Sri Lanka’s finance company sector expanded sharply in the year to June, with total assets rising 41% year-on-year (YoY) to Rs. 3.2 trillion, driven by a 47.8% expansion in lending, the latest Central Bank of Sri Lanka (CBSL) data showed.
The sector’s loan book reached Rs. 2.6 trillion by end-June, while other investments rose 19.7% YoY to Rs. 434 billion and other assets increased 25.9% to Rs. 148.6 billion. Total assets stood at Rs. 2.8 trillion a year earlier.
Funding growth was also strong, with total deposits rising 22.9% YoY to Rs. 1.43 trillion. Borrowings for on-lending more than doubled, increasing 124% to Rs. 1.05 trillion, indicating that the rapid expansion of the sector’s balance sheet was increasingly supported by borrowed funds alongside deposits.
Equity capital increased 13.4% YoY to Rs. 578.2 billion.
Earnings continued to improve, although at a slower pace than balance sheet growth. Net interest income rose 27.6% YoY to Rs. 72.7 billion, while Profit Before Tax increased 17.4% to Rs. 39.9 billion. Profit After Tax grew 16.4% to Rs. 21 billion.
Asset quality strengthened alongside the expansion in credit. Gross non-performing loans (NPLs) declined to 5.1% at end-June 2026 from 8.3% a year earlier, while Stage 3 NPLs fell to 3% from 4.5%.
The latest CBSL release did not provide updated indicators for the banking sector.