Sinhaputhra Finance recorded a growth in profitability in 2014 , despite the industry's profitability falling from Rs.14 billion to Rs.7 billion.

Managing Director Ravana Wijeyeratne said Sinhaputhra's conservative expansion on credit growth allows it to steadily maintain its growth momentum without large variations that could be extremely damaging. Although, Sinhaputhra faces the same market conditions, the fact that they had not accelerated beyond their means and also thanks to its time tested product - loans, they have always been able to steady themselves during a lackluster performance in the vehicle market.

Hence while the industry loan book growth shrunk from 21.6% to 12.1% in FYE 2013 vs FYE 2014, Sinhaputhra's loan book grew around the same space, at 16% and 15%, which explains a growth in profitability against the industry norms.

Director Operations Saliya De Alwis, said the past experience of second hand vehicles appreciating, no longer holds due to successive tax reductions bringing in greater risk to the industry requiring caution on lending exposures on vehicles.

Sinhaputhra's growth in profits for the last three years have been from Rs. 52 million to Rs. 74 million and this year Rs. 84 million.

However, despite this growth, the company was concerned about rapid credit expansion to meet the regulators wishes, when the industry had faced higher NPA ratios this year than in last year said Senior AGM Credit Supervision and Risk Management, Sabriya Amanulla.

In the year going forward Sinhaputhra hopes to cross the Rs. 1 billion mark in capital and the Rs. 8 billion mark in assets, to be in line with CBSL requirements either through internal generation or an acquisition or merger with a smaller company.