First Capital Treasuries PLC has established itself as a cornerstone institution in Sri Lanka\u2019s financial landscape over the past two decades. As a primary dealer authorized by the Central Bank of Sri Lanka, the company has played a pivotal role in government securities trading, fostering liquidity in the secondary market, and facilitating efficient price discovery mechanisms that have significantly deepened the country\u2019s capital markets.<\/p>\n\n\n\n
The company\u2019s innovative approach to financial solutions has enabled both institutional and retail investors to access government securities with ease, contributing to broader financial inclusion and market development. First Capital Treasuries has consistently demonstrated exceptional trading capabilities, maintaining a substantial market share in government securities while adhering to the highest standards of compliance and transparency.<\/p>\n\n\n\n
Significance of the Rating Upgrade<\/strong><\/p>\n\n\n\n The \u2018A+\u2019 rating represents a significant milestone, indicating First Capital Treasuries\u2019 very strong capacity to meet its financial commitments. This upgrade is particularly noteworthy as it comes during a period of economic adjustment for Sri Lanka.<\/p>\n\n\n\n Lanka Rating Agency Ltd which is duly regulated by Securities and Exchange Commission of Sri Lanka applies rigorous analytical frameworks in its rating process, examining multiple factors including capital adequacy, asset quality, liquidity profiles, risk management frameworks, and corporate governance practices. The agency\u2019s methodology incorporates both quantitative metrics and qualitative assessments to arrive at ratings that accurately reflect an institution\u2019s creditworthiness.<\/p>\n\n\n\n Leadership Perspectives<\/strong><\/p>\n\n\n\n \u201cThis rating upgrade validates our strategic focus on sustainable growth and prudent risk management,\u201d said Sachith Perera, Chief Executive Officer of First Capital Treasuries PLC.<\/strong> \u201cDespite market volatilities, we have maintained our commitment to excellence in serving our clients while strengthening our financial fundamentals. The A+ rating will further enhance stakeholder confidence in our operations and support our ongoing mission to deliver exceptional value to all our stakeholders while contributing to the development of Sri Lanka\u2019s capital markets.\u201d<\/p>\n\n\n\n Dr. Kenneth De Zilwa, Chief Executive Officer of Lanka Rating Agency Ltd<\/strong>, emphasized the significance of the upgrade: \u201cFirst Capital Treasuries has demonstrated remarkable financial discipline and strategic foresight in navigating complex market conditions. Our rating committee was particularly impressed by the company\u2019s robust capital position, sophisticated risk management framework, and consistent performance metrics. The upgrade to A+ reflects our confidence in the company\u2019s ability to maintain its strong market position while managing potential risks effectively.\u201d<\/p>\n\n\n\n Building the National Balance Sheet<\/strong><\/p>\n\n\n\n Lanka Rating Agency Ltd continues to play a crucial role in strengthening Sri Lanka\u2019s financial ecosystem by providing independent, objective assessments of credit risk across various sectors. Through its rigorous rating methodologies and transparent analytical processes, LRA contributes significantly to building the national balance sheet by enhancing market confidence, improving pricing efficiency, and facilitating better-informed investment decisions.<\/p>\n\n\n\n The agency\u2019s work enables investors to differentiate between varying levels of credit risk, thereby promoting efficient capital allocation across the economy. By maintaining the highest standards of integrity and analytical rigor, Lanka Rating Agency Ltd helps establish benchmarks for financial stability and performance that ultimately strengthen Sri Lanka\u2019s overall economic resilience.<\/p>\n\n\n\n This latest rating action underscores the shared commitment of both organizations to supporting the development of robust capital markets in Sri Lanka and contributing to the nation\u2019s economic growth and stability.<\/p>\n\n\n\n Financials<\/strong><\/p>\n\n\n\n The Company enjoyed an exceptional year in terms of profitability in FY24 on the back of substantial trading gains on Government Bonds due to a sharp decline in interest rates. The Company\u2019s Profit After Tax (PAT) in FY24 stood at LKR~11.1bn, compared to LKR~2.9bn in FY23. The performance trends normalized but remained strong (after the one-off gains in FY24) as FCT posted PAT of LKR~2.5bn in 9MFY25. The Company\u2019s direct income was LKR~8.6bn in 9MFY25 while direct expense (interest costs) stood at LKR~4.8bn in 9MFY25 showing a decline of ~17.8% from LKR~5.8bn in 9MFY24. FCT recorded a healthy Capital Adequacy Ratio (CAR) of ~17.95% in 9MFY25. This is well above the statutory requirement of 10%. <\/p>\n\n\n\n Ends.<\/strong><\/p>\n\n\n\n About First Capital Treasuries PLC<\/strong><\/p>\n\n\n\n First Capital Treasuries PLC is a leading primary dealer in government securities in Sri Lanka, offering a comprehensive range of investment solutions in treasury bills and bonds for institutional and individual investors.<\/p>\n\n\n\n About Lanka Rating Agency Ltd<\/strong><\/p>\n\n\n\n Lanka Rating Agency Ltd is Sri Lanka\u2019s premier credit rating agency, providing independent risk assessments and ratings for corporations, financial institutions, and structured finance products across the country.<\/p>\n\n\n\n Photo captions<\/strong>-:<\/p>\n\n\n\n First Capital Treasuries PLC and Lanka Rating Agency Ltd (LRA) are pleased to jointly announce the upgrade of First Capital Treasuries PLC\u2019s credit rating to \u2018A+\u2019 from \u2018A\u2019, reflecting the company\u2019s strengthened financial position, robust risk management practices, and continued excellence in Sri Lanka\u2019s capital markets. The rating upgrade comes after a comprehensive assessment of […]<\/p>\n","protected":false},"author":1,"featured_media":3895,"comment_status":"open","ping_status":"open","sticky":true,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-3894","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/fintechnews.lk\/index.php\/wp-json\/wp\/v2\/posts\/3894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fintechnews.lk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fintechnews.lk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fintechnews.lk\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/fintechnews.lk\/index.php\/wp-json\/wp\/v2\/comments?post=3894"}],"version-history":[{"count":0,"href":"https:\/\/fintechnews.lk\/index.php\/wp-json\/wp\/v2\/posts\/3894\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fintechnews.lk\/index.php\/wp-json\/wp\/v2\/media\/3895"}],"wp:attachment":[{"href":"https:\/\/fintechnews.lk\/index.php\/wp-json\/wp\/v2\/media?parent=3894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fintechnews.lk\/index.php\/wp-json\/wp\/v2\/categories?post=3894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fintechnews.lk\/index.php\/wp-json\/wp\/v2\/tags?post=3894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/bizcom.lk\/wp-content\/uploads\/2025\/03\/Image-01-2.png\")
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