Softlogic Capital positions strategically in financial services arena

Softlogic Capital PLC, the financial services holding company of the highly diversified Softlogic Group, has successfully completed a string of impressive acquisitions recently. As a result, its offerings encompass the entire spectrum of leasing and finance and insurance and equity broking. The company now stands well-poised to reap the benefits of the strong Sri Lankan economy over the medium term, armed with this impressive portfolio of financial services.

Softlogic Capital’s portfolio of financial services comprises of Softlogic Finance PLC, a Licensed Finance Company (LFC), licensed by the Central Bank of Sri Lanka; Asian Alliance Insurance Co. PLC, a composite insurer licensed for both Life and General insurance by the Insurance Board of Sri Lanka, and Arrenga Capital Pvt Ltd, a stock broking company licensed and operating on the Colombo Stock Exchange.

This comprehensive financial services portfolio has primed the group for strident growth, leveraging on its fast increasing customer base mainly through Softlogic retail with over 120 outlets island wide and healthcare – whereby the Asiri Hospitals Group is the market leader in the industry.

Softlogic Group Chairman Ashok Pathirage commented: “The Softlogic Group has established a bold presence in the financial services sector by foraying into insurance stock broking and leasing. We believe that the financial services sector of the country has immense potential in the months and years ahead and we have supported this belief by making substantial investments in the sector.

“Apart from acknowledging potential in the domestic market, we perceive opportunities for Sri Lanka to become a regional financial services hub over time. Personally, I am extremely bullish about prospects for the financial sector and as a group we will continue consolidating our foothold in the arena.”

Softlogic Finance PLC has witnessed rapid growth over the last year, with total assets exceeding Rs. 10 billion and customer advances surpassing eight billion rupees, while customer deposits recorded Rs. 4.5 billion. Positioned as a large-sized finance company (as categorized by the Central Bank of Sri Lanka) and a leading entity in the LFC sector, Softlogic Finance has extended its geographical reach by way of new branches and relocation of existing branches.

The company’s network of gold loan centres has extended by 25 standalone sites, bringing the count to 34 centres offering gold loan services. These coupled with the company’s presence in expanding Softlogic retail stores make up a network that exceeds 50 locations.

Ranked sixth in Sri Lanka’s total life premium market, Asian Alliance Insurance PLC is a composite insurance solutions provider.  The Asian Alliance Insurance business is forging ahead on a steep growth curve, backed strongly by a slew of exciting developments and strategic changes to set the company on an enviable growth trajectory.

It has leveraged on the exciting synergies of group company Asiri Hospitals to pioneer a unique medical insurance product. Backed by the Softlogic group, Asian Alliance is poised to lead in the medical insurance arena and make steady strides towards the forefront of the insurance industry.

Arrenga Capital Pvt Ltd., is ranked as one of the leading stock broking firms in the country and its acquisition by Softlogic Group generates interesting group synergies. This newest acquisition by Softlogic enables the group to leverage on the Arrenga Capital team’s expertise in the capital markets.

Meanwhile, Softlogic Capital recently announced sale of its subsidiary Softlogic Credit after having consolidated its micro-finance operations into Softlogic Finance. The sector will add on asset management business shortly, further enhancing Group expertise.

  Sri Lanka’s financial services sector is poised for growth and the country’s capital markets continue to be one of the most potential filled investment avenues in a post-war climate. Leasing, insurance and stock broking, apart from banking, form the bulk of financial services experiencing rapid growth over the last few years.

The levels of penetration still remain low in insurance, thereby offering rich prospects going ahead. The opening up of the North and East offers further avenues for growth. Softlogic Capital’s array of financial services makes it a one-stop shop and is well positioned to make immense headway as a total financial solutions partner.