MERCANTILE INVESTMENTS AND FINANCE
By any measure, Mercantile Investments and Finance (MI Finance) has entered a defining phase of its six decade journey. Over the past two years, the institution has delivered one of the most compelling growth stories in Sri Lanka’s non-bank financial sector.
MI’s growth has translated into better access to finance for customers, stronger support for small businesses and livelihoods, and the mobilisation of domestic savings that bolster economic recovery. In doing so, the company’s growth has extended beyond institutional performance to create tangible value for communities and the national economy.
A DEFINING MILESTONE Crossing the Rs. 100 billion mark in total assets is a landmark achievement for MI Finance. For a company with roots dating back to 1964, it signals an evolution from a mid-tier player into one of the country’s foremost non-bank financial institutions (NBFIs).
This achievement has been accompanied by strong profitability, reinforcing the institution’s ability to grow responsibly while navigating a sector still emerging from systemic stress.
With a capital base exceeding 15 billion rupees and a loan book that reflects impeccable asset quality – with non-performing loans (NPLs) as low as four percent – MI Finance’s expansion has been anchored by balance sheet strength and disciplined risk management.
The company’s performance has also received external validation with Fitch Ratings Lanka reaffirming the company’s BBB-(lka) national long-term rating and revising the outlook to stable – a reflection of improved financial fundamentals and prudent execution.
“The company is well positioned to navigate evolving economic conditions and capitalise on emerging opportunities with numerous initiatives undertaken and many more expected to support steady top line and bottom line growth over the medium term,” affirms Managing Director Gerard Ondaatjie.
ISLANDWIDE EXPANSION MI Finance’s branch expansion stands out as one of the clearest indicators of its accelerating momentum. Within just 18 months, the company expanded its strategic branch network from 40 to 90 branches across Sri Lanka, achievingnationwide coverage.
The opening of the 90th branch in Tangalle underscores a strategy focussed not only on urban centres but also underserved and emerging regional markets. By extending formal financial services to semi-urban and rural communities, MI Finance has strengthened financial inclusion across communities while building a diversified, low-cost deposit base to support asset growth.
Elaborating on this strategic broadcasting of MI Finance’s presence, Chief Operating Officer Laksanda Gunawardena emphasises: “Being recognised as the fastest expanding NBFI reinforces the trust and loyalty our customers place in us. Our branch growth over the past two years reflects a strategic journey to maintain competitive advantage and reinforce our position as a top-tier financial institution.”
PORTFOLIO GROWTH MOMENTUM MI Finance’s growth has been comprehensive – with expansion across its core business segments.
Over the past two years, the lending portfolio nearly doubled from Rs. 37 billion to 75 billion rupees, reflecting strong demand across leasing, micro-auto financing and other secured lending products. With expansion plans extending through 2027, the company has set a stated ambition to reach a Rs. 100 billion loan book by March.
Gold loans have seen remarkable upward trend with the book rising from Rs. 2 billion to 12 billion rupees over the last two years, a sixfold increase that positions MI Finance as a leading partner for retail clients and micro-entrepreneurs. During the same period, deposits climbed from Rs. 36 billion to 51 billion rupees, a sign of customer trust and liquidity strength.
Even as the loan book has grown rapidly, MI Finance has maintained rigorous infrastructure and credit quality standards.
“We are conscious about the customer segments we have selected and our quality. We are not moving into high-risk exposures without adequate security,” explains Gunawardena, highlighting the company’s disciplined approach to lending.
Maintaining low NPL levels in a high growth phase distinguishes MI Finance’s performance from mere balance sheet expansion and underscores the strength of its portfolio monitoring frameworks.
DIGITAL TRANSFORMATION DRIVE Complementing its physical expansion, MI Finance has taken notable strides in digital transformation. Strategic investments in core systems have strengthened the company’s digital backbone – enabling faster processing, smoother service delivery and more robust risk management.
As part of its medium-term road map, MI Finance is working towards a fully digital lending ecosystem. Planned initiatives include the roll out of electronic know your customer (eKYC) capabilities, a new mobile application, paperless processes, the MI debit card and a redesigned corporate website.
These initiatives will enable customers to complete loan origination and approvals digitally, making access to finance faster, simpler and more convenient.
Digital innovation is also aligned with MI Finance’s broader sustainability agenda. The company’s environment, social and corporate governance (ESG) certification marks another step in embedding responsible finance practices into its growth strategy.
TRUST AND TRAJECTORY At the heart of MI Finance’s progress is trust – earned over 60 years and reinforced through consistent performance. Today, the institution serves more than 250,000 customers and employs over 1,800 people, supported by clear key performance indicators (KPIs), continuous training and performance driven rewards.
Surpassing the Rs. 50 billion deposit base and sustaining growth demonstrates the unwavering trust customers place in MI Finance. It reflects a vision built over six decades of safeguarding depositor interests and delivering meaningful value, strengthening the company’s role as a trusted financial institution contributing to Sri Lanka’s economic strength.
MI Finance also has several associate companies in the hospitality sector including Tangerine Beach Hotel, Royal Palms Beach Hotel, The Grand Hotel Nuwara Eliya, Nilaveli Beach Hotel and Fairview Hotel Colombo.
In a sector defined by caution, MI Finance’s trajectory is proof that disciplined strategy, inclusive growth and innovation can redefine what sustained success looks like in Sri Lanka’s financial landscape.
– Compiled by Prashanthi Cooray
COMPANY CONTACT DETAILS
Telephone: 2343720 | Email: mercantile@mi.com.lk | Website: www.mi.com.lk/en/
