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SRI LANKA NEWS

Softlogic points to 3-year turnaround as debt restructuring gathers pace - Daily Mirror - Sri Lanka

Lanka Hit News • Sep 22, 2026 · 1mo ago • 2 min read
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Softlogic Holdings PLC says its core businesses have staged a sustained operational recovery over the past three years, with the group EBITDA more than doubling and the operating cash flows swinging into a strong positive territory. In a performance summary based on its audited financial statements for the year ended March 31, 2026, the conglomerate highlighted that the EBITDA climbed to Rs.17.8 billion in 2025/26, up 43 percent from Rs.12.5 billion a year earlier and well above Rs.7.8 billion recorded in 2022/23. The turnaround in cash generation has been sharper still. The net cash inflows from the operating activities rose 60 percent to Rs.14.0 billion during the year, compared with an outflow of Rs.7.1 billion in 2022/23. The cash earnings per share improved to Rs.10.07, from Rs.6.30. The group revenue grew 24.5 percent to Rs.129.0 billion, while the gross profit rose 22 percent to Rs.46.0 billion. Softlogic also returned to a pre-tax profit of Rs.24 million, reversing the losses of Rs.20.9 billion in 2022/23, Rs.12.6 billion in 2023/24 and Rs.7.5 billion in 2024/25. According to the company, working with its primary bankers has converted the short-term debt pressures into longer-term structured maturities that better match its operating cash flows. Restructuring offer letters covering Rs.47.5 billion of facilities had been signed by the year end, with a further Rs.12.2 billion signed before the annual report was published. The group has also obtained banking facility support letters amounting to Rs.13.2 billion. The net debt eased to Rs.115.9 billion, from Rs.117.6 billion a year earlier and Rs.124.1 billion in 2023/24. The group pointed to foreign institutional capital as a further sign of confidence. Softlogic Life Insurance secured US $ 15 million in long-term Tier 2 capital from Norfund and OP Finnfund Global Impact Fund I. In addition, the regulators have lifted the lending restrictions on Softlogic Finance PLC, allowing it to rebuild its secured lending portfolio. Softlogic maintains that Phase I of the recalibrated ODEL Mall project will be funded primarily through the pre-sales of the office space and external equity, without incremental debt. It also expects the placement of its Colombo and Bentota hotels under Accor’s Pullman brand to lift international occupancy, generate foreign currency cash flows and help mitigate the exchange rate risk on its hospitality debt. However, the improvement in operating metrics is yet to flow through fully to the shareholders. The annual report shows the group recorded a loss of Rs.8.63 billion attributable to the equity holders for 2025/26, while the shareholders’ funds remained negative at Rs.66.4 billion. The group also returned to a pre-tax loss in the first quarter of 2026/27. (NF)

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