Colombo, Sri Lanka – 01 September 2026 – Capital Alliance PLC (CALT), a premier investment banking group and a leading non-bank Primary Dealer in Sri Lanka, today announced the release of its Annual Report for the financial year ended 31st March 2026. The report, themed “Built Beyond Boundaries,” outlines a year of strategic consolidation, robust resilience against external shocks, and a clear vision for transforming Sri Lanka’s capital markets into a full-spectrum fixed income powerhouse.
The financial year 2025/26 saw CALT record a Profit After Tax (PAT) of LKR 2 billion, a decrease from the LKR 4.42 billion reported in the previous year. This moderation in profitability is primarily attributed to the normalisation of trading and remeasurement gains on government securities, following an exceptionally strong prior year driven by sharp declines in interest rates. Net Operating Income also adjusted to LKR 3.64 billion, down from LKR 7.57 billion, reflecting the shift in market dynamics. Despite the revenue recalibration, CALT maintained a robust Capital Adequacy Ratio (CAR) of 20.84%, significantly exceeding regulatory minimums and showcasing strong financial health.
Navigating a Challenging Global and Domestic Environment
The reporting period was marked by unprecedented global volatility, including sweeping U.S. reciprocal tariffs in April 2025 and the severe energy supply shock triggered by the Iran conflict in the final weeks of the financial year. However, Sri Lanka’s domestic economic landscape demonstrated remarkable resilience.
- The economy grew by a strong 5.0% in 2025, with broad-based expansion across key sectors.
- Inflation, after a brief dip into negative territory, is projected to return to the Central Bank’s 5% target by the second half of 2026.
- The external sector strengthened significantly, with record workers’ remittances of US$8 billion in 2025, a third consecutive current account surplus, and official reserves rebuilt to US$7 billion.
- Fiscal consolidation efforts exceeded IMF targets, with a primary surplus of 5.4% of GDP in 2025, bolstering investor confidence and the nation’s debt restructuring process.
“Years like this one remind me why values matter,” stated Mr. D. A. De Zoysa, Chairman of Capital Alliance PLC, in his message. “When markets are calm, anyone can look clever. When the ground shifts beneath you twice in twelve months, what remains is your character. Our values – Integrity, Fairness, Dynamism, and Teamwork – are not words we put on a wall. They are the compass we reach for when the decisions become genuinely difficult.”
Strategic Imperatives for Future Growth
CALT’s Annual Report 2025/26 outlines a comprehensive five-year strategic plan aimed at “Transforming Sri Lanka’s Capital Markets – From Primary Dealer to Full-Spectrum Fixed Income House.” This vision is anchored by three interlocking ambitions:
- Transform the CAL Portal into Sri Lanka’s premier fixed income wealth platform.
- Deepen CALT’s position as the #1 non-bank primary dealer by market share, product depth, and research quality.
- Innovate by launching Sri Lanka’s first comprehensive fixed income derivatives suite.
These ambitions are supported by five strategic pillars: product innovation (including coupon stripping, OIS, IRS, FRAs), geographic aggression to expand investor reach beyond Colombo, leveraging technology as a competitive moat (with AI-driven analytics, TradeX integration, and real-time dashboards), enhancing research as an analytical engine, and embedding responsible growth and ESG integration into its core operations.
Technology and ESG at the Forefront
In line with its strategic roadmap, CALT significantly accelerated its digital evolution during FY25/26. The integration of Artificial Intelligence into customer onboarding, the launch of TradeX (a proprietary bidding system for government securities), and end-to-end process automation have not only enhanced operational efficiency but also improved client engagement and systemic resilience. Over 3,700 new clients were onboarded digitally, with 1,800 retail transactions amounting to LKR 2.7 billion in total deal value.
The company also reaffirmed its commitment to Environmental, Social, and Governance (ESG) principles, aligning disclosures with SLFRS S1/S2 and the United Nations Sustainable Development Goals (SDGs). This includes efforts towards lower-footprint operations, promoting equality and opportunities, and upholding robust governance excellence. “ESG stops being a compliance checklist and becomes a value-creation engine: a structured way of turning today’s challenges into tomorrow’s advantage,” the report states.
Looking ahead, CALT is well-prepared to capitalize on anticipated developments in Sri Lanka’s capital markets, including a potential sovereign credit rating upgrade, which is expected to lower borrowing costs and attract new foreign capital. The company remains dedicated to disciplined risk management, continuous innovation, and contributing meaningfully to the nation’s socio-economic progress.
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