Colombo, Sri Lanka – 03 September 2026 – Capital Alliance Holdings PLC (CALH), a leading integrated investment bank, today announced the release of its Annual Report for the financial year ended 31st March 2026. Titled “Engineered for Growth,” the report outlines the company’s performance amidst a complex global and domestic operating landscape, reaffirming its strategic focus on innovation, international expansion, and leveraging technology to drive value across frontier markets.
Financial Resilience Amidst Shifting Market Dynamics
For the financial year 2025/26, Capital Alliance Holdings PLC reported a net profit after tax (PAT) of LKR 2.7 billion. This represents a 36% decline from the LKR 4.2 billion recorded in the previous financial year. The report attributes this moderation primarily to the normalisation of trading gains on government securities, which had seen exceptional performance in the prior year, compounded by a significant reversal of trading profits in March 2026 following the outbreak of war in Iran.
Despite these headwinds, the Group’s underlying strength was evident with all four core business lines – primary dealing, stockbroking, asset management, and investment banking – recording profitability for the second consecutive year. A key highlight was the robust growth in fee-based income, which surged by 39% to LKR 3.5 billion, now accounting for 44.7% of total operating income, up from 23% a year ago. Total assets stood at LKR 103.9 billion, and the year marked CALH’s second reporting cycle as a listed entity following its successful listing on the Colombo Stock Exchange (CSE) on 30th May 2025, which injected LKR 1.6 billion in fresh capital.
Chairman’s Perspective: From Recovery to Transformation
Mr. D. A. De Zoysa, Chairman of Capital Alliance Holdings PLC, reflected on a year of “remarkable contrasts” for Sri Lanka. He noted the nation’s progress beyond the stabilisation phase, with year-on-year GDP growth reaching 5.0% in 2025 and core inflation at 2.7%. Foreign currency reserves rose to US$6.8 billion, reinforced by successful IMF program reviews and debt restructuring agreements. However, Mr. De Zoysa also highlighted severe challenges, including the impact of Cyclone Ditwah and ongoing global geopolitical instability, which led to increased fuel prices and a moderated growth outlook for 2026.
The Chairman affirmed CAL’s role as a steadfast partner, deepening capabilities across investment banking, asset management, and advisory services. He emphasized the company’s commitment to financial inclusion, digital infrastructure investments, and nurturing talent, reiterating CAL’s ambition to contribute to Sri Lanka’s long-term prosperity through sound policy and capital allocation.
CEO’s Vision: Building Platforms for Growth Across Frontier Markets
Mr. K. P. Mannakkara, Group Chief Executive Officer, articulated CAL’s strategic direction under the theme “Building Platforms for Growth: Fusing Insight, Tech & Capital.” He emphasized the company’s purpose to create prosperity in frontier economies by driving capital market development, outlining three key growth pillars:
- International Expansion: CAL aims to become a bridge across frontier markets, connecting regional economies with global capital. Operations in Bangladesh have achieved significant scale, and CAL Global in Singapore now serves as a key distribution hub for frontier-market transactions. The Group targets an operational presence in markets with a combined GDP of over USD 1 trillion and a population exceeding 750 million.
- Balance Sheet Leverage: The Group is strategically deploying its robust balance sheet (Group equity over LKR 20 billion) beyond traditional primary dealing into corporate debt and strategic investments. This approach aims to manufacture innovative financial products, enhance market liquidity where it is thin, and generate returns across various market cycles.
- Platform Solutions: Leveraging in-house technology, CAL is democratizing investment banking. The CAL Online platform has seen substantial growth, crossing 80,000 users in FY26 (double from the prior year). This platform facilitates digital onboarding, instant transactions, and broadens access to unit trusts, fixed income, Sharia-compliant funds, and other investment products for a wider demographic.
Segmental Performance Highlights
- Treasury Solutions: Capital Alliance PLC reported a net profit of LKR 2.0 billion, benefiting from a declining yield environment in the previous year. The segment enhanced client engagement through AI integration in its onboarding workflow and introduced self-service features for balance confirmations.
- Asset Management: Capital Alliance Investments Limited (CALI) achieved market leadership, with Assets Under Management (AUM) surpassing USD 1 billion and recording a profit before tax of LKR 954 million. CALI successfully listed the CAL Three-Year Closed End Fund and launched its first Sharia-compliant Unit Trust Fund, attracting significant AUM.
- Stockbroking: Capital Alliance Securities (Private) Limited had an outstanding year, reporting a profit before tax of LKR 820 million. It consolidated its position among the top stockbrokers on the CSE, while CAL Securities Bangladesh rapidly ascended to the top quintile in its market.
- Corporate Finance: Capital Alliance Partners Limited (CALP) delivered a resilient performance, completing 12 transactions with a total deal value of LKR 51 billion and securing 28 new mandates. Notable transactions included advising DFCC Bank PLC on an acquisition and leading significant debenture issuances for Assetline Finance Limited and People’s Leasing & Finance PLC.
Outlook and Commitment
Despite the prevailing global uncertainties, Capital Alliance Holdings PLC remains positive about its future. The company’s robust external buffers, disciplined fiscal framework, and clear strategic direction based on its three growth pillars position it strongly for continued success. CALH is committed to evolving from a leading non-bank primary dealer into a comprehensive fixed income institution, actively contributing to the development, liquidity, and long-term stability of capital markets across frontier economies.
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