Sarvodaya Development Finance

What Sarvodaya Development Finance does

Sarvodaya Development Finance PLC (CSE: SDF) is a publicly listed licensed finance company in Sri Lanka operating under the Finance Business Act No. 42 of 2011, headquartered in Colombo with 56 branches nationwide. Incorporated in January 2010 as the financial-services arm of the Sarvodaya Shramadana Movement (Sri Lanka's largest community development organization, founded 1958), the company delivers inclusive banking to rural individuals, smallholder farmers, MSMEs, women entrepreneurs, and underserved populations through a network that also draws on 5,400+ partner Sarvodaya Shramadana Societies for grassroots outreach.

The company's product portfolio spans seven lending categories (SME Loans, Housing Loans, Gold Loans, Agro Leasing, Machinery & Equipment Leasing, Micro Business/Personal Loans, and Vehicle Leasing) and six deposit categories (Fixed Deposits, Pensioner Savings, Fixed Saver, Daru Isuru Savings, Pancha Children Savings, and General Savings Accounts). Technology infrastructure centers on CIXOR PayDay, a dual-sided WageTech platform developed with FINAP that enables employees to access earned wages via a mobile app while giving employers end-of-cycle settlement and a pre-approved 21-day liquidity float. Customer-facing channels include 56 branches, ATM installations in underserved areas (including the first ATM at the Tea Research Institute serving 5,000+ tea estate families), WhatsApp Business, a 1319 hotline, and digital self-service. The company holds 174,000+ customers as of FY2025/26.

SDF's business model is a standard licensed-finance-company spread model funded primarily by customer deposits, with FY2025/26 total income of LKR 6.42 billion (+46.8% YoY), interest income of LKR 5.85 billion (+43.8%), lease rental receivables of LKR 9.19 billion (+34.0%), and net interest income of LKR 3.58 billion (+35.4%). Capital is augmented by Tier 2 Sustainable Bonds (Sri Lanka's first listed, rated sustainable bond issue, LKR 2 billion oversubscribed in October 2025) directed toward affordable housing, women's entrepreneurship, food security, and renewable energy projects. Profitability metrics for FY2025/26 include ROE of 19.60%, Cost-to-Income Ratio of 42.99%, Gross Stage 3 Loans Ratio improved to 4.93% from 7.88%, and external credit rating of BBB- Stable from Lanka Rating Agency. Distribution blends community-led acquisition through the Sarvodaya society network, sales-led engagement via Business Development Officers and SME training forums, direct-to-consumer digital channels, and event-driven outreach including the hosted GABV Asia-Pacific Chapter Meeting 2025.

Name

Sarvodaya Development Finance

Legal name

Sarvodaya Development Finance PLC

Website

http://sarvodayafinance.lk

Company type

Public

Founded year

2010

Operating status

Operating

Headcount range

251–500 employees

Short description

Sarvodaya Development Finance PLC is a Sri Lanka licensed finance company serving rural and underserved communities through microloans, SME financing, leasing, savings products, and a digital WageTech platform, operating 56 branches with a 174,000+ customer base.

Ownership category

akta.pro rank

Product category

Microfinance / Development Finance

NAICS

Depository Credit Intermediation (5221), Commercial Banking (522110), Sales Financing (52222)

SIC

Short-Term Business Credit Institutions (6153), Miscellaneous Business Credit Institution (6159), Finance Services (6199)

akta.pro primary industry

SME Term Loans & Growth Capital (FSAKAGAB)

akta.pro secondary industries

Equipment & Asset Finance (SME) (FSAKAGAF), SME Lending & Working Capital Platforms (FSAGAJAA), SME, Microfinance & Financial Inclusion Facilities (BPADACAI)

Keywords

• Microfinance services
• Development finance
• SME lending
• Agricultural leasing
• Inclusive banking

Headquarters

HQ city

Colombo

HQ country

Sri Lanka

HQ region

Asia

Offices4 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Operations, Personnel, Marketing or Sales, Technology or R&D, Infrastructure

Revenue model

1. Interest Income - Loans and Advances: Core revenue from interest charged on microloans, SME loans, housing loans, gold loans, and personal/micro business loans. Interest income for FY2025/26 was LKR 5.85 billion, representing 43.8% year-on-year growth driven by business expansion and growth in earning assets.
2. Lease Rental Receivables: Revenue from agro leasing, machinery & equipment leasing, and vehicle leasing solutions. Lease rental receivables increased by 34.0% to LKR 9.19 billion in FY2025/26.
3. Fixed Deposit and Savings Interest: Interest expense on customer deposits used to fund lending operations. Deposits are the primary funding source for the company's loan portfolio.
4. Sustainable Bond Issuance: Debt securities including Sustainable Bonds amounting to LKR 2.09 billion as of FY2025/26. First Listed, Rated, High-Yield Sustainable Bond Issue in Sri Lanka, oversubscribed within hours of opening.
5. Net Interest Income: Net Interest Income of LKR 3.58 billion in FY2025/26 (35.4% growth), derived from spread between interest income on earning assets and interest expense on liabilities.

Pricing tiers

Go-to-market motion4 records

Distribution channels7 records

Marketing channels9 records

Core offering

Sarvodaya Development Finance PLC is a licensed finance company offering inclusive financial services across Sri Lanka. Its portfolio includes lending products (SME loans, microloans, housing loans, gold loans, agricultural leasing, vehicle leasing, machinery leasing) and deposit products (fixed deposits, pensioner savings, children's savings, general savings). The company also operates CIXOR PayDay, a digital WageTech platform enabling earned wage access, and issues sustainable bonds. Services are delivered through 56 branches, ATM network, mobile app, and 5,400+ Sarvodaya Shramadana Society partner network targeting rural individuals, micro-entrepreneurs, smallholder farmers, and MSMEs.

Product overview

Sarvodaya Development Finance offers a comprehensive suite of financial products and services targeting underserved communities across Sri Lanka. The portfolio includes two primary categories: lending products (SME Loans, Housing Loans, Gold Loans, Agro Leasing, Machinery & Equipment Leasing, Micro Business/Personal Loans, Vehicle Leasing) and savings/deposit products (Fixed Deposits, Pensioner Savings, Fixed Saver, Daru Isuru Savings, Pancha Children Savings, General Savings Accounts). Additionally, the company offers CIXOR PayDay, a digital WageTech platform for on-demand salary access developed with technology partner FINAP, and Sustainability Bonds. With 56 branches, the institution focuses on inclusive finance for rural entrepreneurs, smallholder farmers, and MSMEs, aligned with the Sarvodaya Movement's community development philosophy.

Differentiator

Problem solved

Functional benefit

Brands

• CIXOR PayDay: Next-generation digital WageTech platform enabling employees to access a portion of their earned wages in real time, launched in partnership with Fintechnology Asia Pacific Lanka Pvt Ltd (FINAP).

Products and services

• SME Loans Tailored business financing for small and medium enterprises providing capital for expansion, equipment, or innovation with quick approval (24-48 hours), flexible terms, and minimal documentation including business registration, identity proof, financial statements, and tax clearance.
• Housing Loans Affordable housing financing for rural and suburban families to purchase, build, or renovate homes with flexible repayment plans and personalized guidance. Documents include identity proof, income proof, property deeds, survey plan, and building approvals.
• Gold Loans Immediate loans backed by gold assets with high loan-to-value ratios and competitive rates for personal and business needs. Documents required: NIC, gold items for valuation, and proof of address.
• Agro Leasing Leasing solutions for agricultural equipment and vehicles, including tractors and farm machinery, supporting farmers and agricultural entrepreneurs to strengthen productivity and sustainable growth.
• Machinery & Equipment Leasing Flexible leasing options for vehicles, machinery, and equipment that drive economic and social progress, promoting responsible investment and energy efficiency.
• Micro Business/Personal Loans Accessible financing for rural and suburban Sri Lankans to start or grow small ventures, manage personal needs, and build secure futures with flexible terms, guarantor form, valuation report, income proof, and residence proof requirements.
• Vehicle Leasing Vehicle leasing solutions for two-wheelers, three-wheelers, and four-wheelers to support transportation needs and business mobility for individuals and entrepreneurs.
• Fixed Deposits Fixed deposit accounts offering competitive interest rates with tenors from 1 month to 60 months, providing guaranteed returns with monthly, quarterly, or maturity payment options. Non-senior rates range 10.00%-14.50%; senior citizen rates range 11.75%-15.00%.
• Pensioner Savings High-interest savings account tailored for retired individuals, offering premium interest rates higher than standard savings with flexible withdrawal options for pension management and retirement gratuities.
• Fixed Saver Savings account designed to help customers grow savings securely with guaranteed returns, flexible terms, and minimum deposit starting from Rs. 1,000.
• Daru Isuru Savings Special savings account for families to build their children's future, allowing dual savings for parent and child with flexible contribution options.
• Pancha Children Savings Custodial savings account for minors with 4.5% interest rate, designed to foster savings culture from an early age with a minimum deposit of Rs. 1,000.
• General Savings Accounts Everyday savings account offering competitive interest rates and easy access to funds, serving as a primary financial hub for salary deposits and household expense management.
• CIXOR PayDay WageTech Platform Digital WageTech platform enabling salaried and wage-earning Sri Lankans to access a portion of their earned wages in real time through a mobile application. Available on Google Play Store and Apple App Store. Positioned as a financial wellness tool rather than a loan product.
• Sustainability Bond Tier 2 Listed, Rated, Unsecured, Subordinated, Redeemable sustainable bond instrument with up to LKR 2 billion total issue size. Type A: 5 Years at 12.00% p.a. fixed annual payment. Type B: 5 Years at 11.50% p.a. fixed semi-annual payment. Minimum investment LKR 10,000 for qualified investors.

Quantifiable outcome

• Total assets grew 65.8% to LKR 37.37 billion (FY2025/26)
• +6 more outcomes

Named customers14 records

Segments7 records

Ideal customer profiles6 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature1 record

Partnerships

Seven partnerships are on record, tiered flagship, major, core and minor.

• Global Alliance for Banking on Values (GABV)flagshipStrategic or Co-development Partner · 15 October 2025Full member of GABV, global network of over 70 independent banks, credit unions, and microfinance institutions across 45 countries. SDF hosting GABV Asia-Pacific Chapter Meeting 2025 in Colombo (October 15-16) alongside Annual Board Meeting. Provides access to global best practices, peer learning, and alignment with international sustainable finance standards.
• Kasetsart University (Thailand)majorStrategic or Co-development Partner · 1 January 2024International Agri-Innovate immersion program delivered by Faculty of Business Administration, Kasetsart University Bangkok in collaboration with Postgraduate Institute of Management (PIM). 10-member SDF leadership team completed week-long program on end-to-end value-chain innovation from soil to shelf. Focus on crop economics, price discovery, storage, transport, and consumer insight.
• Fintechnology Asia Pacific Lanka Pvt Ltd (FINAP)coreTechnology or IntegrationTechnology partner for CIXOR PayDay WageTech platform. FINAP developed the enterprise-grade digital solution enabling earned wage access for employees. SDF promotes the platform while FINAP provides technology infrastructure. Collaboration brings earned wage access concept into Sri Lanka's formal financial system as one of world's first dual-sided WageTech platforms.
• Lanka Rating Agency (LRA)coreOthersCredit rating agency providing issuer rating (BB+ Stable) and instrument rating (BBB Stable) for Sustainability Bond. SDF's credit rating upgraded to BBB- Stable Outlook reflecting stronger financial position.
• Browns & Company (Makitha Tools)minorGTM or Marketing PartnerCollaborative SME training session at Technical College Rathmalana. Makitha Tools, a product division of Browns and Company, provided industry expertise for empowering future entrepreneurs through skill development.
• Postgraduate Institute of Management (PIM)majorStrategic or Co-development PartnerCollaborated with Kasetsart University to deliver Agri-Innovate program for SDF leadership team. PIM provides academic partnership and certification for professional development programs.
• MFR (MicroFinanza Rating)coreOthersGlobal rating agency providing Client Protection Certification under Cerise+SPTF methodology. Headquartered in Italy with five regional offices covering four continents. Conducted assessment across 110+ countries and 2,800+ assignments.

Scale indicators21 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• People's Leasing & Finance PLC: Largest licensed finance company in Sri Lanka, providing leasing, loans, and deposit products. Directly comparable to SDF as a deposit-taking LFC with similar product mix and SME/retail focus, but operating at significantly larger scale.
• LB Finance PLC: Leading Sri Lankan non-banking financial institution offering leasing, loans, savings, and money market services. Comparable to SDF in product portfolio targeting SMEs and individuals, with stronger scale and digital infrastructure.
• Central Finance PLC: Established Sri Lankan licensed finance company focused on leasing, hire purchase, and fixed deposits. Highly comparable business model to SDF's leasing and deposit-driven lending, with broader reach across urban and rural Sri Lanka.
• Senkadagala Finance PLC: Sri Lankan LFC offering leasing, hire purchase, microfinance, and deposit products. Closely comparable to SDF in SME/microfinance segment focus with community-based customer acquisition.
• Commercial Credit PLC: Sri Lankan licensed finance company focused on microfinance, SME loans, and rural lending. One of the closest direct competitors to SDF given the shared micro/SME lending focus and rural customer base.
• Lolc Finance PLC: Part of the LOLC Group, this Sri Lankan LFC focuses on microfinance, SME, and consumer lending. Direct peer in the micro/SME lending space with greater geographic diversification and group-level funding support.
• Vallibel Finance PLC: Sri Lankan LFC offering leasing, loans, and deposits to individuals and SMEs. Comparable to SDF's product range and customer segments, with a slightly more urban skew.
• Spandana Sphoorty Financial Ltd: Indian microfinance institution providing joint liability group loans to low-income women and rural entrepreneurs. Comparable to SDF's microfinance customer base and group/community lending model, with greater scale and listed-equity profile.

Broad incumbents

• Grameen Bank: Bangladesh's pioneering microfinance institution providing small loans to rural entrepreneurs without collateral. Comparable to SDF in microfinance/mission focus and community-based lending, though operating at vastly larger scale and global recognition.
• Bandhan Bank: Indian commercial bank that evolved from microfinance origins to a full-service bank serving underserved segments. Comparable to SDF's microfinance-cum-deposit institution model and MSME focus, with proven upmarket trajectory.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks5 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/SarvodayaDevelopmentFinance
• Xx.com/SarvodayFinance
• LinkedInlinkedin.com/company/sarvodaya-development-finance

Compliance4 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Sarvodaya Development Finance