Corporate News
View all(69)📈 ComBank Group Deposits Cross Landmark Rs. 3 Tn Threshold in 1H 2026
The Commercial Bank of Ceylon Group has become Sri Lanka’s first private sector banking & financial services group to surpass Rs. 3 Tn in total deposits, driven by robust balance sheet expansion in the first half of 2026. • Deposit & Asset Milestones - Group deposits reached Rs. 3.02 Tn (+20.33% YoY over 12 months; up Rs. 315.13 Bn in 6 months). - Total assets expanded by 10.68% in 6 months (+19.42% YoY) to Rs. 3.74 Tn. • Lending & Revenue Growth - Gross loans and advances rose to Rs. 2.36 Tn (+36.07% YoY; up Rs. 270.43 Bn in 6 months). - Gross income increased 18.28% YoY to Rs. 209.16 Bn for 1H 2026 (Q2 alone up 24.04% to Rs. 110.16 Bn). - Net interest income grew 15.81% YoY to Rs. 79.69 Bn. • Profitability & Financial Health - Net profit after tax reached Rs. 35.42 Bn for 1H 2026 (+13.66% YoY); Q2 net profit grew 7.98% to Rs. 17.49 Bn. - Impairment provisions increased 33.44% YoY to Rs. 14.85 Bn as a prudential buffer against global volatility. - Asset quality improved, with the net Stage 3 impaired loans ratio falling to 1.38% (vs. 1.54% at end-2025). • Capital & Operational Ratios - Tier 1 Capital Ratio stood at 13.23% (regulatory minimum: 10%); Total Capital Ratio at 16.58% (regulatory minimum: 14%). - Return on Equity (ROE) improved to 20.28% (vs. 19.51% at end-2025). - Cost-to-income ratio (excl. financial taxes) improved to 27.82% (vs. 29.66% in 2025).
📈 Nations Trust Bank PAT Soars 77% to LKR 15.6 Bn in 1H 2026
• Overall Financial Performance - Profit After Tax (PAT): LKR 15.6 Bn, up 77% YoY (Q1: LKR 4.6 Bn, followed by strong Q2 acceleration) - Profit Before Tax (PBT): LKR 18.4 Bn, up 7% YoY - Return on Equity (ROE): 31.33% - Net Interest Margin (NIM): 5.58% • Loan Growth & Capital Position - Loan Expansion: LKR 112 Bn, up 26% YoY - Overall Asset Growth: Up 26% - Net Stage 3 Ratio: 1.05% - Tier I Capital Ratio: 12.76% - Total Capital Adequacy Ratio: 16.41% • Strategic Drivers & Key Sectors - Performance boosted by the acquisition of HSBC Sri Lanka's retail banking business (effective May 2026) and a one-off tax credit. - Strategic integration consolidated market leadership in credit cards & premium retail banking, expanding scale across consumer, commercial & corporate banking segments.
📈 Janashakthi PLC to Acquire 100% Stake in Continental Insurance Lanka Limited
Janashakthi PLC (JXG) has signed a Share Purchase Agreement with Melstacorp PLC (MELS) to acquire a 100% stake in Continental Insurance Lanka Limited (CILL), subject to Insurance Regulatory Commission of Sri Lanka (IRCSL) approval. • Acquisition Structure: • Initial controlling stake of 81% • Remaining 19% acquired on a staggered basis (9% in Year 1, 10% in Year 2) • CILL Financial Overview (FYE25): • Gross Written Premium (GWP): LKR 10.73 Bn • Investment Portfolio: LKR 6.64 Bn • Total Assets: LKR 14.20 Bn • Strategic Impact: • Re-enters and expands footprint in Sri Lanka's general insurance and financial services sector • Integrates CILL’s network of 61 business locations and 700+ employees into JXG's ecosystem • Leverages technology to drive innovation and integrate broader financial solutions
📈 Sampath Bank H1 2026: PAT Rises 13% YoY to Rs 16.6 Bn
Sampath Bank PLC reported a robust financial performance for the six months ended 30 June 2026, driven by core revenue growth and strong credit expansion. • Overall Financial Highlights • Profit After Tax (PAT): Rs 16.6 Bn (+13% YoY) • Total Operating Income: Rs 63.3 Bn (+17% YoY) • Net Interest Income (NII): Rs 42.8 Bn (+11% YoY) • Net Fee & Commission Income: Rs 12.2 Bn (+26% YoY) • Total Exchange Income: Rs 7.2 Bn (+198% YoY), aided by LKR depreciation against the USD (by Rs 26.12) • Impairment Charge: Rs 5.0 Bn (+324% YoY) due to loan expansion and prudent overlay provisioning • Cost-to-Income Ratio: 41.7% (vs 40.0% in H1 2025) • Balance Sheet & Growth Trends • Total Assets: Rs 2.13 Tn (+8% vs end-2025) • Gross Loans & Advances: Expanded by Rs 226 Bn (+18%) to Rs 1.45 Tn, supporting core sectors like agriculture and general commerce • Customer Deposits: Rs 1.76 Tn (+Rs 118 Bn / +7.1% vs end-2025) • Net Interest Margin (NIM): Improved to 4.21% (vs 4.11% in 2025) • Capital, Liquidity & Sustainability • Capital Ratios: CET1 at 13.21%, Total Capital at 15.62% (well above regulatory minimums) • Capital Injection: Issued a Rs 10 Bn Basel III-compliant Green Bond in July 2026 • Liquidity: Liquidity Coverage Ratio (LCR) stood strong at 185.04% • ESG/Community: Restored Hurigaswewa Wewa tank to support rural agriculture (307 farming families) and launched waste management & eco-tourism initiatives.
📈 Cargills Bank 1H 2026 Profit After Tax Reaches Rs. 181 Mn
• Core Financial Highlights: • Profit Before Tax (PBT) stood at Rs. 362 Mn, down 22% YoY, primarily due to an 89% drop in total other income to Rs. 55 Mn. • Net Interest Income grew 20% YoY to Rs. 2,207 Mn, supported by expansion in Net Interest Margin (NIM) to 4.64% (up from 4.38% at end-2025). • Net fee & commission income rose 17% YoY to Rs. 516 Mn (up by Rs. 76 Mn), driven by trade, cards, and deposits. • Total Comprehensive Income saw a 122% recovery, turning positive to Rs. 43.2 Mn. • Segment Performance: • Core banking segment PBT surged to Rs. 306 Mn (vs. a Rs. 27 Mn loss in 1H 2025), propelled by a 42% increase in segment net interest income to Rs. 2,055 Mn. • Treasury & investments PBT fell to Rs. 56 Mn (vs. Rs. 491 Mn in 1H 2025) amid lower realized capital gains. • Asset Quality & Operations: • Total impairment charges fell by Rs. 80 Mn to Rs. 100 Mn. • Gross Stage 3 ratio improved to 11.30% (vs. 12.00% at end-2025). • Operating expenses rose 11% to Rs. 2,039 Mn, lifting the Cost-to-Income Ratio to 73.43% due to IT upgrades and talent retention costs in the ICT/BPM and banking infrastructure space. • Balance Sheet & Growth: • Total assets expanded 14% YTD (24% YoY) to Rs. 104.7 Bn. • Net loans grew 15% YTD to Rs. 72.3 Bn, while customer deposits rose 18% YTD to Rs. 77.9 Bn. • Enhanced capital base following a successful Rs. 2.5 Bn Rights Issue, maintaining a Total Capital Ratio of 17.66%.
📈 HNB Reports Strong 1H 2026 Growth with Rs 224 Bn Advance Expansion
Hatton National Bank (HNB) posted a solid financial performance for 1H 2026, driven by significant balance sheet growth and expansion in key lending portfolios. • Overall Performance & Earnings • Group PAT: Rs 22.5 Bn | Bank PAT: Rs 23.1 Bn • Total Operating Income: Rs 76.7 Bn (up 27% YoY) • Net Interest Income: Rs 55.2 Bn (up 21% YoY) with NIM expanding to 4.40% • Net Fee & Commission Income: Increased 30% YoY, boosted by digital banking, card transactions, and leasing activity • Balance Sheet & Credit Growth • Total Asset Base: Exceeded Rs 2.55 Tn • Gross Loans & Advances: Grew by 15% (Rs 224 Bn expansion) to reach Rs 1.7 Tn • Customer Deposits: Expanded by Rs 138 Bn to exceed Rs 2.1 Tn (CASA ratio at ~34%) • Impairment Provisions: Rs 4.1 Bn in line with strong lending portfolio expansion • Asset Quality & Capital Strength • Net Stage 3 Ratio: Maintained at a firm 1.17% • Cost-to-Income Ratio: Improved to 34.48% (vs 38.56% in 2025) • Tier I Capital Ratio: 15.44% | Total Capital Ratio: 18.18% • Liquidity Coverage Ratio (LCR): 186.69%, well above regulatory thresholds • Industry Recognition • Recognized by Euromoney as the "Best Bank for Large Corporates in Sri Lanka 2026" for the second consecutive year, underscoring HNB's crucial role in supporting domestic corporate and SME sector expansion.
Prime Lands Residencies Posts Strong Q1 FY2027 Financial Growth 📈
• Key Financials Summary: • Revenue: Rs. 4.59 Bn (up 98% YoY from Rs. 2.32 Bn) • Gross Profit: Rs. 1.21 Bn (up 76% YoY) • Operating Profit: Rs. 857.1 Mn (up 92% YoY) • Profit Before Tax (PBT): Rs. 879.0 Mn (up 61% YoY) • Profit After Tax (PAT): Rs. 661.6 Mn (up 65% YoY from Rs. 400.5 Mn) • Earnings Per Share (EPS): Rs. 0.71 (up 65% YoY) • Cash Flow & Balance Sheet Highlights: • Operating Cash Flow: Net positive Rs. 1.51 Bn (improving from net outflow of Rs. 5.79 Bn in FY2026) • Cash Reserves: Cash & cash equivalents at Rs. 2.69 Bn (as of 30 June 2026) • Dividends Paid: Rs. 750 Mn disbursed during the quarter • Market Capitalisation: Rs. 41.63 Bn, with public shareholding at 24.71% across 12,252 shareholders • Industry Impact: The strong financial momentum highlights expanding growth and ongoing demand within Sri Lanka's residential real estate sector.
📈 Hayleys Group Delivers Strong Q1 with PBT Up 61% to Rs. 10.15 Bn
Hayleys PLC reported a robust start to the financial year (Q1 ended June 30, 2026), driven by high-performing export sectors, logistics, and retail momentum. • Overall Financial Highlights • Consolidated Revenue: Rs. 179.32 Bn (+38% YoY) • Profit Before Tax (PBT): Rs. 10.15 Bn (+61% YoY) • Profit After Tax (PAT): Rs. 5.92 Bn (+86% YoY) • EBITDA: Rs. 18.11 Bn (+46% YoY) • EBIT: Rs. 14.02 Bn (+53% YoY) • Sector Performance Breakdown • Transportation & Logistics: Revenue jumped 84% YoY to Rs. 42.88 Bn. • Consumer & Retail: Revenue grew 46% YoY to Rs. 49.22 Bn, boosted by strategic market activations and expanded product lines. • Export Sectors: Revenue rose 24% YoY, supported by value-added products and favorable exchange rates. • Financial Position & ESG Impact • Capital base strengthened following a Rights Issue, maintaining a Fitch rating of 'AAA(lka)' (Stable Outlook). • Employs over 38,300 people across operations, reinforcing national workforce contributions. • Contained Scope 1 and 2 GHG emissions growth to 2%, with emissions intensity down 18%.
📈 Fitch Upgrades AMW Capital Leasing to ‘BBB+(lka)’; Outlook Stable
• Key Rating Drivers - Fitch Ratings upgraded AMW Capital Leasing And Finance PLC (AMWCL) to 'BBB+(lka)' from 'BBB(lka)' with a Stable Outlook. - Driven by the strengthened credit profile of parent Associated Motorways (Pvt) Ltd (AMW) following the resumption of vehicle imports in early 2025 after a 5-year hiatus. • Parental Support & Synergies - Rating is support-driven, reflecting AMW’s 90% ownership, shared branding, and operational integration. - Resumed imports restored captive vehicle financing synergies near pre-ban levels, though potential support needs remain large relative to parent resources. • Sector & Financial Profile - Franchise Scale: Holds 0.5% of total finance and leasing sector assets (end-1Q26). - Portfolio Mix: Weighted towards motor-car financing, alongside a small but growing share in two-wheeler financing. - Asset Quality: Non-performing loan (NPL) ratio improved in 1Q26 (2025: 7.4%, 2024: 11.9%), though still above the 4.4% sector average. - Profitability: Pre-tax profit to average assets fell to 3.7% in 1Q26 (2025: 4.9%), trailing the sector benchmark of 6.6%. • Rating Sensitivities - Downgrades could result from weakening in AMW’s credit profile, reduced parent ownership, or aggressive growth in non-captive lending.
📈 Sunshine Holdings Posts 16.6% YoY Revenue Growth in 1QFY27
• Overall Financials: Diversified conglomerate Sunshine Holdings PLC achieved consolidated revenue of LKR 18.5 Bn (+16.6% YoY) in 1QFY27, boosted by portfolio diversification and JAPC consolidation. Gross profit rose 3.2% YoY to LKR 5.2 Bn, while profit after tax climbed 6.0% YoY to LKR 1.4 Bn despite regulatory pricing and margin pressures. • Healthcare: Remained the largest top-line driver (49.2% of total revenue) at LKR 9.1 Bn (+5.9% YoY). Strong gains in medical devices (+8.8% YoY) and pharma manufacturing via Lina Manufacturing (+20.5% YoY) offset NMRA-driven price caps and an 18.2% contraction in the pharma agency segment. Strategic push includes founding Zydus Sunshine Lifesciences to bolster national pharmaceutical manufacturing. • Consumer Sector: Soared 38.0% YoY to LKR 6.6 Bn (35.6% of group revenue), largely propelled by JAPC's consolidation. Excluding JAPC, organic growth rose 2.1% YoY, anchored by resilience in branded tea (+8.3% YoY via Watawala Thei and Ran Kahata) and confectionery (+6.9% YoY). JAPC's spice exports grew 11.5% YoY, though tea export revenue dipped 6.3% YoY. • Agribusiness: Watawala Plantations PLC delivered revenue of LKR 2.8 Bn (+12.7% YoY). Performance was driven by oil palm surging 17.9% YoY to LKR 2.5 Bn on better yields and prices, while dairy revenue fell 7.1% YoY to LKR 258.9 Mn due to higher input costs.
BOI Confirms Job Security for 3,674 Former Hela Workers After Emerald Absorption 📈
• Employment Status: The Board of Investment (BOI) confirmed that 3,674 former employees of Hela Clothing (Pvt) Ltd and Foundation Garments (Pvt) Ltd have been fully absorbed into Emerald Clothing (Pvt) Ltd, securing their livelihoods despite recent court-ordered winding-up filings by Hela Apparel Holdings PLC. • Workforce Breakdown: Transferred staff include 251 executives, 393 staff members, and 3,030 team members, all retaining service continuity under their existing terms. • Absorption Phases: - Phase 1 (1 May 2026): 2,504 employees absorbed from Palapathwela, Thihariya, and Emerald Head Office. - Phase 2 (1 June 2026): 1,170 employees absorbed from Naula, Ukuwela, and Head Office. • National Context: Restructuring in the critical apparel & textiles sector ensures job stability and protects skilled labor, with ongoing monitoring by the BOI's Industrial Relations Department.
Tokyo Cement Q1 FY26/27 Revenue Up 26% to Rs. 15.8 Bn Amid Market Recovery 📈
• Financial Performance: Tokyo Cement Group posted a turnover of Rs. 15,836 Mn for Q1 FY26/27 (up 26.2% YoY from Rs. 12,544 Mn), driven by volume growth from new development projects. Net profit (PAT) contracted 4.9% YoY to Rs. 635 Mn (down from Rs. 668 Mn) as profitability faced pressure from elevated raw material, insurance, and freight costs. • Macroeconomic Environment: Middle East tensions drove up energy, shipping, and import costs, contributing to an average ~7% LKR depreciation against the USD. The Central Bank raised the Overnight Policy Rate by 100 bps to 8.75% in May to manage inflation, slowing credit growth and prompting cautious investment in real estate and construction. • Sector Growth & Drivers: Demand for cement and concrete recovered in the latter half of the quarter via regional infrastructure projects, including roads and highways. Further growth in the construction sector is expected to be anchored by government capital outlays, ADB-backed post-cyclone rehabilitation, Indian-funded affordable housing (1,550+ families), and Colombo Port City developments. • Corporate Outlook: Tokyo Cement maintains a conservative short- to medium-term stance, utilizing its enhanced 4 Mn MT production capacity to support Sri Lanka's construction-led economic recovery.