Sampath Bank PLC has become the first bank in Sri Lanka to introduce integrated PayPal withdrawal and account connectivity capabilities through Sampath Vishwa, marking a major advancement in Sri Lanka’s digital banking landscape and expanding access to secure global payments.

Sri Lanka’s digitally connected workforce and business community continue to expand across international marketplaces and cross-border industries. Growth in freelancing, entrepreneurship, online commerce, exports, and remote work has increased demand for trusted international payment channels. Sampath Bank’s collaboration with PayPal responds directly to this shift, enabling greater financial connectivity between Sri Lanka and the global economy while supporting foreign currency inflows into the country.

Commenting on the launch, Sanjaya Gunawardana, Managing Director and Chief Executive Officer of Sampath Bank PLC, said, “Digital access should never limit Sri Lankan talent from participating in the global economy. Our collaboration with PayPal represents an important step towards helping individuals and businesses engage confidently with international markets through secure and convenient banking. Sampath Bank remains committed to presenting the future for our customers through meaningful digital innovation that supports entrepreneurship and strengthens Sri Lanka’s growing digital economy.”

Commenting on the partnership, Amir Valliani, Vice President and General Manager of PayPal, said, “PayPal’s partnership with Sampath Bank marks an important step in expanding secure and trusted access to global payments for customers in Sri Lanka. This collaboration represents an important milestone for Sri Lanka, helping freelancers, entrepreneurs, start-ups and businesses to easily connect to international opportunities and access their earnings with greater convenience and confidence. We are excited to support Sri Lanka’s growing digital economy and the talented communities driving its global participation.”

The integration enables customers to securely link their PayPal accounts to the Sampath Vishwa Mobile App and withdraw funds directly into their Sampath Bank accounts in LKR or USD. Customers without a PayPal account can initiate setup directly through the platform, simplifying access for first-time users entering the global digital marketplace.

Designed for freelancers, entrepreneurs, SMEs, exporters, online sellers, and digital professionals, the solution delivers a seamless experience while maintaining the high standards of security, reliability, and compliance associated with Sampath Bank’s digital banking services.

Extensive collaboration, regulatory engagement, and investments in digital infrastructure supported the development of the initiative, ensuring compliance with evolving international payment requirements. The launch further reinforces Sampath Bank PLC’s position as a future focused banking leader committed to accelerating digital adoption and delivering innovative financial solutions for emerging customer needs.

The initiative enables Sri Lankan individuals and businesses to compete and grow beyond borders with greater confidence while supporting the continued development of the country’s freelance, entrepreneurial, and export-oriented sectors.

Driven by its brand promise, “We Present Your Future,” Sampath Bank PLC continues to invest in banking solutions that enhance convenience, accessibility, and financial empowerment for customers across Sri Lanka.

The post Sampath Bank launches PayPal integration to expand global payment access for Sri Lankans appeared first on Newswire.

Financial Performance

Sampath Bank reported Total Operating Income of Rs 28.5 Bn for the quarter ended 31st March 2026, supported by steady growth in Net Interest Income (up 5%) and Net Fee and Commission Income (up 28%) year-on-year. Notwithstanding this performance, Profit After Tax (PAT) declined by 26% to Rs 6.2 Bn, due to significantly higher impairment provisions of Rs 4.5 Bn recognised in response to the continued expansion of the loan book and taking into account the evolving geopolitical conditions. Additionally, one-off gains from the disposal of Treasury Bills and Bonds moderated to Rs 0.7 Bn in 2026, a decrease of Rs 2.0 Bn compared to the elevated levels recorded in the previous year.

The Bank’s total asset base crossed the Rs 2 Tn milestone for the first time, representing a significant achievement supported by strong loan growth of Rs 127 Bn in the first quarter of 2026.

The Sampath Group delivered a Profit Before Tax (PBT) of Rs 9.4 Bn and a Profit After Tax of Rs 6.8 Bn for the quarter ended 31st March 2026.

Fund Based Income

The Bank reported total interest income of Rs 46.5 Bn, reflecting year-on-year growth of 6%. This increase was primarily driven by the expansion of the loan portfolio during the reporting period and in the latter part of the previous year, compared to the negative loan growth recorded in the corresponding period of the previous year, as well as an upward movement in the Average Weighted Prime Lending Rate (AWPLR).

Interest expense for the quarter also increased by 6% to Rs 26.4 Bn, reflecting growth in both deposit and borrowing portfolios. As a result, Net Interest Income (NII) stood at Rs 20.1 Bn, an increase of 5% compared to the corresponding quarter of the previous year.

The Net Interest Margin (NIM) contracted marginally by 2 basis points to 4.09%, from 4.11% reported for 2025. This decline was primarily attributable to lower yields across the Bank’s investment portfolio, reflecting reduced rates in the Government Securities portfolio compared to the previous period.

Non-Fund Based Income

During the three month period ended 31st March 2026, the Bank’s total non-fund based income declined marginally by 4% to Rs 8.3 Bn, mainly due to a decrease in capital gains from the sale of Treasury bills and bonds. Capital gains declined from Rs 2.7 Bn in 1Q 2025 to Rs 0.7 Bn in 1Q 2026, representing a year-on-year decline of 75%.

Net fee and commission income, driven by credit expansion, higher trade volumes and increased card usage, recorded a robust growth of 28% across all income channels, reaching Rs 6.1 Bn by the end of the quarter.

The Bank recorded a total exchange gain of Rs 1.5 Bn during the first quarter of 2026, reflecting a year-on-year increase of 24%. This increase was primarily attributable to the depreciation of the Sri Lankan Rupee against the USD by Rs 5.52 during the quarter.

Impairment Charge

In the first quarter of 2026, the Bank reported a total impairment charge of Rs 4.5 Bn, reflecting an increase of Rs 4.6 Bn when compared to the reversal of Rs 0.2 Bn reported in the previous period.

Impairment charge on loans and advances

The Bank recorded an impairment charge of Rs 4.1 Bn on loans and advances, compared to a reversal of Rs 0.1 Bn reported in 1Q 2025, driven by significant (10.4%) expansion of the loan portfolio and the resultant collective impairment requirements. Even though this growth has resulted in higher provisioning requirements, it is expected to generate net positive results during the current financial year.

Furthermore, the Bank continued its policy of conservative provisioning and an additional overlay allowance of Rs 1.5 Bn was recognised as a prudential measure in response to heightened geopolitical uncertainties. This forward-looking approach reflects the Bank’s commitment to prudent credit risk management, ensuring adequate buffers and resilience against potential adverse developments in the operating environment and the broader global landscape.

The Bank also conducted a comprehensive review of its ISL customers, allocating prudent provisions in its Financial Statements based on each customer’s unique credit risk profile. This targeted assessment reinforces the Bank’s disciplined risk management practices and its focus on maintaining financial stability in a challenging global context.

Impairment charge on other financial instruments

An impairment charge of Rs 0.4 Bn was recognised against other financial instruments during 1Q 2026, primarily due to new investments made during the quarter.

Operating Expenses

During the quarter, operating expenses increased by 19% year on year, driven primarily by costs related to the rollout of new strategic initiatives. The increase was mainly attributable to salary enhancements granted in 2025, the expansion of the cadre to undertake new initiatives and support business growth, and higher investments in technology. These strategic long-term investments are expected to deliver enhanced income in the coming years.

As growth in operating expenses outpaced the improvement in operating income, primarily due to the decline in one off disposal gains recorded in 2025, the Bank’s cost to income ratio (CIR) deteriorated by 620 basis points, increasing from 38.8% in 1Q 2025 to 45.0% in 1Q 2026.

Taxation

The total tax expense for the period amounted to Rs 5.0 Bn, representing a year on year decline of 43%, mainly attributable to lower profits and the finalization of prior period tax assessments.

Key Ratios

The Return on Average Shareholders’ Equity (after tax) stood at 14.05% as at 31st March 2026, compared to 17.93% as at 31st December 2025. Similarly, the Return on Average Assets (before tax) declined to 1.68% from 2.60% reported as at 31st December 2025.

Capital and Liquidity

The Bank maintained all capital ratios well above the regulatory minimum requirements. As at 31st March 2026, the CET 1, Tier 1 and Total Capital ratios stood at 13.17%, 13.17% and 15.79%, respectively, compared to 14.75%, 14.75%, and 17.65% as at year end 2025. The decline in capital ratios was primarily due to the increase in risk-weighted assets arising from substantial loan growth during the quarter.

Liquidity levels remained robust, with the All-currency Liquidity Coverage Ratio (LCR) at 187.87% and the Net Stable Funding Ratio (NSFR) at 161.30% as at 31st March 2026, both comfortably above the regulatory minimum requirement of 100%.

The recognition of profit for capital purposes under Basel III following audit certification, together with the proposed Tier II debenture issue, is expected to further strengthen the Bank’s capital position during the remainder of the year.

Assets

During the reporting period total assets grew by 6%, reflecting an annualized growth of 24%, to Rs 2.1 Tn as at 31st March 2026, supported by the expansion of the loan portfolio. Gross loans increased by Rs 127.5 Bn, from Rs 1,223.6 Bn at end 2025 to Rs 1,351.1 Bn. This growth was primarily driven by a Rs 105 Bn increase in LKR denominated loans, while FCY loans recorded a modest increase of Rs 22 Bn during the period.

Liabilities

The Bank’s total liabilities increased by 7% since year end 2025, reflecting an annualized growth rate of 28%, to Rs 1.92 Tn as at 31st March 2026. This growth was primarily driven by the expansion of the deposit portfolio. Deposits increased by Rs 69 Bn from Rs 1.65 Tn at year end 2025 to Rs 1.72 Tn as at 31st March 2026. The increase was mainly driven by LKR denominated deposits, which contributed Rs 49 Bn, while foreign currency deposits increased by Rs 20 Bn.

Dividend

At the Annual General Meeting held on 30th March 2026, the shareholders of Sampath Bank approved a first and final cash dividend of Rs 10.30 per share for the financial year 2025. The Bank consequently recognised a provision of Rs 12.1 Bn in the 1Q 2026 Financial Statements to facilitate the payment of the approved final dividend to shareholders.

Commitment to Stakeholder Well-being

Reinforcing its environmental leadership, Sampath Bank became the first Sri Lankan bank to obtain ISO 14001:2015 certification across its Head Office and branch network. It also deepened its commitment to responsible business by joining the UN Global Compact Sri Lanka as a Patron on Diversity & Inclusion and Water & Ocean Stewardship, while partnering with NCPC Sri Lanka to raise awareness among Corporate and SME clients on low-carbon transition and sustainable business models.

The Bank continues to advance its sustainability agenda through its infrastructure rejuvenation programme, “Wewata Jeewayak”, marked by the completion of its 40th tank restoration, providing significant support for agricultural and community development in Sri Lanka. This initiative, together with the Bank’s ongoing programmes in coral restoration, turtle conservation, reforestation, mangrove restoration and other environmental and community projects, establishes Sampath Bank as a key contributor to environmental and social sustainability in the country.

As part of its ocean plastic reduction efforts, a Material Recovery Facility (MRF) established in Batheegama, Dickwella, in partnership with an organisation with aligned sustainability objectives, was officially handed over to the community.

Sampath Bank advanced its sustainability agenda during the period, strengthening sustainable finance, climate governance and operational performance. The Bank expanded ESG linked credit screening in line with the best global practices and successfully implemented SLFRS S1 and S2 under its Climate First Action Plan, enhancing climate related governance, risk management and reporting.

As part of its contribution to green finance, Sampath Bank launched a Green Fixed Deposit supported by a comprehensive Green Deposit Framework, which obtained independent limited assurance at the pre-issuance stage, thereby enhancing credibility and stakeholder confidence.

The post Resilience Amidst Geopolitical Headwinds: Sampath Bank Posts Rs 6.2 Bn PAT in Q1 2026 appeared first on Newswire.

LOLC Finance PLC has been ranked 14th overall, in the prestigious ‘Top 100 Most Valuable Brands of Sri Lanka’ and number one in the Non-Banking Financial Services (NBFI) sector list by Brand Finance, featured in the August Edition of Echelon Magazine. The brand valuation assessment revealed LOLC Finance achieved a brand rating of AA+, with a strong brand value of Rs. 11,528 Million. This honour not only reaffirms LOLC Finance’s position among the nation’s most elite brands but also establishes its undisputed dominance in the Non-Banking Financial Institution sector, securing the top spot with a commanding lead over competitors in the overall rankings.

Brand Finance’s annual Sri Lanka Top 100 Most Valuable Brands study is among the country’s most stringent and comprehensive brand valuation assessments, evaluating brands on their financial performance, stability, market recognition, credibility, and consumer trust, while benchmarking them against industry peers and global standards. For LOLC Finance, this recognition is more than a ranking: it is a testament to sustained market leadership, unmatched brand equity, and a proven record of delivering transformative value to customers and communities alike.

Commenting on the achievement, Mr. Krishan Thilakaratne, Chief Executive Officer of LOLC Finance, stated, “This recognition is a powerful endorsement of our position as Sri Lanka’s undisputed NBFI leader. LOLC Finance accounts for 20% of total industry assets, 25% of industry liabilities, and 36% of total profitability. Among the 35 players in the NBFI industry, LOLC Finance is the market leader in SME Finance, Personal Finance, Islamic Finance, Factoring, Agricultural Product Financing, and several other market segments in Sri Lanka. Furthermore, our digital footprint is recognized as the largest in the Sri Lankan digital banking space, with our iPay platform handling over 60% of e-wallet transactions in the country. Our vision is to enhance financial inclusion in Sri Lanka by extending formal financial services to all segments of society. The Brand Finance ranking affirms what our customers, stakeholders, and partners already know: LOLC Finance is not just a financial services provider, and it is a force shaping the future of the NBFI sector in Sri Lanka.”

More than just transactions, we are focused on building strong relationships, shaping financial journeys, and cherishing shared ambitions,” stated Mr. Prasad Perera, Assistant General Manager, Marketing Communications, LOLC Finance PLC. “Our customers increasingly see us as their dedicated partner, advisor, and guide, helping them make life’s most important financial decisions with confidence. As a comprehensive one-stop solution for all financial needs across all walks of life, LOLC Finance leverages its strong brand equity for sustainable growth.Our short-term marketing strategies are powerfully leveraged by having such a solid brand, we fundamentally believe in and continuously invest in long-term brand building to ensure we achieve the optimal marketing mix. Our integrated communication campaigns consistently generate a positive Return on Investment (ROI) for the company, both in the short and long term. As we continue to grow, we will uphold these connections, solidifying our position as Sri Lanka’s most valuable financial services provider.”

With this latest listing, LOLC Finance will continue its commitment to financial excellence, customer-centric innovation, and long-term value creation. The prestige of being recognised as Sri Lanka’s Most Valuable NBFI, while simultaneously securing the 14^th position among the nation’s elite Top 100 brands, stands as both a milestone and a motivator, propelling the brand to continue setting benchmarks in service, trust, and market leadership within Sri Lanka’s financial landscape.

The post LOLC Finance Crowned Sri Lanka’s No. 1 NBFI Brand, appeared first on Newswire.

Cargills Bank proudly marks its 11th anniversary, celebrating over a decade of inclusive and transformative banking that continues to reshape access to financial services across the island.

Established in 2014 with a mission to empower progress in every Sri Lankan life it touches, the Bank has steadily grown into a trusted financial institution, redefining convenience and accessibility in banking.

At the heart of Cargills Bank’s success is its innovative supermarket banking model, a first of its kind initiative in Sri Lanka. This model integrates financial services into the daily lives of customers by placing banking facilities within the Cargills Food City supermarket network. Today, the Bank operates 26 branches and over 530 agency banking points, ensuring a widespread and inclusive presence across both urban and rural areas.

Serving a diverse customer base including individuals, small businesses, and corporates Cargills Bank offers a comprehensive suite of financial products. Its supermarket banking channel is not only a convenient solution for retail banking but also plays a critical role in corporate services, offering efficient cash management and collection solutions.

Cargills Bank continues to invest in digital innovation, delivering secure, user friendly platforms for online and mobile banking. Its remittance services have become a reliable bridge for Sri Lankans overseas to support their families, enhancing cross border financial connectivity.

Despite facing industry wide challenges over the past year, Cargills Bank remains committed to progress through resilience, transparency, and stakeholder trust. The Bank’s continued success is driven by its values, dedicated employees, loyal customers, and supportive partners.

This commitment was reflected in several recent accolades, including:

• Merit Award for Technology Resilient Company of the Year – Digital Trust Awards 2024

• Silver Award – CA Sri Lanka TAGS Awards 2024

• Special Recognition – SLITAD People Development Awards 2023/24

These honours underscore Cargills Bank’s dedication to technological advancement, good governance, and human capital development.

Looking to the future, the Bank aims to support Sri Lanka’s economic recovery by responding to the evolving financial needs of individuals and businesses alike. Backed by a strong capital base and a disciplined growth strategy, Cargills Bank is positioned to make an even greater contribution to the nation’s development.

In keeping with its purpose driven ethos, Cargills Bank has expanded its CSR and sustainability initiatives, including:

• Infrastructure donations to under-resourced schools

• Financial literacy programs for marginalized communities (e.g., waste collectors)

• Environmental awareness campaigns to promote green banking

• Youth-focused outreach to instill responsible saving habits early

To commemorate this milestone, Cargills Bank is also rolling out special customer offerings such as high yield fixed deposits, exclusive card promotions, attractive loan packages, raffle draws, and personalized investment planning tools further enriching the financial journeys of its customers.

Reflecting on the journey, Senarath Bandara, Managing Director/CEO of Cargills Bank, shared:

“As we celebrate 11 years since our founding, I am filled with gratitude for the trust placed in us by our customers, partners, and team. Our journey has been one of both challenges and progress but through it all, we’ve remained true to our mission of making banking more inclusive, accessible, and impactful. Looking ahead, we are committed to being a resilient and responsible financial partner in Sri Lanka’s future. Together, we will continue to grow stronger.”

As it enters its second decade, Cargills Bank reaffirms its commitment to innovation, inclusive progress, and the belief that banking can be a powerful force in uplifting communities across Sri Lanka.

The post From Supermarkets to Smart Banking: Cargills Bank Marks 11 Years of Innovation appeared first on Newswire.