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LB Finance
LB Finance
LB Finance
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L B Finance PLC sometimes spelt LB Finance, is a Sri Lankan non-bank financial institution. The company is incorporated in 1971 and initially, the majority of shares were held by Lewis Brown & Company. The company was listed on the Colombo Stock Exchange in 1997. In 2003, Dhammika Perera acquired the company and became a subsidiary of Vallibel One. Currently, the company is one of the components of the S&P Sri Lanka 20 Index. Brand Finance ranked the company 24th in the 100 most valuable brands in Sri Lanka.[2] The company placed 39th in the LMD 100 for the financial year 2019/20.[3]

Key Information

History

[edit]

L B Finance was incorporated in 1971 and in 1997 was listed on the Colombo Stock Exchange. Initially, Lewis Brown & Company held the majority (94.9%) of the company's shares. In 1994, Vanik Corporation acquired the company and in 2003 Dhammika Perera took over the company and subsequently became a subsidiary of Vallibel One. The company became the second-largest licensed finance company.[1] A premier customer centre was opened in Cinnamon Gardens exclusively for high-value clients. The centre is geared with an eco-friendly and luxurious setting.[4] In January 2021, the company announced a four-for-one stock split and it resulted in a 38% share price rise.[5]

Operations

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L B Finance's headquarters is located in Dharmapala Mawatha, Kollupitiya and the 100th branch office was opened in Jaffna. The company is taking part in the Sri Lanka Interbank Payment System.[1] At the 2021 SLIM-Nielsen Peoples Awards, L B Finance bagged the financial service provider of the year award.[6] Fitch Ratings affirmed A- rating for the company in September 2021 and the outlook was adjudged as stable.[7] K Seeds Investments, a Sri Lankan boutique investment bank ranked L B Finance the best performing finance company in the category of companies which asset base is greater than one billion rupees. The company has recorded a LKR1.34 billion profit for the first quarter of the financial year 2021/22, the highest among the 29 listed finance companies.[8][9] L B Finance secured a US$15 million loan from FMO, a Dutch bank, to support the small and medium enterprise sector.[10] L B Finance donated a ventilator to Maharagama Apeksha Hospital during the COVID-19 pandemic.[11] LB Finance bought a controlling stake in Multi Finance in 2022. LB Finance acquired 64% of the Stake in Multi Finance for LKR400 million from Fairway Holdings.[12]

On 26 November 2025, it was reported that LB Finance has completed the acquisition of Associated Motor Finance Company PLC in a deal worth over Rs. 4.1 billion (approximately US$13.37 million).[13]

See also

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References

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[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

LB Finance

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from Grokipedia
LB Finance PLC is a prominent non-banking headquartered in , , specializing in providing diversified financial solutions to individuals, small and medium-sized enterprises (SMEs), and corporations. Incorporated on 30 May 1971 as a private , it transitioned to a in 1982 and was listed on the in 1997, marking its evolution into one of the country's largest finance companies with total assets of Rs. 241 billion and profit after tax of Rs. 10.8 billion as of March 2025. The company offers a comprehensive suite of products, including fixed deposits, savings accounts, loans, home loans, , and financing, alongside innovative digital services such as the Cash In Mobile for contactless transactions. With a network of over 200 branches across and a presence in since 2018, LB Finance emphasizes transparency, sustainability, and technological innovation, earning recognitions like the FITIS Digital Excellence Awards and NBQSA National ICT Awards in 2021–2022, as well as the Digital Trust Awards and National ICT Awards in 2024. Its financial stability is underscored by strong profitability and asset quality, as affirmed by ratings agencies, positioning it as a key player in Sri Lanka's non-bank financial sector.

History

Incorporation and Early Years

LB Finance PLC was incorporated on May 30, 1971, as a private under the Companies Ordinance No. 51 of in , initially named LB Finance Limited. The company was established with its registered office at No. 101, Vinayalankara Mawatha, 10, and focused primarily on providing hire-purchase financing for vehicles and machinery, alongside leasing and lending services tailored to individual and business needs in the urban financial landscape. At inception, the majority shareholding of 94.9% was held by Lewis Brown & Company Limited, which provided the foundational ownership structure and strategic direction for the nascent operations centered in . In its early years, LB Finance commenced operations with a single center in Maradana, , emphasizing accessible financial solutions such as vehicle leasing and equipment hire-purchase to support Sri Lanka's growing transportation and industrial sectors. The company gradually expanded its branch network to other urban areas, including key locations in and surrounding regions, to enhance service delivery and build customer trust as a reliable . By 1982, it transitioned to a public on September 29, reflecting its stabilizing operations and increasing market presence. The headquarters was later established at No. 20, Dharmapala Mawatha, , 03, serving as the central hub for administrative and operational activities during this foundational period. A significant milestone came in 1997 when LB Finance achieved public company status through its listing on the on December 30, under the ISIN LK0301N00008, marking the culmination of its early growth phase and enabling broader access to capital markets. This listing solidified its position as a key player in Sri Lanka's non-bank financial sector, with initial operations laying the groundwork for later diversification into a wider array of services.

Ownership Changes and Expansion

In 1994, Vanik Incorporation Limited acquired the in LB Finance, marking a significant shift in ownership that injected new entrepreneurial energy into the company. This acquisition paved the way for operational enhancements and eventual rebranding to LB Finance PLC, aligning with its evolving structure as a listed on the in 1997. By 2003, controlling ownership transitioned to prominent Sri Lankan entrepreneur , who acquired an 83% stake and integrated LB Finance as a key subsidiary within the PLC group, the primary holding entity overseeing diversified investments across manufacturing, leisure, and . Under this structure, LB Finance has contributed substantially to the group's diversification strategy, leveraging its financial expertise to support broader portfolio growth while maintaining a 51.75% stake held by and minority interests from entities like Royal Ceramics Lanka PLC. Strategic expansions during this period included venturing into small and medium-sized enterprise (SME) financing to bolster economic accessibility for businesses, alongside international outreach through the establishment of a 100% owned , LB Microfinance Myanmar Company Limited, in December 2017 to tap into 's market. In 2022, LB Finance further consolidated its position by acquiring a 64.63% stake in Multi PLC for approximately LKR 400 million, enhancing its leasing and lending capabilities in line with approvals. Key milestones underscored this growth trajectory, such as the opening of the 100th branch in in 2015, which extended the company's network into northern and symbolized its nationwide reach, and the introduction of Sharia-compliant Islamic finance products in 2010, including Ar Rahnu gold loans and Mudarabah investment accounts to serve diverse customer segments.

Recent Developments

In response to the , LB Finance donated a Hamilton C3 model mechanical to Maharagama Apeksha in 2020 as part of its efforts to support Sri Lanka's healthcare system. The company implemented a 4-for-1 share split effective in January 2021, subdividing each ordinary share into four shares, which led to a 38% increase in the share price to Rs. 320.50 and boosted . To navigate the economic challenges posed by Sri Lanka's 2022 financial crisis, LB Finance secured a US$15 million loan facility from the Dutch entrepreneurial development bank FMO in 2021, specifically earmarked for expanding micro and small-to-medium enterprise (SME) lending to promote . LB Finance opened a premier customer center in , , designed exclusively for high-value clients with eco-friendly and luxurious facilities to enhance service delivery. In July 2025, the board re-designated Lakshitha Priyantha Bandara Talwatte as a , effective from July 1, reflecting adjustments in . Later in 2025, LB launched a voluntary offer to acquire all 113,327,268 ordinary voting shares of Associated Motor PLC at Rs. 50 per share, valuing the transaction at approximately Rs. 5.6 billion, aiming to consolidate its position in the sector. To bolster its funding base amid ongoing economic recovery, the company announced a dual-tranche listed issue in October 2025, comprising up to 100 million senior debentures and 100 million subordinated debentures, targeting a total raise of LKR 20 billion with approval.

Operations

Core Products and Services

LB Finance PLC provides a diverse range of financial products and services tailored primarily for individuals and businesses in , focusing on leasing, lending, savings, and specialized financing options. These offerings are delivered through three main business clusters: investing, financing, and value-added services, enabling the company to support personal and commercial financial needs. In the leasing segment, LB Finance offers for various models, featuring hassle-free documentation and 24-hour processing times to facilitate quick access to transportation. Additionally, asset financing covers machinery and equipment, providing flexible repayment plans for business acquisitions. These leasing products target individuals seeking personal mobility and enterprises requiring operational assets. The lending portfolio includes agreements, personal loans for urgent needs, and vehicle loans with competitive rates and top-up options for existing leases. Specialized lending extends to power drafts, which allow customers to obtain cash against assets like vehicles or with monthly interest payments only, and factoring services that advance funds against invoices to improve business . These options primarily serve individuals for personal financing and businesses for management. Savings and deposits products encompass fixed deposits with attractive profit-sharing features and tenure options from one to 60 months, alongside standard savings accounts for secure fund accumulation. The innovative CIM enables contactless transactions, bill payments, and instant fund transfers, enhancing accessibility for everyday banking. These instruments cater to savers prioritizing reliability and convenience. Specialized services include Sharia-compliant Islamic finance products such as leasing for vehicles and equipment, financing for property and commodities, Mudarabah savings accounts, and Wakala term investments. For small and medium enterprises (SMEs), the LB Sanmitha suite offers tailored solutions like gold loans, business loans, and integrated savings to address micro-business growth needs. LB Finance also participates in the Sri Lanka Interbank Payment System (SLIPS), enabling secure electronic fund transfers and interbank connectivity. Digital innovations further streamline services through the LB Connect web portal, which supports transaction management, account monitoring, and enhanced for users handling day-to-day finances online. The CIM mobile app complements this by allowing seamless digital account openings, loan disbursements, and real-time payments without branch visits. These tools target tech-savvy individuals and businesses seeking efficient, secure financial management.

Network and Geographic Reach

LB Finance maintains an extensive domestic presence in through a network of 216 branches as of March 31, 2025, enabling widespread access to across urban and regional areas. The company's is located at No. 20, Mawatha, 03, in the heart of the commercial district of , facilitating centralized operations and oversight. Branches are concentrated in key urban centers such as , which hosts multiple locations to serve high-density customer bases, while regional hubs in provinces like the Western, Central, and Southern regions support broader coverage. This infrastructure underscores LB Finance's commitment to , with a notable emphasis on expansion into underserved areas, including the opening of three new branches in the Northern and Eastern Provinces during the 2024/25 . Internationally, LB Finance has established a foothold in through its wholly-owned subsidiary, LB Microfinance Myanmar Company Limited, which operates 20 branches primarily in the Bago, Magway, Ayeyarwady, and regions as of March 31, 2025. This subsidiary focuses on to empower rural communities, with plans to expand to 25 branches by the end of 2025/26, targeting additional regions such as Tanintharyi. The Myanmar operations complement the Sri Lankan network by extending LB Finance's model of inclusive lending to emerging markets, serving over 31,000 customers, more than 95% of whom are women. Complementing its physical infrastructure, LB Finance enhances nationwide accessibility through digital platforms, including the CIM via the LB CIM App, which supports contactless transactions, applications, bill payments, and management for over 200,000 users. The LB Connect portal further enables remote customer interactions and service delivery, reducing reliance on physical visits and promoting efficiency across the island. With approximately 4,407 employees as of March 31, 2025—primarily dedicated to , operations, and branch management—LB Finance sustains this integrated network to drive growth in underserved regions like Northern , where 12 branches now operate, including key locations in , Pallai, and Poonakary. This strategy prioritizes inclusive finance by targeting areas historically limited in access to formal .

Financial Performance

LB Finance PLC reported strong financial results for the ended March 31, 2023, with total income reaching LKR 42.756 billion, driven primarily by interest income from loans and leases. Profit after tax for the year stood at LKR 8.460 billion, reflecting robust operational efficiency amid economic challenges. Total assets grew to LKR 183.018 billion, supported by expanded lending portfolios, while total equity was LKR 38.324 billion. In the fiscal year ended March 31, 2025, the company achieved further growth, with total income increasing to LKR 46.731 billion and profit after tax rising to LKR 10.806 billion, marking a 12% year-on-year improvement. Total assets expanded significantly to LKR 240.890 billion, and total equity reached LKR 51.266 billion, underscoring enhanced capital strength. For the second quarter of fiscal 2025 (ended September 30, 2024), (EPS) was LKR 4.52, up from LKR 4.17 in the prior year's corresponding quarter, indicating sustained profitability momentum. Revenue is predominantly derived from leasing activities, which accounted for approximately 22% of interest income through rentals receivable (LKR 9.393 billion in 2023), followed by lending via loans and receivables (LKR 27.109 billion in 2023). Savings and deposit mobilization contribute indirectly by funding these operations, with fee and commission income from related services adding LKR 2.986 billion in 2023. Post-2022 economic recovery in fueled growth in small and medium enterprise (SME) loans, particularly through digital platforms like the LB CIM app, boosting volumes by over 20% year-on-year in subsequent periods. Profit trends demonstrate resilience following the downturn, with net profit recovering from LKR 6.803 billion in to LKR 8.662 billion in , supported by operational adaptations that earned multiple awards in for reporting and innovation. This upward trajectory continued into 2025, with reaching 22.77%.
Fiscal Year Ended March 31Total Income (LKR billion)Profit After Tax (LKR billion)Total Assets (LKR billion)Total Equity (LKR billion)
202342.7568.460183.01838.324
202546.73110.806240.89051.266
LB Finance's shares are listed on the under the ticker LFIN.N0000, with a 4-for-1 share split implemented on March 16, 2021, aimed at enhancing and accessibility for retail investors. The company maintains a of 3.89%, paid semi-annually, with the most recent ex- date of July 1, 2025, for an annual payout of LKR 6.50 per share. Looking ahead, LB Finance's performance is projected to align with Sri Lanka's GDP growth of 4.3% in 2025, as forecasted by Fitch Ratings, benefiting from improved economic stability and lending demand.

Corporate Affairs

Governance and Leadership

LB Finance PLC is governed by a board of 12 directors, comprising a mix of four executive directors and eight non-executive directors, with four of the non-executive directors classified as independent, representing approximately 33.33% of the board. Recent changes include the re-designation of Lakshitha Priyantha Bandara Talwatte as a non-independent non-executive director on July 1, 2025, the resignation of Yanika Amarasekera as independent non-executive director effective September 24, 2025, and the appointment of Prof. Kasun De Zoysa as an independent non-executive director on October 29, 2025. The board meets at least 12 times annually to oversee strategy, risk management, compliance, and performance, supported by seven sub-committees including audit, integrated risk management, and nomination committees. This structure ensures a balance of skills in areas such as finance, banking, audit, and legal expertise, while promoting gender and age diversity among members. Leadership is headed by Chairman G.A.R.D. Prasanna, who provides strategic oversight, and Managing Director Niroshan Udage, who assumed the role on July 1, 2025, succeeding Sumith Adhihetty after the latter's nearly two-decade tenure. A notable change in board composition occurred on the same date, with Lakshitha Priyantha Bandara Talwatte re-designated as a non-independent non-executive director, reflecting adjustments to align with regulatory and ownership considerations. As a of PLC, which holds a 51.75% stake, LB Finance operates under the ultimate controlling interest of entrepreneur through his investment vehicles. Governance practices emphasize compliance with Colombo Stock Exchange Listing Rule No. 9, the Finance Business Act Direction No. 5 of 2021, and the , including adherence to ethical standards and transparent reporting. The company maintains a focus on ethical financing, such as customized products for small and medium-sized enterprises (SMEs), while upholding a code of conduct reviewed annually to manage conflicts of interest and ensure integrity. Employee oversight involves managing a of 4,407 staff (as of 31 March 2025), with policies prioritizing diversity, inclusion, and through regular programs aligned with goals. The board's committee monitors these initiatives to foster an equitable and support long-term talent retention.

Ratings, Awards, and Recognition

As of September 2025, LB Finance PLC holds a National Long-Term Rating of 'A-(lka)' from Fitch Ratings, with a stable outlook; the rating was upgraded from 'BBB+(lka)' in January 2025 following a recalibration of Sri Lanka's national rating scale, reflecting the company's strong profitability and asset quality relative to peers. Fitch's affirmation in September 2025 maintains the stable outlook, supported by the company's diversified funding and prudent risk management amid economic recovery. The company has received notable accolades for its service excellence and innovation. In 2021, LB Finance was named Financial Service Provider of the Year at the SLIM-Nielsen Peoples Awards, recognizing its customer-centric approach for the third consecutive year. In October 2025, it earned the Gold Award for Best Managed AI & Data Science Project at the National Project Management Excellence Awards, highlighting its advancements in data-driven financial solutions. Brand valuations underscore LB Finance's market prominence. Brand Finance ranked it 23rd among Sri Lanka's 100 most valuable brands in 2025, valuing its contributions to the financial sector at Rs. 6,232 million. It also placed 39th in the LMD 100 rankings for the 2019/20 financial year, affirming its position among leading listed entities. Additional recognitions emphasize LB Finance's societal impact. The company secured a USD 15 million loan facility from FMO in 2021 to expand micro and SME lending, bolstering in industry analyses. During the , it donated mechanical ventilators and ICU beds worth over Rs. 25 million to national health facilities, as noted in sector reports on corporate contributions. As a key player in Sri Lanka's non-bank financial institutions sector, LB Finance emphasizes in digital services, including leasing and platforms, enhancing for underserved segments.

References

  1. https://www.lbfinance.com/
  2. https://www.lbfinance.com/history
  3. https://www.lbfinance.com/investor-relations
  4. https://www.lbfinance.com/newsroom/achievements
  5. https://www.fitchratings.com/research/non-bank-financial-institutions/lb-finance-plc-21-10-2024
  6. https://www.dailymirror.lk/print/economy/lb-finance-doubles-profit/126-9910
  7. https://cdn.cse.lk/cmt/upload_report_file/379_1717508534238.pdf
  8. https://www.lbfinance.com/about
  9. https://www.cse.lk/pages/company-profile/company-profile.component.html?symbol=LFIN.N0000
  10. https://www.sundaytimes.lk/031019/ft/1.htm
  11. https://sustainability.lbfinance.com/wp-content/uploads/2021/07/Manufactured-Capital.pdf
  12. https://www.marketscreener.com/quote/stock/MULTI-FINANCE-PLC-20706445/news/LB-Finance-PLC-COSE-LFIN-N0000-entered-into-memorandum-of-understanding-to-acquire-a-64-62-stake-37747541/
  13. https://www.sundaytimes.lk/100627/BusinessTimes/bt12.html
  14. https://www.ft.lk/Front-Page/LB-Finance-share-sub-division-boosts-price-to-all-time-high/44-712240
  15. https://www.fmo.nl/project-detail/59713
  16. https://www.dailymirror.lk/business-news/LB-Finance-secures-US-15mn-FMO-loan-to-support-SME-sector/273-211346
  17. https://cdn.cse.lk/cmt/upload_report_file/379_1593489222503.pdf
  18. https://economynext.com/sri-lankas-l-b-finance-to-raise-upto-rs20bn-in-dual-tranche-debenture-sale-243108/
  19. https://www.lbfinance.com/leasing/ijarah
  20. https://www.lbfinance.com/loan/vehicle-loans
  21. https://www.lbfinance.com/loan/power-draft
  22. https://x.com/LBFinancePLC
  23. https://www.lbfinance.com/fixed-deposits/wakala-term-investments
  24. https://www.lbfinance.com/savings/lb-cim-digital-bank-account
  25. https://www.lbfinance.com/sanmitha
  26. http://www.sundaytimes.lk/131103/business-times/lb-finance-signs-up-with-lanka-clear-to-become-a-slips-participant-67560.html
  27. https://lbeconnect.com/
  28. https://lbcim.com/
  29. https://www.lbfinance.com/si/blog/what-are-digital-banking-solutions-and-why-they-are-important
  30. https://cdn.cse.lk/cmt/upload_report_file/379_1749137525707.pdf
  31. https://vallibelone.com/storage/group_company_annual_reports/reports/66f637ea2a88b.pdf
  32. https://www.lbfinance.com/file/lb-finance-interim-financials-september-2024
  33. https://sustainability.lbfinance.com/wp-content/uploads/2025/07/Doc-38.pdf
  34. https://cdn.cse.lk/cmt/upload_report_file/379_1654606529390.pdf
  35. https://www.investing.com/equities/lb-finance-historical-data-splits
  36. https://stockanalysis.com/quote/cose/LFIN.N0000/dividend/
  37. https://www.fitchratings.com/research/non-bank-financial-institutions/lb-finance-plc-01-09-2025
  38. https://sustainability.lbfinance.com/wp-content/uploads/2025/07/Doc-19.pdf
  39. https://www.marketscreener.com/quote/stock/LB-FINANCE-PLC-20702788/news/LB-Finance-PLC-Approves-the-Re-Designation-of-Lakshitha-Priyantha-Bandara-Talwatte-as-a-Non-Independ-50400412/
  40. https://www.marketscreener.com/news/lb-finance-plc-announces-resignation-of-yanika-amarasekera-as-independent-non-executive-director-ce7d5bd2d08fff27
  41. https://www.ft.lk/financial-services/Cyber-security-specialist-Prof--Kasun-De-Zoysa-appointed-to-LB-Finance-Board/42-783713
  42. https://www.lbfinance.com/board-of-directors
  43. https://www.ft.lk/front-page/Niroshan-Udage-appointed-LB-Finance-MD-from-1-July/44-778106
  44. https://www.marketscreener.com/quote/stock/LB-FINANCE-PLC-20702788/news/LB-Finance-PLC-Announces-Reconstitution-of-Committees-49810050/
  45. https://sustainability.lbfinance.com/wp-content/uploads/2023/12/Attachment-27-Social-and-Relationship-Capital.pdf
  46. https://www.fitchratings.com/research/structured-finance/fitch-upgrades-10-sri-lankan-nbfis-ratings-affirms-8-following-national-scale-recalibration-24-01-2025
  47. https://www.ft.lk/financial-services/LB-Finance-re-conquers-SLIM-People-s-Award-for-Financial-Services-Provider-of-the-Year-2021/42-715556
  48. https://www.lbfinance.com/newsroom/achievements/national-project-management-excellence-awards
  49. https://economynext.com/sri-lankas-top-100-most-valuable-brands-by-brandfinance-234554/
  50. https://lmd.lk/lmd-100-second-board-201920/
  51. http://island.lk/lb-finance-donates-over-25m-worth-of-ventilators-to-support-sri-lanka-combat-covid-19/
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