Sri-Lanka: Foreign Funding Boost for LOLC Micro Credit

Feb 2010
Sri-Lanka, February, 09 2010 - LOLC Micro Credit Ltd. (LOMC), the microfinancing arm of the LOLC Group, recently received foreign funding totalling US$ 14 million to expand its activities in Sri Lanka.

Of this, Symbiotics SA Information, Consulting Services Switzerland arranged US$ 10 million while Triodos SICAV II-Triodos Microfinance Fund, Triodos Fair Share Fund and Hivos-Triodos Fund, funds under management of Triodos Investment Management, have granted a syndicated three million Euro loan.

Since 2003 the LOLC Group has been carrying out micro-financing activities and LOMC was established in 2009 to accelerate and expand the business. LOMC is a subsidiary of LOLC PLC with FMO (The Netherlands Development Finance Company) owning a 20% stake of LOMC as its shareholder.

Operating under the brand name LOLC Isuru Diriya, LOMC already has a far reaching network of branches. The company is among the largest microcredit providers in Sri Lanka and works in agriculture centric districts, providing individual as well as group loans for micro entrepreneurs.

LOMC is currently the largest agriculture implements financier in the country and the only microfinance provider with strategic partnership with SL Post to deliver financial services through the post offices.

LOMC CEO Ravi Tissera said: "Through Symbiotics, some of the largest microfinance funds of the world have invested in LOMC, while Triodos Investment Management, part of the Triodos Bank Group, adds sustainable banking expertise and Triple Bottom Line know-how to its funding. It is the first time these funds are lending to Sri Lanka and this signifies the acceptability of our business model internationally and rapid growth."

"At this time of renaissance in the country, it is an exciting time for us at LOMC to be able to extend our services to the people of the north and east and play a role in making their dreams come true. We believe that unlike many other enterprises, LOMC is uniquely placed in direct contact with the 'sustainability tripod' of economic, social and environmental factors where they are most apparent and have most impact," he added.

Source : Daily Mirror

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