Corporate News
View all(57)📈 Sampath Bank 1Q 2026: Assets Cross Rs 2 Tn Milestone
Sampath Bank reported a resilient start to 2026, hitting a historic asset milestone despite a dip in bottom-line profits due to strategic provisioning. • Overall Performance: Total Operating Income rose to Rs 28.5 Bn. However, Profit After Tax (PAT) declined 26% YoY to Rs 6.2 Bn, primarily due to a sharp increase in impairment charges to Rs 4.5 Bn and lower one-off gains from government securities. • Sector Highlights & Lending: • Banking Assets: Total assets crossed the Rs 2 Tn mark, driven by a robust Rs 127.5 Bn (10.4%) expansion in the loan book during the quarter. • Net Interest Income (NII): Stood at Rs 20.1 Bn (up 5%), supported by an upward movement in the Average Weighted Prime Lending Rate (AWPLR). • Fee Income: Net fee and commission income surged 28% to Rs 6.1 Bn, fueled by trade finance, card usage, and credit expansion. • Risk & Impairment: A total impairment charge of Rs 4.5 Bn was recognized (vs. a reversal in 1Q 2025). This includes a prudent Rs 1.5 Bn overlay to buffer against global geopolitical uncertainties and support long-term financial stability. • Capital & Liquidity: The bank remains well-capitalized with a Total Capital Ratio of 15.79% and a Liquidity Coverage Ratio of 187.87%, both comfortably above regulatory minimums. • Strategic Focus: Operating expenses rose 19% due to investments in ICT/BPM infrastructure and salary enhancements. The bank also launched a Green Fixed Deposit framework, reinforcing its commitment to sustainable finance.
Kapruka Injects Rs. 41.5 Mn into E-commerce Subsidiary 📈
Kapruka Holdings PLC has officially strengthened its investment in its fully-owned subsidiary, Kapruka E-Commerce Ltd, following board approval on 11 May 2026. • Investment Details: A total of Rs. 41,510,541 was invested to subscribe to 883,203 ordinary voting shares at a price of Rs. 47 per share. • Strategic Use of Funds: The capital is earmarked for working capital requirements and the expansion of the group's delivery infrastructure. This includes the acquisition of electric vehicles to align with sustainability goals and cost-optimization strategies. • Economic Impact: The move aims to enhance operational efficiency in the ICT/BPM and retail sectors, supporting long-term growth through environmentally sustainable logistics solutions. • Market Snapshot: • Kapruka Holdings shares closed at Rs. 27.60 (up 10 cents). • Reported assets stood at Rs. 5.20 per share as of end-March 2026. • The transaction was previously mandated at an EGM held on 27 January 2026.
📈 Corporate Governance: NDB Fraud Prompts Call for Accountability
The recent fraud reported at NDB Bank has sparked a critical debate on the efficacy of internal controls and the accountability of corporate boards in Sri Lanka. As a forensic audit by Deloitte India continues, the incident highlights systemic ailments in the national banking and finance sector. • Governance Failures & Audits The ongoing audit is expected to identify specific control lapses. However, bodies like CA Sri Lanka (CASL), the SEC, and the Sri Lanka Institute of Directors are under pressure to move beyond "box-ticking" and enforce visible disciplinary actions against members where warranted. • Proposed Reforms for Directors Responsibility: Directors must move beyond nominal compliance; delegation of authority is not an abdication of responsibility. Liability: Experts suggest enforcing individual accountability, potentially requiring directors and auditors to pay for failures—a practice currently rare in Sri Lanka. Board Limits: A proposed cap on directorships (suggested limit of 4) to ensure adequate oversight and performance monitoring. • Transparency in Public Reporting Simplification: Shift from daunting 500-page annual reports to a two-tier system: a simplified version for general shareholders and a technical version for analysts. Audit of Claims: Moving toward auditing "compliance declarations" to ensure they are not merely promotional "puff pieces." Award Re-evaluation: Critically examining reporting awards to ensure they recognize genuine governance achievements rather than just aesthetic presentation.
Chandra Jayaratne Urges Regulators to Intervene in NDB Derivative Action 📈
Good governance activist Chandra Jayaratne has formally appealed to 15 key regulatory and professional bodies to intervene as "Amicus Curiae" (friend of the court) in a high-profile derivative action filed against National Development Bank (NDB), its directors, and its external auditor. • Core Appeal: The intervention seeks to safeguard public interest, systemic stability, and the integrity of Sri Lanka's banking and financial services sectors following reports of alleged fraud and governance failures. • Key Institutions Targeted: • Regulators: Central Bank of Sri Lanka (CBSL), SEC, and Colombo Stock Exchange (CSE). • Professional Bodies: Institute of Chartered Accountants (CA Sri Lanka) and the Sri Lanka Institute of Directors. • Financial Stability: Fitch Ratings Lanka and People’s Bank (as debenture trustee). • Strategic Rationale: • Addressing risks related to AML/CFT (Anti-Money Laundering) and financial fraud. • Ensuring compliance with accounting & auditing standards to protect depositors and shareholders. • Strengthening corporate governance codes to prevent future systemic failures. • Investigating the potential conversion of lost assets into proceeds of crime. • Context: The action stems from a shareholder lawsuit reported on May 10, 2026. Jayaratne, a former chairman of the Ceylon Chamber of Commerce, emphasizes that institutional participation will help recover assets and reform regulatory oversight for the ICT/BPM and digital infrastructure sectors, involving authorities like the Data Protection Authority and Sri Lanka CERT.
ACME Printing and Packaging Proposes Rs. 1.6 Bn Capital Reduction 📈
ACME Printing and Packaging PLC has announced a strategic balance sheet restructuring to offset significant accumulated losses and improve its financial standing. • Financial Restructuring: The Board resolved to reduce the stated capital by Rs. 1.6 Billion, bringing it down from Rs. 2.26 Bn to Rs. 665 Mn. • Loss Mitigation: The reduction targets accumulated losses of Rs. 1.6 Bn (as of Feb 2026), effectively slashing retained losses to approximately Rs. 9.2 Mn. • Shareholder Impact: The number of issued ordinary shares (665 million) remains unchanged. The exercise is subject to shareholder approval via a special resolution. • Economic Context: The move addresses a "serious capital loss position" within the packaging and printing sector. As of Dec 2025, the company reported liabilities of Rs. 7.03 per share. • Ownership Structure: Lankem Ceylon remains the majority shareholder with a 53.82% stake. The share price recently closed at Rs. 6.20.
HNB Life Records 54% GWP Surge in Q1 2026 📈
• Overall Performance: HNB Life reported a robust start to 2026, with Gross Written Premium (GWP) reaching Rs. 7.01 Bn, a significant 54% YoY increase from Rs. 4.55 Bn in Q1 2025. Net Written Premium also grew by 54% to Rs. 6.69 Bn. • Income & Assets: Total Net Income rose 39% to Rs. 8.69 Bn, bolstered by interest and dividend income of Rs. 2.05 Bn. Total assets expanded to Rs. 71.38 Bn, while the Life Insurance Fund grew to Rs. 52.55 Bn. • Profitability: Profit After Tax (PAT) exceeded Rs. 210 Mn for the quarter (reported without the year-end surplus transfer). Earnings were impacted by the prevailing low-interest-rate environment and fair value fluctuations in the equity portfolio. • Strategic Context: The growth follows a recent rebranding under the Hatton National Bank Group umbrella. Management attributed the success to enhanced advisor productivity and digital enablement within the Life Insurance sector, ensuring long-term capital stability with total equity at Rs. 11.45 Bn.
📈 Mahindra Ideal Finance Records Historic FY26 Growth
Mahindra Ideal Finance Ltd (MIFL) reported its strongest financial performance to date for the year ended 31 March 2026, driven by a surge in vehicle financing and improved economic conditions. • Profitability Surge: Profit Before Tax (PBT) rose by 193% YoY to Rs. 818 million, while Profit After Tax (PAT) jumped 228% YoY to Rs. 478 million. • Lending & Asset Growth: Total disbursements reached Rs. 57.6 billion (up 98% YoY). The total loan book expanded to Rs. 26.95 billion (+82% YoY), pushing total assets to Rs. 30.98 billion (+81% YoY). • Operational Efficiency: The cost-to-income ratio improved significantly to 50.5% (from 68.9% last year). Return on Equity (ROE) strengthened to 14.40%, up from 4.85% YoY. • Asset Quality: Maintained a disciplined credit focus with the Gross Stage 3 ratio improving to 1.73% (down from 1.86%). The results highlight a successful expansion in the non-banking financial services sector, supported by digital lending investments and a growing multi-brand financing portfolio.
## 📈 NDB Bank Exits Seylan Bank in Rs. 2.76 Bn Divestment
NDB Bank PLC has fully liquidated its position in Seylan Bank PLC, marking a significant shift in the banking sector landscape. • Transaction Details: NDB Bank sold its entire 8.72% stake, totaling 26,631,495 shares. • Deal Value: The shares were traded at Rs. 104.00 per share, bringing the total transaction value to Rs. 2.76 Bn. • Shareholder Impact: Prior to this exit, NDB was the fifth-largest shareholder in Seylan Bank. The identity of the buyer remains undisclosed as of the transaction date (11 May 2026). • Strategic Move: This complete exit reflects a major reallocation of capital within the financial services industry. _Summary based on official market disclosures._
📈 DFCC Bank Maintains Balance Sheet Strength in Q1 2026
DFCC Bank reported a resilient performance for the quarter ended 31 March 2026, characterized by steady asset growth and strategic expansion despite moderated profitability due to proactive risk management. • Core Financial Highlights Group Profit After Tax (PAT): LKR 1.8 Bn (based on provisional data). Net Interest Income: LKR 8.3 Bn (up 12% YoY). Net Fee and Commission Income: LKR 1.9 Bn (up 34% YoY). Total Assets: LKR 885 Bn (up 3% YTD). • Lending & Deposit Growth Loan Portfolio: LKR 540 Bn (up 5% YTD). Total Deposits: LKR 604 Bn (up 7% YTD). CASA Ratio: Improved to 24.20% (from 23.0% in Dec 2025). • Asset Quality & Capital Stage 3 Impaired Loan Ratio: Improved to 4.18% (vs 4.55% in Dec 2025). Impairment Charges: Increased to LKR 3.2 Bn (reflecting conservative provisioning for global risks). Total Capital Adequacy Ratio: 16.09% (comfortably above regulatory norms). • Strategic Developments Retail & Wealth Banking: Integration of Standard Chartered Bank’s Sri Lanka retail operations is underway following a binding agreement. Sustainable Finance: Successfully issued a LKR 10 Bn Basel III compliant GSS+ Bond. ICT/Digital: Increased operating expenses to LKR 5.3 Bn focused on IT infrastructure and digital transformation to enhance customer scale. The bank’s performance reflects a disciplined approach to banking & finance, prioritizing long-term stability and financial inclusivity through targeted acquisitions and sustainable capital market initiatives.
People’s Leasing Scales Down Proposed Debenture Issue to Rs. 10 Bn 📉
People’s Leasing & Finance PLC has announced a strategic revision to its planned debt capital raising, reducing the total issue size following an internal assessment. • Overall Figures: The maximum value of the proposed listed debenture issue has been scaled down from Rs. 15 Billion to Rs. 10 Billion. • Instrument Details: The company will issue up to 100 million listed, rated, unsecured, subordinated, and redeemable debentures at a par value of Rs. 100 each. • Tenure & Compliance: The debentures carry a five-year tenure. The issue was initially approved by the Central Bank of Sri Lanka (CBSL) in November 2025 under the Finance Companies (Debt Instrument) Direction. • Market Impact: The finance & leasing sector remains a critical component of the national economy for credit accessibility; this revised issuance will be listed on the Colombo Stock Exchange (CSE) pending final regulatory clearances.
📈 Durga Infra Boosts Stake in Hatton Plantations to 12.5%
• Transaction Overview: Durga Infra Ltd. acquired 10.25 million ordinary voting shares of Hatton Plantations PLC on May 6, 2026. The purchase was executed at a price of Rs. 25.60 per share. • Investment Value: The total transaction is valued at approximately Rs. 262.3 million. • Shareholding Shift: Prior Stake: 19.34 million shares (8.17%). Current Stake: 29.58 million shares (12.5%) of the 236.67 million total issued shares. • Market Context: The purchase price of Rs. 25.60 sits at a premium relative to the company’s net asset value of Rs. 22.40 per share reported as of December 2025. • Major Shareholders: Despite this increase, Lotus Renewable Energy Ltd. remains the majority shareholder (75.65%), followed by Regency Teas Ltd. (12.28%). • Economic Impact: This move signals continued investor confidence in the plantation and tea sectors, which remain vital for Sri Lanka's export earnings and rural employment.
## Emirates Group Records Historic US$ 6.6 Bn Profit 📈
The Emirates Group has reported its most successful financial year to date for 2025-26, maintaining its status as a global aviation leader despite regional geopolitical disruptions. • Overall Group Performance Profit Before Tax: US$ 6.6 Bn (AED 24.4 Bn), a 7% increase YoY. Revenue: US$ 41.0 Bn, up 3% to a new record level. Cash Assets: Hit a peak of US$ 16.2 Bn, rising 12%. Dividend: US$ 1.0 Bn declared for the Investment Corporation of Dubai. • Sector Breakdown: Emirates Airline Net Profit: Record US$ 5.4 Bn (post-tax), with a 15.0% margin. Capacity: Network expanded to 152 cities; 15 new Airbus A350 aircraft delivered. Operating Costs: Fuel remains the largest expense at 29%, though the fuel bill dropped slightly due to lower prices. • Sector Breakdown: dnata & Services dnata Revenue: Record US$ 6.4 Bn, up 12%, driven by flight activity in key markets like the UK and US. Cargo: Emirates SkyCargo carried 2.4 Mn tonnes (+3%), contributing 12% of total airline revenue. Catering: Emirates Flight Catering grew external revenue by 12%, uplifting 16.2 Mn meals. • Strategic Highlights & Outlook Investment: US$ 4.9 Bn poured into new aircraft, technology, and facilities. Workforce: Global headcount grew 8% to over 130,000 employees. Resilience: Successfully managed traffic disruptions in the Gulf region through Dubai’s stable aviation ecosystem. Future: Order book stands at 367 aircraft; fuel is hedged until 2028-29 to ensure price stability.