CSE filing·Jul 14, 2026
MERCHANT BANK OF SRI LANKA & FINANCE PLC – RIGHTS ISSUE 2026
THE REFERENCE PRICE FOR THE COMMENCEMENT OF TRADING OF RIGHTS ENTITLEMENTSRights issue · 4:21 at Rs 10.00 · XD Jul 7, 2026
Merchant Bank of Sri Lanka & Finance PLC
MBSL.N0000Banks & Finance · Finance/Rental/Leasing
Rs 10.00
+0.00%as of Aug 3, 2026
Price history
+31.58%
P/E
31.6
P/B
1.20
EPS
Rs 0.32
Div Yield
0.00%
Market Cap
Rs 5.2B
Beta
0.68
ROE
3.5%
Op Margin
12.4% (+12.9pp)
Annual fundamentals
| Year | Revenue | Net profit | EPS |
|---|---|---|---|
| 2025 | Rs 3.5B | Rs 20.6M | 0.28 |
| 2024 | Rs 3.9B | Rs 265.6M | 0.50 |
| 2023 | Rs 3.0B | Rs -85.9M | -0.16 |
| 2022 | Rs 2.3B | Rs -309.5M | -0.62 |
| 2021 | Rs 3.5B | Rs 477.3M | 2.03 |
| 2020 | Rs 1.8B | Rs -909.1M | -4.71 |
| 2019 | Rs 2.6B | Rs -468.6M | -2.09 |
Recent dividends
- -Rs 0.50
About Merchant Bank of Sri Lanka & Finance PLC
Merchant Bank of Sri Lanka & Finance PLC is a Central Bank-licensed finance company listed on the Colombo Stock Exchange that provides a range of financial services across Sri Lanka. The Company offers corporate finance, capital market operations, leasing, trade finance and other merchant banking functions, together with retail and business lending products. MBSL operates through a network of 47 branches islandwide and provides specialised leasing for vehicles and equipment, a suite of loan products (including personal, term, short-term, auto and speed-draft facilities) and eco-friendly financing for solar PV systems and electric vehicles. The Company positions these products to serve both individual and business customers and to support vehicle and asset financing needs. The Group is a subsidiary of Bank of Ceylon and retains an insurance subsidiary (the proposed sale of which did not materialise during the reporting period). MBSL emphasises governance, risk management and sustainability in its operations and has implemented a core banking system to centralise operations and enhance customer experience.
AI analysis
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Generate an analysis →News sentiment
Describes news flow, not a forecastLast 30 days
More negative than usual for this company
its own lowits own high
Higher than 17% of its last 6 months · 14 of 19 in its sector
4 articles in 30 days: 1 positive, 1 negative, 2 neutral.
24 months positive negative 3-month net
Recent news
Daily FT·Jul 13, 2026·Management or board changePositive
Russel Fonseka new CEO at MBSLMerchant Bank of Sri Lanka & Finance PLC (MBSL) appointed veteran banker Russel Fonseka as Chief Executive Officer. Fonseka brings 30+ years' banking experience and was General Manager/CEO of Bank of Ceylon until August 2025.
CSE filing·Jul 7, 2026
Cessation of DirectorDaily FT·Jun 16, 2026·Credit rating actionNegative
Fitch: Higher gold-loan risk weights to have manageable impact on lenders’ capitalFitch says Sri Lanka's central bank tighter capital rules for gold-backed loans (10% risk weight for LTV<70% from 1 Sep) will be manageable for banks but hit finance companies harder; Asia Asset Finance, L B Finance, UB Finance, HNB Finance and MBSL face the largest capital impacts.
Gold & Pawning
Ada Derana·Jun 15, 2026·Credit rating actionNegative
Manageable Impact on Sri Lankan Lenders’ Capital from Higher Gold-Loan Risk WeightsFitch says Sri Lanka’s new risk weights for gold loans (10% for <70% LTV; 40% for 70–100% LTV; 100% for >100% LTV) will raise average risk density to ~12% for banks and ~26% for finance firms and could cut finance companies’ Tier‑1 ratios by ~1pp to a little over 5pp, with Asia Asset Finance most affected.
Gold & Pawning
EconomyNext·Jun 15, 2026·Credit rating actionNegative
Manageable impact on Sri Lanka lenders’ capital from higher gold-loan risk weights: FitchFitch says the CBCSL directive raising risk weights on gold-backed loans will raise average risk density to ~12% for rated banks and ~26% for finance companies, cutting banks' CET1 by ~2–35bp and finance companies' Tier‑1 by about 1pp–>5pp. Asia Asset Finance, L B Finance, UB Finance, HNB Finance and MBSL are singled out as most affected.
Gold & Pawning
CSE filing·Jun 4, 2026
Merchant Bank of Sri Lanka & Finance PLC - Right Issue 2026Rights issue · 4:21 at Rs 10.00 · XD Jul 7, 2026
CSE filing·May 5, 2026
Right Issue of Preference Shares to existing Ordinary shareholdersRights issue · 4:21 at Rs 10.00 · XD Jul 7, 2026
CSE filing·May 5, 2026
The disclosure has been published on the CSE website. Accordingly, the trading halt will be lifted with effect from 5th May 2026.Daily FT·May 5, 2026·Rights issuePositive
MBSL proposes Rs. 999.1 m Rights to shore up Tier I capitalMerchant Bank of Sri Lanka & Finance PLC (MBSL) proposed a Rs. 999.1 million rights issue of 99,912,312 non-redeemable preference shares at Rs.10 each. The raise, with dividends tied to the five-year Government securities yield plus 100bps (capped at Rs.1.05), is intended to bolster Tier I capital to meet Finance Companies Direction No.3 and address Central Bank restrictions.
Interest Rates
Banks & Finance sector: what is happening
Last 30 days to Aug 4, 2026Regulatory tightening dominated banks/finance as Cabinet named the SEC to regulate virtual asset service providers within a CBSL/FIU/IRD framework and approved a 2026-2030 national AML policy. The FIU flagged long-running trade-based money laundering via phantom imports, after probes found about $715m in fraudulent remittances. CBSL kept LTV caps on vehicle and gold loans. Services PMI signaled June expansion led by financial services.
The stories behind it
Auto-generated from 17 sector news articles over 30 days. Not investment advice. 2 more stories on the sentiment page.