Monday Feb 02, 2026
Monday Feb 02, 2026
Monday, 2 February 2026 00:23 - - {{hitsCtrl.values.hits}}
Total assets of the finance company sector rose 44% year-on-year (YoY) to Rs. 2.77 trillion as at end-December 2025, driven by a sharp expansion in lending, according to latest data released by the Central Bank of Sri Lanka (CBSL).
Total loans increased 56% to Rs. 2.22 trillion during the year. On the funding side, sector deposits grew 19.8% to Rs. 1.26 trillion, while borrowings expanded by 178% to Rs. 849 billion. Equity capital rose 13.4% YoY to Rs. 62.8 billion.
Earnings strengthened alongside balance sheet growth.
Net interest income for the sector amounted to Rs. 185.1 billion in the nine months to end-December 2025, up 26% from a year earlier, while non-interest income increased 26.5% to Rs. 31.5 billion. Sector profits rose 45% YoY to Rs. 61.5 billion over the same period.
Asset quality indicators showed a marked improvement. Gross non-performing loans declined to 6.1% of total loans as at end-December 2025, from 11.5% a year earlier. Net non-performing loans, defined as Stage 3 loans net of Stage 3 impairment, fell to 3.2% from 6.5%.
Returns also improved, with the annualised return on assets rising to 6.3% from 5.8% a year earlier, while return on equity increased to 16.3% from 12.8%.
Updated banking sector data were not available for the same period. However, CBSL data show that the banking industry expanded its balance sheet in the nine months to end-September 2025, with total assets rising to Rs. 24.5 trillion and Profit After Tax increasing to Rs. 279 billion.
