Sri Lanka’s non-bank financial sector has staged a recovery over the past two years, with non-banking financial institutions (NBFIs) expanding lending and deposit bases as the broader economy stabilises. Within this landscape is People’s Leasing & Finance, which has shown growth in profits, lending, and income in this financial year.
To discuss what’s driving this performance, and where the company goes from here, Echelon spoke to Sanjeewa Bandaranayake, Chief Executive and General Manager at People’s Leasing & Finance.
What drove this year’s growth, and what does it say about the company’s direction?
When I took over, I looked first at our people, because that is our real asset. People’s Leasing operates like a private company despite our state ownership, so the talent was already here. I simply got people to believe in themselves, giving them structure, freedom and responsibility, along with targets some thought were impossible.
I knew the company’s DNA well enough to trust it could be done. The results now speak for themselves.
How do you balance 76% growth in the lending portfolio with quality and risk?
In lending, credit quality is everything, since collection quality starts at the point of lending. We have experienced people who deeply understand our regions and customers. Our key performance indicators (KPIs) reflect this: you are never measured on volume alone, but always on quality too. Since we lend over 3–5 years, you cannot rush judgment. That long-term lens is how we keep growth and discipline aligned.
Customer deposits grew by 33%. How do you build trust with customers amid fierce competition?
Trust is everything, but it has to be demonstrated. Being part of the People’s Bank group, along with our strong ratings, gives us credibility, especially in deposits, where the market has seen failures before. We do not always offer the best price, but we offer stability.
I tell clients: do not just focus on your interest, focus on your capital. That is safe with us. This message is how we have grown our deposit base.
How do you manage your funding base and strategy?
As a lender with assets on four to five year fixed rates, funding purely through deposits, which typically mature in one to two years, creates a mismatch. So we blend our funding, which means deposits cover the shorter tenors, while banks, securitisations, and the occasional debenture cover the longer end. We are willing to pay a premium for longer-term bank funding because we value stability over chasing interest margins.
As a rough guide, we aim for 60% short-term and 40% long-term funding. That mix is what keeps us stable.
What gives you confidence the recovery is real, despite short-term disruptions like the Middle East crisis?
The whole finance industry has grown over the past two years, which reflects where Sri Lanka is heading. I have always been personally positive about this country. Volatility actually sharpens good operators, and that resilience is built into our model. Strategy is never carved in stone; you must be ready to pivot quickly, which we have done heading into next year.
Disruptions like the Middle East situation feel short-term to me, and even during such periods, there is time to train people and rethink our models.
Our growth strategy now rests on two pillars: relationships, which our business has always run on, and digitalisation.
But digitalisation is not automation, it is reinventing how we think and work, which demands real change management from leadership, plus stronger governance, since transactions now happen invisibly. We have no choice but to digitalise properly.
“NBFIs Like Ours Exist To Serve Entrepreneurs, Small And Medium Enterprises (SMEs), And The Informal Economy, Which Is Huge In Sri Lanka.”
What broader role do you play in society as a licensed financial institution?
This is what I am most proud of, more than our asset or profit growth. NBFIs like ours exist to serve entrepreneurs, small and medium enterprises (SMEs), and the informal economy, which is huge in Sri Lanka.
We do not see banks as competition; they serve the formal, corporate sector, while we serve the informal one, territory others see as risky, but which our results prove we understand. We have financed clients who started with a motorcycle and now own fleets of buses. We are the bridge between the informal and formal economy, bringing people into the financial mainstream. Sometimes we lose clients once they grow, but there are always more who need us. I think we undersell this story, and our impact on the informal sector is often misunderstood.
With over 113 branches, we will keep expanding both physically and digitally, because for the segment we serve, physical presence still matters. Looking 20-30 years ahead, our real growth lies in deepening our ability to serve the small man.
That is both our sustainable business model and our contribution to society.