Monday Jul 13, 2026
Monday Jul 13, 2026
Monday, 13 July 2026 02:43 - - {{hitsCtrl.values.hits}}
Senkadagala Finance PLC has closed the financial year ended 31 March 2026 with a group profit after tax of Rs. 2.05 billion, up 16% year-on-year, marking the strongest bottom line in the Company's history.
At Company level, profit after tax reached Rs. 1.85 billion, a 14% increase, as the lending business gained momentum amid a gradually stabilising macroeconomic environment.
Independent Chairman N Vasantha Kumar said: “Our record performance reflects years of disciplined execution, prudent risk management and an unwavering focus on sustainable growth. More importantly, it demonstrates that Senkadagala Finance continues to strengthen its position as one of Sri Lanka's leading licensed finance companies.”
Total assets expanded 40% to Rs. 57.1 billion, crossing the Rs. 50 billion milestone for the first time. Growth was driven by healthy expansion across the Company’s core lending businesses, particularly finance leasing and hire purchases, which rose from Rs. 26.5 billion to Rs. 34.6 billion, reflecting strong demand for vehicle and asset financing as economic activity picked up. Net interest income reached Rs. 6.25 billion, up 9% year-on-year.
CEO Keshav Balasuriya said: "This year's performance reflects the commitment of our people, the trust placed in us by our customers and the successful execution of our growth strategy. We remain focused on delivering sustainable value while continuing to expand our reach and strengthen customer experience."
The Company's profitability metrics continued to outperform industry peers during the year. A return on equity of 16.42%, a net interest margin of 14.50% against a sector average of 10.01%, and a cost to income ratio of 42.62% against the industry's 46.92%, point to a business that is generating strong returns while managing its cost base with discipline.
Asset quality strengthened further during the year, with the Gross Stage 3 loans ratio declining to 5.43% from 7.24%, reflecting disciplined underwriting and effective recovery efforts. The Company also maintained a total provision coverage ratio of 7.18%, demonstrating its prudent approach to credit risk management and loss absorption.
Network, workforce and capital
The Company expanded its nationwide footprint by opening 24 new branches during the year, culminating in the opening of its landmark 150th branch in June 2026, reinforcing its commitment to delivering a superior customer experience while further strengthening its position as one of Sri Lanka's most widely distributed licensed finance companies. The workforce expanded by 23% to 1,215 employees, up from 985 the prior year, reflecting the Company's confidence in its growth trajectory.
On the capital front, a rights issue completed in February 2026 raised Rs. 1.035 billion in fresh equity, strengthening the Company’s capital position and providing a solid platform to support future business growth while maintaining prudent regulatory buffers. Total equity closed the year at Rs. 12.57 billion, with capital adequacy and liquidity ratios well above regulatory minimums. The total capital adequacy ratio stood at 23.84% against a regulatory floor of 12.50%, while available liquid assets stood at 485% of the required level. Fitch Ratings Lanka has assigned the Company a BBB (lka) credit rating with a stable outlook.
With a strengthened capital base, a growing nationwide presence and a resilient balance sheet, Senkadagala Finance is well positioned to continue delivering sustainable, consistent growth and long-term value to customers, shareholders and other stakeholders.
