We are pleased to present to you, on behalf of the Board of Directors, the Annual Report of Co-operative Leasing Company (CLCL) for the financial year ending 31st March, 2022 and welcome you to the 20th Annual General Meeting of the Company.

As you are all well aware, the year under review marked one of the toughest periods in recent Sri Lankan history. In this time of turbulence, it must be understood that the performance of your Company was unavoidably impacted by the combination of social, political and economic events that occurred. Continued restrictions on vehicle imports ranging from Four Wheelers to Two Wheelers, shrinking repayment capacities of the general public coupled with balance of payment crisis facing by the country the CLCL Team forecasted the high credit risk and interest rate mismatches to be surface in near future. Hence as a strategy to mitigate the said risks at maximum, the company curtailed most of its lending and as a result the loan book continued to reduce by   12.6% over the year affecting the Company’s top line with reducing the Gross Income to Rs.166.64 Mn as at end of 31.03.2022 from Rs.206.10 in previous year.

Nonetheless amidst this complex state with strong recovery efforts and other strategic measures taken, your company has demonstrated an admirable performance and concluded the financial year on a profitable grip, and a strong foundation to face the impending challenges of the forthcoming financial year.


In the light of the COVID-19 pandemic and the country’s economic condition, the Company sought to identify and work with customers whose businesses and livelihoods had been adversely impacted. The repeated lockdowns and mobility restrictions during periods had an adverse impact on the macroeconomic performance of the country, taking a heavy toll on some of the key sectors including the financial sector of the country. It is only towards the latter part of the financial year that a gradual recovery was observed.

The Central Bank of Sri Lanka continued its support to effected businesses and individuals by pandemic and adverse economic conditions of the country. These supports schemes facilitated by offering debt moratoriums, interest concessions, re-schedule of loans for longer tenure etc. We are proud to say that the Company’s contribution on these support schemes was significant and remained committed to support its valuable customers throughout the year.

Constricted Industry Domain Vs Beginning to Rise Again

During the period under review Your Company faced countless challenges. As stated earlier the challenges surfaced by the Covid-19 pandemic, continued failing in tourism industry, import restrictions & balance of payment crisis were among the top, the constricted policy measures taken under certain macro-economic policies on the Specialized Leasing Company Sector under Masterplan for Consolidation of Non-Bank Financial Institutions by CBSL also made unendurable effects to the growth of the Company. To be in line with the program the Board of Directors and the Management of the Company had to spent hours of times along with the Consolidation Program on top of achieving Company’s desired business objectives.

However being mindful on the external risks surfacing, our primary focus was to place the Company on a profitable path once again. Compared to the recorded loss of Rs.86.80 Mn in FY 2020/21 the Company regained its momentum strongly by posting a Profit After Tax of Rs. 50.74 Mn as at end of the FY 2021/22.  We relooked at our recovery strategies to make them more effective. The CLCL Team forecasted the rising interest rate trend in the market early in the year and was very watchful of its new lending. As of the day unlike the industry CLCL is strongly ready to make a fresh start to capture its new businesses as to the present market conditions with solid stakeholder confidence.

Operating Results of the Company

Back to progression and improving returns our performance in the second half of the year ended, gives us confidence that we are on track to achieve our strategic and financial objectives. To be adapt with the market conditions although the Company allowed its credit book to reduce by over 13% with curtailed lending on top of the strong recoveries, yet the bottom line of the company recorded significant improvements. During the FY 21/22 the Total Assets declined from Rs.1.25 Bn to Rs.1.09 Bn, a decrease of Rs.158.61 Mn or 12.67 in percentage. The interest earning assets recorded a reduction of Rs.140 Mn or by 12.68% compared to the previous year. Nevertheless on top of the above decline, proving the strategy adapted became a success the Company’s Net Interest grew from 100.29 Mn to Rs.107.18 Mn  over the FY 21/22.    

As at end of the year although the market conditions were otherwise CLCL was able to maintain a Net Interest Margin of 11.13 %, compared to 9.09 % in previous year. Having indicated strongly of Company’s ability to manage the interest rate risks in the current market, the Company also has been able to lower its dependence on interest income commendably during the year by improving its Non-Interest Income base. The earnings from Non-Interest Income grew from Rs.20.30 Mn to 28.78 Mn and the Non-Interest Income to Gross Income ratio grew from 9.85 % to 17.27 %  over the year.

In CLCL’S journey of 20years the previous year was one of the toughest years to experience. However today we proud to state that your Company has re-gained its stability and now well positioned to begin a new journey with your support. The Company recorded a Profit Before Tax of Rs.78.69 Mn in FY 21/22 and Profit After Tax of Rs.50.74 Mn compared to a loss of Rs.81.43 Mn and Rs.86.88 Mn respectively in FY 20/21.

Rebuilding the shareholders interest and confidence the Company was able to end the year by increasing its shareholders funds from Rs.680.73  to Rs. 731.93 Mn  and the value of Net Assets per Share from Rs.13.31 to Rs.14.31. The earnings per share grew to Rs.0.99 per share from previous years negative earnings.

Way forward and appreciation           

Today with beginning of the Financial Year 2022/23 the Co-operative Leasing Company Ltd has to decide its future way forward as to the Consolidation Masterplan of the NBFI sector. However with making of a strong comeback today your Company has been placed at a position to take up any challenges within the industry. The low gearing and the Core Capital ratio of 42%, compared to the minimum requirement of 5 % is an indicator of such ability. Hence the Team of CLCL would ambitiously look forward to realize more and more value to all of its stakeholders in the coming years.

Although the financials of CLCL revived positively during the year, the Company faced few unbearable events also within the year especially due to Covid-19 outbreak. The demise of former Chairman of the Company Mr. Kingsly Paul is specially to mention here with heartfelt condolences. 

Facing with numerous challenges during the year, as the major shareholder the continuous support given by the Board of Directors and the Management of Wayamba Co-operative Rural Bank Union Ltd, would like to appreciate at first. By participating at important events and arranging many facilities during the lock down periods we would like to convey our special regards to Chairman and the Staff of the National Co-operative Council of Sri Lanka.   

As we conclude a financial year with an admirable achievement ending 31 March 2022, we would like to express our appreciation to the Governor, Director of NBFI and his team at the Central Bank of Sri Lanka.

The invaluable guidance and corporation given by the External Auditor Ms. B R De Silva & Company is too highly appreciated here by the Board of Directors and the Management of the Company. We would like also mention very gratefully the hand in hand support given by our Internal Auditors and Secretaries  Mathew & Co. 

CLCL team would like to extend its special regards also to the officers and advisories at Ministry & Department for Co-operative Development at North Western Province for their contribution given towards the Company and its shareholders.

Co-operative Leasing Company not have been able to achieve this success and pave the path for future growth without the commitment and support of the Board of Directors, the employees, shareholders and customers. For realizing our overall objectives once again we are very thankful to all of the  Board Members and advisories and Senior Management of CLCL and all other employees, contributed tirelessly throughout the year.

We look forward to further success along the path of CLCL’s dynamic and transformational journey in the years to come.


CEO                        FORMER CHAIRMEN                      PRESENT CHAIRMAN