Pathway to progress: Building a stronger and more resilient Softlogic Finance

Twelve months ago, Softlogic Finance’s primary focus was stabilisation. Today, the company stands on a stronger foundation, with a clear strategy for sustainable growth and long-term value creation.

The past year has been one of transformation. Amid challenging market conditions and evolving customer expectations, Softlogic Finance has undertaken a disciplined turnaround strategy centered on strengthening capital, improving asset quality, enhancing governance, and rebuilding stakeholder confidence.

The results are beginning to emerge. For the financial year, the company recorded a profit of approximately Rs. 150 million, marking an important milestone in its recovery journey. More importantly, this performance reflects a sustainable business model built on prudent risk management and responsible growth.

Softlogic Finance today manages a total asset base exceeding Rs. 7.5 billion, supported by a lending portfolio of approximately Rs. 6.7 billion and a customer deposit base exceeding Rs. 3.8 billion. These figures reflect the growing confidence of customers and stakeholders in the company’s long-term direction and stability.

A key achievement during the year has been the strengthening of the company’s capital base. Softlogic Finance now maintains one of the highest Capital Adequacy Ratios in Sri Lanka’s finance industry at approximately 61%, significantly above regulatory requirements, while Core Capital has exceeded Rs. 2.8 billion.

“Our objective has never been short-term growth,” said Chief Executive Officer Dhanushka Fonseka. “Our focus has been on building a stronger and more resilient institution capable of delivering sustainable returns while maintaining disciplined risk management.”

The company’s growth strategy is anchored on its core financial solutions, including vehicle leasing, vehicle loans, gold loans, savings accounts, and fixed deposits. Particular emphasis has been placed on secured and asset-backed lending, ensuring that portfolio expansion is accompanied by strong credit quality.

This strategy has delivered encouraging outcomes. The new lending portfolio originated during the year continues to perform exceptionally well, with zero non-performing loans recorded to date, reflecting robust underwriting standards and disciplined credit evaluation processes.

With a network of 15 branches across Sri Lanka, Softlogic Finance remains committed to providing accessible financial solutions while enhancing customer experience through operational efficiency and technology-driven service improvements.

As a member of the Softlogic Group, the company benefits from the strength of one of Sri Lanka’s most diversified conglomerates. The Group’s interests span healthcare, insurance, hospitality, retail, and financial services, providing access to strong governance frameworks, industry expertise, and valuable strategic synergies.

Looking ahead, Softlogic Finance intends to build on the momentum achieved over the past year by further strengthening its balance sheet, expanding its high-quality lending portfolio, and pursuing sustainable growth opportunities.

Beyond financial performance, the company is also exploring a range of conservation-focused corporate social responsibility initiatives aimed at environmental preservation and biodiversity protection, reflecting its commitment to creating a positive impact beyond the financial sector.

“The foundations for future growth have been firmly established,” Fonseka added. “While there is still much to accomplish, we are encouraged by the progress achieved thus far and remain committed to building a stronger, more resilient Softlogic Finance for the benefit of our customers, employees, shareholders, and the wider Sri Lankan economy.”