Lanka Rating Agency assigns strong A- Entity Rating to Vallibel Finance

From left: FM Chethana Yapa, AGM-Company Secretary Lakmini Kottegoda, Senior DGM Finance and Admin Menaka Sameera, COO Rohan Tennakoon, Rating Analyst Imran Iqbal, Vallibel MD Jayantha Rangamuwa, LRA CEO Dr. Kenneth De Zilwa, Rating Analyst Ruwanthi Sylva, Compliance Officer Ayesha Hettiarachchi and Head of Ratings Gayani Ariyawansa

• Affirms robust market position and financial strength

Lanka Rating Agency Ltd (LRA), the independent credit rating authority of Sri Lanka, has assigned a long-term Entity Rating of A- with a Stable Outlook to Vallibel Finance PLC. 

This rating reflects Vallibel Finance’s solid creditworthiness, strong capacity for timely financial commitments and its robust governance and business performance.

The upgraded A- Entity Rating recognises Vallibel Finance’s extensive market presence as a mid-sized licensed finance company with an asset share of 5.3 percent in the industry. The company’s loan portfolio is well-diversified across vehicle loans, auto drafts, gold loans and leases, which collectively constitute over 94 percent of its lending book. Superior asset quality, demonstrated by a consistently low non-performing loan ratio well below industry benchmarks, supports this rating.

Financially, Vallibel achieved a significant 22.8 percent increase in profit after tax for FY25 reaching Rs.2,629 million, driven by higher interest income and efficient asset-liability management. Net interest income grew by 15.9 percent to Rs.8,118 million, with an improved net interest spread of 7.8 percent in FY25, reflecting effective operational efficiency amid favourable interest rate conditions. The company also maintains adequate capitalisation with a Tier I capital adequacy ratio of 16.5 percent, above regulatory minimums.

Corporate governance is a key strength for Vallibel Finance, with a well-structured board comprising experienced professionals and robust risk management frameworks overseen by several dedicated committees. The company’s commitment to enhancing digital services, expanding into underserved markets, and diversifying its financial product offerings—including plans to grow its gold loan segment to nearly one-third of its portfolio—illustrate strategic growth aligned with maintaining asset quality and capital adequacy.

Vallibel Finance Managing Director S.B. Rangamuwa said, “This milestone is collective efforts of the entire Vallibel team, highlighting their dedication, commitment to excellence and alignment with the company’s vision for sustainable growth.” 

Lanka Rating Agency Chief Executive Officer Dr. Kenneth De Zilwa added, “Vallibel Finance PLC’s upgraded Entity Rating reflects the company’s robust business model, stable earnings growth and prudent risk management practices, which are fundamental to financial stability within Sri Lanka’s licensed finance sector.”