Central Bank of Sri Lanka has cancelled the Certificate of Registration issued to Co-operative Leasing Company Limited as a Registered Finance Leasing Establishment under the Finance Leasing Act No. 56 of 2000, as amended, effective 10 June 2026.
The decision was taken by the Director of the Department of Supervision of Non-Bank Financial Institutions (DSNBFI) due to the company’s repeated non-compliance with regulatory directions, including failure to adhere to the Finance Leasing (Reporting Requirements) Direction No. 2 of 2010. The company was also found to be non-compliant with requirements under the Central Bank’s Masterplan for Consolidation of Non-Bank Financial Institutions, despite several extensions granted for compliance.
According to the Central Bank, Co-operative Leasing Company Limited has not demonstrated satisfactory progress in implementing the Masterplan or developing a viable plan to ensure the sustainability of its business operations.
In terms of Section 9(1)(f) of the Finance Leasing Act, the cancellation of registration has therefore been enforced.
The Central Bank further stated that, following the cancellation, Co-operative Leasing Company Limited is no longer authorised to carry on any new finance leasing business, except in relation to transactions already entered into prior to the effective date of cancellation.
SDB Bank records stable Q1 2026 performance with continued growth momentum
SDB Bank recorded a stable financial performance for the first quarter ended 31 March 2026, reflecting its continued focus on disciplined financial management, prudent risk oversight, and sustainable growth across core business segments.
The Bank reported a Profit After Tax of Rs. 60 million for Q1 2026, representing a 7% increase compared to the corresponding period in 2025. The performance was supported by improved operational efficiency, prudent strategic execution, and growth in customer advances across key sectors, including agriculture, SMEs, cooperatives, and retail.
Net fee and commission income recorded strong growth of 29% to Rs. 152 million during the quarter, highlighting SDB Bank’s continued progress in strengthening non-funded income streams. The increase reflects ongoing efforts to diversify revenue through enhanced service capabilities, increased digital adoption, and customer-centric financial solutions.
SDB Bank maintained a sound capital and liquidity position during the period. The Total Capital Ratio stood at 15.15%, comfortably above regulatory minimum requirements, while the Liquidity Coverage Ratio was maintained at 145.08%. The Net Stable Funding Ratio stood at 136.97%, further demonstrating the Bank’s ability to sustain balance sheet strength while supporting future growth.
Commenting on the performance, Executive Director/CEO Kapila Ariyaratne of SDB Bank said:
“Our performance in the first quarter of 2026 reflects the strength of our disciplined approach to banking, underpinned by sound risk management, operational focus, and a clear commitment to customer value. We are encouraged by the continued growth in fee-based income and the resilience of our capital and liquidity position. As we move forward, SDB Bank will remain focused on supporting SMEs, cooperatives, agriculture, retail customers, and underserved communities, while building a more resilient, inclusive, and future-ready bank.”
Central Bank of Sri Lanka cancels registration of Co-operative Leasing Company Limited
