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Tuesday, September 22 2026
Tuesday, September 22 2026
MONETABRIEF – Sri Lanka's Softlogic Plc, which has interest in retail, financial services, property and healthcare, said it has restructured around 60 billion rupees of bank loans of the parent and several subsidiaries and restructuring of more loans are pending.
The group was also "actively engaged in discussions with potential buyers and investors for the leisure sector, and it intends to continue these efforts", Softlogic said in the annual report.
Softlogic had accumulated losses of 92 billion rupees, stated capital of 14.1 billion rupees and other equity of 11.9 billion rupees leaving a gap of 66.4 billion rupees.
"These events and conditions indicate that a material uncertainty exists that may cast significant doubt on the Group’s and Company’s ability to continue as a going concern," auditors Ernst and Young said, repeating an earlier caution.
Losses in the year to March 2026 were 8.6 billion rupees, down from 15.05 billion a year ago.
Chairman Ashok Pathirage said accounts were prepared on a going concern basis and the group was focusing on generating cash and growing business areas with potential.
Offer letters to restructure loans of up to 47.5 billion rupees were signed up to March 2026 and another 12.2 billion rupees in documents were signed after the balance sheet date, the firm said in an annual report published in September.
Grace periods of 6, 12 and 10 months on capital repayments which allows it to minimize cash outflows, the firm said.
Based on the rescheduled loans, 18,082 million has to be paid in the 2026/2027 financial year and 41,808 million after that.
Softlogic said it has submitted further loan restructuring request letters for 5,689 billion rupees as of September which were currently pending Credit Committee approval.
The Board was also working with a few overseas banks and institutions to raise funds for subsidiary companies.
The ODEL Mall project has been changed to office space instead of apartments in a bid to fund it with pre-sales and reduce dependence on debt. (Colombo/Sept22/2026)
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