CDB Surpasses Rs. 200 Billion Asset Milestone, Delivers Record Profit and Positions for Next Phase of Growth

Citizens Development Business Finance PLC (CDB) reported another year of strong financial and operational performance for the financial year ended 31 March 2026, surpassing the landmark Rs. 200 billion asset milestone while recording Profit After Tax of Rs. 4.5 billion, reinforcing its position among Sri Lanka’s leading non-bank financial institutions.

The Company’s total assets expanded by 37% to Rs. 214.7 billion, while its lending portfolio grew by an impressive 53% to Rs. 169.2 billion, supported by new disbursements exceeding Rs. 110 billion during the year. Gross income increased by 18% to Rs. 30.2 billion, with Profit Before Taxes rising to Rs. 8.2 billion and Profit After Tax increasing by 12% to Rs. 4.5 billion.

The Board of Directors declared a total dividend payout of Rs. 1.25 Bn for the financial year, a 16.67% increase over the prior year, comprising an interim dividend of Rs. 7.50 per share (pre-subdivision) and a final dividend of Rs. 1.00 per share on the subdivided capital. The Board also completed a one-for-ten share subdivision of both voting and non-voting shares in April 2026, aimed at broadening market accessibility and liquidity.

The year also saw a significant improvement in asset quality, with the Net Non-Performing Loan Ratio improving to 1.53% from 3.1% in the previous year, reflecting disciplined credit underwriting, enhanced portfolio monitoring, automated credit decision-making, and a more stable economic environment.

Commenting on the Company's performance, Chairman Alastair Corera stated: "The achievements recorded during FY2025/26 are not merely the result of favourable market conditions but the outcome of deliberate strategic execution, disciplined governance and years of investment in strengthening our capabilities. Having surpassed the Rs. 200 billion asset milestone, CDB is now firmly positioned to achieve its next strategic growth phase."

The Chairman further highlighted that CDB's diversified funding strategy, strengthened risk management framework, and continued commitment to sustainability have enhanced the Company's resilience while enabling uninterrupted balance sheet expansion.

Managing Director and Chief Executive Officer Mahesh Nanayakkara described FY2025/26 as one of the most significant years in CDB's history.

"When we commenced our transformation journey over two decades ago, CDB was an institution with an asset base of less than Rs. 1 billion. Today, we stand as a Rs. 214 billion institution with a strong financial position, diversified funding sources, improving asset quality, scalable digital capabilities and a clear roadmap for future growth."

He noted that while scale remains important, the Company's next phase of evolution will increasingly focus on improving profitability, enhancing capital efficiency, strengthening returns, and creating superior long-term value for stakeholders.

A key strategic development during the year was CDB's decision to transition from a technology-enabled organisation to an AI-enabled organisation, supported by a comprehensive roadmap focused on empowering employees with enterprise-grade generative AI capabilities, embedding artificial intelligence across business functions and customer journeys, and deploying agentic AI solutions to automate increasingly complex processes.

The Company's digital transformation continued to gather momentum, with users of the CDB SELF platform increasing by 93% year-on-year, while digital transactions accounted for 74% of total customer transactions.

Beyond financial performance, CDB continued to create meaningful value across all stakeholder groups through its integrated value creation model.

The Company invested Rs. 49 million in community initiatives, continued the expansion of its flagship Smart Computer Labs programme across all districts, advanced autism intervention initiatives and strengthened educational support through the Sisudiri Scholarship Programme.

CDB also expanded its sustainability agenda through a green financing portfolio exceeding Rs. 31 billion, supporting renewable energy adoption, electric mobility, climate resilience and sustainable economic development. Environmental considerations remain integrated into lending decisions and risk assessment processes, reinforcing the Company's commitment to achieving a 30% reduction in carbon intensity over the next five years.

Recognising that sustainable institutions are built on leadership continuity, CDB also reaffirmed its commitment to succession planning through a carefully structured leadership transition framework. Developed over several years, the programme focuses on preparing the next generation of leaders through international exposure, leadership development and progressively larger responsibilities, ensuring continuity, institutional resilience and long-term sustainability.

As Sri Lanka continues its economic recovery amidst evolving global uncertainties, CDB enters FY2026/27 from a position of strength. With a strong financial position, diversified funding base, improving asset quality, scalable digital operating model, robust sustainability framework and AI-led transformation agenda, the Company remains confident continuing to create sustainable value for all stakeholders.

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