drive exceptional growth across all metrics.
Associated Motor Finance Company PLC (AMF) has delivered its strongest financial performance to date, reporting a Profit Before Taxes of Rs. 1.78 billion for the financial year ended 31 March 2025 – a 122% increase over the previous year. Profit After Tax (PAT) surged by 136% to Rs. 750 million, cementing AMF’s emergence as a robust, agile, and forward-focused financial institution.
This exceptional performance reflects a deeper story of transformation, one driven by a disciplined strategic direction, a united leadership, and a deep commitment to customer-centered, inclusive finance.
With a focus on execution over mere planning, AMF embraced the uncertainties of the financial landscape to create new momentum. As AMF’s CEO Mr. T.M.A. Sallay states, “This was a year that tested our resilience and affirmed our readiness. What set us apart was our ability to move from planning to purposeful execution. We stayed focused on our strategic priorities while adapting swiftly to change. The results reflect not only discipline, but unity – employees, partners, and stakeholders working together to turn challenges into real opportunities. It is this shared commitment that continues to drive our growth and transformation”.
Financial and operational performance highlights for FY 2024/25 include a 53% surge in net interest income to Rs. 3.28 billion, supported by a 12% increase in interest income and a 19% reduction in interest expenses. The lending portfolio recorded healthy growth of 23%, reaching Rs. 13.61 billion, while total assets expanded by 10% to Rs. 21.17 billion. Public deposits also reflected strong customer confidence, growing by 7% to Rs. 15.55 billion, and shareholders’ funds rose by 22% to Rs. 3.97 billion—underscoring the company’s strengthened financial foundation.
Operational profitability and efficiency improved significantly. Return on Average Assets (ROA) stood at 8.78%, while Return on Equity (ROE) reached an impressive 20.81%. Net Interest Margin (NIM) held strong at 16.21%, and the efficiency ratio improved sharply to 40.82% from 55.46% the year before, reflecting tighter cost control and productivity gains.
AMF also maintained a robust capital position, with a Tier I Capital Ratio of 18.96% and a Total Capital Ratio (Tier II) of 19.24%—well above the regulatory minimums of 8.5% and 12.5% respectively.
Liquidity remained a key strength, with Liquid Assets to Short-Term Liabilities at 87.67%, Liquid Assets to External Funds at 37.71%, and Liquid Assets to Total Assets at 27.10%.
Earnings per share (EPS) more than doubled to Rs. 6.62, while Net Asset Value (NAV) per share climbed to Rs. 35.01, reflecting continued value creation for shareholders. In recognition of its enhanced risk and financial profile, Lanka Rating upgraded AMF’s credit rating to BB (Stable).
Speaking of this remarkable financial performance, Mr. Suren Goonewardene, Chairman of Associated Motor Finance Company PLC noted, “Our performance this year is not just a measure of financial strength—it reflects the resilience and commitment of our people, complemented by a clear strategic vision. At a time when Sri Lanka is emerging from a period of significant economic adversity, it is deeply rewarding to know that our efforts are aligned with the national vision for recovery and sustainable development.”
Founded in 1962, AMF was a pioneer in two-wheeler financing in Sri Lanka, operating a lean, branchless model. In 2021, the company underwent a landmark merger with Arpico Finance—one of Sri Lanka’s oldest finance companies—strengthening its capital base, expanding its lending footprint, and broadening its service portfolio. With 12 strategically located branches and investments in advanced fintech solutions, AMF today combines legacy trust with technological agility to serve a growing, diversified customer base across the country.
Over the past decade, the company has evolved significantly by embracing digital transformation as a strategic priority. Initially operating with traditional business processes, the organization began its digital journey by upgrading its core IT infrastructure and implementing enterprise resource planning systems to improve internal efficiency and data management. Looking ahead, AMF will continue to prioritize digital transformation, financial inclusion, and sustainable growth—positioning itself as a forward-thinking, purpose-driven player in Sri Lanka’s financial sector.
As part of its ongoing efforts to strengthen financial stability, accelerate growth, and uphold strong governance, AMF’s Board of Directors has approved the issuance of Listed Rated Unsecured Subordinated Redeemable High-Yield Bonds amounting to LKR 1.25 billion, subject to regulatory approval. The bonds will be listed on the Colombo Stock Exchange upon receiving the necessary clearances.
The company’s resurgence is guided by a leadership team with strategic foresight and operational discipline. The Board comprises Suren Goonewardene (Chairman), Nalatha Dayawansa (Deputy Chairman), Mervyn Sallay (CEO), Shammalka Dayawansa, Shanil Dayawansa, Nilanka Pieris, Ranil Wijegunawardane, and Tauchira Kandamby.