LOLC Group posts Rs. 41 bn annual profit, driven by financial services and global acquisitions

Ishara Nanayakkara – Executive Chairman	Kapila Jayawardena – Group Managing Director

LOLC Group reported a profit after tax of Rs. 41 billion for the financial year 2024/25, marking an 89 percent increase from the previous year, supported by an operating profit of Rs. 48 billion. The performance was driven by continued growth in financial services, strategic acquisitions overseas, and improved macroeconomic conditions in Sri Lanka.

Present in over 25 countries, the Group has expanded its footprint across financial services, agriculture, plantation, automotive, manufacturing, construction, marine, power generation, pharmaceuticals, and leisure. 

Total assets rose 17 percent to Rs. 2.03 trillion, while shareholder equity grew 15 percent to Rs. 343 billion. The Group’s debt-to-equity ratio improved to 1.05 times from 1.2 times, reflecting stronger balance sheet fundamentals. In Africa, LOLC deepened its investment in the tea industry, building on the 2023 acquisition of Finlays’ Kenyan operations with further purchases of Lipton’s plantations in Kenya, Rwanda, and Tanzania. These moves underscore the Group’s growing focus on real economy sectors and its ambitions in the global tea value chain.

Domestically, LOLC increased its stake in Sierra Cables PLC to a controlling interest and, after the financial year closed, acquired ownership of Pussellawa Plantations and a controlling stake in Tea Smallholder Factories PLC. With these additions, the Group’s annual tea production capacity stands at approximately 100 million kilograms, cultivated across 100,000 hectares of plantation land. Financial services remained the Group’s primary profit contributor, accounting for Rs. 41 billion of the Rs. 52 billion profit before tax from continuing operations. LOLC Finance PLC led this segment, posting a pre-tax profit of Rs. 30.8 billion, a 23 percent year-on-year increase. Its loan book exceeded Rs. 305 billion and customer deposits stood at Rs. 225 billion. Asset quality improved, with the net non-performing loan ratio falling to 4.97 percent from 10.48 percent. The company reported a capital base of Rs. 150 billion, translating to a capital adequacy ratio of over 25 percent, above the regulatory minimum of 17 percent. The Group’s financial services arm continues to expand across high-growth, underserved markets in South Asia, Southeast Asia, Central Asia, and Africa, while actively assessing new opportunities in South America to scale its inclusive lending model.

Outside of financial services, the manufacturing and trading segment posted Rs. 4.2 billion in operating profit before interest, benefitting from Sri Lanka’s economic recovery. The leisure and entertainment businesses recorded Rs. 2.8 billion in operating profit before interest, aided by a rebound in international tourist arrivals in Sri Lanka, the Maldives, and Mauritius. In plantations, Udapussellawa Plantations PLC and Hapugastenne Plantations PLC posted pre-tax profits of Rs. 883 million and Rs. 614 million respectively. 

The Group plans to implement Sri Lankan operational standards across its new African plantation assets.

Ishara Nanayakkara appointed Executive Chairman

LOLC Holdings PLC yesterday announced the appointment of Ishara Chinthaka Nanayakkara as Executive Chairman with immediate effect. 

The decision, made by the Board on 5 June, 2025, follows a review and recommendation by the Nominations and Governance Committee, the company said in a disclosure to the Colombo Stock Exchange (CSE). Nanayakkara, who previously served as Executive Deputy Chairman, was first appointed to the Board in 2002. In line with Listing Rule 9.10.3, LOLC said it had appointed a Senior Independent Director in October 2023 to ensure compliance with governance requirements. Nanayakkara also serves as Executive Chairman of Browns Investments PLC and Brown & Company PLC, and holds board positions in several other group companies.