Vallibel Finance PLC (VFIN), a licensed finance company in Sri Lanka,
has been upgraded by Lanka Rating Agency from BBB- to A-, underscoring
its robust market outreach, superior asset quality and improved
profitability.
VallibelFinance PLC has crossed a historic milestone of Rs. 100
billion in assets in FY24/25, underscoring its position as one of Sri
Lanka’s most trusted and high-performing financial services brands.
This milestone reflects the strength of a brand built on integrity,
innovation and impact.
Vallibel Finance’s brand promise is to be a financial partner that
understands the aspirations of Sri Lankans: from small businesses
looking to expand, to families seeking financial stability, to young
entrepreneurs chasing their dreams.
Accounting for about 5.3% of total Licensed Finance Company (LFC)
sector assets, VFIN is primarily engaged in vehicle loans, auto
drafts, gold loans and leases. Together these segments make up more
than 94% of its lending portfolio.
Net interest income rose by 15.9% to LKR 8,118 million in FY25
(3MFY26: LKR 2,308 million), while net income grew by 22.8% to LKR
2,629 million (3MFY26: LKR 785 million), fuelled by higher lease
income. Core spreads improved to 7.8% from 6.0% in FY24 thanks to
lower interest rates and liability repricing.
Revenue is predominantly core at 78%, with the remaining 22% derived
from fair value gains, provision write-backs and early-termination
income.
The loan and lease portfolio expanded from LKR 92,147 million in FY25
to LKR 104,280 million in 3MFY26.
The rating upgrade recognises the Company’s ability to maintain its
non-performing loan (NPL) ratio at industry benchmarks despite rapid
portfolio growth, while sustaining strong coverage for impaired loans.