Kanrich celebrates 50th anniversary with strong performance

Friday, 23 December 2022 00:05 - - {{hitsCtrl.values.hits}}

Chairman Dr. Ravi Ratnayake

CEO Shiran Weerasinghe

Kanrich celebrates its 50th anniversary, recording outstanding financial performance after four years. Though the company was able to withstand the pressure from the economic slowdown since 2016 and continue as a profitable company, challenges emerged after that, and their consequences were more far-reaching and devastating to the Sri Lankan business sector.

First, it was the announcement of the political leadership promising the borrowers of microfinance to default on their loans, which resulted in staggering Rs. 800 million in losses to Kanrich. The company’s core capital plummeted from nearly Rs. 1.79 billion in 2018 to 1.2 billion in 2019. This was followed by the Easter attack, the COVID-19 pandemic, and the unprecedented economic crisis during 2020-2022, which had a catastrophic and long-lasting impact on Kanrich.

However, the company re-established itself as a profit-making company in 2022 with remarkable increases in returns on equity, assets, and earnings per share of 12.8%, 3.5%, and 1.5% respectively. The Capital Adequacy ratio increased from 7% in 2021 to 20% in 2022, three times more than the regulatory requirement.

The past year was also a testing time for the capabilities, resilience, risk control, and governance of Kanrich. However, Kanrich is proud of regaining its strength to cope with many challenges. It made all efforts to minimise the risks and perform better in a highly volatile economic, social and political environment. The company›s performance was highly influenced by the economic cycles of the Sri Lankan economy and political and social dimensions beyond the control of Kanrich.

Chairman Dr. Ravi Ratnayake said: “It is an honour for me to stand with Kanrich as it is passing glorious 50 years, embracing its legacy and making an outstanding mark in the finance industry. It is not easy for any financial institution to survive in the industry with robust commercial performance for 50 years and maintain its trust. Kanrich is at a cross-road requiring a successful transformation towards a new journey in 2023 with new goals and hopes for a bright future leading to sustainable growth, continuing profitability, and enhanced resilience.”

CEO Shiran Weerasinghe said: “The financial year of 2021-22 reminds us of the past glory Kanrich enjoyed before the economic downturn in 2018, followed by the COVID-19 epidemic and the tri-crisis-social, political, and economic that started in the previous financial year. Against the backdrop of the economic crisis facing Sri Lanka, we succeeded by recording profits this year by surmounting challenges determinedly. We managed to maintain a reasonable balance between the company›s assets and liabilities. Despite challenges, we achieved these results based on quality work, talented staff, teamwork, and dedication.”

“Shareholders and customers have had faith and confidence in us as the Board of Directors and management, for which we are most grateful. Our dedicated staff is the most valuable asset of the company. Their outstanding dedication, perseverance, and strong commitment are acknowledged with thanks,” Weerasinghe added.