Mercantile Investments & Finance PLC (MI Finance) has entered a new phase of growth. Over the past two years, the 60-year-old non-bank financial institution has built a Rs75 billion loan book, expanded to 90 branches and surpassed Rs100 billion in assets.
Behind this acceleration is a clear strategy built on trust, disciplined execution and technology. Gerard Ondaatjie, Managing Director at MI Finance, sat down with us to explain how the company is scaling while strengthening its role in supporting the national economy.
Mercantile Investments has delivered strong half-year results, with profits up 35% YoY and assets exceeding Rs100 billion. Which strategic decisions drove this accelerated performance, and which mattered most beyond scale?
Two years ago, we made a conscious decision to reset our direction. We had been in the industry for six decades, and we sought to accelerate our growth and build stronger balance sheets. The first step was strengthening leadership, and with our new COO on board, we focused on our core asset—the trust of our customers.
We set a clear goal to become a top-tier finance company within five years. That meant expanding reach, improving efficiency and driving disciplined growth. In two years, our loan book almost doubled, our branch network grew from 45 to 90, and costs stayed under control.
Today, with Rs100 billion in assets and Rs1.07 billion in profit after tax, our focus is on sustaining this momentum while strengthening governance, technology and service quality.
Trust has been central to MI Finance’s 60+ year history. Over the past two years, how have you strengthened customer relationships without losing the personal touch?
Trust is a powerful word. In finance, when people hand over their money, they place faith in you. That sense of responsibility defines how we operate. Every recruit is reminded that we are custodians of people’s trust. It shapes our decisions and how we deal with customers. This principle has guided us for over 60 years and remains central as we grow.
Today, MI Finance serves more than 250,000 customers across 90 branches. That reach allows us to stay close to communities and build lasting relationships.
I remember a case years ago when a customer reported a lost deposit certificate. Checks later showed the funds had already been withdrawn by a family member using false identification. Even so, we refunded the full amount as a goodwill gesture. For us, moments like that define what trust means—standing by customers when it matters most.
During the pandemic, many customers requested premature withdrawals of fixed deposits due to financial stress. Despite the strain on liquidity, we honoured every request promptly. That commitment strengthened the confidence customers place in us to safeguard their money, especially in difficult times.
Your loan book grew from Rs45 billion to Rs75 billion while keeping NPLs below 5%. What has enabled disciplined growth, and how have risk management and customer selection evolved?
We approach growth with prudence. When we grant a facility, our first duty is to ensure the customer is creditworthy. Giving a loan means taking responsibility for someone else’s financial well-being, and that must be done carefully. Every request goes through a structured process, depending on the facility size and risk. Larger loans receive closer scrutiny, with multiple layers of review before approval. This system ensures discipline and consistency across the network.
We’ve also invested heavily in new technology. Since April 2025, our operations have run on an integrated information platform that tracks the entire process in real time. Everyone involved can view the same data, verify documents and monitor facility status instantly. This transparency has strengthened controls and improved decision-making.
That discipline is reflected in our results. Over the past 18 months, our lending portfolio has grown, supported by deposits rising from Rs36 billion to Rs51 billion. Yet, we’ve sustained a low NPL ratio, backed by a Rs15 billion capital base and a reaffirmed Fitch BBB-(lka) rating with a stable outlook.
MI Finance has expanded into regional and underserved markets. How do you see the institution contributing to the national economy through SME financing, employment, and financial inclusion?
Our expansion to 90 branches across Sri Lanka has been about access. By reaching urban and rural communities, we’ve made finance available to individuals, SMEs and farmers who drive local economies. When they gain fair and timely funding, they can invest, create jobs and strengthen their communities.
Gold loans are a clear example. In two years, our portfolio grew sixfold, from Rs2 billion to Rs12 billion, because it meets real needs in rural and trading areas. Farmers use it for crops and equipment, and small businesses use it for working capital. These loans sustain productivity where credit options are often limited.
Through our facilities, we help farmers grow, support SMEs to expand and give families financial stability. That’s how we translate inclusion into progress for the country.
Scale only matters if customers benefit. As MI Finance grows its footprint and digital capabilities, what tangible improvements are customers seeing today compared to a few years ago?
Digitalisation is now central to how MI Finance grows and serves customers. We’ve shifted from paper-based systems to fully digital workflows, making approvals faster, processes more transparent and service smoother. What once took days now takes hours. Our integrated platform connects every branch in real time, ensuring consistent, reliable service across the country. Customers experience quicker decisions and better coordination wherever they go.
This digital foundation also fuels innovation. It allows us to roll out products faster, tailor solutions and enhance convenience. With expansion plans through 2027 and new investments in internet banking, e-wallets, mobile banking and card services, our goal is to make finance faster, smarter and accessible to every Sri Lankan.