LOLC Group delivers strong operating growth as diversified platform gains further scale, supported by expanding operations across multiple sectors and regions. The group reported significant improvements in operating profitability, revenue generation, and asset growth for the financial year ended March 31, 2026.
LOLC Group delivers strong operating growth as diversified platform gains further scale in FY2026
LOLC Holdings PLC strengthened its position as one of Sri Lanka’s largest diversified conglomerates by delivering robust operational performance across its financial services, manufacturing, agriculture, insurance, and leisure businesses during FY2026.
The group reported a 49 percent increase in results from operating activities, reaching Rs. 71.5 billion compared to Rs. 47.9 billion recorded in the previous financial year. Gross income rose 28 percent year-on-year to Rs. 430.3 billion, reflecting the continued expansion of the company’s diversified business portfolio spanning 27 countries.
Operating profit before depreciation and amortisation increased significantly to Rs. 88.8 billion from Rs. 60.6 billion in FY2025, highlighting improved operational efficiency and stronger earnings generation across the group.
According to the latest LOLC Holdings financial results, net interest income grew to Rs. 119.9 billion from Rs. 105.6 billion, while revenue increased to Rs. 158.2 billion from Rs. 109.2 billion. Gross profit also improved substantially to Rs. 61.4 billion compared to Rs. 43.5 billion in the previous year.
Profit after tax was reported at Rs. 23.4 billion. The company noted that year-on-year comparisons were influenced by one-off gains recognised during the previous financial year, making operating performance a more meaningful indicator of underlying business growth.
The Sri Lanka financial services segment remained the group’s largest contributor, generating operating results of Rs. 51.7 billion compared to Rs. 39.2 billion a year earlier. The division’s total asset base expanded from Rs. 1.09 trillion to Rs. 1.36 trillion, reflecting continued growth across its extensive network operating in 21 countries throughout Asia, Central Asia, and Africa.
The company also disclosed that strategic assessments are underway regarding potential expansion into Latin American markets, further reinforcing its international growth ambitions.
A notable improvement was observed in asset quality, with net impairment losses on financial assets declining to Rs. 15.9 billion from Rs. 18.8 billion despite a significant increase in lending activity. Advances and other loans grew to Rs. 981.8 billion from Rs. 751.4 billion during the year.
The manufacturing and trading segment delivered one of the strongest performances within the group. Operating results increased more than eightfold to Rs. 9.2 billion compared to Rs. 1.1 billion in FY2025. Gross income from the segment rose to Rs. 76.6 billion from Rs. 50.0 billion, while profit before operating expenses climbed to Rs. 25.3 billion from Rs. 14.7 billion.
The plantation and agriculture sector also recorded a remarkable turnaround. The segment posted an operating profit of Rs. 1.7 billion after reporting a loss of Rs. 5.1 billion in the previous year. Gross income increased to Rs. 88.2 billion from Rs. 55.2 billion, while profit before operating expenses surged to Rs. 48.5 billion from Rs. 29.6 billion.
The group’s agricultural operations continue to be supported by an extensive tea cultivation portfolio spanning approximately 100,000 hectares across Kenya, Tanzania, Rwanda, China, and Sri Lanka, producing nearly 100 million kilograms of tea annually.
The insurance business maintained stable profitability, contributing operating results of Rs. 1.5 billion during the year.
Meanwhile, the leisure and real estate division generated operating results of Rs. 2.0 billion, slightly higher than the Rs. 1.9 billion reported in FY2025. During the year, the group completed the divestment of the Barceló Whale Lagoon Maldives Resort for US$ 57.5 million while continuing development activities at the Marina Port City project and commissioning the Newburgh Ella property.
The latest LOLC Holdings financial results also highlighted the benefits of its global diversification strategy. Foreign currency translation gains from overseas subsidiaries contributed Rs. 24.0 billion to other comprehensive income, helping total comprehensive income rise to Rs. 47.2 billion.
Excluding investment-related gains, adjusted total comprehensive income reached approximately Rs. 45 billion, representing nearly a threefold increase compared to the adjusted Rs. 16 billion recorded in FY2025.
The balance sheet remained strong, with consolidated total assets expanding to Rs. 2.32 trillion from Rs. 2.03 trillion, largely driven by growth in the loan portfolio. Net asset value per share increased to Rs. 822.46 from Rs. 721.16, reflecting enhanced shareholder value.
As LOLC Group delivers strong operating growth as diversified platform gains further scale, the company appears well-positioned to leverage its diversified business model, international footprint, and strengthening balance sheet to pursue future growth opportunities across multiple markets and industries.