People’s Merchant Finance PLC’s turnaround strategy proving effective

People’s Merchant Finance PLC (PMF) has been navigating the challenges of Sri Lanka’s banking, finance, and leasing industries for the past 35 years. Increasing challenges due to operating environment complexities, rapid advances in technology and changing consumer needs and market conditions emphasised the need to renew, revitalise, and reposition PMF’s business paradigm to fulfil the uncharted potential of the Company.

The new journey began in May 2019, when Sterling Capital Investments (Private) Limited (SCIL), a part of Sterling Japan Co. Ltd, obtained the major shareholding of PMF. As the largest exporter of Japanese vehicles to Sri Lanka, SCIL brings the required capital base and strong backing for PMF to pursue innovative and lucrative business opportunities and make the Company future ready.

Accordingly, PMF embarked on strengthening its governance and risk management frameworks by appointing a new Board of Directors and augmenting risk and governance procedures to meet increasing industry compliance requirements while safeguarding stakeholder interests. PMF also appointed leading professionals with extensive expertise in their fields to lead all its service offerings.

Nalin Wijekoon, the CEO, commented; “our company has gained many strengths and synergies from the Sterling Group leading to a turnaround situation. The new leadership and the openness to embracing digital technology will help redefine our business processes, help us stay ahead of competitors while we surmount external shocks. I am confident we will be successful in delivering value to all stakeholders as we progress in our new journey”.  

Commenting on the new transformational journey, Chandula Abeywickrema, the Chairman and a well-respected senior banker, reflected on the Company’s below-par past performance which resulted in a continuously underperforming entity. Considering the new developments, he said, “We are indeed now very delighted with some of the key changes we have made so far. The new direction together with the mobilisation of internal and external strengths at our disposal is now beginning to show results. All financial indications point toward greater and better times ahead for our Company. The Board of Directors and the management team should be commended for the Company’s turnaround”.