Annual Financial Statements as of 31st March 2025

GU ID ED BY

VALUES

DR IV EN BY

PROSPERITY

SINGER FINANCE (LANKA) PLC

ANNUAL REPOR T 20 24 / 25

Like the sandalwood tree that reaches its prime after 20 years, we too have come into our own; strategically mature, resilient by experience and driven by a clear sense of purpose.

Over the past two decades, we have evolved from a promise into a powerful presence, becoming an integral part of the lives we serve. Backed by the strength and credibility of the Hayleys Group and Singer Sri Lanka PLC, and guided by the human-centric ethos of ‘We feel you’, our mission transcends conventional finance. We exist not merely to fund aspirations but to make individuals feel acknowledged, understood, and empowered.

As we stand poised to grow even further, we do so with a deep sense of pride in our legacy and confidence in our future. This inflection point marks more than a milestone it reflects

a journey built on care, courage, and consistency. Every achievement to date has been deliberate, cultivated through trust, insight, and unwavering commitment.

Our approach, though simple in expression, is profound in execution.

‘We feel you’ is more than a statement. It is a strategic philosophy that drives how we engage, support, and uplift our customers. Like the maturing sandalwood tree that yields its most prized essence with time, we too believe that true value lies in enriching lives through meaningful financial empowerment.

Looking ahead, we remain anchored in our core values as we gear to scale new heights, not merely by meeting targets, but by creating enduring relationships, delivering solutions that matter, and building a future that transcends transactions.

Our roots are deep, our vision is far-reaching, and our purpose is clear: to continue growing with empathy, strength, and an unwavering commitment to those we serve.

CONTENT

ABOUT OUR COMPANY

ABOUT THIS REPORT 4

CHAIRMAN’S MESSAGE

SINGER FINANCE (LANKA) PLC 8

A KEY HIGHLIGHT FROM LAST YEAR 10

16 VALUE ADDED STATEMENT 11

OUR PERFORMANCE IN 2024/25 12

A YEAR OF MILESTONES AND 14

RESPONSIBLE STEWARDSHIP

ACHIEVEMENTS

CHAIRMAN’S MESSAGE 16

GROUP MANAGING DIRECTOR’S 20

REVIEW

CHIEF EXECUTIVE OFFICER’S REVIEW 24

BOARD OF DIRECTORS 28

STRATEGY AS THE FOUNDATION

MANAGEMENT TEAM 34

GROUP CHIEF EXECUTIVE OFFICER’S REVIEW

OPERATING ENVIRONMENT 39

OUR STRATEGY 42

20 VALUE CREATION MODEL 52

MATERIAL MATTERS 54

ETHICAL CAPITALS MANAGEMENT

STAKEHOLDER ENGAGEMENT 59

FINANCIAL CAPITAL 65

HUMAN CAPITAL 80

INTELLECTUAL CAPITAL 95

MANUFACTURED CAPITAL 106

SOCIAL AND RELATIONSHIP CAPITAL 115

NATURAL CAPITAL 126

CHIEF EXECUTIVE 24

OFFICER’S REVIEW

FOCUS ON SUSTAINABLE DEVELOPMENT/ ROBUST GOVERNANCE AND RISK MANAGEMENT

ESG RISKS AND OPPORTUNITIES 135

EMBRACING SUSTAINABILITY 141

CORPORATE GOVERNANCE 144

RISK MANAGEMENT 250

DISCLOSURE REPORT UNDER FINANCE BUSINESS ACT DIRECTION NO. 05 OF 2021

258

BOARD AUDIT COMMITTEE REPORT 259

BOARD NOMINATIONS AND GOVERNANCE COMMITTEE REPORT

261

BOARD RISK MANAGEMENT COMMITTEE REPORT 262

BOARD CREDIT COMMITTEE REPORT 264

BOARD HUMAN RESOURCES AND REMUNERATION COMMITTEE REPORT

BOARD RELATED PARTY TRANSACTIONS REVIEW COMMITTEE REPORT

AUDITOR’S REPORT ON THE DIRECTORS’ STATEMENT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

DIRECTORS’ STATEMENT ON INTERNAL CONTROL

BOARD OF DIRECTORS COMMUNICATION POLICY

265

266

267

268

269

S1 AND S2 DISCLOSURES 270

GRI CONTENT INDEX

INDEPENDENT IR ASSURANCE REPORT TO SINGER FINANCE (LANKA) PLC

INDEPENDENT GRI ASSURANCE REPORT TO SINGER FINANCE (LANKA) PLC

272

278

280

ABOUT

THIS REPORT

SINGER FINANCE (LANKA) PLC

INTEGRATED ANNUAL REPORT

2024/25

WELCOME TO

THE 7TH INTEGRATED ANNUAL REPORT OF SINGER FINANCE (LANKA) PLC

(“THE COMPANY”) FOR THE YEAR ENDED 31ST MARCH 2025.

Themed “Guided by Values, Driven by Prosperity,” this report follows the story

of a sandalwood tree that comes into full bloom after 20 years illustrating how we too have reached a moment of maturity resilient, refined, and rooted in purpose.

This integrated report focuses on providing a balanced and holistic view of the Company’s financial, environmental and social impacts, framed within the context of a robust governance structure designed to create societal value and contribute positively to the national economy.

BASIS OF PREPARATION

REPORTING PERIOD

GRI 2-3

This report is structured in accordance with the Group’s annual financial reporting cycle, covering the period from April 1, 2024,

to March 31, 2025. To support informed decision-making, the organisation presents a comparative analysis of its performance against the previous financial year. Where relevant, insights into future strategies and expectations have also been included. For details

on how the company handles projections and forward-looking information beyond the scope of this reporting period, please refer to the section titled ‘Forward-looking Statements’.

REPORTING SCOPE AND BOUNDARY

GRI 2-2

This report encompasses Singer Finance (Lanka) PLC’s operations for the financial year 2024/25, addressing both financial and nonfinancial aspects. It aims to meet shareholder and regulatory information requirements while providing a comprehensive overview of the Company’s operations. The report serves as the primary communication tool with stakeholders, offering transparent insights into operational performance, strategic objectives, governance, risk management, and future prospects to support informed decision-making.

INTEGRATED REPORTING BOUNDARY

ESG AGENDA

RISKS AND OPPORTUNITIES

STAKEHOLDER ENGAGEMENT

MATERIALITY ASSESSMENT

VALUE CREATION

CORPORATE GOVERNANCE

OUR STRATEGY

CAPITAL MANAGEMENT

FINANCIAL REPORTING BOUNDARY

Singer Finance (Lanka) PLC and its 56 branches across the island

SINGER FINANCE (LANKA) PLC / ANNUAL REPOR T 2024/25 5

Restatements of Information:

GRI 2-4

There were no restatements of financial or non-financial information disclosed during the past financial year.

REPORTING STANDARDS AND FRAMEWORKS

This integrated Annual Report has been prepared in accordance with internationally recognised and locally applicable reporting standards, frameworks, regulations, and legislation, thereby ensuring adherence to best practices in corporate reporting.

MATERIALITY

The Company adopted a double-materiality approach to identify the most significant topics and disclosures, ensuring that the report addresses both the business’s performance and the core needs of its stakeholders. Every topic covered in this report

is deemed to have a substantial impact on the organisation’s performance and its ability to meet stakeholder expectations over the short, medium, and long term.

ASSURANCE

GRI 2-5

The Company follows both internal and external frameworks for auditing and assurance. A combined assurance approach was implemented to verify the accuracy and completeness of this integrated report. As part of this measure, Messrs. Ernst & Young have independently assured the Financial Statements and provided assurance on Financial, Integrated and Sustainability reporting.

Refer page 54

for the Materiality Assessment

Refer page 278, 280 and 289 for External Assurance Reports

GUIDING PRINCIPLES AND REPORTING IMPROVEMENTS

This report adheres to the six guiding principles of the Integrated Reporting Framework. In an effort to enhance the quality of the report, the Company has not only focused on aligning its content with these principles but has also introduced new material to further elevate the report’s value.

Strategic Focus and Future Orientation

Connectivity of Information

Improved reporting on the future outlook through greater consistency and with set time horizons to establish accountability.

Improved connectivity of information by linking material topics and stakeholders to capital management reports.

Linking stakeholder engagement with capital management and governance disclosures.

ABOUT

THIS REPORT

Stakeholder Relationships

Improved disclosures on stakeholder engagement by mapping degree of influence and interest with respect to operations, and including real case studies to support our interactions.

Navigating our Report

Capitals

Stakeholders

SDGs

Risk and Governance Opportunities

Material Topics

Materiality The previous year’s material topics were expanded to 25 topics to retain relevance, and categorised under 04 topics.

Conciseness The report remains concise by focusing only on material disclosures and using cross-referencing to avoid repetition.

Reliability and Completeness The report is externally assured and includes complete disclosures across all capitals,

ensuring accuracy and stakeholder confidence.

S1 and S2 Adoption Preparation has been disclosed in the report. PEARLS Model in

New Reporting Content

the Financial Capital has been introduced. Much more emphasis on ESG Risks and Opportunities.

FORWARD LOOKING STATEMENTS

This Report contains forward-looking statements regarding the potential future financial position and performance of the Company.

These statements are subject to risks and uncertainties, both external and possibly internal, that cannot be precisely predicted. As such, the accuracy of these projections may vary as events unfold, and their impacts may, at times, be beyond the Company’s control.

The Company does not commit to updating or revising these statements in response to changes in circumstances, and neither the Board nor other individuals involved in preparing the Annual Report accept any liability for the effects of unforeseen negative events arising from the volatile global or local macroeconomic environment.

BOARD RESPONSIBILITY STATEMENT

The Board of Directors is responsible for ensuring the integrity and accuracy of this Integrated Report.

The Board affirms that, in their view, this Report covers all material

issues, fairly and accurately presents the Company’s performance, and has been prepared in alignment with the Framework and the GRI Reporting Standards.

Signed on behalf of the Board of Directors

Thushan Amarasuriya

Executive Director/ CEO 06th May 2025

FEEDBACK

2-3

GRI

We welcome your feedback, as it will help us enhance the

comprehensiveness of our report for the upcoming financial year. For any inquiries regarding the Annual Report, please reach out to the

following Officer. We also encourage you to send your suggestions to:

Chief Financial Officer

Singer Finance (Lanka) PLC No 498, R A De Mel Mawatha, Colombo 03

chandanan@singersl.com

SINGER FINANCE (LANKA) PLC / ANNUAL REPOR T 2024/25 7

ABOUT OUR COMPANY

Rooted in Trust. Grown with Care.

In the early years, like a young sapling, we focused on laying strong roots building trust, investing in people, and understanding our place in the financial ecosystem. Guided by the steady support of the Hayleys Group, we have nurtured a legacy of reliability and purpose-driven growth.

SINGER FINANCE (LANKA) PLC

CORPORATE PORTRAIT

A Legacy of Trust, Built on Values and Strength

For over 20 years, Singer Finance has grown similar to the quiet strength of a sandalwood tree - deeply rooted, steadily maturing, and valued more with time. Like sandalwood’s enduring fragrance that enriches every space it touches, our presence across Sri Lanka has created meaningful impact expanding access, enabling aspirations, and building trust that lasts.

Like sandalwood, whose essence strengthens as it matures, our journey has been defined by sustainable growth, meaningful reach, and a lasting contribution to Sri Lanka’s financial landscape.

Established in 2004, our journey has been defined not by rapid leaps, but by measured, values-driven growth that has paved the way for both enduring financial strength and deep-rooted trust.

With a heritage linked to two of Sri Lanka’s most trusted names Singer Sri Lanka PLC and the Hayleys Group, we have always operated with the mindset of a company that must deliver value, protect trust, and grow with care.

OVER 21 YEARS,

WE HAVE CONSISTENTLY:

⬥ Maintained strong capitalisation and a healthy core capital ratio

⬥ Grown a robust asset base, enabling continued expansion and product diversification

⬥ Achieved positive ratings from Fitch Ratings Lanka Ltd, validating our financial resilience and governance

⬥ Expanded across the island with a 56-branch network, bringing accessible financial services to urban and rural Sri Lanka alike

⬥ Today, we stand proudly in the league of Sri Lanka’s top Non-Bank Financial Institutions (NBFIs) in terms of asset strength, a position earned through prudence, discipline, and an unwavering commitment to serve responsibly.

VISION

To be the foremost finance company in Sri Lanka

MISSION

To provide the most useful and ethical financial services to our customers by creating an experience that builds lasting relationships.

OUR VALUES

⬥ Lead with Respect

⬥ Demonstrate Responsibility and Integrity

⬥ Improve and Innovate Passionately

⬥ Collaborate for Success

⬥ Respond with Agility

⬥ Drive Sustainability

ROOTED IN TRUST -

REACHING WITH PURPOSE.

Sandalwood’s roots run deep, drawing strength from within while its fragrance extends far beyond. In the same way, Singer Finance is firmly anchored in the strength of its parentage, ethical governance, and customer-centric philosophy. From bustling cities to rural communities, our financial solutions have touched lives across geographies widening access, enabling aspirations, and reinforcing financial resilience.

GRI 2-6

Total Assets

RS. 57,117 Mn

PURPOSEFUL GROWTH CREATING ENDURING VALUE

Total Equity

RS. 6104 Mn

From leasing and gold loans to savings accounts, fixed deposits, our portfolio has grown with our customers. We’ve also supported capital goods, agriculture, and consumer finance, responding with agility to national development priorities and local community needs.

Employees

987

Our journey of growth has been purposeful as we create value with integrity, aligned with the long-term interests of our stakeholders and society.

Core Capital Ratio

10.98%

Customers

137,848

Rating

BBB+[lka]

FITCH RATING LANKA LTD

Synergies with Singer

Sri Lanka and Hayleys Group

BUILT ON VALUE -

DRIVEN BY IMPACT

Like the heartwood of sandalwood, which reveals its full essence over time, our value has been cultivated through sustained relationships and strategic growth. We measure success not only by financial performance, but by the breadth

of our impact by empowering SMEs, supporting livelihoods, and contributing to economic development.

Our ascent in the financial services sector has been through strategically executed straegies, prudent risk management, customer-centric innovation, and a relentless focus

on fundamentals. Even in turbulent macroeconomic environments, we have remained resilient serving our customers, preserving our capital, and positioning ourselves for the future.

This steady performance has earned us a place among Sri Lanka’s

most trusted NBFIs, recognized for both our asset strength and sound governance.

Ethos That Sets Us Apart:

“We Feel You”

While our financial metrics speak of strength, what truly differentiates us is our empathetic approach to finance. We

believe in understanding our customers’ lives, needs, and dreams—so we can offer financial solutions that are not just relevant, but deeply personal.

This is the essence of our promise: “We Feel You.”

It’s more than a tagline, it’s how we do business.

⬥ Every loan is tailored, not templated.

⬥ Every branch is a space for connection, not just a transaction.

⬥ Every customer relationship is nurtured, not treated as a number.

A Future Guided by Principles -Inspired by Possibility.

As we enter a new phase of growth, our focus remains unwavering to deliver accessible, responsible, and technology-driven financial solutions that uplift and empower. Our strategy is shaped by insight, governed by integrity, and fuelled by a passion to serve a new generation of Sri Lankans.

As we mark 21 years of progress, we remain anchored in our values and

WE HAVE TAKEN ROOT.

WE HAVE GROWN STRONG.

AND WE REMAIN STEADFAST IN OUR PROMISE TO SERVE — WITH EMPATHY, STRENGTH, AND UNWAVERING COMMITMENT.

inspired by the people we serve. With strong financials, a trusted legacy, and a human-centered philosophy, Singer Finance is more than a finance company committed to helping Sri Lankans thrive.

A KEY HIGHLIGHT FROM LAST YEAR

Singer Finance Claimed Gold at the CA Sri Lanka TAGS Awards 2024

THIS VICTORY IS NOT JUST AN AWARD, IT IS A REFLECTION OF

OUR PEOPLE, OUR PURPOSE, AND OUR PURSUIT OF EXCELLENCE.

In a defining moment of pride and prestige, Singer Finance (Lanka) PLC etched its name in the annals of excellence by clinching the Gold Award for

Excellence in Annual eporting at the CA Sri Lanka TAGS Awards 2024.

This coveted recognition, awarded in the highly competitive category of Finance Companies with Total Assets Between Rs. 25 Billion to Rs. 75 Billion, is more than a win—it is a resounding endorsement of our unwavering commitment to transparency, governance, accountability, and stakeholder value creation.

The TAGS Awards—one of the most prestigious platforms in Sri Lanka for corporate reporting—celebrates organizations that raise the bar in integrated, financial, and sustainability reporting. Emerging as the best among peers, Singer Finance reaffirmed its leadership position in the financial services sector, backed by a reporting culture that reflects clarity, depth, innovation, and integrity.

GRI 3-3, GRI 201-1

VALUE ADDED STATEMENT

In 2024/25, Singer Finance continued to deliver meaningful value to all our stakeholders through a balanced focus on performance, resilience, and purpose. Amidst a dynamic financial landscape, we deepened customer trust, empowered our people, strengthened partnerships, and upheld rigorous governance. Our investments in digital transformation, inclusive growth, and community impact not only elevated our brand but also reinforced our role as a responsible financial partner. As we advance, we remain committed to generating sustainable economic and social value—guided by our core values and a clear vision for long-term prosperity.

Value Distribution 2023/24

%

31

44

24

0

• To employees as remuneration

• To saherholders as dividend

• To government as tax

• To business expansion and growth

OUR PERFORMANCE IN 2024/25

FINANCIAL HIGHLIGHTS

NON-FINANCIAL HIGHLIGHTS

A YEAR OF MILESTONES AND ACHIEVEMENTS

GROWING EMPLOYEE CAPITAL

We reached a new milestone in human capital, with our workforce expanding to 987 employees. This dedicated and passionate team embodies our corporate values and is instrumental in driving service excellence, innovation, and organizational growth.

ENVIRONMENTAL CONTRIBUTION

We continued to act responsibly towards the environment, with 4,500+ trees planted as part of our sustainability agenda, reinforcing our commitment to ecological stewardship and long-term environmental resilience.

BRANCH EXPANSION

In line with our strategic growth agenda, we expanded our footprint by inaugurating four new branches,

reinforcing our commitment to financial

inclusion, particularly in semi-urban

FINANCIAL MILESTONES

• Deposit Base Surpassed Rs. 25 Billion

  Reflecting the trust of our growing customer base, we achieved a customer deposit base exceeding Rs. 25 billion. This not only affirms our strong brand equity but also strengthens our funding base

  to support continued service enhancements and growth.

• Asset Base Crossed Rs. 50 Billion

  Our asset base grew beyond Rs. 50 billion, underpinned by a 71% increase in the lending portfolio, demonstrating prudent financial management and value creation.

• Lending Portfolio Surpassed Rs. 45 Billion

  We achieved a significant lending milestone, with over Rs. 45 billion disbursed, largely driven by growth in finance leases and

  loans, reflecting our contribution to financial accessibility.

• Profit Before Tax Surpassed Rs. 1 Billion

A landmark achievement, our Profit Before Tax exceeded Rs. 1 billion, signaling strong performance across strategic, operational, and financial dimensions.

AWARDS & RECOGNITION

• CMA Excellence in Integrated Reporting Awards 2024

  Recognized for our commitment to transparent and stakeholder-driven reporting practices.

• Gold Award – CA Sri Lanka TAGS Annual Report Awards 2024

  Honored with the Gold Award for Excellence in Annual Reporting under the Finance Companies category (Assets between Rs. 25–75 billion).

  We also received special recognitions in Sustainability Reporting, Corporate Governance, and Integrated Reporting, affirming our industry leadership.

• Great Place to Work – 2024/25 Certification

  Proudly certified for the sixth consecutive year as one of Sri Lanka’s Best Workplaces, in recognition of our employee-first, inclusive, and values-driven culture.

• Ranked Among LMD’s Top 10 Most Loved Financial Services Brands

Our strong emotional connection with stakeholders earned us a place among the Top 10 Most Loved Financial Services Brands by LMD, further validating our brand trust and customer loyalty.

and rural communities. These branches offer accessible financial services such as leasing and gold loans, fostering economic empowerment and aligning with our purpose of “Making People Feel Great.”

SINGER FINANCE (LANKA) PLC / ANNUAL REPOR T 2024/25 15

RESPONSIBLE STEWARDSHIP

From Strength to Significance.

Twenty years on, our maturity is not just in scale, it is in insight, empathy, and innovation. We’ve learned to listen deeply, adapt quickly, and respond meaningfully. With digital solutions and tailored financial products, we strive to make

life easier, more secure, and more rewarding for those we serve.

GRI 2-22

CHAIRMAN’S MESSAGE

Dear Esteemed Shareholder,

It is with immense pride, and a profound sense of responsibility that I present

to you the Annual Report of Singer Finance (Lanka) PLC for the financial year ended 31st March 2025. This year stands as a landmark in our storied history, not merely for the extraordinary financial milestones we have achieved but for the manner in which we have attained them—through an unwavering commitment to our core values, a relentless pursuit of excellence, and

a vision to foster prosperity for all our stakeholders. As we reflect on the past year, we celebrate a transformative chapter that has strengthened our foundation, elevated our aspirations, and positioned us as a beacon of trust and innovation in Sri Lanka’s financial services landscape.

Global and Local Economic Landscape

The global economic environment during the year was a complex tapestry of opportunities and challenges. A notable decline in global oil prices provided

much-needed relief, tempering inflationary pressures and reducing borrowing

costs for consumers and businesses alike. This, in turn, fostered improved loan repayment behaviours across the financial sector, creating a more stable lending environment. However, persistent global uncertainties-stemming from geopolitical tensions and fluctuating market dynamics-restricted access to international funding sources. Closer to home, Sri Lanka’s economy painted a picture of resilience and resurgence.

The nation achieved a commendable GDP growth rate of 5.0%, underpinned by deflationary conditions that

bolstered real purchasing power and stimulated consumer confidence.

The Central Bank of Sri Lanka’s proactive monetary policy measures, including reduction in policy interest rates, invigorated the credit market, catalyzing a remarkable 22.8% surge in loan disbursements and a 20.9% increase in sector-wide profitability. Yet, challenges persisted. Constraints on foreign capital inflows, coupled with rising operational taxes-most notably the increase in the VAT rate to 18%-demanded agility, foresight, and strategic adaptability from financial institutions. At Singer Finance, we navigated these dynamics with precision, leveraging opportunities

while proactively addressing headwinds

to deliver exceptional results.

Trends and Sectoral Developments

The financial services sector in Sri Lanka underwent significant

transformation during the year, driven by evolving consumer preferences,

regulatory reforms, and technological advancements. Gold loans and vehicle leasing emerged as the dominant credit categories, reflecting strong demand for accessible and asset-backed financing solutions. The industry also witnessed a marked improvement in credit quality, with the Non-Performing Loan (NPL) ratio declining significantly

due to intensified recovery efforts and improved borrower discipline.

The announcement of the Masterplan for Consolidation in December 2024

marked a pivotal structural shift, reducing

the number of Specialised Leasing Companies. This move intensified competitive pressures, compelling finance companies to differentiate themselves through innovation, efficiency, and customer-centricity. Simultaneously, the rapid adoption of digital technologies reshaped the industry, with financial institutions

"Our total assets surpassed the Rs. 50 billion milestone for the

first time, reaching an impressive

Rs. 57.1 billion a remarkable 56% increase year-on-year. Income-earning assets grew even more robustly, surging by 71% to Rs. 47.5 billion, underscoring our ability to deploy capital effectively

in high-yield

opportunities."

increasingly leveraging mobile solutions, online platforms, and data analytics

to enhance accessibility and drive financial inclusion. At Singer Finance, we embraced these trends, aligning our strategies to capitalize on sectoral shifts

while reinforcing our position as a market leader.

Record-Breaking Financial Performance

Against this dynamic backdrop, Singer Finance delivered a solid financial performance, achieving record-breaking profitability. The financial year 2024/25 will be remembered as the most successful in our Company’s

history, characterized by unprecedented growth, profitability, and operational excellence. Our total assets surpassed the Rs. 50 billion milestone for the first time, reaching an impressive Rs. 57.1 billion—a remarkable 56% increase year-on-year. Income-earning assets grew even more robustly, surging by 71% to Rs. 47.5 billion, underscoring our ability to deploy capital effectively in high-yield opportunities.

Profit Before Tax soared by 124% to Rs. 1.46 billion, while Profit After Tax reached an all-time high of Rs. 851.7 million, more than doubling the previous year’s figure. These results were not the product of chance but the outcome of meticulous planning, disciplined lending practices, and a steadfast commitment to creating value for our customers. Our

NPL ratio improved drastically, dropping from 10.25% to 5.42%, a testament to our rigorous risk management framework and proactive recovery strategies.

Operational efficiency also reached new heights, with our cost-to-income ratio declining to 58.7%, despite minimal staff expansion. This achievement highlights our ability to scale operations efficiently while maintaining a lean and agile organizational structure.

Strategic Response to Challenges and Opportunities

Our success in 2024/25 was underpinned by a strategic approach that balanced resilience in the face of challenges with bold pursuit

of emerging opportunities. The sector consolidation mandated by the Masterplan for Consolidation introduced heightened capital adequacy requirements, which we addressed by strengthening our

capital base through prudent financial management and targeted capital-raising initiatives. The constraints on foreign funding were mitigated through a robust domestic deposit mobilization strategy, which saw our deposit base grow by 28% to Rs. 28.3 billion, reinforcing our financial stability.

The increased tax burden, driven by the higher VAT rate, was absorbed through carefully calibrated pricing adjustments and a relentless focus on internal efficiencies. On the opportunity front, we capitalized on the surge in credit demand by significantly expanding

our gold loan and vehicle leasing portfolios, which resonated strongly with customers seeking flexible and accessible financing solutions. Our extensive regional presence, coupled with tailored lending products, enabled us to penetrate underserved markets, aligning with the national agenda of promoting financial inclusion and empowering communities across Sri Lanka.

Digital Transformation and Innovation

In an era defined by technological disruption, Singer Finance made significant strides in its digital transformation journey, positioning itself at the forefront of innovation in the financial services sector. We

undertook a comprehensive upgrade of our core IT infrastructure, enhancing system security, processing speed, and operational resilience to meet the demands of a rapidly evolving digital landscape. Internally, the launch of

the Singer Finance Digital Academy marked a milestone in our commitment to human capital development, equipping our workforce with cutting-

CHAIRMAN’S MESSAGE

edge learning tools to deliver service excellence and adapt to emerging industry trends.

Looking to the future, we laid the foundation for transformative digital initiatives, including the development of an e-wallet platform and AI-powered credit evaluation tools. These investments are designed to enhance customer engagement, streamline operations, and deliver personalized financial solutions that cater to the unique needs of our diverse customer base. By embracing technology as a catalyst for growth, we are not only preparing for the future but actively

shaping it, ensuring that Singer Finance remains a trusted partner in our customers’ financial journeys.

Sustainability and Responsible Finance

"At Singer Finance, we believe that true prosperity extends beyond financial success to encompass environmental stewardship, social impact, and ethical governance."

At Singer Finance, we believe that true prosperity extends beyond financial success to encompass environmental stewardship, social impact, and ethical governance. Guided by the Hayleys Group’s Lifecode and our Environmental, Social, and Governance (ESG) aspirations, we deepened our commitment to sustainability during the year. Our “Tree for Every Tuk Tuk” initiative gained significant traction, contributing to reforestation efforts and promoting environmental consciousness. The “Ocean Heal” coastal clean-up campaign further underscored our dedication to preserving Sri Lanka’s natural heritage, engaging communities and fostering a culture of environmental responsibility.

In the realm of responsible finance, we expanded our Solar Financing portfolio, enabling households and businesses to adopt renewable energy solutions and supporting Sri Lanka’s transition to a low-carbon economy. These initiatives reflect our belief that sustainability is not merely an obligation but a strategic

imperative that drives long-term value creation for our stakeholders and the planet.

Governance and Compliance Robust governance and unwavering compliance are the cornerstones of

our operations. During the year, we

further strengthened our governance framework, aligning with the latest revisions to the Code of Best Practice on Corporate Governance and the Listing Rule on Corporate Governance issued by the Colombo Stock Exchange. Our internal controls, risk governance mechanisms, and board oversight processes were enhanced to reflect the growing importance of sustainability, ethical conduct, and regulatory compliance. A special note of appreciation is extended to Mr.

Jayanth Perera, who retired from our Board during the year. His invaluable contributions, deep insights, and steadfast commitment have left

a lasting impression on our journey, and we are grateful for the legacy of

governance and vision he leaves behind. We also warmly welcome Mrs. Hiranthi De Silva, who was appointed to the Board, bringing with her a wealth of expertise and perspective that will further strengthen our governance and strategic direction. These collective efforts have been instrumental in maintaining the trust of our stakeholders, ensuring business continuity, and navigating the complexities of an evolving regulatory landscape with confidence.

Brand Recognition and Awards Our achievements were recognized on multiple fronts, affirming our position as

a leader in the financial services sector.

We were honored to be ranked among the Top 10 Most Loved Brands in the Financial Services Category by LMD Magazine, a reflection of our growing brand equity and the deep trust we have earned from our customers. Additionally, our commitment to integrated thinking, transparent reporting, and stakeholder value creation was celebrated with

the prestigious Gold Award at the CA Sri Lanka TAGS Awards 2024. These

accolades inspire us to continue pushing the boundaries of excellence and innovation.

Looking Ahead

As we embark on the financial year 2025/26, we do so with optimism and determination. The economic outlook remains stable, with inflation under control and interest rates expected to remain conducive to growth. Building on our successes, we will accelerate our digital transformation agenda, with plans to launch our e-wallet platform and advance AI adoption to enhance credit scoring, customer interaction, and operational efficiency. Our commitment to Green Financing will deepen, as we expand our offerings to support sustainable development and environmental conservation.

We will also continue to foster a customer-first culture, ensuring that our products and services remain accessible, inclusive, and aligned with the evolving needs of our diverse customer base.