June, 1, 2026
LOLC Holdings PLC delivered a strong operating performance for the year ended 31 March 2026, underpinned by robust income growth, a significant expansion in core operating profitability and continued scale-up of its financial services-led diversified business model. With a global operating presence across 27 countries, the Group continues to strengthen its position as Sri Lanka’s most internationally diversified conglomerates, combining financial services scale with strategic interests across plantations, agri, manufacturing, trading, leisure, real estate and insurance.
The Group recorded a 49% increase in results from operating activities, which rose to Rs. 71.5 billion in FY2026 from Rs. 47.9 billion in the previous year. This performance was supported by a strong expansion in gross income, which increased by 28% to Rs. 430.3 billion from Rs. 336.2 billion.
Operating profit before depreciation and amortisation also strengthened materially, increasing to approximately Rs. 88.8 billion from approximately Rs. 60.6 billion in FY2025. This reflects the enhanced earnings capacity of the Group’s underlying businesses and the growing contribution from its diversified operating platform.
The results reaffirm LOLC’s position as one of Sri Lanka’s most globally diversified conglomerates, with a business model increasingly driven by scale, international reach, disciplined execution and recurring operating strength.
The sharp improvement in operating profitability was the defining feature of the Group’s FY2026 performance. Results from operating activities increased by Rs. 23.6 billion during the year, reflecting stronger contribution from key business verticals and improved operating leverage across the Group.
The increase in gross income to Rs. 430.3 billion demonstrates the continued expansion of LOLC’s income-generating asset base and the Group’s ability to build revenue momentum across multiple sectors and geographies.
Net interest income increased to Rs. 119.9 billion from Rs. 105.6 billion, while revenue rose to Rs. 158.2 billion from Rs. 109.2 billion. Gross profit also increased to Rs. 61.4 billion from Rs. 43.5 billion, further strengthening the Group’s operating platform.
Profit after tax stood at Rs. 23.4 billion in FY2026, with the year-on-year movement primarily reflecting the impact of one-off items recognised in the comparative period. The Group’s FY2026 performance was anchored by stronger recurring operating profits, supported by the 49% increase in results from operating activities.
This performance provides a clear view of the Group’s business momentum and the scale benefits emerging from its financial services, manufacturing and trading, plantation and agri, leisure and real estate, and insurance interests.
The financial services segment continued to dominate Group performance, delivering Rs. 51.7 billion in results from operating activities in FY2026, compared to Rs. 39.2 billion in FY2025.
The segment remains the primary driver of LOLC’s earnings base, supported by its established presence in Sri Lanka and its extensive international financial services footprint. LOLC’s financial services operations now span 21 countries, comprising seven countries in Asia, three countries in Central Asia and 11 countries in Africa. This multi-regional platform provides the Group with geographic diversification, access to high-growth frontier and emerging markets, and the ability to scale its lending model across multiple economic cycles.
The financial services asset base increased from Rs. 1.09 trillion to Rs. 1.36 trillion during the year, reinforcing the scale and depth of the Group’s core platform. The segment’s performance reflects the strength of LOLC’s operating model: disciplined expansion, strong market execution, diversified jurisdictional exposure and a growing lending franchise.
As the Group continues to expand its financial services operations across multiple markets, scale remains a decisive advantage. The ability to mobilise funding, deploy capital across diverse lending portfolios and maintain portfolio discipline has enabled the segment to remain the anchor of Group profitability. Building on this proven model across Asia, Central Asia and Africa, the Group is also exploring opportunities in Latin America as part of its next phase of international expansion.
LOLC also recorded a reduction in net impairment loss on financial assets, which declined to Rs. 15.9 billion in FY2026 from Rs. 18.8 billion in FY2025.
This improvement was achieved alongside strong growth in advances and other loans, which increased from Rs. 751.4 billion to Rs. 981.8 billion. The combination of portfolio expansion and lower impairment charges reflects disciplined credit underwriting, stronger recovery management and prudent portfolio governance across the Group’s financial services businesses.
For a financial services-led group operating across multiple markets, this is a particularly important performance marker. LOLC’s growth has been delivered with credit discipline, supporting both the quality and sustainability of earnings.
Beyond financial services, the Group’s manufacturing and trading segment delivered one of the strongest improvements in FY2026.
The segment’s results from operating activities increased more than eightfold to Rs. 9.2 billion, compared to Rs. 1.1 billion in FY2025. This represents a material uplift in operating contribution and reflects stronger business performance, improved margin delivery and better utilisation of the Group’s trading and manufacturing platform.
Gross income from the segment increased to Rs. 76.6 billion from Rs. 50.0 billion, while profit before operating expenses rose to Rs. 25.3 billion from Rs. 14.7 billion. This strong improvement demonstrates the increasing relevance of manufacturing and trading within the Group’s diversified earnings mix.
The performance of this segment also reflects LOLC’s ability to generate value outside its core financial services businesses. While financial services remains the dominant earnings engine, the sharp improvement in manufacturing and trading shows that the broader Group portfolio is gaining operational depth and contributing more meaningfully to overall performance.
The plantation and agri segment also recorded a significant turnaround during the year.
The segment moved from an operating loss of Rs. 5.1 billion in FY2025 to an operating profit of Rs. 1.7 billion in FY2026. This represents a decisive improvement and highlights the Group’s ability to restructure, manage and transform businesses within complex operating sectors.
LOLC has consistently demonstrated an ability to acquire, stabilise and reposition businesses with long-term value potential. The improvement in the plantation and agri segment is a clear reflection of that capability. It reinforces the Group’s strength in operational turnaround, disciplined asset management and value extraction from acquired platforms.
Gross income from the plantation and agri segment increased to Rs. 88.2 billion from Rs. 55.2 billion, while profit before operating expenses rose to Rs. 48.5 billion from Rs. 29.6 billion. The segment’s return to operating profitability adds further strength to the Group’s diversified earnings profile and supports the broader narrative of portfolio-wide improvement.
The Group has also built one of the most significant tea platforms globally. LOLC is among the largest tea producers in the world for export markets, producing close to 100 million kilograms of tea and managing approximately 100,000 hectares of land, with a plantation and agri presence across Kenya, Tanzania, Rwanda, China and Sri Lanka.
This scale gives the Group a meaningful position in the global tea value chain and provides a strong operating base for long-term growth in plantation and agri-linked businesses. The FY2026 turnaround demonstrates LOLC’s ability to convert scale, asset ownership and operational discipline into sustainable operating contribution.
The Group’s long-term and general insurance segment sustained its contribution during FY2026, recording results from operating activities of Rs. 1.5 billion, broadly in line with the previous year.
The segment continued to provide diversification to the Group’s earnings base and remains an important component of LOLC’s broader financial services ecosystem. Its stable contribution reflects a consolidated market position and continued operating resilience.
The leisure and real estate segment also sustained its operating performance, recording results from operating activities of Rs. 2.0 billion in FY2026 compared to Rs. 1.9 billion in FY2025.
During the year, the Group divested the Barceló Whale Lagoon Maldives Resort for a consideration of USD 57.5 million, realising substantial cash flows while continuing to optimise its leisure asset portfolio. The divestment reflects the Group’s ability to crystallise value from mature assets and redeploy capital across higher-priority strategic opportunities.
The Group also expanded its leisure footprint with the opening of Newburgh Ella, adding a new hospitality asset in one of Sri Lanka’s most attractive tourism destinations. In parallel, the Marina Port City project commenced and continues to progress, further strengthening the Group’s long-term real estate and tourism-linked development pipeline.
The segment’s ability to maintain operating profitability while executing asset divestments, new hotel openings and strategic real estate development reflects the quality of the Group’s asset base and the depth of its execution capability.
Together, the insurance, leisure and real estate segments add balance to the Group’s performance profile. They provide sectoral diversification, support asset-backed value creation and contribute to the resilience of the overall portfolio.
LOLC’s global business footprint continued to contribute meaningfully to Group value creation. With operations across 27 countries, including a financial services presence in 21 countries, the Group has built a multinational operating platform with exposure to Asia, Central Asia, Africa and other strategic markets. The Group recorded a Rs. 24.0 billion gain in other comprehensive income from translating the financial statements of foreign operations.
This reflects the strategic value of LOLC’s international asset base. With substantial overseas operations and foreign currency-denominated assets, the Group benefits from geographic diversification and a natural balance sheet hedge against currency movements.
The foreign currency translation gain strengthened total comprehensive income and contributed to the expansion of Group equity during the year. It also highlights the growing importance of LOLC’s international operations in shaping the Group’s overall financial profile.
LOLC’s international model has therefore become a key financial strength. It provides exposure to multiple growth markets, reduces concentration risk and enhances the Group’s ability to create value in rupee terms through its foreign operations and foreign currency-linked asset base.
Total comprehensive income for FY2026 stood at Rs. 47.2 billion. While FY2025 total comprehensive income was Rs. 58.9 billion, the previous year included a substantial Rs. 54.0 billion gain on acquisition and divestment of Group investments and an Rs. 11.5 billion loss from discontinued operations.
On an adjusted basis, excluding these major non-recurring items, FY2025 underlying total comprehensive income was approximately Rs. 16 billion. For FY2026, after excluding the Rs. 2.1 billion gain on acquisition and divestment of Group investments, adjusted total comprehensive income was approximately Rs. 45 billion.
This represents an approximate threefold increase in underlying total comprehensive income, demonstrating the strength of LOLC’s current-year performance and the stronger contribution from recurring operations and international balance sheet growth.
The improvement in adjusted comprehensive income provides a strong measure of the Group’s value creation during the year. It captures the combined impact of operating performance, international asset translation and balance sheet growth, and presents a more complete view of the Group’s financial progress.
The Group’s strengthened performance was reflected in its net asset value per share, which increased to Rs. 822.46 as at 31 March 2026 from Rs. 721.16 a year earlier.
This represents an increase of Rs. 101.30 per share during the year, supported by retained earnings, foreign currency translation gains and the continued strengthening of the Group’s equity base.
The increase in net asset value per share is a clear indicator of balance sheet value creation and demonstrates the Group’s ability to compound shareholder value through operating performance, international asset growth and portfolio execution.
LOLC’s balance sheet continued to expand during FY2026, with total assets increasing to Rs. 2.32 trillion from Rs. 2.03 trillion.
The principal driver of this growth was the expansion in advances and other loans, which increased by Rs. 230.4 billion to Rs. 981.8 billion. This reflects the continued scale-up of the Group’s financial services balance sheet and its ability to deploy capital across its lending platforms.
The Group also maintained a substantial investment and asset base, with investment securities increasing to Rs. 169.6 billion from Rs. 140.9 billion, while property, plant and equipment stood at Rs. 315.4 billion.
The balance sheet expansion reflects LOLC’s continued transition into a larger, more diversified and more internationally exposed corporate platform. It also reinforces the Group’s ability to allocate capital across financial services and strategic operating businesses while maintaining a measured funding structure.
LOLC maintained a measured leverage profile despite the expansion of its balance sheet.
As at 31 March 2026, total equity stood at Rs. 654.3 billion, while interest-bearing borrowings stood at Rs. 672.6 billion. On this basis, interest-bearing borrowings were approximately 1.0 times total equity.
Deposit liabilities stood at Rs. 694.3 billion, reflecting the normal operating funding structure of the Group’s financial services businesses. Including both interest-bearing borrowings and deposit liabilities, the ratio to total equity was approximately 2.1 times. This is a conservative leverage position for a group with a substantial financial services platform.
The Group’s capital structure therefore remains well-positioned to support continued asset growth, particularly within its financial services operations.
LOLC’s FY2026 performance reflects a Group with stronger operating profitability, broader income generation, improved impairment trends, a larger financial services balance sheet and higher net asset value per share.
The financial services segment remained the dominant earnings engine, with operations across 21 countries in Asia, Central Asia and Africa, while the Group continues to explore opportunities in Latin America. Manufacturing and trading delivered a step-change in profitability, and the plantation and agri segment returned to operating profitability, supported by LOLC’s global tea platform spanning Kenya, Tanzania, Rwanda, China and Sri Lanka. Insurance, leisure and real estate continued to provide stable operating contributions, while the leisure portfolio recorded value realisation through the USD 57.5 million divestment of Barceló Whale Lagoon Maldives Resort, expansion through Newburgh Ella and continued progress on the Marina Port City project.
The Group’s foreign operations continued to strengthen comprehensive income and equity, reinforcing the strategic value of its global expansion. With total assets of Rs. 2.32 trillion, total equity of Rs. 654.3 billion and operating profit of Rs. 71.5 billion, LOLC enters its next phase of growth with a larger platform, stronger earnings capacity and a more diversified balance sheet.
The FY2026 results demonstrate the continued evolution of LOLC into a globally diversified financial services-led conglomerate, with growing operating strength, disciplined balance sheet expansion and sustained value creation for shareholders.
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