📈 Finance Company Assets Surge 44% to Rs. 2.77 Tn in 2025

The Finance Company sector in Sri Lanka saw a massive expansion in 2025, driven by aggressive lending and improved asset quality. Based on provisional CBSL data: • Overall Growth: Total assets reached Rs. 2.77 Tn (+44% YoY), while total loans surged by 56% to Rs. 2.22 Tn. • Funding & Capital: Sector deposits grew 19.8% to Rs. 1.26 Tn. Borrowings saw a sharp 178% spike to Rs. 849 Bn, while equity capital rose 13.4% to Rs. 62.8 Bn. • Profitability: Sector profits jumped 45% YoY to Rs. 61.5 Bn. Net interest income reached Rs. 185.1 Bn (+26%), supported by a 26.5% rise in non-interest income. • Asset Quality: Significant improvement as Gross Non-Performing Loans (NPLs) fell to 6.1% (from 11.5% in 2024). Net NPLs dropped to 3.2%. • Efficiency: Return on Equity (ROE) improved to 16.3% (from 12.8%), with Return on Assets (ROA) rising to 6.3%. In comparison, the banking sector (data as of Sept 2025) maintained a larger footprint with assets of Rs. 24.5 Tn and profits of Rs. 279 Bn.