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Lanka Rating Agency CEO Dr. Kenneth De Zilwa (right) presents a memento with the latest rating to Vallibel Finance Managing Director Jayantha Rangamuwa
Lanka Rating Agency Ltd., (LRA), has assigned a long-term Entity Rating of A- with a stable outlook to Vallibel Finance PLC.
This rating reflects Vallibel Finance’s solid creditworthiness, strong capacity for timely financial commitments, and its robust governance and business performance.
The upgraded A- Entity Rating recognises Vallibel Finance’s extensive market presence as a mid-sized licensed finance company with an asset share of 5.3% in the industry. The company’s loan portfolio is well-diversified across vehicle loans, auto drafts, gold loans, and leases, which collectively constitute over 94% of its lending book. Superior asset quality, demonstrated by a consistently low non-performing loan (NPL) ratio well below industry benchmarks, supports this rating.
Financially, Vallibel achieved a significant 22.8% increase in profit after tax for FY25 reaching Rs. 2,629 million, driven by higher interest income and efficient asset-liability management. Net interest income grew by 15.9% to Rs. 8,118 million, with an improved net interest spread of 7.8% in FY25, reflecting effective operational efficiency amid favourable interest rate conditions. The company also maintains adequate capitalisation with a Tier I capital adequacy ratio of 16.5%, above regulatory minimums.
Corporate governance is a key strength for Vallibel Finance, with a well-structured board comprising experienced professionals and robust risk management frameworks overseen by several dedicated committees. The company’s commitment to enhancing digital services, expanding into underserved markets, and diversifying its financial product offerings—including plans to grow its gold loan segment to nearly one-third of its portfolio—illustrate strategic growth aligned with maintaining asset quality and capital adequacy.
Vallibel Finance PLC Managing Director S.B. Rangamuwa said: “This milestone is collective efforts of the entire Vallibel team, highlighting their dedication, commitment to excellence, and alignment with the company’s vision for sustainable growth.”
He emphasised that the rating reflects Vallibel’s strong market position, sound governance, operational efficiency, and strategic focus on innovation and diversification.
Rangamuwa also extended heartfelt appreciation to all stakeholders, staff, and customers for their unwavering trust and support, stating that their partnership continues to inspire Vallibel to enhance its services and make a lasting impact in the financial sector. He reaffirmed the company’s commitment to building on this success and driving future growth with the same passion and strategic direction.
Lanka Rating Agency CEO Dr. Kenneth De Zilwa said: “Vallibel Finance PLC’s upgraded Entity Rating reflects the company’s robust business model, stable earnings growth, and prudent risk management practices, which are fundamental to financial stability within Sri Lanka’s licensed finance sector. The upgraded rating signifies Vallibel Finance’s strengthened credit profile, reduced default risk, and enhanced capital adequacy, asset quality, and liquidity metrics. This achievement underscores the company’s commitment to operational excellence, sound governance, and risk-adjusted profitability, as well as its resilience to sectoral stress and ability to meet financial obligations in line with regulatory standards. The improved rating not only affirms Vallibel Finance’s strong credit fundamentals and sustainable growth trajectory but also positions it as a benchmark for best practices and innovation among its peers.”
Vallibel Finance PLC continues to pursue growth initiatives including product diversification, digital transformation, and expansion into underserved markets, with a strategic focus on maintaining asset quality and capital adequacy above regulatory requirements.
