Commercial Credit and Finance PLC secures first place in K Seeds Investments’ ranking report

K Seeds Investments identified Commercial Credit and Finance PLC as the best performing Finance Company under the first category among the 30 listed Finance Companies in Sri Lanka through a ranking carried out based on their financial performance for the third quarter of 2025/26. 

The report segregates the finance companies based on the size of their asset base and ranks them in their respective categories among their peers based on ten financial metrics, which are calculated from the quarterly financial statements. 

Commercial Credit and Finance PLC topped the overall spectrum by belonging to “Category 1” (asset base > Rs. 100 billion). The categories 2, 3 and 4 represent the companies having an asset base between Rs. 50 to Rs. 100 billion, Rs. 20 to Rs. 50 billion and less than Rs. 20 billion respectively.

During the third quarter of the 2025/26 financial year (1 October 2025 – 31 December 2025), the performance of finance companies in Sri Lanka was influenced by a combination of favourable macroeconomic conditions and important industry-level (micro) factors. The continued recovery of the Sri Lankan economy, supported by improving GDP growth, low and stable inflation, and accommodative monetary policy by the Central Bank, helped strengthen credit demand across sectors. Lower interest rates encouraged individuals and small and medium-sized enterprises to seek leasing, vehicle financing, and personal loans, which contributed to an expansion of loan portfolios for finance companies. 

At the same time, improving economic stability and the ongoing IMF-supported reform program enhanced investor confidence and strengthened the overall financial sector environment. From a micro perspective, finance companies benefited from increased lending activity, gradual improvement in loan repayment capacity, and a reduction in non-performing loans (NPLs) compared to previous crisis years. However, intense competition in the lending market and declining interest margins slightly constrained profitability. 

Although Sri Lanka was affected by Cyclone Ditwah during this period, finance companies demonstrated strong resilience and continued to perform well during the quarter despite the challenging conditions. Overall, the interaction of these macroeconomic improvements and firm-level operational factors contributed to a moderate strengthening of finance companies’ financial performance during the October–December 2025 period.

Supported by all these factors, Commercial Credit and Finance PLC managed to maintain their top rank  in the series of ranking reports released by K Seeds Investments on the finance sector of Sri Lanka .The report ranks the finance companies according to their financial results released through interim reports on the Colombo Stock Exchange across 10 key performance indicators (KPIs) – cost to income ratio, net profit margin, impairment to loan book, return on equity, return on assets, net interest margin, credit to deposits, operating leverage, net profit growth and loan growth.

These 10 KPIs are weighted equally and an overall ranking is arrived at, based on the aggregate score for each category.

K Seeds Investments is a Colombo-based financial advisory firm, providing strategic investment and financial analysis services to businesses across various industries. The company specialises in equity research, company valuation, sector and macroeconomic analysis, and capital-raising support.