Senkadagala Finance posts record Rs. 2 b Group profit after delivering its strongest-ever financial performance for the year ended 31 March 2026, supported by robust lending growth, improved asset quality and a stronger capital base. The results highlight the Company’s continued expansion as Sri Lanka’s economic environment gradually stabilises.
Senkadagala Finance posts record Rs. 2 b Group profit as assets exceed Rs. 57 billion
Senkadagala Finance PLC reported a Group profit after tax of Rs. 2.05 billion, representing a 16% year-on-year increase and the highest annual profit in its history. At the Company level, profit after tax reached Rs. 1.85 billion, up 14% from the previous financial year as lending activities gained momentum across its core business segments.
Independent Chairman N. Vasantha Kumar attributed the record performance to years of disciplined execution, prudent risk management and a consistent focus on sustainable growth.
He said the latest results demonstrate that the company continues to strengthen its position among Sri Lanka’s leading licensed finance company operators while maintaining financial resilience and long-term stability.
The Company’s balance sheet also recorded significant expansion during the financial year. Total assets increased 40% to Rs. 57.1 billion, surpassing the Rs. 50 billion milestone for the first time. The growth was primarily driven by higher activity in finance leasing and hire purchase facilities, reflecting stronger demand for vehicle and asset financing as business conditions improved.
Finance leasing and hire purchase advances grew from Rs. 26.5 billion to Rs. 34.6 billion, while net interest income rose 9% year-on-year to Rs. 6.25 billion.
Chief Executive Officer Keshav Balasuriya said the performance reflects the dedication of employees, the confidence of customers and the successful implementation of the Company’s long-term growth strategy.
He noted that the organisation remains focused on creating sustainable value while continuing to strengthen customer experience and expand its nationwide presence.
Financial performance indicators also remained ahead of industry averages during the year. The Company reported a return on equity of 16.42%, while its net interest margin reached 14.50%, significantly above the industry average of 10.01%. Its cost-to-income ratio improved to 42.62%, outperforming the sector average of 46.92%, highlighting effective cost management alongside business growth.
Asset quality also strengthened considerably during the year. The Gross Stage 3 loan ratio declined to 5.43% from 7.24%, reflecting disciplined lending practices, stronger underwriting standards and improved recovery efforts. Meanwhile, the Company maintained a total provision coverage ratio of 7.18%, demonstrating a prudent approach to managing credit risk.
Beyond its financial performance, Senkadagala Finance PLC continued to expand its physical presence across Sri Lanka. The Company opened 24 new branches during the financial year and reached a significant milestone with the opening of its 150th branch in June 2026.
Its workforce also expanded by 23%, increasing from 985 employees to 1,215, reflecting management’s confidence in future business growth and customer demand.
The Company further strengthened its capital position through a successful Rights Issue completed in February 2026, raising Rs. 1.035 billion in fresh equity. Total shareholders’ equity increased to Rs. 12.57 billion, providing additional capacity to support future lending while maintaining comfortable regulatory capital buffers.
Capital adequacy remained well above regulatory requirements, with the total capital adequacy ratio reaching 23.84%, compared with the minimum requirement of 12.50%. Available liquid assets stood at 485% of the required level, underscoring the Company’s strong liquidity position.
Adding further confidence, Fitch Ratings Lanka maintained the Company’s BBB (lka) credit rating with a Stable Outlook.
With Senkadagala Finance posts record Rs. 2 b Group profit, the Company enters the new financial year supported by a stronger balance sheet, expanded branch network and enhanced capital base. These achievements position the financial institution to pursue sustainable growth while continuing to create long-term value for customers, shareholders and other stakeholders.