News & market updates

The Compliance Forum (FHA) held Compliance Symposium 2025 on 17 June with over 250 professionals from all 32 Licensed Finance Companies, and unveiled an AML/CFT Code of Conduct and a consolidated Handbook for Compliance Officers to strengthen sector compliance.

Colombo market turned more bearish as the ASPI fell 1.22% (S&P SL20 down 1.11%) on turnover of Rs. 3.9bn, with HAYL, CTHR, SAMP, DFCC and HNB exerting selling pressure; JKH, L B Finance and CTC also recorded price declines.

ASPI fell 0.4% and the S&P SL20 fell 0.7% as Colombo stocks extended losses amid heightened Israel‑Iran tensions. Turnover was Rs.3.15bn; top negative contributors included HNB, COMB, LOLC, HAYL and CTC, while CDB, Hemas, LVL Energy Fund and Lanka IOC saw notable buying/turnover.

Colombo market slipped as the ASPI fell 1.3% (234 pts) to 17,427 and the S&P SL20 dropped 1.6%, with turnover around Rs.4 billion. Diversified financials led turnover while HNB, MELS, DFCC, SAMP and JKH pressured the index; Capital Alliance and Central Finance saw notable moves.

LOLC Finance PLC's Wadi'ah Gold Storage Facility has surpassed a Rs. 3 billion benevolent cash-advance portfolio. The facility offers up to 90% cash advances against stored gold and the company plans technology-driven cash-advance and settlement enhancements.

LOLC Finance PLC will repurchase 3,519,065,138 shares at Rs6 each, about 10.6% of issued shares. The offer is effective from June 30 to July 8; the share was trading at Rs6.10 on Thursday.

LOLC Finance PLC approved a share buyback of up to 3,519,065,138 shares at Rs. 6.00 per share to be conducted between 30 June and 8 July 2025. The board approved the plan on 9 June 2025 and the Central Bank's Department of Supervision of Non-Bank Financial Institutions issued a no-objection letter on 29 May 2025.

LOLC Finance (LOFC) will repurchase 3,519,065,138 shares at Rs.6 each (≈Rs.21.1bn), equal to a 10.6% stake, with the offer running from 30 June to 8 July. The regulator has allowed the proposal to proceed subject to other regulatory requirements; LOFC noted it is currently non-compliant with minimum public holding.

The Colombo Stock Exchange ASPI closed marginally up at 17,661.45 (+0.02%) while the S&P SL20 fell to 5,275.01 (-0.21%) and turnover dropped to 3.6 billion rupees. Movers included L B Finance, Sampath Bank and Central Finance rising; LOLC Finance announced a share buyback and Vidullanka listed a 500 million-rupee Sukuk.

LOLC Group posted a PAT of Rs.41 billion for FY2024/25 (up 89%) and lifted total assets to Rs.2.03 trillion. LOLC Finance PLC recorded a pre-tax profit of Rs.30.8 billion with NPLs falling to 4.97%, while the group expanded plantation holdings and boosted hospitality and manufacturing contributions.

LOLC Holdings PLC has appointed Ishara Nanayakkara as Executive Chairman with immediate effect. He previously served as Executive Deputy Chairman and brings over two decades of leadership, notable expansion into MSME finance and renewable energy, and experience diversifying the Group's businesses.

Colombo market extended gains as the ASPI rose 0.33% and the S&P SL20 0.19% on turnover of Rs.4.3 billion, while foreigners were net sellers of Rs.162.7 million. Hemas, Commercial Bank, Aitken Spence, Sampath and Digital Mobility were top contributors; John Keells and Hatton National Bank fell.

LOLC Finance PLC reported PAT of Rs.25.0 billion for the year ended 31 Mar 2025 (up from Rs.21.5b), with a loan portfolio >Rs.305b, deposits >Rs.225b and net NPL at 4.97%.

Colombo Bourse opened the week higher: ASPI +0.1% and S&P SL20 +0.3% with turnover Rs. 2.6bn, led by banking stocks (Pan Asia, Commercial Bank, Seylan, HNB) and gains in John Keells and C T Holdings.

The ASPI fell 120 points (0.75%) to 15,842 as investors reacted to the ruling NPP's weaker-than-expected LG poll showing, with turnover of Rs. 3.2bn. Major drags included JKH, CINS, COMB, SPEN and SAMP while Food, Beverage & Tobacco led turnover (61%).

The SEC, with ADB technical support, released a regulatory framework enabling issuance and trading of Green, Blue, Social and Sustainability‑Linked (GSS+) bonds on the Colombo Stock Exchange, allowing sovereigns and corporates to raise capital for environmental and social projects.

LOLC Finance opened a new branch in Badalkumbura (the first NBFI there) and relocated its Hakmana branch, taking its network to over 200 branches. The new outlets will offer savings, loans, leasing, card facilities and gold loans to improve financial access in underserved areas.

Colombo bourse rose as the ASPI gained 69 points (0.44%) to close at 15,811 on turnover of Rs. 2.79bn, while foreigners were net sellers (net outflow Rs. 101.4m). John Keells, Hemas, Vallibel Finance and Commercial Bank were among top contributors, with capital goods leading turnover and diversified financials and food/beverage active.

Colombo market stayed bearish as the ASPI fell 43 points (0.28%) and the S&P SL20 dipped 0.68% on turnover of Rs.991.4m, with foreign net selling of Rs.63.4m. Banking names (COMB, HNB, NDB) and JKH weighed on the index while pockets of interest were seen in CINS, ASIR and COCR and retail interest in PAP, LVEF and LOFC.

Sri Lanka's ASPI rose 0.67% (104.32 pts) to 15,630.52 as apparel and export stocks fell while financial stocks gained. Teejay Lanka and Hayleys Fibre slid, while Central Finance, NDB and LOLC Finance were among gainers; several finance names saw high volumes.

Colombo stock market plunged over 2% as the ASPI fell 350 points after the US imposed reciprocal tariffs on Sri Lanka, hitting export-oriented counters. Turnover rose to Rs.3.8bn with heavy selling in Commercial Bank, Hayleys, Melstacorp, HNB and Sampath, while a 38% TSML stake sale by JKH drove turnover.

Commercial Bank of Ceylon PLC won the Overall Gold Award for Excellence in Digital Payments at the LankaPay Technnovation Awards 2025. LOLC Finance PLC won Overall Gold in the Non‑Bank Financial Institutions category, with DFCC, L B Finance, Seylan, Amana and Hatton National Bank among other winners.

LOLC Finance (LOFC) exited its 40% stake in Commercial Insurance Brokers Ltd. for Rs. 333 million. The stake was acquired by CIBL itself; Commercial Bank retains 60%, and CIBL reported post-tax profit of Rs.45.192m and assets of Rs.834m for the year ended 31 Dec 2024.

LOLC Finance (LOFC.N0000) disposed its entire 40% stake in Commercial Insurance Brokers for Rs.332,880,000 on 31 March 2025. The company said the transaction is subject to compliance with regulatory requirements.

Commercial Bank of Ceylon PLC won the Overall Gold Award for 'Excellence in Digital Payments' at the LankaPay Technnovation Awards 2025. Other shortlist winners included DFCC Bank, Hatton National Bank, Seylan Bank, Amana Bank, LOLC Finance, L B Finance and Dialog Finance.