Friday Sep 25, 2026
Friday Sep 25, 2026
Thursday, 24 September 2026 00:08 - - {{hitsCtrl.values.hits}}
PMF Finance Chairman Malik Cader (third from right) with LRA CEO Dr. Kenneth De Zilwa (third from left) and PMF Finance Director/CEO Dr. Dewasiri N. Jayantha (second from right)
Lanka Rating Agency (LRA) has upgraded PMF Finance PLC’s long-term entity credit rating to BB (Stable).
The upgrade reflects an improvement in PMF Finance’s overall financial risk profile, underpinned by stronger profitability, improved asset quality and adequate capitalisation, according to the rating assessment by LRA.
A key highlight of the company’s financial performance is the substantial growth in Net Interest Income (NII), which increased to approximately Rs. 2.91 billion in FY26, compared with Rs. 1.95 billion in FY25 — an increase of around 49%.
The growth in NII was supported by higher interest income, which rose to approximately Rs. 4.9 billion from Rs. 3.9 billion during the year. Consequently, PMF Finance’s Net Interest Margin (NIM) improved to approximately 12.71% from 9.52%, reflecting stronger earning capacity from its core financial operations.
The company also maintained positive profitability momentum, recording Profit After Tax of Rs. 368.4 million in FY26, compared with Rs. 322.4 million in FY25, representing growth of approximately 14.3%.
According to the rating assessment, this improvement was mainly supported by portfolio growth and better recoveries, demonstrating the company’s continued focus on strengthening its loan portfolio and recovery performance.
PMF Finance has also maintained an adequate capital position, with its Total Capital Adequacy Ratio (CAR) remaining at 17.38%, comfortably above the regulatory minimum requirement of 12.5%.
Further strengthening of the company’s capital position is expected through the planned issuance of approximately Rs. 1 billion in Trust Certificates, which is expected to support the CAR and provide additional capacity to accommodate future business growth.
The company’s funding base also increased to approximately Rs. 19.2 billion in FY26 from Rs. 18.1 billion in FY25, supporting the continued expansion of its lending operations.
The latest rating upgrade by Lanka Rating Agency (LRA) represents an important recognition of PMF Finance’s progress in strengthening its underlying financial fundamentals.
With continued improvements in profitability, asset quality and capitalisation, PMF Finance remains focused on building a stronger and more sustainable financial institution while delivering greater value to its customers, depositors, shareholders and other stakeholders.
The upgrade to BB (Stable) marks another important milestone in PMF Finance’s journey towards stronger financial performance, greater resilience and sustainable long-term growth.
