Corporate News
View all(56)Court Issues Enjoining Order Protecting The Kingsbury PLC from Defamatory Statements ⚖️
• Legal Action: The District Court of Colombo issued an enjoining order on 8th June 2026 against former Minister and MP Wimal Weerawansa, following a lawsuit filed by The Kingsbury PLC. • Background: The prominent luxury hotel group initiated legal proceedings after Weerawansa allegedly made and disseminated defamatory statements via a video on social media in February 2026, damaging the hotel's long-standing reputation and goodwill. • Damages & Restraints: The legal action followed Weerawansa's failure to respond to a Letter of Demand seeking Rs. 1 Billion in damages. The court order now strictly restrains the defendant from republishing, rebroadcasting, distributing, or circulating the video. • Next Steps: The case is scheduled to be called in court on 22nd June 2026. The plaintiff is represented by President’s Counsel M. A. Sumanthiran.
🚀 Kapruka Swings Back to Profit as AI-Driven Strategy Accelerates
Sri Lankan e-commerce pioneer Kapruka Holdings PLC has posted a definitive return to profitability for the financial year ended 31 March 2026, driven by an AI-powered digital commerce restructuring. Overall Financial Performance • Full-Year Revenue: Reached Rs. 1.92 Bn, marking a strong turnaround. • Full-Year Profit Before Tax (PBT): Climbed to Rs. 37.56 Mn, a massive 132% surge YoY to swing back into the black. • Q4 Group Revenue: Grew 19% YoY to Rs. 547.53 Mn. • Q4 Gross Profit: Expanded 39% to Rs. 215.51 Mn, reflecting higher-quality, asset-light revenue streams. • Q4 Operating Profit: Up 124% YoY to Rs. 10.22 Mn (reversing a Rs. 42.82 Mn loss). Strategic & Sector Highlights • Digital Marketplace & Services: The "Partner Central" marketplace expanded margins by onboarding third-party sellers with zero inventory risk, while the "Services Platform" added high-margin bookable digital services. • Cross Border E-Commerce: The group scaled its USD revenue base as an e-distributor for Sri Lankan brands on Amazon US, UK, and Canada, acting as a structural hedge against local currency volatility. • AI & Automation: Embedded AI across customer service and supply chain operations, targeting 40% back-office automation to scale revenue without increasing headcount. • Green Logistics: Commenced converting the entire delivery fleet to electric vehicles (EVs) to insulate logistics margins from volatile fuel costs.
📈 DFCC Bank to Finalise Standard Chartered Retail Banking Acquisition by End-July
• Transaction Update: DFCC Bank’s acquisition of Standard Chartered Bank Sri Lanka’s wealth and retail banking business is on track to be completed by 31 July 2026. • Deal Valuation & Funding: The transaction is valued at Rs. 3.7 Bn and is being entirely funded through DFCC's internally generated funds. • Scope of Acquisition: DFCC will absorb Standard Chartered’s Priority Banking, credit cards, retail lending, deposits, and SME portfolios. This aligns with DFCC’s strategy to accelerate growth, enhance scale, and expand its customer base in retail banking & wealth management. • Strategic Pivot: Standard Chartered will exit the Sri Lankan retail space to focus on its corporate and investment banking business. This mirrors a broader trend of international banks scaling back retail operations in emerging markets, closely following Nations Trust Bank’s Rs. 18 Bn acquisition of HSBC Sri Lanka’s retail business in late 2025.
NTB to Raise Up to Rs. 15 Bn via Basel III Debenture Issue Opening Friday 📈
• Overall Issue details: Nations Trust Bank PLC (NTB) has received in-principle approval from the Colombo Stock Exchange (CSE) for a Basel III-compliant, Tier 2 listed debenture issue opening on 19 June 2026. The initial offering aims to raise Rs. 10 Bn (100 million debentures at Rs. 100 par value), with an option to issue an additional 50 million debentures to raise up to Rs. 15 Bn in total. • Structure & Tenors: The funds raised will strengthen NTB's banking system resilience and capital base. Investors can subscribe to three fixed-rate options with annual interest payouts: • Type A (5-Year): 13.75% annual interest rate / AER. • Type B (7-Year): 13.85% annual interest rate / AER. • Type C (10-Year): 13.95% annual interest rate / AER. • Regulatory & Management: The Basel III-compliant Tier 2 subordinated instruments include a non-viability conversion feature to absorb losses during financial stress. Capital Alliance Partners Ltd. is the manager to the issue, and SSP Corporate Services Ltd. will act as the registrar.
🏛️ SLID Launches Public Sector Forum to Drive SOE Governance Excellence
The Sri Lanka Institute of Directors (SLID) marked its 25th anniversary by launching the Public Sector Forum, a platform dedicated to strengthening accountability and board leadership within State-Owned Enterprises (SOEs). • Core Objective: Chaired by Mr. Arjuna Herath, the forum aims to promote governance excellence, capacity building, and institutional reform across the public sector to support Sri Lanka's long-term economic development. • Inaugural Session: Partnered with AICPA & CIMA Sri Lanka under the theme "Strengthening Oversight: Advancing Governance in Sri Lanka’s State-Owned Enterprises," bringing together key state regulators, financial experts, and auditors. • Beyond Profitability: While recent financial performances of many SOEs show improvement, experts emphasized that long-term value requires robust internal controls, independent audit committees, and risk management rather than just short-term profitability. • Key Priorities Identified: • Enhancing transparency, procurement governance, and stakeholder trust. • Transitioning to merit-based board appointments and continuous director training. • Integrating emerging areas like digital governance, cyber resilience, forensic accounting, and ESG (Environmental, Social, and Governance) risk oversight. • Implementation Gaps: Panelists highlighted that major governance failures stem from weak implementation, poor monitoring, and low accountability rather than a lack of existing regulations. The initiative will continue via a series of knowledge-sharing events, leadership dialogues, and research programs to build future-ready public boards.
📈 Asia Asset Finance Plans Rs. 1.5 Bn Rights Issue to Boost Capital
• Capital Raising Details: Asia Asset Finance PLC (AAF) plans to raise approximately Rs. 1.504 billion through a Rights Issue of 45.16 million new ordinary voting shares. Existing shareholders will be entitled to subscribe for 4 new shares for every 11 shares held, priced at Rs. 33.30 per share. • Current Capital Base: The company currently has 124.2 million ordinary voting shares in issue, representing a stated capital of Rs. 2.21 billion. The issue is subject to shareholder and Colombo Stock Exchange (CSE) approvals. • Strategic Objectives: The primary goal is to strengthen the company's Tier 1 capital base to meet Central Bank of Sri Lanka (CBSL) regulatory requirements. • Growth & Utilization: The fresh capital will cushion future business growth, allowing the licensed finance company—part of India’s Muthoot Group—to expand its business volumes over the next two months.
Govt Appoints New Team to Fix Rs. 340 Bn Hole in SriLankan Airlines 📈
• Overall Crisis: The Government of Sri Lanka has appointed a specialized team to address a massive Rs. 340 Billion deficit within the balance sheet of the national carrier, SriLankan Airlines. • Financial Background: Based on provisional financial assessments, the airline continues to face severe financial stress due to heavy debt servicing and legacy liabilities, which have deeply eroded shareholder equity. • Restructuring Target: The newly appointed team is tasked with implementing a critical turnaround strategy aimed at stabilizing the state-owned enterprise, addressing balance sheet holes, and containing fiscal risks to the national economy.
📈 CDB Surpasses Rs. 200 Bn Asset Milestone with Record FY26 Profits
Citizens Development Business Finance PLC (CDB) reported strong financial performance for the year ended 31 March 2026, driven by economic stabilization and structural growth. Overall Financial Highlights • Total assets expanded by 37% YoY to Rs. 214.7 Bn, crossing a historic landmark. • Net Profit After Tax (PAT) increased by 12% YoY to Rs. 4.5 Bn, while Profit Before Tax reached Rs. 8.2 Bn. • Gross income grew by 18% YoY to Rs. 30.2 Bn. • The Board declared a total dividend payout of Rs. 1.25 Bn (up 16.67% YoY) and completed a 1-for-10 share subdivision in April 2026 to boost market liquidity. Portfolio & Asset Quality • The lending portfolio grew by 53% YoY to Rs. 169.2 Bn, backed by new disbursements exceeding Rs. 110 Bn. • Asset quality improved significantly, with the Net Non-Performing Loan (NPL) Ratio dropping to 1.53% from 3.1% last year due to automated credit decisioning. Digital & Tech Transformation • CDB is transitioning into an AI-enabled organization, deploying generative and agentic AI across business functions. • Users on the CDB SELF platform grew by 93% YoY, with digital channels now handling 74% of total customer transactions. Sustainability & Social Impact • The green financing portfolio exceeded Rs. 31 Bn to support renewable energy and electric mobility, targeting a 30% reduction in carbon intensity over 5 years. • Invested Rs. 49 Mn in community projects, including the Sisudiri Scholarship and Smart Computer Labs.
🔍 CoPF Grills CBSL Over Rs. 13.2 Bn NDB Fraud Amid 10-Year Forensic Audit
The Committee on Public Finance (CoPF) subjected the Central Bank of Sri Lanka (CBSL) to intense scrutiny over a Rs. 13.2 billion fraud at National Development Bank PLC (NDB), questioning regulatory oversight lapses and prolonged concealment. • Overall Impact: The massive Rs. 13.2 billion anomaly was linked to Customer Electronic Fund Transfer (CEFT) transactions. Despite the scale, CBSL maintains NDB remains compliant with capital and liquidity requirements under Basel standards after restating its financial statements. • Investigation Scope: An independent forensic audit by Deloitte India commenced on May 2. An interim report is due next week, with the final report scheduled for July 18, 2026. The probe was expanded to cover 10 years as the alleged perpetrator served in the reconciliation unit for over nine years. • Key Concerns: CoPF lawmakers questioned why the multi-billion rupee balance accumulated within short interbank settlement cycles without triggering early warnings. LankaPay noted that such massive balances are difficult to reconcile with normal settlement windows. • Regulatory Response: CBSL clarified that banking supervision is prudential rather than a transaction-level audit, placing primary verification responsibility on NDB's board and auditors. However, following the fraud, weekly monitoring of NDB's liquidity has been enforced alongside stricter internal control directives. • National Context & Supervision: The incident ties directly into broader economic stability, with the IMF's latest May 2026 review flagging the NDB fraud and emphasizing an urgent need to strengthen banking supervision and operational risk frameworks across Sri Lanka's financial sector.
🚀 Short Circuit Acquires Payable to Boost Sri Lanka's Fintech Landscape
Sri Lankan digital payment platform Payable has been acquired by regional tech powerhouse Short Circuit to scale nationwide payment adoption and drive fintech innovation. • Transaction & Investment: Short Circuit will invest US$ 2.5 Mn into Payable to fuel its next phase of growth, focusing on next-generation solutions like Soundbox and SoftPOS alongside advanced merchant management tools. • Current Scale: Established in 2016, Payable is Sri Lanka's largest payments technology company, currently supporting over 40,000 merchants across the island. • Growth Roadmap: The company plans to expand its merchant network by an additional 100,000 merchants over the next four years to deepen market reach. • Strategic Impact: The acquisition merges Payable's payment layer with Short Circuit's ERP infrastructure, accelerating Sri Lanka's ICT/BPM and fintech ecosystems while supporting the national transition toward a digitally inclusive economy.
⚖️ Hayleys PLC Obtains Enjoining Order Against Wimal Weerawansa Over Defamation
The District Court of Kaduwela has issued an enjoining order against former MP Wimal Weerawansa following a lawsuit filed by Hayleys PLC, one of Sri Lanka’s largest diversified conglomerates. • Legal Action & Restraint: The court order prevents Weerawansa from further making, publishing, or disseminating any false, misleading, or defamatory statements against the company. The case is set to be called in court again on June 23, 2026. • Defamation Claims: Hayleys PLC stated that the defendant repeatedly tarnished its reputation on social media and TV broadcasts across February, April, and May 2026. The statements targeted the parent company, its leadership, and key economic subsidiaries including Hayleys Retail (supermarkets), Kingsbury PLC, and its automobile, logistics, and renewable energy arms. • Financial Damages: Despite a Letter of Demand sent on May 25, 2026, the defamatory remarks continued. Consequently, Hayleys PLC has sought cumulative damages totaling Rs. 6 Billion for the severe impact on its domestic and international corporate goodwill.
📈 Bidding War Erupts for World's Oldest Bank: Intesa & Banco BPM Vie for Italy's MPS
• Overall Value & Bids: A major bidding war has broken out over Italy's Monte dei Paschi di Siena (MPS), valued at € 27.4 Bn. Intesa Sanpaolo launched an unsolicited € 30.6 Bn (US$ 35.3 Bn) takeover offer, representing a 12.5% premium over MPS's recent closing price. • Rival Strategies: Intesa's aggressive bid directly counters a proposal by Banco BPM for a "merger of equals." While Banco BPM's main shareholder, France’s Credit Agricole, backed their merger approach, Intesa aims to absorb MPS to create Europe’s second-largest bank by market capitalization. • Context & Market Reaction: MPS, which required a state bailout in 2017 and was re-privatized in 2023, has become a prime consolidation target. Following the announcements, Intesa shares fell 4% and Banco BPM dropped 1.1%, while MPS shares ticked up 0.9% in early trading.