Sri Lankan (CSE) Banks Industry Analysis

Industry Valuation and Performance

Has the Sri Lankan Banks Industry valuation changed over the past few years?

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Wed, 13 May 2026	LK₨1.1t	LK₨706.3b	LK₨203.3b	5.9x	5.4x	1.6x
Fri, 10 Apr 2026	LK₨1.1t	LK₨702.8b	LK₨202.7b	5.7x	5.4x	1.6x
Sun, 08 Mar 2026	LK₨1.1t	LK₨735.8b	LK₨213.5b	5.8x	5.3x	1.5x
Tue, 03 Feb 2026	LK₨1.2t	LK₨783.2b	LK₨221.9b	5.9x	5.2x	1.5x
Thu, 01 Jan 2026	LK₨1.1t	LK₨783.2b	LK₨221.9b	5.5x	4.9x	1.4x
Sat, 29 Nov 2025	LK₨1.1t	LK₨782.8b	LK₨221.9b	5.7x	5x	1.4x
Mon, 27 Oct 2025	LK₨1.1t	LK₨747.2b	LK₨207.4b	6.1x	5.3x	1.5x
Wed, 24 Sep 2025	LK₨1.1t	LK₨747.2b	LK₨207.4b	5.8x	5.1x	1.4x
Fri, 22 Aug 2025	LK₨1.1t	LK₨747.2b	LK₨207.4b	5.9x	5.1x	1.4x
Sun, 20 Jul 2025	LK₨926.7b	LK₨717.3b	LK₨194.7b	5.1x	4.8x	1.3x
Tue, 17 Jun 2025	LK₨837.4b	LK₨717.3b	LK₨194.7b	4.6x	4.3x	1.2x
Thu, 15 May 2025	LK₨773.9b	LK₨693.4b	LK₨183.9b	4.5x	4.2x	1.1x
Sat, 12 Apr 2025	LK₨767.1b	LK₨681.1b	LK₨179.7b	4.5x	4.3x	1.1x
Mon, 10 Mar 2025	LK₨803.3b	LK₨726.6b	LK₨179.7b	4.9x	4.5x	1.1x
Wed, 05 Feb 2025	LK₨844.9b	LK₨516.2b	LK₨132.0b	6.7x	6.4x	1.6x
Fri, 03 Jan 2025	LK₨820.8b	LK₨516.2b	LK₨132.0b	6.5x	6.2x	1.6x
Sun, 01 Dec 2024	LK₨643.0b	LK₨516.2b	LK₨132.0b	5x	4.9x	1.2x
Tue, 29 Oct 2024	LK₨565.4b	LK₨493.7b	LK₨126.5b	5x	4.5x	1.1x
Thu, 26 Sep 2024	LK₨502.9b	LK₨493.7b	LK₨126.5b	4.4x	4x	1x
Sat, 24 Aug 2024	LK₨474.8b	LK₨493.7b	LK₨126.5b	4.1x	3.8x	1x
Mon, 22 Jul 2024	LK₨497.3b	LK₨452.3b	LK₨109.9b	4.8x	4.5x	1.1x
Wed, 19 Jun 2024	LK₨529.3b	LK₨452.3b	LK₨109.9b	5.3x	4.8x	1.2x
Fri, 17 May 2024	LK₨531.2b	LK₨452.0b	LK₨109.9b	5.4x	4.8x	1.2x
Sun, 14 Apr 2024	LK₨538.4b	LK₨423.6b	LK₨98.5b	5.7x	5.5x	1.3x
Tue, 12 Mar 2024	LK₨454.8b	LK₨423.6b	LK₨98.5b	4.8x	4.6x	1.1x
Thu, 08 Feb 2024	LK₨441.6b	LK₨394.6b	LK₨104.9b	4.2x	4.2x	1.1x
Sat, 06 Jan 2024	LK₨446.4b	LK₨390.6b	LK₨104.1b	4.1x	4.3x	1.1x
Mon, 04 Dec 2023	LK₨444.9b	LK₨390.6b	LK₨104.1b	4.2x	4.3x	1.1x
Wed, 01 Nov 2023	LK₨420.5b	LK₨342.9b	LK₨86.5b	5.3x	4.9x	1.2x
Fri, 29 Sep 2023	LK₨453.3b	LK₨341.9b	LK₨86.3b	5.7x	5.3x	1.3x
Sun, 27 Aug 2023	LK₨460.0b	LK₨341.9b	LK₨86.3b	6x	5.3x	1.3x
Tue, 25 Jul 2023	LK₨446.2b	LK₨297.4b	LK₨70.1b	7.2x	6.4x	1.5x
Thu, 22 Jun 2023	LK₨328.4b	LK₨297.4b	LK₨70.1b	4.8x	4.7x	1.1x
Sat, 20 May 2023	LK₨287.5b	LK₨288.0b	LK₨67.9b	4.4x	4.2x	1x

Current Industry PE

Investors are optimistic on the Sri Lankan Banks industry, and appear confident in long term growth rates.

The industry is trading at a PE ratio of 5.4x which is higher than its 3-year average PE of 4.9x.

The 3-year average PS ratio of 1.3x is lower than the industry's current PS ratio of 1.6x.

Past Earnings Growth

The earnings for companies in the Banks industry have grown 44% per year over the last three years.
Revenues for these companies have grown 35% per year.
This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the Sri Lankan Financials industry?


LK Market	1.72%
Financials	1.72%
Banks	0.38%
Diversified Banks	0.38%
Regional Banks	0%	0

Industry PE

Investors are most optimistic about the Diversified Banks industry which is trading above its 3-year average PE ratio of 4.9x.

Analysts are expecting annual earnings growth of 10.6%, which is lower than the prior year's growth of 14.0% per year.

Investors are most pessimistic about the Diversified Banks industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 4.9x.

Forecasted Growth

Analysts are most optimistic on the Diversified Banks industry, expecting annual earnings growth of 11% over the next 5 years.
However this is lower than its past earnings growth rate of 14% per year.

In contrast, the Diversified Banks industry is expected to see its earnings grow by 11% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

Company	Last Price	7D	1Y	Valuation
HNB.N0000 Hatton National Bank	LK₨416.25	1.5% +LK₨3.5b	42.3%	PB0.8x
NTB.N0000 Nations Trust Bank	LK₨320.25	1.6% +LK₨1.7b	68.7%	PB1.1x
NDB.N0000 National Development Bank	LK₨117.25	2.0% +LK₨972.4m	13.9%	PB0.6x
SAMP.N0000 Sampath Bank	LK₨149.25	0.3% +LK₨586.4m	36.3%	PB0.9x
SEYB.N0000 Seylan Bank	LK₨106.00	0.7% +LK₨476.7m	50.8%	PB0.8x

New major risk - Shareholder dilution

The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 31% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Shareholders have been substantially diluted in the past year (31% increase in shares outstanding). Minor Risk Market cap is less than US$100m (LK₨10.8b market cap, or US$34.2m).

Sri Lankan (CSE) Banks Industry Analysis

Industry Valuation and Performance

Industry Trends

Top Stock Gainers and Losers

Latest News

High number of new directors

First quarter 2026 earnings released: EPS: LK₨4.02 (vs LK₨6.34 in 1Q 2025)

First quarter 2026 earnings released: EPS: LK₨3.71 (vs LK₨4.73 in 1Q 2025)

SANASA Development Bank PLC, Annual General Meeting, May 26, 2026

First quarter 2026 earnings released: EPS: LK₨0.11 (vs LK₨0.04 in 1Q 2025)

First quarter 2026 earnings released: EPS: LK₨4.42 (vs LK₨4.22 in 1Q 2025)

Price target increased by 10% to LK₨251

Full year 2026 earnings released: EPS: LK₨4.50 (vs LK₨3.22 in FY 2025)

New major risk - Shareholder dilution

Hatton National Bank plc Announces Appointment of Palliyaralalage Don Vincent Pradeep Kumar De Almeida as Director, Effective April 2, 2026

Upcoming dividend of LK₨10.30 per share

Full year 2025 earnings released: EPS: LK₨57.76 (vs LK₨50.39 in FY 2024)