CAL elevated by Lanka Rating Agency

Lanka Rating Agency (LRA) has upgraded the Entity Rating of Capital Alliance PLC (CALT) to ‘A+’ from ‘A’, with a Stable Outlook, reflecting the Company’s robust capitalisation, strong market position as a leading non-bank Primary Dealer, and sustained improvement in profitability.

The rating upgrade recognizes CALT’s strong financial profile, supported by significant profit generation over recent years, healthy capital buffers, and prudent risk management practices. The Company reported exceptionally strong profitability during FY2024, followed by continued solid performance in FY2025 and the first half of FY2026. CALT’s total equity stood at approximately Rs. 15.0 billion as of 30 September 2025, while its Capital Adequacy Ratio remained comfortably above regulatory requirements, underscoring its strong capacity to absorb potential market shocks.

As one of the largest non-bank Primary Dealers in Sri Lanka, CALT benefits from its established franchise, strong governance framework, and the strategic backing of its parent, Capital Alliance Holdings PLC. The Company’s ongoing diversification initiatives and disciplined risk management framework further support its long-term stability. The Stable Outlook reflects LRA’s expectation that CALT will maintain its strong market position, capitalisation, and profitability, supported by a relatively stable interest rate environment and continued adherence to prudent financial and risk management practices.

Lanka Rating Agency Ltd. CEO Dr. Kenneth De Zilwa commented: “The upgrade of Capital Alliance PLC to ‘A+’ with a Stable Outlook reflects a clear strengthening of its balance sheet architecture and earnings resilience over recent years. CALT has demonstrated the ability to translate market opportunity into sustained profitability while preserving capital discipline and prudent risk management. With total equity of approximately Rs. 15.0 billion as of 30 September 2025 and capital adequacy comfortably above regulatory thresholds, the Company maintains strong buffers to withstand potential market volatility. We view CALT’s performance across FY2024, FY2025, and into the first half of FY2026 as indicative of a structurally sound business model, supported by disciplined treasury operations and effective capital management. The ‘A+’ rating appropriately captures its strengthened financial profile and its leadership position within Sri Lanka’s primary dealer landscape.”

Capital Alliance PLC CEO Sanura Silva welcomed the rating upgrade and noted: “The A+ rating underscores its commitment to operating with discipline across market cycles, while maintaining the resilience required to support clients, counterparties, and the broader financial system.”

source: The Morning