News & market updates

Rights issue · 2:9 at Rs 5.50 · XD Jun 2, 2026

National Development Bank listed 5,308,377 ordinary voting shares effective April 10 from a scrip dividend (1:80.4180744886808); its stock traded at 116.75 (up 3.00). Ceylon Land & Equity listed 614,156,734 shares after a rights issue that raised 4,299,097,138 rupees, and trading in HNB Finance was halted pending disclosure.

Colombo Stock Exchange closed up: ASPI +1.30% (284.12 pts) to 22,128.66. Top contributors included John Keells, Melstacorp and National Development Bank; turnover was Rs5.016bn and HNB Finance announced a Rs2,499,529,714 rights issue (2 for 9).

President Dissanayake chaired a meeting with bank and financial institution heads to promote the National QR Payment Promotion Initiative; CBSL Governor Weerasinghe said shifting from ATM cash services to the new digital method will cut banks' ATM costs and provide a more efficient, secure payment option.

President Anura Kumara Dissanayake chaired a meeting with bank and financial institution heads to launch the National QR Payment Promotion Initiative and seek banking sector support for rapid adoption. The Central Bank said the shift will reduce ATM cash transaction costs and offer a more efficient, secure payment method.

HNB PLC has partnered with David Pieris Automobiles to offer exclusive leasing solutions for GWM vehicles in Sri Lanka, effective 23 February 2026, providing competitive lease terms, flexible payment/residual options, discounted insurance via HNB General Insurance and complimentary life cover via HNB Assurance.

HNB Finance PLC and Hayleys Mobility (Hayleys PLC) have formed a strategic partnership to expand Sri Lanka's NEV market by offering tailored leasing with preferential rates, doorstep services and value-added after-sales support, including complimentary registration and a 7kW home charger.

The ASPI rose 1.13% to 22,833.53 as Colombo stock market extended its rebound in a second session, with turnover near Rs.5.7bn and foreign net inflows of Rs.189.4m. Gains were led by John Keells, DFCC, NDB and Commercial Bank, with HNB Finance among top turnover contributors.

HNB Finance PLC (HNBF.N0000) won the Silver Award in the Finance Companies and Leasing Companies sector (Total Group Assets LKR 25–75 billion) at the TAGS Awards 2025. The company also received Certificates of Recognition for Corporate Governance Disclosure – Financial Services and Integrated Reporting, its fourth consecutive TAGS award.

Senior bankers at the Association of Professional Bankers convention urged caution, prioritising balance-sheet discipline—liquidity, capital buffers, and managing interest-rate and FX exposure—over rapid expansion. Speakers also highlighted selective growth, risk-adjusted returns, and greater use of digital capability and sustainable debt instruments.

HNB PLC reported Group profit after tax of Rs 49.8 Bn for 2025 and proposed a total dividend of Rs 20.00 per share. Group gross loans topped Rs 1.5 Tn, deposits reached Rs 1.96 Tn, Net Stage 3 ratio improved to 1.09%, and net fee income rose 28.9%.

Banks across Sri Lanka are intensifying AML/CFT controls ahead of the country's third mutual evaluation, warning a negative outcome would damage financial credibility and access to funding. Leading banks such as DFCC and HNB report system upgrades, AI-backed transaction monitoring, stronger KYC/UBO processes and mock evaluations.

HNB Finance PLC reported PAT of Rs. 1.15 billion for the nine months to 31 Dec 2025, up 152% YoY, with PBT of Rs. 1.88 billion (up 209%). Assets rose 46% to Rs. 85.6bn and deposits grew 45% to Rs. 61.0bn; loan book +53% (leasing +81%, gold loans +52%).

HNB Finance PLC reported PAT of Rs.1.15bn for the nine months to 31 Dec 2025, up 152% YoY (PBT Rs.1.88bn, +209%). Assets rose 46% to Rs.85.6bn, deposits +45% to Rs.61.0bn, net interest income +52% to Rs.6.03bn; leasing +81%, gold loans +52%.

HNB MD/CEO Damith Pallewatte highlights HNB’s Sarusara agripreneur programme (15,000 participants to date, 30,000 target) and a 2026–2030 strategic plan. He warns of banking-sector challenges (liquidity, asset quality, digital risk) and urges ecosystem-building across exports, agriculture, tourism and digital services.

The Colombo Stock Exchange closed down for a second session as the ASPI fell 0.43% (103.17 pts) to 23,651.09 with turnover over Rs.3.54bn and foreign net selling of Rs.465.9mn. Top negatives included SFCL, CARG, CFIN and DOCK, while RAL and EMER were among gainers.

HNB CEO Damith Pallewatte said exceptional loan growth in 2025 and a shift from government securities to lending are squeezing bank margins, tightening liquidity and raising funding costs. He warned deposit and lending rates are rising and that vehicle imports and lower single-borrower limits are reshaping credit and capital markets.

The inaugural Sri Lanka Fintech Summit 2025 set industry priorities and KPIs, recommending bank–fintech partnership frameworks, a national cloud policy, digital ID expansion, CBDC research and a target to reduce cash-in-circulation from 4.5% to 3.5% of GDP in three years. Sessions included CBSL, the Ministry of Digital Economy, BOI and banking leaders.

Seminar on safeguards under the amended Companies Act No. 12 of 2025 will be held on 27 Jan (2–5pm) at NH Collection, Colombo 3. Organisers say the amendments place new responsibilities and stricter penal sanctions on company secretaries and directors; speakers include HNB and LOLC Insurance chairs.

HNB Group's HNB General Insurance and HNB Stockbrokers signed a strategic partnership to offer general insurance products to the stockbrokers' clients, creating a one-stop financial ecosystem. The move aims to strengthen group cross-selling and integrated financial services for investors.

HNB Finance PLC marked its 25th anniversary by organising multi-faith religious programmes for employees, customers and stakeholders at its head office and regional branches to invoke blessings and celebrate the milestone.

HNB PLC has partnered with Hayleys Fentons to offer tailored EV leasing, discounted insurance and complimentary life cover (Rs.600,000 natural death; Rs.4,500,000 accidental), plus a 7kW charger and service benefits to support EV adoption.

HNB Finance PLC (HNBF) marked its 25th anniversary with multi-faith religious programmes at its head office and regional branches to invoke blessings for employees, customers and stakeholders as part of its milestone celebrations.

HNB Finance PLC won Second Runner Up (joint) for Best Integrated Report – Finance and Leasing Sector and received a Merit Award at the CMA Excellence in Integrated Reporting Awards 2025. The awards recognise its reporting quality, corporate governance, ESG integration and digital reporting improvements.

Colombo market slid as the ASPI fell 0.80% (182.14 pts) to 22,662.09 and turnover dropped to about Rs.2.34 billion, a near five-month low. Banking counters (SAMP, COMB, HNB) and names including RICH, Hemas, Access Engineering, ACL Cables and Diesel & Motor drove the declines and top turnover.

Hatton National Bank MD/CEO Damith Pallewatte set out HNB's 'Road to 2030', prioritising digitalisation and remittance-capture as growth drivers and citing worker remittances up ~20% y/y to nearly $6.5bn. He urged banks to align with Budget 2025 targets including a 12% digital-economy goal and DPI like SL-UDI and asset registries.

HNB Finance PLC reported Profit After Tax of Rs. 620.43 million for 1H FY2025/26, up 129% YoY, with PBT rising 160% to Rs. 1,645.70 million. Gross income grew 29% to Rs. 8,089.25 million, driven by 36% loan growth (57% in leasing), a 34% rise in deposits and a 45% jump in net interest income.