Lanka ORIX Leasing Company PLC (LOLC), an innovative Financial Solutions provider in Sri Lanka launched LOLC Micro Finance Company Ltd, the most recent venture of the LOLC Group in a media conference held in Colombo recently. The Company is a partnership between LOLC and FMO (The Netherlands Development Finance Company) which is the international development bank of the Netherlands. This is a land mark event in the history of the Sri Lankan finance industry as it is the first time that a private sector local micro finance entity is set up with foreign equity.
LOLC pioneered in introducing Leasing and Factoring solutions to the financial services sector of Sri Lanka which has significantly contributed towards uplifting the SME sector of the country. LOLC is one of Sri Lanka’s largest and fastest growing financial institutions. The Group has been constantly growing its profitability in the past and recorded a 50% growth in Revenue and a 21% increase in profit after tax in 2008.
In 2003 LOLC ventured into Micro Financing and has grown to become a leading Agriculture and Microfinance solutions provider today. The company started operations by providing Solar Home systems to the rural households and then expanded their services into Agriculture related Financing, Dairy Financing and three wheeler, tractor and motor bike loans in order to cater to the increasing demands of this sector. Apart from the expertise gained and a good understanding of the segment’s needs LOLC had the advantage of having extensive reach into the rural areas and the necessary infrastructure.
The Netherlands Development Finance Company (FMO) is the international development bank of the Netherlands and they invest risk capital in companies and financial institutions in developing countries. FMO’s investment portfolio is about EUR 3.4 billion and it is one of the largest bilateral development banks worldwide. FMO is able to take risks which commercial financiers are not – or not yet prepared to take due to their strong relationship with the Dutch government. FMO’s mission is to create flourishing enterprises world wide which can serve as engines of sustainable growth in their respective countries, which gels well with LOLC’s vision and commitment to make a significant contribution towards the Microfinance industry.
Addressing the media conference Group MD/CEO of the LOLC Group Mr. Kapila Jayawardena said “We firmly believe that the launch of this entity will mark the dawn of a new era for the microfinance industry of Sri Lanka and are confident that this partnership will greatly benefit the rural community.