Divasa Finance records outstanding profits for FY11

Thursday, 15 September 2011 00:00 -     - {{hitsCtrl.values.hits}}

Divasa Finance Ltd., registered with the Monetary Board of the Central Bank of Sri Lanka as a finance company has announced an outstanding performance in the financial year ended March 31, 2011. According to the audited annual report for the period, the company recorded a net profit after tax of Rs. 68.5 mn as against Rs. 1.8 mn the previous year. The company has been able to contain costs in relation to the revenue as seen from the operating costs/revenue ratio of 29%. The risk-weighted capital adequacy ratio was 35%, well above the required 10%.

The Director/CEO of Divasa Finance Limited Lakshman Uduwara said, “We are happy to announce this remarkable performance which is the best recorded in our six year history. We recorded significant growth in our advances portfolio with a wider product spectrum giving enhanced income. We offer flexible and fast leases, hire purchase, short term trade finance, bills/cheques discounting, short & medium term loans in addition to margin trading on shares for which we received the license from the Securities Exchange Commission. Therefore, we have increased our sources of income. The delinquent advances ratio was low at 4.9% as at March 31, 2011 as the credit quality has been maintained throughout.”

The company also established two new branches in the year in Gampaha and Negombo as part of its drive to be present in key townships.

“In order to create an efficient operational platform we secured a versatile IT solution and we are now well poised to serve our clientele even better. We much appreciate the support and encouragement given by our Board of Directors in acquiring the above value additions to our services,” Uduwara added.

The company has been in business for over six years having been incorporated in September 2004, initially as Asia Commerce Ltd. It received finance company license in May 2011 and with the new status, its strategic objectives were restated with rebranding of the company as Divasa Finance Ltd. The name in vernacular implies the “third eye” having the ability to discern the future. The rebranding also coincided with it moving to new spacious city office at No 15, Station Rd, Colpetty which offers ample parking and easy access via Galle Road and Marine Drive.