State enterprise profits slip

Govt. releases Mid-Year Fiscal Position Report 2025 52 SOEs post Rs. 227.8 b profit in 1H 2025, down from Rs. 280.7 b in 2024 In 1H, Cabinet clears Public Commercial Enterprises Bill to drive reforms

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SRI Lanka's State-Owned Enterprises (SOEs) posted a mixed financial performance during the first half of 2025, with overall profits declining to Rs.227.8 billion from Rs. 280.7 billion a year earlier.

The fall was largely due to a sharp reversal in the Ceylon Electricity Board's (CEB) performance, which swung from a substantial profit to a loss following tariff reductions.

These losses outweighed gains recorded by State banks and other profitable enterprises, the Finance Ministry said in its Mid-Year Fiscal Position Report 2025 released on 31 October by Finance Minister and President Anura Kumara Disanayake.

Despite the drop in aggregate profitability, several large SOEs recorded improved results. The three main State banks—Bank of Ceylon, People's Bank, and National Savings Bankcollectively boosted profits by Rs. 65.5 billion in the first six months, reflecting improved interest margins, balance sheet growth, and lower impairment charges.

Bank of Ceylon's Profit Before Tax (PBT) rose sharply to Rs. 61.1 billion, from Rs. 22.4 billion in the same period of 2024, supported by a 78.6% increase in net interest income to Rs. 102.7 billion.

Total assets increased to Rs. 5,290 billion, while the deposit base grew by 5.2% to Rs. 4,429 billion. Impaired loans improved slightly to 7.13% from 7.20% at end-2024.

People's Bank reported its highest-ever half-year PBT of Rs. 28 billion, compared to Rs. 2.6 billion a year earlier, reflecting a 151% increase in net interest income to Rs. 69.3 billion.

The bank's assets grew by 8.3% to Rs. 3,572 billion, while its deposit base rose to Rs. 3,125 billion.

The non-performing loan ratio declined to 9.39% from 10.26%, indicating modest improvements in asset quality.