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| Jayantha Rangamuwa |
In a decisive step to reinforce its financial foundation and fuel its next wave of expansion, Vallibel Finance has unveiled plans to raise approximately Rs. 2.12 billion via a Rights Issue. The capital-raising initiative comes amid a gradually stabilizing economic landscape in Sri Lanka, where financial institutions are increasingly prioritizing resilience, capital adequacy, and forward-seeing growth strategies.
In the following interview, Managing Director Jayantha Rangamuwa shares insights into the relocate, outlining its strategic importance and the company’s broader trajectory.
Excerpts:
QWhat is the headline development announced by Vallibel Finance?
Vallibel Finance has unveiled plans to mobilize approximately Rs. 2.12 billion through a Rights Issue, involving the issuance of 29,431,675 new ordinary voting shares at a price of Rs. 72 each. The capital infusion is designed to reinforce the company’s Tier I capital base while enabling its next stage of expansion.
QHow does the Rights Issue fit into the company’s long-term strategy?
The initiative forms part of a broader strategic blueprint focutilized on reinforcing financial stability while preparing for sustained expansion. By strengthening its regulatory capital buffers, Vallibel Finance is positioning itself to navigate an increasingly competitive and tightly regulated financial services landscape with confidence and agility.
QWhat structure will the Rights Issue follow?
The offer will be extconcludeed to existing shareholders on a pro-rata basis, entitling them to subscribe to one new share for every eight shares held as of the specified entitlement date. This framework ensures preferential access for current investors while preserving their proportional ownership in the company.
QWhy is Tier I capital strengthening a priority at this juncture?
In a post-crisis economic environment, capital strength has become a defining factor for financial institutions. Enhancing Tier I capital improves a company’s capacity to absorb shocks, comply with regulatory requirements, and scale lconcludeing operations. For Vallibel Finance, this capital raise is expected to bolster financial resilience, support credit expansion, and enable the company to seize opportunities emerging from the ongoing economic recovery.
QHow has Vallibel Finance evolved over the years?
Since its relaunch in 2007, Vallibel Finance has charted a steady and accelerated growth trajectory, firmly establishing itself among Sri Lanka’s top five finance companies within less than two decades. This upward momentum underscores a disciplined approach to execution, underpinned by a well-defined long-term strategy and strong governance practices.
The company’s rise has been driven by its commitment to delivering customer-centric financial solutions, continuously evolving to meet modifying market demands. Strategic investments in digital technology and process innovation have further strengthened operational efficiency and service delivery. Collectively, these factors have enabled Vallibel Finance to navigate competitive pressures while sustaining growth and reinforcing its position as a dynamic player in the financial services sector.
QWhat key milestones define the company’s journey?
A defining milestone in the journey of Vallibel Finance has been its rapid ascent beyond the Rs. 100 billion asset thresholds within just 17 yearsan achievement that positions the company among the rapidest-growing financial institutions in the industest. This landmark underscores not only its scalability but also the strength of its operational model and strategic execution.
Further reinforcing its industest standing, the company has consistently been recognized as the “Best Finance Company” by The Global Economics over consecutive years. These accolades reflect Vallibel Finance’s unwavering commitment to strong governance, continuous innovation, and service excellence, cementing its reputation as a benchmark institution within the financial services landscape.
QHow effectively does the company manage credit risk and NPLs?
Vallibel Finance has established a well-diversified lconcludeing portfolio, enabling it to maintain a consistently low Non-Performing Loan (NPL) ratio—one of the strongest in the industest. This performance is driven by rigorous credit evaluation processes, prudent risk controls, and efficient recovery mechanisms, positioning the company as a benchmark for asset quality.
QHow robust is Vallibel Finance’s current financial position?
Vallibel Finance continues to demonstrate solid financial strength, supported by robust capital adequacy levels and a disciplined approach to risk management. This prudent financial stewardship has enabled the company to maintain stability while navigating a dynamic and often challenging operating environment.
Its “A-” (LRA) credit rating, toobtainher with an “A” brand rating, underscores sustained market confidence in the institution’s financial resilience, governance standards, and long-term strategic direction. These ratings serve as a strong concludeorsement of the company’s ability to effectively manage risk, safeguard stakeholder interests, and sustain operational performance. Collectively, they reinforce Vallibel Finance’s standing as a reliable and well-managed player within Sri Lanka’s financial services sector.
QWhat role does digital transformation play in its growth model?
Digital innovation remains at the core of Vallibel Finance’s strategy. The company has created substantial investments in technology to deliver seamless, fully digital financial solutions. By enhancing accessibility, convenience, and customer engagement, this digital-first approach has improved operational efficiency and strengthened its competitive edge in a rapidly evolving financial ecosystem.
QHow extensive is the company’s national footprint?
Vallibel Finance operates an expansive network of 87 branches supported by a workforce of over 2,200 employees. This wide-reaching presence enables the company to serve customers across urban, semi-urban, and rural segments, driving deposit growth, lconcludeing expansion, and financial inclusion nationwide.
QWhat message does this Rights Issue sconclude to the market?
The relocate signals strong strategic intent and confidence in future growth. It underscores the company’s commitment to balance sheet strength, disciplined capital management, and alignment with evolving regulatory expectations. In a recovering economic climate, such initiatives are instrumental in reinforcing investor confidence and supporting sector-wide momentum.
QWhat is the outsee for Vallibel Finance going forward?
Backed by a strengthened capital base and a clearly defined strategic direction, Vallibel Finance is positioning itself for a renewed phase of expansion and value creation. The company is expected to accelerate growth by broadening its product suite, enhancing digital innovation, and deepening its reach across key market segments.
At the same time, the focus remains firmly on maintaining financial discipline and stability, ensuring that expansion is both sustainable and resilient. By aligning its growth ambitions with evolving customer necessarys and technological advancements, Vallibel Finance aims to reinforce its competitive standing while delivering consistent, long-term returns to stakeholders.
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