Page 7 - UBF AR 2018 - E Version
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Chief Executive Officer’s Review

                            “UBF demonstrated
                             sustained growth
                         through stability during
                            a challenging year”

                                                                  Ransith Karunaratne
                                                   Director/Chief Executive Officer

The Countries GDP growth decelerated further       finance sector. As a result of these issues
from 4.5% in 2016 to 3.1% in 2017. Adverse         many LFCs were forced to rethink their core
weather conditions alternating from severe         lending business models to stay ahead of the
drought to heavy rain fall in many districts       competition. In this context, it is also imperative
crippled the country’s agricultural sector. At     that all finance institutions especially the
present, the Sri Lankan economy appears to be      larger players adhere to compliance standards
relying primarily on the services sector in areas  to maintain a level playing field along with
such as tourism, communications, health care,      more oversight by the regulator.
financial and export services and to a lesser
extent on the industrial sector and construction.  UBF demonstrated sustained growth through
The tightened fiscal and monetary policy stance    stability during a challenging year. In spite of
of the government and regulator had a direct       the adverse economic and financial conditions
impact on the Finance Services Sector              the Company maintained a growth momentum
                                                   above the industry standard through
Based on subdued macro economic growth, the        persistence and superior customer service.
NBFI sectors asset base grew at a slow pace.       Total income for the year 2017/2018 increased
Measures taken to control vehicle imports,         by 27% to LKR 2,010 Mn. The profit before tax
more stringent LTV ratios on accommodations        for the year was LKR 88 Mn. As in the past, the
granted to purchase registered vehicles,           Company has continued its investment into
increased taxes on consumption, reduction          strategically chosen areas of brand building,
in purchasing power and commercial banks           development of human capital and IT which has
continuously encroaching on LFC territory have     enabled the Company to maintain sustained
impacted the performance of LFCs. Further,         growth in a volatile environment.
there have been many concerns in the micro
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Annual Report 2018
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