Corporate News
View all(65)📈 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.
🏥 Lanka Hospitals Scales Up Surgical Operations & Regional Reach 📈
• Overall Operational Scale: - Performs over 1,000 major surgeries each month. - Backed by 12 operating theatres, a 50-bed intensive care network, an in-house blood bank, and 24/7 emergency support. • Key Speciality Breakdowns: - Cardiac Care: Over 10,000 cardiac surgeries and 800 interventions completed to date, with >70 procedures conducted monthly. - Orthopaedics: Over 3,000 knee replacements completed, supported by a team of 35+ medical specialists. - Transplants & Metabolic Surgery: Over 1,250 successful kidney transplants and >450 bariatric surgeries performed (highest volume among private hospitals in Sri Lanka). - Neurology & Oncology: Performs nearly 100 spine procedures monthly. Minimally invasive treatments allow 24-hour hospitalisation for selected patients. • Medical Tourism & Regional Positioning: - Treats 50+ international patients monthly, supporting Sri Lanka's private healthcare sector and growing status in regional medical tourism.
📈 Hemas Sustains 1Q Revenue Despite Earnings Dip
• Overall Financial Performance • Revenue: Rs. 28.77 Bn (up 0.9% YoY) • Gross Profit Margin: 30.4% (up 0.2% YoY) • EBITDA: Rs. 2.26 Bn (down 14.1% YoY) • Equity Holders Net Profit: Rs. 937 Mn (down 21.4% YoY) • Operating Costs: Net operating expenses rose 9.0% YoY, driven by a 12.3% YoY surge in selling and distribution costs due to rising fuel, freight, and logistics expenses. • Sector Breakdown & Drivers • Consumer Brands, Hospitals, and Mobility drove revenue growth, while Life Sciences contracted 3.8% YoY. • Finance costs grew due to Rupee depreciation impacting USD borrowings at the Leisure JV, though interest income on net cash holdings provided partial relief. • Strategic Focus & Outlook • Prioritizing cost recovery, margin restoration, calibrated pricing, and productivity enhancements in Consumer Brands and Life Sciences. • Segment reporting updated to break down into Consumer Brands, Life Sciences, Hospitals, Mobility, and Strategic Investments for enhanced management transparency.
📈 Deloitte Partners Sri Lanka Corporate Director Summit 2026 to Drive Governance & Innovation
Deloitte Sri Lanka served as the Strategic Partner for the Sri Lanka Corporate Director Summit 2026, organized by the Sri Lanka Institute of Directors (SLID) at Cinnamon Grand Colombo, marking SLID’s 25th anniversary. The summit focused on the theme "Future-Ready Sri Lankan Boards - From Compliance to Sustainable Growth." Key Highlights & Summit Focus: • Attendance & Reach: Gathered over 350 board directors, senior business leaders, and governance professionals, alongside more than 15 international thought leaders. • Governing AI & Digital Risk: Highlighted technology-led transformation, AI adoption, cybersecurity, and digital risk as critical boardroom priorities, emphasizing that leadership disciplines like curiosity and courage are essential for responsible innovation. • Strategic Leadership & Governance: Focused on shifting boards from mere compliance to active strategic leadership, independent judgment, and driving long-term organizational resilience amidst changing economic conditions. • Talent & Human Capital: Addressed critical workforce strategies, addressing skills shortages, employee wellbeing, and culture as non-negotiable agenda items for modern corporate governance. • Regional & Global Insights: Deloitte leadership contributed regional and global perspectives to strengthen stakeholder trust, foster enterprise innovation, and generate sustainable value for Sri Lankan businesses.
📈 Vallibel Finance Crosses Rs. 200 Bn Assets Milestone
• Financial Services Sector Milestone: Vallibel Finance PLC reached Rs. 200 billion in total assets as of 31 July 2026, based on provisional, unaudited management accounts. • Strong FY2025/26 Profitability: Profit Before Tax (PBT) reached Rs. 7.6 billion for the 2025/26 financial year, reflecting a robust 37.5% YoY growth over the prior year. • Rapid Asset Base Expansion: Total assets previously expanded by 61.4% YoY to Rs. 180.2 billion by end-March 2026, compared to Rs. 111.6 billion a year earlier, underscoring strong momentum within Sri Lanka's non-banking financial institutions (NBFI) sector.
📈 Asia Asset Finance PBT Surges 198% to Rs. 877.9 Mn in Q1 FY26/27
• Financial Performance: Profit Before Tax (PBT) jumped 197.8% YoY to Rs. 877.9 Mn, while Profit After Tax (PAT) grew 137.0% YoY to Rs. 429.4 Mn. Net Interest Income more than doubled (+120.0%) to Rs. 1.97 Bn, driven by an 85.4% rise in Interest Income to Rs. 3.40 Bn. Net Interest Margin widened to 13.9% (vs 10.6%). • Balance Sheet & Lending: Total assets expanded by 12.3% in Q1 to Rs. 60.42 Bn. Loan portfolio grew to Rs. 50.51 Bn (+Rs. 3.51 Bn expansion), expanding access to formal financial services and driving financial inclusion in the non-banking financial services sector. • Asset Quality & Solvency: Gross Non-Performing Asset (NPA) ratio improved sharply to 7.5% (from 12.5%), while Net NPA dropped to 4.2% (from 6.6%). Capital adequacy remains well above regulatory limits, with Tier 1 at 18.96% and Total Capital at 18.85%. • Shareholder Returns: Earnings Per Share (EPS) rose to Rs. 3.46 (vs Rs. 1.46). Net Asset Value per Share rose 31.1% to Rs. 41.89, with annualized Return on Equity (ROE) reaching 34.4% and Return on Assets (ROA) at 3.0%. • Operational Growth: Expanded island-wide footprint to 120 branches by opening 5 new locations, alongside establishing a new training center in Kurunegala to enhance service capabilities.
📈 DFCC Bank Completes LKR 3.65 Bn Acquisition of SCB Sri Lanka’s Retail & Wealth Business
• Transaction Overview: DFCC Bank PLC completed its acquisition of Standard Chartered Bank (SCB) Sri Lanka’s retail and wealth business effective August 1, 2026, with live operations commencing August 3, 2026. The acquisition was funded entirely through internally generated capital for a final premium of LKR 3.655 Bn (plus applicable taxes). • Business & Network Impact: • Migrated approximately 50,000 customers across Priority Banking, credit cards, retail lending, deposits, and SME portfolios. • Onboarded 260 former SCB Sri Lanka employees into comparable roles. • Added 6 former SCB branches, expanding DFCC's physical footprint in the banking sector to 139 locations island-wide. • Strategic Focus: • Accelerates DFCC’s long-term strategy to scale up retail & wealth management capabilities in high-growth segments. • Fully approved by the Central Bank of Sri Lanka, aligning with SCB’s strategy to shift focus exclusively to its corporate & investment banking business in the country.
CIC Holdings Posts Strong 20% Profit Growth in 1QFY27, Surpasses Rs. 100 Bn Asset Milestone 📈
• Overall Financial Performance: - Group Revenue: Rs. 22.03 Bn (+2.74% YoY). - Gross Profit: Rs. 6.01 Bn (+10.26% YoY) with margins improving to 27.3%. - Profit After Tax (PAT): Rs. 1.81 Bn (+19.69% YoY). - Net Profit Attributable to Equity Holders: Rs. 1.51 Bn (+23.24% YoY). - Earnings Per Share (EPS): Rs. 0.80 (+23.08% YoY). - Total Assets: Surpassed Rs. 100 Bn mark to hit Rs. 100.14 Bn. • Sector-Wise Breakdown & Highlights: - Agri Solutions: Remains the primary revenue driver at Rs. 9.97 Bn (~45% of total) and top profit contributor at Rs. 1.08 Bn, despite a slight dip due to seasonal factors. Vital to national food security and supporting rural farming communities. - Livestock Solutions: Surged to Rs. 4.90 Bn in revenue (~22% share) with net profit jumping 111.37% YoY to Rs. 660.25 Mn, driven by higher poultry demand, feed volumes, and veterinary care growth. - Health & Personal Care: Recorded stable revenue of Rs. 4.80 Bn (~22% share) and Rs. 662.51 Mn in profit, anchored by strong pharmaceutical and consumer healthcare demand. - Industrial Solutions: Posted the fastest revenue expansion (+40.6% YoY to Rs. 2.63 Bn, ~12% share) and a 62.22% YoY profit jump to Rs. 533.90 Mn, driven by rebounding market demand.