LOLC Finance posts record Rs.25bn profit

Chairman  Conrad Dias

Director/CEO Krishan Thilakaratne

LOLC Finance PLC set a new benchmark in the non-bank financial institution (NBFI) sector by reporting an outstanding profit after tax of Rs.25 billion for the financial year ending March 31, 2025.

This marks an impressive increase from Rs.21.5 billion recorded during the previous financial year, delivering a double-digit profit growth. Surpassing a historic milestone, this performance is a clear affirmation of LOLC Finance’s transformation into a financial powerhouse, one that has begun to transcend the traditional boundaries between banks and NBFIs, now competing on par as a national economic pioneer and a true peer to Sri Lanka’s leading banks.

This resounding performance is the outcome of a robust, visionary strategy anchored in financial inclusion, digital innovation and sectoral leadership. With a loan portfolio exceeding Rs.305 billion and a deposit base of Rs.225 billion, LOLC Finance has displayed a level of financial strength that places the company in direct comparison with the nation’s leading banks.  Notably, another standout financial indicator reported by the company during the period is its net nonperforming loan ratio, which stood at 4.97 percent, an outstanding improvement from 10.48 percent reported during the year prior. 

The steady growth in the company’s lending and deposit portfolios stands as a reflection of the brand value and loyalty among its customers that LOLC Finance has cultivated across its journey. It is symbolic of its role as a critical intermediary in channelling financial resources towards the SME, microfinance, agriculture, Islamic finance, working capital, factoring, personal loans, gold-backed credit and vehicle financing sectors – sectors essential to Sri Lanka’s economic landscape.  

LOLC Finance’s transformation is both structural and strategic. Following the successful consolidation of four leading regulated NBFIs, the company has architected a unique financial model that bridges the gap of conventional banking, delivering accessible, equitable and scalable financial solutions across Sri Lanka. The company has also emerged as Sri Lanka’s largest credit card issuer among the NBFIs, a testament to its comprehensive retail offering. With a commanding market share of over 20 percent, in terms of total assets, liabilities and profits, LOLC Finance contributes as a dominant force reshaping the financial services landscape. “These outstanding results are not only a reflection of our financial strength; they are a clear projection of LOLC Finance’s institutional resilience, strategic vision and firm commitment to serving the people of Sri Lanka,” stated LOLC Finance Director/CEO Krishan Thilakaratne.

“At LOLC Finance, we do not merely follow industry trends; we set them. As Sri Lanka looks toward sustainable recovery and inclusive growth, LOLC Finance emerges not just as a participant but also as a catalyst, redefining financial norms, broadening opportunity and shaping a resilient economic future for all,” said LOLC Finance Chairman Conrad Dias.