quarter ending 31 March 2026, driven by strong growth in its commercial and retail segments. • Overall Financials: Group revenue reached Rs. 3,292 Mn with a Profit Before Tax (PBT) of Rs. 1,926 Mn. The Group reported an Earnings Per Share (EPS) of Rs. 1.47 and a Net Asset Value per share of Rs. 54.43. • Commercial & Retail Performance: • World Trade Center (WTC): Revenue rose 11% YoY to Rs. 780 Mn, supported by higher rental rates. • Mireka Tower: Significant growth of 114% YoY, recording Rs. 1,027 Mn due to improved occupancy. • Havelock City Mall: Revenue increased 22% YoY to Rs. 585 Mn. • Residential Sector: • Havelock City: Sales revenue stood at Rs. 556 Mn, lower than 1Q 2025 due to limited unit availability. • Mireka Seascape: The new luxury coastal project launched in 2025 has seen strong market acceptance; piling works commenced in 2Q 2026. • Currency Impact: A net exchange loss of Rs. 68 Mn was recorded on foreign currency loans, a marked improvement from the Rs. 136 Mn loss in the previous year. The Group remains financially resilient with strong recurring revenue, positioning it to explore new real estate development opportunities for long-term growth.
📈 Abans Group Celebrates Inaugural Founder’s Day & New Identity
Abans Group marked its first-ever Founder’s Day in 2026, coinciding with the 90th birthday of founder Aban Pestonjee. The milestone celebrates the evolution of the group from a 1968 corner shop into a leading diversified conglomerate over five decades. • Strategic Evolution: The group transitioned from a modest retail operation into a multi-sector giant following Sri Lanka’s shift to an open economy in 1977. It secured the first major global partnership with Electrolux, eventually expanding into a massive portfolio including Belling, Hoover, and Pyrex. • Sector Footprint: The conglomerate now maintains a significant presence across household electronics, retail, real estate development, environmental management, ICT services, automobiles, and logistics. • Economic Impact: • Workforce: Employs over 10,000 staff members. • Vision: Unveiled a new corporate identity and tagline, "Better Way to Life," emphasizing a collective impact across homes and businesses. • Sustainability: Launched the Abans Group Manifesto, formalizing a commitment to environmental responsibility and sustainable growth across all subsidiaries. The event reinforces the group's role in the retail and services landscape, focusing on a unified vision for future diversification and national economic contribution.
🗞️ Daily FT Announces Cover Price Hike to Rs. 100
The Daily FT, Sri Lanka's premier business daily, has announced a price adjustment effective from 4 May 2026. The publication cited escalating operational pressures as the primary driver for the increase. • New Pricing: The cover price will rise to Rs. 100 per copy. • Primary Drivers: The hike is attributed to the increasing costs of distribution, energy, and imported materials (such as newsprint and ink) essential for the publishing process. • Economic Context: The adjustment reflects broader inflationary pressures affecting the local media and publishing sector, particularly regarding supply chain costs and utility overheads. _Source: Daily FT (30 April 2026)_
Revenue Leakages and Commission Scandals at SriLankan Airlines 📈
A report from a senior manager highlights significant systemic revenue drains within the national carrier, primarily through irregular commission structures and outsourced processes. • Commission Irregularities: Since 2011–12, SriLankan Airlines has reportedly paid General Sales Agents (GSAs) commissions for online bookings at the point of boarding. This practice contradicts global industry standards where direct internet sales should bypass third-party payouts. • Financial Impact: In one instance, halting these payments in Saudi Arabia (2012–15) saved an estimated US$ 9,000–11,000 per month, suggesting substantial global losses. • Outsourced Refunds: Revenue leakage was further exacerbated by outsourcing refund processing to a firm in Bombay, with claims that 11% of fees were shared as kickbacks among internal senior management. • Governance Issues: The report alleges that GSA appointments in both passenger and cargo sectors were influenced by "cartels" and "kickback" schemes. While one beneficiary is reportedly imprisoned, other accomplices allegedly remain in key positions. • National Context: These internal "milking" practices are cited as primary obstacles to the Government's efforts to restructure the airline and ensure its financial viability. _Note: Summary based on reports from a Senior SriLankan Manager._
## Governance Risks in SL Banking Sector 📈
A critical assessment of the Sri Lankan banking landscape highlights a growing "governance crisis" where non-executive roles are often treated as prestige symbols rather than high-stakes responsibilities. • Systemic Vulnerabilities The sector faces risks from "ornamental" Boards lacking technical depth. Unlike other corporate sectors, banking relies on extreme leverage and public trust. Failures impact depositors, SMEs, and the real economy immediately. • Key Risk Indicators Current concerns focus on deteriorating credit quality and high risk concentrations. Specific scrutiny is directed at NDB Bank, where a significant buildup of receivables went unchallenged by Board members, external auditors (EY), and regulators (CBSL). • Accountability & Liability Non-executive status no longer offers insulation. Directors face: Civil & Criminal Exposure: Escalating global and local precedents for personal liability in negligence cases. Reputational Damage: Potential for prosecution and jail time following systemic collapses (e.g., the NDB saga). • Proposed Reforms To safeguard the financial services industry, the following are urged: Mandatory Literacy: Directors must pass banking literacy certifications before appointment. Strict Appointments: CBSL must shift from "convenience" to "competence" in vetting Board members. Audit Forensic Shift: Audit committees must move from procedural checks to forensic interrogation of balance sheets. _Note: Analysis based on current banking commentary and provisional sector observations._
📈 Prima Ceylon Hikes Wheat Flour Prices Prima Ceylon Ltd. has announced an immediate price increase for wheat flour, citing rising transport costs as the primary driver for the adjustment.
• Price Adjustment: The price of a kilogram of "Milk" brand flour has been raised by Rs. 5. • New Market Rate: The retail price has shifted from Rs. 220 to Rs. 225 per kg, reflecting a 2.27% increase. • Economic Context: As a staple commodity, this price hike in the food processing sector is expected to have a cascading effect on the cost of bakery products and related downstream industries, impacting overall household expenditure.
Seylan Bank Posts LKR 2.91 Bn PAT in Q1 2026 📈
Seylan Bank has reported a steady start to the year, underpinned by significant growth in its asset base and strong performance in its banking and financial services operations. • Overall Performance Profit After Tax (PAT): LKR 2.91 Bn (up 5.25% YoY). Profit Before Tax (PBT): LKR 4.55 Bn (up 8.31% YoY). Total Assets: Reached LKR 943 Bn, a notable increase from LKR 785 Bn in Q1 2025. • Income Streams Net Interest Income: LKR 9.73 Bn (up 13.37%), despite NIMs moderating to 4.23%. Fee-Based Income: LKR 2.31 Bn (up 24.04%), driven by cards, remittances, and trade services. Total Operating Income: LKR 12.38 Bn (up 12.57%). • Asset Quality & Operations Impaired Loans (Stage 3) Ratio: Maintained at a strong 1.01%. Operating Expenses: Increased by 19.40% to LKR 6.13 Bn, influenced by staff costs and inflation. Impairment Charge: LKR 100 Mn, a sharp 55.57% reduction from the previous year. • Key Financial Indicators Return on Equity (ROE): 14.39%. Capital Adequacy: Total Capital Ratio at 16.38%, well above regulatory requirements. Loans & Deposits: Loans grew to LKR 628 Bn, while Deposits reached LKR 743 Bn. The bank continues to support national financial inclusion and education through its "Pahasara" CSR initiative, now totaling 291 libraries. _Data based on Q1 2026 interim results._
📈 Union Bank Records Explosive 570% Profit Growth in 1Q 2026
Union Bank has started 2026 with significant momentum, reporting a sharp acceleration in core earnings and operational efficiency following a transformative 2025. • Financial Performance • Gross Income: LKR 4.9 Bn (up 24% YoY). • Net Interest Income (NII): LKR 1,649 Mn (up 29% YoY). • Profit Before Tax (PBT): LKR 465 Mn (up 260% YoY). • Profit After Tax (PAT): LKR 334 Mn (up 570% YoY). • Sector & Revenue Drivers • Net Fee and Commission Income: Rose by 36% to LKR 387 Mn, driven by diversification across retail, SME, and corporate banking. • Other Income: Included LKR 213 Mn from the sale of shares in subsidiary UB Finance PLC. • Operating Expenses: Contained at 7% growth (LKR 1,576 Mn), leading to a 133% surge in operating results. • Balance Sheet & Capital • Total Assets: LKR 188.7 Bn (up 9% YTD). • Gross Loans & Advances: LKR 129.7 Bn (up 10% YTD). • Customer Deposits: LKR 124.4 Bn (up 5% YTD). • Capital Adequacy: Successfully issued a LKR 3 Bn debenture; Total Capital Ratio remains healthy at 14.7%. The bank attributes this performance to a digital-first strategy and a focus on core segments, providing a stable foundation for the remainder of 2026. Data based on 1Q interim results.
Singer (Sri Lanka) PLC to Acquire ACME Factory for Rs. 630 Mn 📈
Transaction Details: Singer (Sri Lanka) PLC signed a Sale Purchase Agreement on April 28, 2026, to acquire the factory premises of ACME Printing and Packaging PLC for a total consideration of Rs. 630 Million. Asset Location: The facility is situated at Gonamadiththa Road, Piliyandala. Strategic Objective: The investment is aimed at expanding the company’s local manufacturing footprint, reflecting a shift toward domestic production and localized supply chains. Industrial Context: This move aligns with broader economic trends in Sri Lanka focused on industrial diversification and enhancing domestic production capabilities to strengthen the national economy. _Note: Based on formal disclosure to the Colombo Stock Exchange._
Musk vs. OpenAI: High-Stakes Legal Battle Over Nonprofit Roots ⚖️
• Overview: Elon Musk took the stand in a landmark trial against OpenAI, CEO Sam Altman, and Greg Brockman. Musk alleges the defendants betrayed the original mission by transforming a "benevolent" nonprofit into a profit-driven entity valued at over US$ 850 Bn. • Key Claims: Musk characterizes OpenAI as his "brainchild," claiming he provided the name, initial funding (approx. US$ 38 Mn), and recruited key talent. He is seeking US$ 150 Bn in damages, with proceeds intended for OpenAI’s charitable arm, and demands the removal of Altman and Brockman. Claims include breach of charitable trust and unjust enrichment, arguing that "looting a charity" destroys the foundation of US philanthropy. • Defense Argument: OpenAI’s legal team contends Musk sued only after failing to gain control of the company. They argue the shift to a for-profit structure in 2019 was essential to secure the computing power and talent needed to compete with Google. • Economic Impact: The trial involves tech giants like Microsoft (which invested US$ 10 Bn in 2023). The outcome could complicate OpenAI’s potential IPO, which may see a valuation of US$ 1 Tn, and impacts the broader AI/ICT sector's governance. • Status: Testimony continues Wednesday; Judge Yvonne Gonzalez Rogers has admonished Musk regarding his social media conduct during the trial. 📈
📈 LB Finance Secures US$ 15 Mn Senior Debt from Enabling Qapital
LB Finance PLC has successfully obtained a US$ 15 million senior debt facility from Enabling Qapital Ltd (EQ), a Switzerland-based impact asset manager. This long-term funding, channeled via the EMF Microfinance Fund, is aimed at bolstering the company’s capital base and advancing financial inclusion. • Strategic Focus on MSMEs: The facility is specifically earmarked to expand lending within the micro, small, and medium enterprise (MSME) sector. This segment is identified as a critical driver for Sri Lanka’s employment generation and long-term economic resilience. • Impact Investment: The partnership underscores international investor confidence in Sri Lanka’s non-bank financial institution (NBFI) sector. Enabling Qapital, which manages approximately US$ 800 million in assets, selected LB Finance based on its operational strength and commitment to measurable social impact. • Economic Contribution: By improving access to sustainable financing for underserved entrepreneurs, the facility supports poverty reduction and aids the national objective of inclusive economic recovery. • Funding Diversification: This milestone strengthens LB Finance's diversified funding base and reinforces its position as a leading player in the finance and leasing industry, leveraging global partnerships to stabilize its balance sheet.