Like many firms in Sri Lanka’s financial-services sector, Softlogic Finance has spent the past year navigating economic uncertainty and changing customer expectations. Those conditions have also provided an opportunity to reassess strategy, strengthen the balance sheet, and position the company for long-term growth.
“Twelve months ago, our priority was stabilisation. Today, our focus is sustainable growth,” says Dhanushka Fonseka, Chief Executive Officer at Softlogic Finance.
The company’s theme, “Pathway to Progress,” reflects a year of change. Leading that effort is Dhanushka, who joined Softlogic Finance in 2025 after more than 25 years in financial services, including senior leadership roles at Mercantile Investments and Finance. His experience in lending and credit management aligns with the company’s current focus on rebuilding profitability and strengthening its balance sheet.
Strengthening the Foundations
The first phase of the company’s transformation focused on strengthening the fundamentals of the business.
Rather than pursuing growth at any cost, Softlogic Finance focused on improving its capital position, strengthening risk management, optimising its balance sheet, and building a framework for sustainable growth.
According to Dhanushka, the results of that strategy are beginning to emerge.
For the financial year, Softlogic Finance recorded a profit after tax of Rs150 million. While profitability marks an important milestone in the company’s recovery, Dhanushka argues that the sustainability of those results is equally important.
“Our objective has not been to deliver short-term results,” he says. “Instead, we have focused on building a business capable of generating consistent returns while maintaining prudent risk-management standards.”
Core Products
The company’s growth strategy is centred on a portfolio of financial products aimed at individuals and businesses across Sri Lanka.
Vehicle leasing and vehicle loans remain key components of the asset portfolio. Gold loans provide short-term funding for customers, while savings and fixed-deposit products form an important part of the company’s funding base.
Together, these products underpin the company’s business model and its approach to customer lending and savings.
Capital Strength
A notable development during the year was the strengthening of Softlogic Finance’s capital base.
The company says it now maintains one of the highest capital-adequacy ratios in Sri Lanka’s finance industry, at approximately 61%, well above regulatory requirements.
As at year-end, Softlogic Finance reported a total asset base of Rs7.3 billion, a lending portfolio of Rs6.5 billion, and a deposit base of over Rs3.7 billion, reflecting the company’s continued focus on building a stable and sustainable financial institution.
Core capital and capital stand at over Rs2.8 billion, demonstrating the progress made over the past year in strengthening the institution’s financial position. Nevertheless, management views the transformation programme as an ongoing process rather than a completed task.
Its capital position provides a solid platform from which to pursue measured growth while maintaining a prudent approach to risk management.
“While there is still work to be done, the progress achieved over the past year has strengthened our financial resilience, improved stakeholder confidence, and positioned us well for future growth,” says Dhanushka.
The company’s priorities include further balance-sheet improvement, expansion of the lending portfolio, growth of its deposit base, diversification of funding sources, and the continued strengthening of the institution to support sustainable long-term growth.
Lending Discipline
Softlogic Finance says it places greater emphasis on the quality of growth than on volume alone.
Over the past year, it has repositioned its lending portfolio towards collateralised and asset-backed lending, focused on secured financing supported by tangible assets, particularly gold-backed financing and smaller vehicle segments.
According to Dhanushka, the approach has produced encouraging early results. Loans originated during the year have so far recorded no non-performing exposures.
“This reflects the effectiveness of our underwriting standards and commitment to responsible lending,” he says. “As we continue to grow, maintaining asset quality will remain a priority.”
Expanding Reach
Softlogic Finance operates a network of 15 branches across Sri Lanka, providing financial services to individuals, entrepreneurs, and businesses.
Although its branch network remains important, the company is also seeking to improve customer experience through greater efficiency, better service, and increased use of technology. Management says its objective is not simply to expand the business, but to strengthen its position as a trusted financial institution.
The Softlogic Group
Softlogic Finance forms part of the Softlogic Group, one of Sri Lanka’s most diversified conglomerates, spanning healthcare, financial services, retail, and hospitality.
In healthcare, the group operates several well-known institutions, including Asiri Medical Hospital, Asiri Surgical Hospital, and Central Hospital. The group also owns Softlogic Life Insurance, a leading life-insurance provider in Sri Lanka. Beyond healthcare and insurance, it has investments in tourism and hospitality, including NH Bentota Ceysands Resort and NH Collection Colombo.
According to management, membership of the wider group provides access to industry expertise, governance, and operational synergies. “More importantly, it reinforces our commitment to building a sustainable institution that contributes positively to the broader economy,” says Dhanushka.
Looking Beyond Finance
Softlogic Finance says progress should be measured by more than financial performance alone. As part of its sustainability agenda, the company is exploring conservation-focused CSR initiatives for the coming year, expected to focus on environmental conservation, biodiversity protection, and awareness of sustainable practices among employees, customers, and communities.
The aim, according to management, is to ensure the company’s contribution extends beyond financial services and creates lasting impact.
“The foundations for future growth have been firmly established,” says Dhanushka. “While there is much more to accomplish, the progress achieved so far provides a basis for further growth. We remain committed to building a stronger and more resilient Softlogic Finance for the benefit of our customers, employees, shareholders, and the wider Sri Lankan economy.”