Alliance Finance Company PLC (AFC) has set a new benchmark in the financial services industry by becoming one of the first institutions in Sri Lanka to fully and voluntarily adopt SLFRS S1 and S2 – the local equivalents of the International Sustainability Standards Board’s (ISSB) Global Sustainability Disclosure Standards.
This move reflects AFC’s strong commitment to transparency, climate resilience, and global ESG alignment, with its FY2024/25 Annual Report embedding climate and sustainability-related financial disclosures into the company’s core reporting framework.
Complementing this sustainability leadership, AFC recorded its strongest-ever financial performance in the year ending 31st March 2025. The company’s Profit After Tax rose by 89% to reach LKR 1.73 billion, while Total Assets expanded by 36% to LKR 81.6 billion, and the Lending Portfolio grew to LKR 62.5 billion, up from LKR 46.1 billion the previous year. AFC also significantly strengthened its profitability metrics, with Earnings per Share nearly doubling to LKR 51.45 and Return on Equity reaching 19.84%. Notably, the company achieved one of the lowest Gross NPL ratios in the sector at 4.70%, a remarkable improvement from 9.38% the previous year, underscoring its prudent risk management and high-quality portfolio.
Further supporting its sound financial standing, Lanka Rating Agency upgraded AFC’s credit rating from BBB- (Negative) to BBB (Stable). The rating reflects AFC’s established presence, improved profitability, better asset quality and focus on sustainable financing solutions.
These achievements highlight AFC’s ability to scale responsibly, remain financially resilient, and set new standards for sustainability-focused governance in Sri Lanka’s financial services landscape.
As AFC looks to the future, it remains committed to driving inclusive and sustainable financial growth, enhancing stakeholder trust, and contributing meaningfully to Sri Lanka’s transition toward a climate-conscious and inclusive economy.
About Alliance Finance Company PLC (AFC)
Founded in 1956, Alliance Finance Company PLC is Sri Lanka’s oldest non-banking financial institution, with a legacy spanning over 69 years. The company offers a wide range of financial solutions including savings and fixed deposits, leasing, sustainable mobility solutions, MSME loans, solar loans, microfinance and climate adaptive agri-financing.
As the first financial institution in South Asia to be certified under the Sustainability Standards and Certification Initiative (SSCI), AFC integrates the Triple Bottom Line philosophy – people, planet, and profit – into every facet of its operations. Adding to many firsts, Alliance Finance Company recently, launched Sri Lanka’s first Social Bond. With 91 branches across the country and a strong reputation for trust, compliance, and innovation, AFC continues to be a pioneer in ethical and impact-driven finance, contributing to inclusive growth and sustainable development in Sri Lanka.
