News & market updates

Colombo Stock Exchange indices were trading higher midday, the ASPI up 0.36% (76.41 pts) at 21,205.62 and the S&P SL20 up 0.38% at 5,962.29; market turnover was Rs 314 million, with banks leading at Rs 122.7 million. Asia Asset Finance said 41,398,511 preference shares will be deemed converted into 53,348,596 ordinary shares at Rs 7.76 each effective Aug 10 (pref shares trade ends Aug 6; ordinary shares from Sep 16).

Colombo Stock Exchange traded higher Thursday morning, with the ASPI up 29.70 points (0.14%) to 21,447.50 and market turnover of LKR 229 million, led by banks (LKR 74.9 million). Lanka Realty Investments received LKR 1.05 billion from Lee Hedges for the final balance on its 51% stake sale, and Asia Asset Finance announced a LKR 0.70 fixed non‑cumulative preference dividend per share.

Dividend · Rs 0.00 · XD Jul 24, 2026

Final dividend; XD 2026-07-24; record 2026-07-27; payable 2026-08-13; FY 2025/2026

Dividend · Rs 0.57 · XD Jul 24, 2026

Final dividend of LKR 0.57/share; XD 2026-07-24; record 2026-07-27; payable 2026-08-13; FY 2024/2025

Rights issue · 4:11 at Rs 33.30 · XD Jul 31, 2026

Asia Asset Finance PLC opened a new Training and Development Centre in Kurunegala. The centre will provide induction, residential and management training to strengthen governance, compliance, employee retention and service quality across the company's finance operations.

Colombo Stock Exchange closed down as the ASPI fell 0.19% (43.18 points) to 22,178.73 on turnover of Rs.1.54 billion. Asia Asset Finance announced GM and rights timetable and Associated Motor Finance said its merger with L B Finance will become effective by 31 July 2026.

Final dividend; FY 2025/2026

Dividend · Rs 0.57

Final dividend of LKR 0.57/share; FY 2024/2025

Colombo Stock Exchange ASPI fell 0.65% to 22,263.28, with utilities leading turnover at Rs.486 million. Top movers included Lighthouse Hotel (+4.64%), HNB (+0.19%), Sampath (+0.17%) and Pan Asia (+1.29%); Windforce (-5.12%) and Hayleys (-0.94%) were top decliners, and Asia Asset Finance declared a Rs.0.70 dividend on its convertible preference shares.

Asia Asset Finance PLC announced a Rs.1,503,894,999.60 rights issue of 45,162,012 ordinary voting shares at Rs.33.30 each (4 new for every 11) to strengthen Tier 1 capital and support lending growth; the offer is subject to CSE in-principle and shareholder approval.

Asia Asset Finance PLC appointed Justice Sithambarampillai Thurairaja, PC as an Independent Director with Central Bank approval, bringing nearly four decades of legal and judicial experience to strengthen the company's governance.

Fitch says Sri Lanka's central bank tighter capital rules for gold-backed loans (10% risk weight for LTV<70% from 1 Sep) will be manageable for banks but hit finance companies harder; Asia Asset Finance, L B Finance, UB Finance, HNB Finance and MBSL face the largest capital impacts.

Asia Asset Finance PLC plans a Rs. 1.504 billion rights issue of 45,162,012 shares at Rs. 33.30 to boost Tier 1 capital. The board has recommended a 4-for-11 rights issue (subject to shareholder and CSE approval) to strengthen regulatory capital and support planned business expansion.

Fitch says Sri Lanka’s new risk weights for gold loans (10% for <70% LTV; 40% for 70–100% LTV; 100% for >100% LTV) will raise average risk density to ~12% for banks and ~26% for finance firms and could cut finance companies’ Tier‑1 ratios by ~1pp to a little over 5pp, with Asia Asset Finance most affected.

Fitch says the CBCSL directive raising risk weights on gold-backed loans will raise average risk density to ~12% for rated banks and ~26% for finance companies, cutting banks' CET1 by ~2–35bp and finance companies' Tier‑1 by about 1pp–>5pp. Asia Asset Finance, L B Finance, UB Finance, HNB Finance and MBSL are singled out as most affected.

Asia Asset Finance will raise Rs1.5039bn via a 4-for-11 rights issue of 45,162,012 shares at Rs33.30 to strengthen Tier 1 capital to meet CBSL regulatory requirements and support business expansion; shares traded up 4.09% at Rs56 intraday.

Colombo Stock Exchange closed down as the ASPI fell 0.89% (191.45 points) to 21,270.02. Bank stocks led declines with DFCC, Commercial Bank and National Development Bank among top negatives, while Ambeon, Melstacorp and Asiri gained; Asia Asset Finance filed a rights issue to raise Rs1.5bn.

Rights issue · 4:11 at Rs 33.30 · XD Jul 31, 2026

Asia Asset Finance PLC has partnered with Assetline Insurance Brokers to provide end-to-end insurance services to AAF customers, integrating insurance with its leasing products to improve access and service efficiency.

Central Bank cut LTV caps on motor financing (to 60% from 70% for >1yr vehicles; to 40% from 60% for newer/unregistered) and on gold loans (to 70% from 80%); Fitch says the tighter caps should strengthen lenders' risk profiles, especially finance companies.

Fitch says Sri Lanka’s central bank cut motor-vehicle LTVs to 60% (from 70%) for vehicles registered over one year and to 40% (from 60%) for newer/unregistered vehicles, and lowered gold-loan LTVs to 70% (from 80%). Fitch expects the caps to strengthen lenders’ risk profiles—especially finance companies with large gold/vehicle exposures—but may curb volumes and earnings for those firms.

Fitch says Sri Lanka's Central Bank cut LTV caps on motor financing (to 60% from 70% for vehicles >1yr and to 40% from 60% for newer/unregistered vehicles) and reduced gold-loan LTVs to 70% from 80%, measures that should strengthen lenders' risk profiles but may weigh on volumes and earnings, especially at finance companies.

Asia Asset Finance PLC is offering free PickMe rides for Fixed Deposit customers from home to the nearest branch and back across Sri Lanka. The initiative, in partnership with app-based PickMe, aims to improve customer convenience amid rising transport and fuel costs.

Asia Asset Finance PLC reported profit before tax of LKR 1.9261 billion for FY2025/26, up 203% year-on-year. Net profit was LKR 1,038.4m, total assets rose to LKR 53.78bn, net NPAs improved to 2.37% and Tier-1 CAR stood at 24.57%.

Asia Asset Finance PLC said total assets surpassed Rs.50.0 billion by end-February 2026. The company reported assets of Rs.45.8bn at end‑Dec 2025, a loan book of Rs.40.1bn (up 37.5%), borrowings of Rs.15.7bn (up 69%) and net assets of Rs.35.62/share.