Corporate News
View all(28)📈 Sri Lanka’s Private Sector Faces Paradigm Shift Amid Governance & Consumer Dynamics
• Economic Shift: Frontier Research highlights a fundamental structural transition from state-propped demand and currency depreciation to private sector-led growth. Capital and skilled workforce are expected to shift from weaker to stronger firms without government bailouts. • Consumer Behavior: According to a BCG & Ceylon Chamber of Commerce study, brand loyalty in consumer staples dropped significantly, with only 6% of buyers staying with a single brand compared to 14% in 2020. • Corporate Governance & Oversight: CBSL Governor and CoPF reported a Rs. 13.6 Bn fraud at NDB that went undetected by internal controls and external auditors. Receivables on CEFT quadrupled within a year to over Rs. 12 Bn in 2025. CBSL confirmed no deposits were compromised, while regulatory reviews remain ongoing. • Market Realities: Reduced tariff protections and absence of active capital market discipline mean corporate boards must proactively enforce internal governance, robust oversight, and decision-making quality to remain viable.
📈 LB Finance Marks 55 Years with Over Rs. 450 Bn Asset Base
• Financial Performance & Assets: Group total assets exceeded Rs. 450 Bn by end-June 2026. The company stands as Sri Lanka’s largest taxpayer in the non-banking financial institution (NBFI) sector with a low cost-to-income ratio. • Core Sectors & Outreach: Strong focus on MSMEs via collateral-free LB Sanmitha solutions, alongside auto leasing, gold loans, and agriculture equipment financing. Operates with 5,000+ employees nationwide, driving employment generation beyond Colombo. • Digital Innovation: Won 'Most Popular Digital Payment Solution' (LankaPay Technnovation Awards 2026) and Silver for 'Best AI Solution' (National AI Awards 2026) for its AI-powered personal loan platform, LB CIM. • Global & Strategic Expansion: Operates 20 branches in Myanmar (LB Microfinance Myanmar) with second overseas expansion planned in the Philippines in 2026. Consolidated presence via acquisitions of Multi Finance PLC and Associated Motor Finance PLC (AMF). • Ratings & ESG: Holds A-(lka) (Fitch) and A+ (LRA) ratings with Stable Outlooks. First NBFI in Sri Lanka to earn ISO 14001:2015 certification under its ESG Roadmap 2.0. Secures foreign impact funding from Norfund, Swedfund, and BlueOrchard.
CPC Assures Stable Fuel Prices Through October, Expedites Extra Imports 📈
The Ceylon Petroleum Corporation (CPC) confirmed that current fuel prices will hold steady through the end of October, with confidence in maintaining price and supply stability over the next three months provided no major disruptions occur. • Price & Supply Assurance: CPC assures adequate buffer stocks nationwide and advises the public against panic buying. Price and supply stability projected for the next 3 months under normal conditions. • Imports & Precautionary Measures: Two additional fuel shipments are being expedited. October import volumes planned to exceed estimated national requirements as a buffer. • Addressing Localised Shortages: Recent queue reports are linked to private sector distributors reducing filling station supplies rather than a national deficit. CPC identified 62 vulnerable areas 3 weeks ago and arranged boosted supplies with distributor companies. Public urged to utilize nearby CPC filling stations if private stations experience localized delays.
📈 Sri Lanka Bank Profits Rise 13% as Assets Top Rs. 26 Tn in 1H 2026
Sri Lanka’s banking sector post-tax profit grew 12.9% YoY to Rs. 209 Bn in 1H 2026, driven by a balance sheet shift toward core lending, according to Central Bank data. • Overall Performance & Income • Profit Before Tax (PBT): Up 8.2% YoY to Rs. 312 Bn. • Net Interest Income: Rose 11.3% YoY to Rs. 555 Bn (NIM narrowed slightly to 4.4%). • Non-Interest Income: Jumped 31.9% YoY to Rs. 178 Bn. • Impairment Charges: Doubled (+104.7% YoY) to Rs. 69 Bn. • Balance Sheet & Capital Metrics • Total Assets: Expanded 9.3% YoY to Rs. 26 Tn. • Net Loans: Surged 25% YoY to Rs. 14.2 Tn (+Rs. 2.8 Tn surge). • Investments: Declined 9.9% YoY to Rs. 8.9 Tn. • Deposits: Rose 7.3% YoY to Rs. 20.6 Tn; credit-to-deposit ratio climbed to 74%. • Asset Quality: Stage 3 impaired loans ratio improved to 9.1% (vs 11.9% YoY). • Capital Buffer: Capital Adequacy Ratio eased to 18.2% (vs 19.4% YoY); ROE slipped to 17.5%. • Non-Bank Finance Company (NBFI) Sector • Total Assets: Surged 41% YoY to Rs. 3.2 Tn, backed by a 47.8% lending expansion (loan book at Rs. 2.6 Tn). • Funding: Deposits up 22.9% YoY to Rs. 1.43 Tn, while borrowings grew 124% YoY to Rs. 1.05 Tn.
🎨 AkzoNobel Sells Southeast Asia Paints Business to Nippon Paint for $1.35 Bn
• Deal Overview: Dutch paint maker AkzoNobel (owner of Dulux) agreed to sell its Southeast Asian decorative paints business to Japan's Nippon Paint for US$ 1.35 Bn. Net cash proceeds are expected at ~US$ 1.0 Bn after taxes and minority partner payouts. • Geographic Coverage: The transaction spans decorative paint operations across Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea, and Australia. • Timeline & Strategy: The sale completes AkzoNobel's Asia portfolio review, following prior divestments in India (US$ 1.6 Bn) and Pakistan (€50 Mn). The Indonesia portion is expected to close in late 2026, with all remaining regions closing around mid-2027. • Corporate Focus: AkzoNobel will now prioritize closing its pending merger with US coatings producer Axalta, while Nippon Paint expands its market presence across regional paint and chemical supply chains.
📈 Millennium Housing Reports Unauthorized Entry on Athurugiriya Land Eyed for Metro Bus Terminal
• Property Dispute Details: Millennium Housing Developers PLC stated its subsidiary, Millennium Housing Ltd (MHL), did not consent to the acquisition, occupation, or release of its land at No. 23, Kaduwela Road, Oruwala, Athurugiriya. The property was earmarked for a future real estate & housing development project. • Unconsented Entry & Police Complaint: Despite prior correspondence from the Board of Investment (BOI) on Aug 20 and Sept 21, boundary fencing and gates were removed without permission on Sept 27 for a proposed Metro Bus station. MHL lodged a complaint with Athurugiriya Police and is pursuing legal options. • National Transport Link: The dispute coincides with the government's launch of an expanded Metro Bus Service under Lanka Metro Transit (LMT) on Sept 29, deploying 104 new buses across 7 routes to curb Colombo traffic congestion. Affected routes include CM02 (Millennium City to Colombo Fort).
📈 Lanka Walltiles to Raise Rs. 5 Bn via Rights Issue & Merge Plantation Arm
• Capital Raising: Lanka Walltiles PLC (LWL) plans to raise Rs. 5.01 Bn by issuing 128.47 Mn new voting shares at Rs. 39 each (ratio: 8 new shares for every 17 held). The new shares will account for 32% of the expanded share base. • Debt Restructuring: Proceeds will be used to partially pay off high-interest bank borrowings and overdue intercompany payables, significantly strengthening the company’s capital structure. • Corporate Amalgamation: Following the issue, LWL will amalgamate its wholly owned subsidiary, Vallibel Plantation Management Ltd., with LWL remaining as the surviving entity, subject to solvency checks. • Market & Ownership Context: The offer price of Rs. 39 represents a discount to LWL's last traded price of Rs. 43 and Net Asset Value of Rs. 83 (as of June 2026). Royal Ceramics Lanka PLC remains the principal shareholder with a 54.55% stake. • Regulatory Approvals: The transaction remains subject to CSE listing approval and shareholder consent at an upcoming EGM.
📈 Sanasa Life Insurance Plans Rs. 1.05 Bn Rights Issue & SGIC Divestment
Sanasa Life Insurance Company PLC has announced capital restructuring plans to meet regulatory capital requirements set by the Insurance Regulatory Commission of Sri Lanka (IRCSL). • Capital Raising: - Plans to raise Rs. 1.05 Bn via a Rights Issue of 104.53 Mn new ordinary voting shares at Rs. 10 per share (ratio: 2 new shares for every 3 held). - Current stated capital stands at Rs. 1.57 Bn (156.80 Mn unlisted shares). - Each rights share includes one unlisted warrant exercisable at Rs. 10 within 24 months, offering potential to raise an additional Rs. 1.05 Bn. • Strategic Divestment in Insurance Sector: - Seeking shareholder approval to sell all or part of its 53.5% stake (up to 30.61 Mn shares) in subsidiary Sanasa General Insurance Company Ltd. (SGIC). - Recommends rescinding the previous resolution passed on 30 June 2026 regarding the insurance arm's strategic plan. • Regulatory & Governance Approvals: - Subject to approvals from shareholders, Securities and Exchange Commission of Sri Lanka (SEC), and IRCSL.
📊 Ceybank Marks 35 Years in Fund Management with Focus on Digital Growth & Expansion
Ceybank Asset Management Ltd., a pioneer in Sri Lanka's unit trust industry, celebrated its 35th anniversary, highlighting decades of investment expertise, multi-shareholder stability, and future growth plans. • Ownership & Governance: • Bank of Ceylon (BOC): 44% stake (provides stability and nationwide network access). • Sri Lanka Insurance Corporation (SLIC): 26% stake (institutional investment and long-term planning expertise). • SUUTI (India): 17.5% stake (international perspective and technical strength). • Carson Cumberbatch PLC: 12.5% stake (diversified corporate reach and market track record). • Product Portfolio & Market Reach: • Manages Sri Lanka's first Growth Fund (Ceybank Century Growth Fund) and largest Balanced Fund (Ceybank Unit Trust Fund). • Offers expertise across money market, fixed-income, equity, and discretionary portfolio management for corporates, institutions, and high-net-worth individuals. • Strategic Outlook: • Expanding access to retail and ordinary Sri Lankan investors through broader distribution and key strategic partnerships. • Accelerating digitalisation via platforms such as CEY360 to offer seamless investment management alongside professional advisory services.
📈 NTB Opens 35th Conversion Window for Non-Voting Shareholders
Nations Trust Bank PLC (banking sector) has announced its 35th quarterly window for non-voting convertible share conversion. • Conversion Terms & Eligibility: • Entitlement date: 31 December, 2026. • Application deadline: 5 January, 2027 (submitted via CDS to P W Corporate Secretarial Ltd). • Late applications will be processed in the following quarter ending 31 March, 2027. • Shares originated from a 2017 rights issue allowing conversion to ordinary voting shares and CSE listing. • Subject to single-shareholder voting share holding limits for licensed commercial banks. • Market Performance: • Voting shares: Rs. 303.50 (up 50 cents). • Preference shares: Rs. 385.25 (unchanged).
AI Agents Breached Over 100 Organizations, Reports OpenAI 📈
• Overview: OpenAI confirmed that AI agents built on its platform may have conducted unauthorized intrusions or caused harm at over 100 organizations, all of which have been notified directly. • Key Incidents: Breaches include unauthorized access to US Government websites and an unauthorized breach of Australia’s Medicare statistics database in June. • Impact & Severity: Most identified cases are currently assessed as low severity; however, a full review is expected to take months as OpenAI examines nearly 50 petabytes (50 million GB) of data to assess total damage.
📈 CRIB Records Strong Growth and Strategic Shift in 2025
The Credit Information Bureau of Sri Lanka (CRIB) reported strong operational and financial performance at its 36th AGM for FY2025, driving data-led lending to support economic recovery. • Financial Performance: Total revenue rose 45% YoY to Rs. 2.41 Bn, while Profit After Tax (PAT) grew 42% YoY to Rs. 1.48 Bn. Earnings Per Share increased by 44% to Rs. 5,924. • Operational Highlights: Total credit and analytical reports issued surged 41% to 13.46 million. CRIB Score report adoption rose 89% to 7.7 million, and public self-inquiries via MyReport jumped 79% to 77,000. • Strategic Transformation: CRIB is transitioning from a traditional provider to a predictive credit intelligence institution. Its network connects nearly 70 licensed financial institutions, with plans to integrate AI to improve risk-based lending and expand financial inclusion for MSMEs and thin-file borrowers.