RDB drives unprecedented growth with record profits fuelling expansion and development impact

Regional Development Bank (RDB) has delivered an exceptional financial performance for the year ended 31 December 2025, recording an 86% year-on-year (YoY) increase in Profit After Tax (PAT) to Rs. 2.37 billion. 

The bank’s total income reached Rs. 42.81 billion, driven by a 23.89% growth in Net Interest Income (NII) to Rs. 24.23 billion, complemented by steady contributions from both interest and fee-based income streams. This performance highlights the bank’s ability to optimise its asset base while sustaining a well-diversified and resilient revenue profile.

Marking its 40th anniversary in 2025, the bank’s exemplary performance underscores the strength of its resilient operating model, disciplined execution, and its growing role as a catalyst for inclusive economic progress in Sri Lanka. Profitability metrics strengthened notably, with Return on Assets (ROA) improving to 1.7% and Return on Equity (ROE) increasing to 11.77%, demonstrating enhanced efficiency in capital deployment and earnings generation.

Chairman Lasantha Fernando said: “Our performance in 2025 reflects the strength of a purpose-driven banking model that successfully balances financial sustainability with national development priorities. As Sri Lanka progresses on its path to recovery, our commitment to enabling inclusive growth remains unwavering.”

The bank continued to expand its development-focused lending portfolio, with loans and receivables growing by 23.59% to Rs. 302.54 billion. This growth supported priority sectors including agriculture, small and medium enterprises (SMEs), manufacturing, housing, and rural enterprises representing segments critical to national economic revitalisation. Importantly, this expansion was achieved alongside improved asset quality, with the Stage 3 impaired loans ratio declining to 4.06% from 6.25%, demonstrating robust credit risk management and effective recovery strategies.

Customer confidence remained strong, with deposits increasing by 11.85% to Rs. 283.72 billion, driven by growth in both savings and fixed deposits. The bank also maintained liquidity ratios well above regulatory thresholds, reinforcing its financial stability and resilience

General Manager/Chief Executive Officer Asanga Tennakoon said: “Last year’s results underscore the impact of disciplined execution, prudent risk management, and a strong customer-centric approach. Looking ahead, we will continue to expand our reach, strengthen digital capabilities, and deepen financial inclusion to create sustainable value for all stakeholders.”

With a network of 272 branches and a customer base exceeding six million, RDB continues to play a vital role in advancing financial inclusion and regional development across Sri Lanka, particularly within underserved and rural communities. Its continued focus on empowering livelihoods and supporting grassroots economic activity further strengthens its position as a key enabler of broad-based national development.

Building on its strong 2025 performance, RDB is well-positioned to sustain its growth trajectory while reinforcing its developmental mandate. The bank will continue to scale inclusive finance, accelerate digital transformation, and strengthen operational resilience, ensuring its continued contribution to Sri Lanka’s long-term progress. The bank is poised to revolutionise the development banking arena in Sri Lanka with its ambitious plans for 2026.