Corporate News
View all(65)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.
📈 Dialog Axiata Partners with RMS for Corporate Facility Management
Dialog Axiata PLC has entered into a milestone agreement with Realty Management Services Ltd. (RMS) to manage soft services across its head office and key locations in the Colombo Metropolitan area. • Strategic Shift: This marks the first time Dialog has outsourced its facility management services to a third-party provider, aligning with a corporate focus on operational excellence and core business streamlining. • Scope of Services: RMS will handle a comprehensive range of soft facility management services and support functions to enhance workplace efficiency and service quality. • Economic Context: The partnership underscores a growing trend of major corporates leveraging integrated facility management solutions to optimize operations, enhance resource efficiency, and support white-collar employment stability in urban centers.
📈 Sierra Cables Revenue Tops Rs. 16 Bn, PAT Rockets 194% in FY26
Sierra Cables PLC (member of the LOLC Group) reported record-breaking financial results for the financial year ended 31 March 2026, driven by high capacity utilization, domestic expansion, and a massive surge in export revenue. Overall Financial Highlights • Revenue: Reached Rs. 16.0 Bn, marking a 73% YoY increase against Rs. 9.26 Bn in FY25. • Profit After Tax (PAT): Climbed 194% YoY to Rs. 2.7 Bn, up from Rs. 903 Mn. • Operating Profit: Surpassed Rs. 3.0 Bn, reflecting a 119% YoY growth. • Earnings Per Share (EPS): Increased to Rs. 4.95 from Rs. 1.68 in the previous year. Sector & Market Drivers • Industrial Manufacturing: Strong domestic demand for specialized fire-resistant and fire-retardant cable solutions amid tightening construction safety standards. • Domestic Footprint: Expanded dealer and distribution networks across urban and regional Sri Lankan markets to solidify local leadership. Exports & International Expansion • Export Growth: Export revenue surged by 345% YoY, rising from Rs. 1.1 Bn to Rs. 5.0 Bn. • Revenue Diversification: Overseas markets now account for 31% of total Group revenue, aiding national foreign exchange earnings. • US Market Position: Holds exclusive UL 44 and UL 854 certifications, making it the only Sri Lankan cable manufacturer certified to supply the highly regulated United States market. • Global Operations: Maintained active market presence in Zambia and Fiji alongside technical association with T & G Lanka Ltd. (electrical and fibre-optic systems).
📈 LB Finance Surpasses Rs. 25 Bn Pre-Tax Profit Milestone in FY26
Sri Lankan non-bank financial giant LB Finance PLC reported landmark financial results for the year ended 31 March 2026, driven by rapid portfolio expansion and the strategic acquisition of Associated Motor Finance Company PLC (AMF). • Overall Financial Figures: Pre-Tax Profit grew 22% YoY to Rs. 25.01 Bn. Profit After Tax (PAT) rose 27% YoY to Rs. 13.67 Bn. Total Income increased 28% to Rs. 60.04 Bn (Interest income: Rs. 51.81 Bn; Fee income: Rs. 7.91 Bn). Return on Average Equity (ROE) improved to 24%. Dividend declared at Rs. 8.20 per share. • Portfolio & Balance Sheet Growth: Lending portfolio expanded by 58% to Rs. 312.66 Bn. Total Assets rose 64% to Rs. 395.33 Bn (Group assets reached Rs. 415.57 Bn). Customer deposits increased by 25% to Rs. 173.33 Bn, while bank borrowings reached Rs. 102.97 Bn. • Sector & Operational Highlights: The AMF acquisition added Rs. 17.2 Bn in loans, strengthening the Group's motor bike financing footprint. The newly launched MSME targeted 'Sanmitha Small Business Loans' reached a book of Rs. 1.7 Bn. Flagship digital platform 'LB CIM' processed over Rs. 316 Bn across 6 million transactions. Cost-to-income ratio improved to 30.52% (from 32.58%). • Asset Quality & National Contribution: Gross Non-Performing Accommodation Ratio improved significantly to 1.35% (down from 2.25%). Contributed Rs. 13.72 Bn in direct and indirect taxes to the Sri Lankan Government. • Global Expansion: Alongside existing microfinance operations in Myanmar, regulatory approvals are nearing completion for an upcoming entry into the Philippines market.
📈 SOE Profits Fall 17.6% to Rs. 444.4 Bn in 2025 Dragged by CEB
Overall Performance • Total profits of Sri Lanka’s main 51 State-Owned Enterprises (SOEs) dropped 17.6% YoY to Rs. 444.4 Bn in 2025. • Excluding the Ceylon Electricity Board (CEB), the remaining 50 SOEs grew profits by 21.5% YoY to Rs. 483.2 Bn. • Government revenue from SOE dividends and levies jumped 37.5% YoY to Rs. 56.5 Bn. Top Gainers & Sectors • State Banking Sector: Remained the strongest pillar. Bank of Ceylon (BOC) led with a PBT of Rs. 120.8 Bn, followed by People’s Bank at Rs. 64.4 Bn and NSB at Rs. 44.5 Bn. • Ports & Logistics: Sri Lanka Ports Authority (SLPA) recorded robust profits of Rs. 57.3 Bn. • Energy: Ceylon Petroleum Corporation (CPC) PBT rose 6.6% to Rs. 36.5 Bn, despite an 8.7% revenue drop, aided by cost-recovery fuel pricing and lower oil import bills (down 9.3% to US$ 1.94 Bn). Key Loss Makers • CEB: Swung to a heavy net loss of Rs. 38.7 Bn (from a Rs. 141.6 Bn profit in 2024) due to tariff cuts, causing a 22.8% drop in sales revenue despite 5.9% higher consumption. • Aviation: SriLankan Airlines net loss before tax widened significantly to Rs. 23.2 Bn (from Rs. 7.6 Bn) due to forex pressures and debt costs, despite higher traffic revenue. • Other Losses: Lanka Sugar Company (Rs. 3.2 Bn) and Lanka Sathosa (Rs. 530 Mn). Strategic Reforms • Cabinet approved restructuring, closing, or merging various non-commercial SOEs, liquidating 33 non-functional entities, and unbundling CEB functions into 6 successor firms.
📈 RDB Marks Strong 1Q 2026 with 187% Net Profit Surge
Sri Lanka’s Regional Development Bank (RDB) commenced FY2026 on a powerful footing, driven by a national mandate for financial inclusion, process automation, and extensive support for regional entrepreneurs, agricultural communities, and small and medium enterprises (SMEs). Overall Financial Performance • Net Profit (PAT): Surged by 187.3% to Rs. 1.08 Bn, up from Rs. 377 Mn in 1Q 2025. • Pre-Tax Profit (PBT): Grew 103% YoY to Rs. 1.87 Bn. • Interest Income: Increased by 11% to Rs. 10.64 Bn, maintaining a Net Interest Margin (NIM) of 6.9%. • Net Fee-Based Income: Skyrocketed by 223% to Rs. 604.67 Mn, up from Rs. 187.18 Mn. • Net Operating Income: Expanded by 27.5% to Rs. 6.65 Bn. Balance Sheet & Efficiency Ratios • Total Assets: Expanded to Rs. 366 Bn during the quarter (from Rs. 362 Bn). • Portfolios: Maintained a gross loan portfolio of Rs. 323 Bn and deposits of Rs. 286 Bn. • Profitability Metrics: Return on Equity (ROE) jumped to 19.27% (vs 11.77% in 2025), while Return on Assets (ROA) rose to 2.05%. Stability & Asset Quality • Capital Ratios: Common Equity Tier 1 stood at 9.59% (regulatory minimum: 7%) and Total Capital Ratio reached 14.07% (minimum: 12.5%). • Liquidity: Held a robust Liquidity Coverage Ratio of 135%, well above the 100% minimum. • Asset Quality: Stage 3 (impaired) loans ratio was successfully contained at 3.77%. • Credit Rating: Retained its 'BBB+ Stable' rating from Lanka Rating Agency.
📈 Prime Lands Residencies Reports Record FY26 Profits, Declares Rs. 0.80 Dividend
Sri Lankan real estate giant Prime Lands Residencies PLC (CSE: PLR.N) reported outstanding financial results for the year ended 31 March 2026, driven by aggressive portfolio expansion and rapid construction progress. • Full-Year Financial Performance (FY2026): • Profit After Tax (PAT): Increased by 67% YoY to Rs. 2.06 Bn. • Gross Profit: Expanded by 58% YoY to Rs. 3.82 Bn. • Operating Profit: Rose by 69% YoY to Rs. 2.69 Bn. • Earnings Per Share (EPS): Jumped significantly to Rs. 2.20 from Rs. 1.31 in the previous year. • Q4/Quarterly Highlights (Ended 31 March 2026): • Quarterly PAT surged 65% YoY to Rs. 558.4 Mn. • Quarterly Gross Profit grew 47% YoY to Rs. 1.17 Bn. • Quarterly EPS improved by 64% YoY to Rs. 0.59. • Balance Sheet & Shareholder Returns: • Total assets expanded to Rs. 36.8 Bn, backed by a strategic land bank worth Rs. 11.1 Bn. • Net Asset Value (NAV) per share increased to Rs. 12.20. • Declared an Interim Cash Dividend of Rs. 0.80 per ordinary share (Ex-dividend date: 09 June 2026; Payment date: 26 June 2026). • Sector & Project Breakdown: • Revenue growth was propelled by completions like the ultra-luxury 43 by the Sea on Marine Drive. • Core milestones achieved include the early topping-off of the 484-unit Tower Cosmos at The Colombo Border. • Future growth visibility remains high, with unrecognized pipeline revenue from newly launched premium projects including The Elizabeth (Colombo 07) and MON VIE (Colombo 05). _Note: Figures are based on reported full-year and quarterly financial disclosures._