COLOMBO, Sri Lanka – 28 August 2026 – Mercantile Investments and Finance PLC (MI), a cornerstone of Sri Lanka’s financial services sector for over six decades, today announced the release of its Annual Report for the financial year ended 31 March 2026. The report, themed “Growing Into Greatness,” marks a pivotal period of unprecedented expansion and robust financial performance, highlighted by the company surpassing the monumental Rs. 100 billion asset base.
The announcement, made today, 28 August 2026, details a year of strategic foresight, disciplined execution, and unwavering commitment to sustainable value creation across all stakeholders.
Exceptional Financial Performance Drives Growth
MI’s Annual Report 2025/26 reveals a compelling financial trajectory, firmly establishing its position among the top-tier Non-Banking Financial Institutions (NBFIs) in the country. Key financial highlights include:
- Profit Before Tax (PBT): Recorded at Rs. 2.129 billion, demonstrating an impressive 32% year-on-year (YoY) growth.
- Profit After Tax (PAT): Reached Rs. 1.148 billion, an increase of 7% YoY, marking the highest profitability in the company’s over 60-year legacy.
- Total Assets: Surged by 79% YoY to Rs. 127.733 billion, a landmark achievement that cements MI’s expanded scale and market presence.
- Loans & Advances, Leases & Hire Purchases (Net): The lending portfolio grew by an outstanding 91% YoY, reaching Rs. 101.910 billion.
- Customer Deposits: Increased by a robust 44.97% YoY to Rs. 62.011 billion, reflecting strong public trust.
- Asset Quality: The Non-Performing Loan (NPL) ratio improved significantly to 3.23% from 4.91% in the previous year, remaining below the industry average.
- Shareholders’ Funds: Strengthened to Rs. 15.715 billion, an increase of 13.58% YoY.
- Capital Adequacy: Maintained healthy Core Capital and Total Risk-Weighted Capital Ratios of 10.69% and 16.04% respectively, both well above the increased regulatory minimums for institutions with asset bases exceeding Rs. 100 billion.
- Dividends per Share: Increased by 98.40% to Rs. 0.25, demonstrating commitment to shareholder returns.
Strategic Vision and Operational Excellence
The “Growing Into Greatness” theme encapsulates MI’s journey of transformation, likening it to a “butterfly emerging from its chrysalis.” This transformation is not merely about size but about becoming stronger, wiser, and more purposeful. The company’s strategic initiatives have focused on:
- Digital Transformation: Significant investments were made in enhancing digital accessibility and customer experiences, including the successful migration to the Scienter e-financials core system and the establishment of a dedicated Digital Transformation Unit. Development of a mobile application is also underway.
- Expanded Network: MI’s physical footprint expanded to over 90 branches across Sri Lanka, deepening its reach into underserved communities and reinforcing its national presence.
- Sustainable Finance: A strong emphasis was placed on expanding sustainable finance-backed products, such as Pragathi, solar rooftops, electric vehicles, and agriculture-related equipment loans, aligning commercial growth with environmental and social progress.
- Human Capital Development: With a workforce of over 1,900 employees, MI invested significantly in talent acquisition and development, providing over 39,000 training hours to foster a culture of integrity, collaboration, and high performance.
Leadership Perspectives on MI’s Journey
Mr. Dinuka Perera, Chairman of Mercantile Investments and Finance PLC, remarked, “This was a year of significant expansion for MI, as the asset base surpassed the Rs. 100 billion milestone, leading to the Company strengthening its position among the top-tier Non-Bank Financial Institutions (NBFIs) in the industry.” He further highlighted the rigorous governance and proactive risk management that underpin this growth.
Mr. Gerard Ondaatjie, Managing Director, added, “Mercantile Investments & Finance PLC delivered a year of exceptional results, executing a clearly defined growth strategy despite navigating volatile market conditions. The lending portfolio expanded from Rs. 53.3 billion to Rs. 101.9 billion, reflecting an aggressive yet disciplined scaling of business supported by a conducive operating environment, and demonstrating market confidence in our ability to grow responsibly.”
Robust Governance and Compliance
MI maintained its unwavering commitment to strong corporate governance, adhering to the stringent guidelines of the Central Bank of Sri Lanka (CBSL), the Colombo Stock Exchange (CSE), and the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka). The company strengthened its control environment through the adoption of leading industry practices, robust policy frameworks, and disciplined operational governance. Noteworthy advancements include the appointment of a Chief Information Security Officer (CISO) and a Data Protection Officer (DPO) to bolster cybersecurity and data privacy, reflecting the increasing importance of these areas in the digital landscape.
Future Outlook: From Expansion to Consolidation
Looking ahead, MI is recalibrating its strategy towards balanced, risk-adjusted growth, with an increased emphasis on portfolio quality, capital efficiency, and sustainable profitability. The company plans to further leverage technology, integrate AI-driven solutions, and continue its digitalization roadmap to enhance operational efficiency and customer experiences. With a strengthened capital base, including a recently completed Rights Issue, MI is well-positioned to pursue its growth trajectory and deliver long-term value to its customers, shareholders, employees, and the communities it serves.
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