📈 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.