Softlogic Finance to reduce stated capital and write off Rs. 7.6 b retained loss

Friday, 12 December 2025 00:22 - - {{hitsCtrl.values.hits}}

Softlogic Finance PLC yesterday announced that its Board of Directors has resolved to reduce the company’s stated capital to write off accumulated losses of over Rs. 7.6 billion, which have constrained its ability to pay dividends. The retained loss figure is as at 31 July 2025.

To rectify this and tidy the balance sheet, the Directors have proposed reducing stated capital from over Rs. 9.93 billion to Rs. 2.33 billion, enabling the full set-off of carry-forward losses. The company said the adjustment will not change the number of issued and fully paid shares, which remains at 962,573,191.

Softlogic Finance confirmed that it has received written approval from the Central Bank of Sri Lanka under Section 18(2) of the Finance Business Act No. 42 of 2011. The company stressed that the reduction does not involve any return of funds to shareholders and will not affect ownership or voting rights.

It added that the proposal, subject to the required corporate approvals, is intended to strengthen its capital position and support the resumption of dividend distributions when profitability improves.

Softlogic Capital PLC is the major shareholder at 92.53% on a public float of 5.08%. Softlogic Finance reported a net assets value per share at Rs. 3.06 as of end-September 2025. It reported an after-tax profit of Rs. 7.38 million for the six months to end-September 2025, down sharply from Rs. 37.9 million a year ago.

For the year to end-March 2025, the company reported an after-tax profit of Rs. 145 million, the first time the bottom line was in green since 2019.