Vallibel Finance to raise  Rs. 2.1bn in second rights issue to support lending growth

By Shabiya Ali Ahlam

Vallibel Finance PLC is turning to its shareholders once again to fund its next growth phase, announcing a Rs. 2.12 billion Rights Issue.

The aim is to strengthen its core capital base as it pushes deeper into Sri Lanka’s financial services market.

The non-bank lender will issue 29.43 million new ordinary voting shares at Rs. 72 each, offering one share for every eight held, in what marks its second rights issue. The move is designed to bolster Tier I capital,  a critical buffer for lending expansion and regulatory strength,  positioning the company to scale operations while maintaining balance sheet resilience.

Managing Director Jayantha Rangamuwa told a press briefing that while Vallibel Finance is targeting faster growth, it will steer clear of mergers and acquisitions, opting instead for organic expansion.

While outlining plans to increase the branch network to 100 by its 20-year milestone, he shared the company is also eyeing geographic diversification, with efforts underway to establish a presence in the Northern region by the first half of the financial year ending 2027.

The capital raise comes at a time when non-bank financial institutions are recalibrating for a post-crisis environment marked by tighter regulation and renewed credit demand. Strengthening Tier I capital is expected to enhance Vallibel Finance’s lending capacity while cushioning it against potential shocks.

Re-launched in 2007 under Chairman Dhammika Perera, the company has scaled rapidly, becoming one of Sri Lanka’s top five finance companies and the fastest in the sector to surpass Rs. 100 billion in assets within 17 years. It currently operates a network of 87 branches and employs over 2,200 staff, giving it reach across urban and underserved markets.

An “A-” (LRA) credit rating and “A” brand rating underscore its financial discipline, while continued investments in digital platforms signal a shift towards tech-led service delivery,  a key differentiator as competition intensifies.