Business

‘World’s most global inclusive finance platform originating in Sri Lanka transforming global communities’

Published

4 years ago

2023/02/14

U Thant Zin, Myanmar

Success didn’t happen overnight for U Thant Zin, nor did it come easily. U Thant Zin is a paddy farmer in Auglan, Myanmar. For smallholder farmers like him, the lack of collateral and expertise in the agricultural sector remain significant barriers to obtaining financing. Defying the odds, LOLC Myanmar lent an agricultural loan to U Thant Zin amounting to US$ 670 in 2019. Currently, he is the proud owner of a 10-acre paddy field owing to hard work, perseverance, and multiple loans from LOLC Myanmar.

Ruth Olawepo, an owner of a clothing store, dreamt of expanding her business to other states in Nigeria and importing readymade abayas from Senegal. She decided to partner with Fina Trust Microfinance Bank Nigeria, a subsidiary of LOLC, and availed of a loan of US$ 12,000 in 2021. Since the first loan, she is now on her third cycle with the bank and the loan amount has been increased to US$ 24,000. She currently has three shops in Lagos Island Branch and also has outlets upstate.

The lives of hundreds of such aspiring individuals around the world are being transformed through LOLC’s services that promote financial inclusion. The term ‘financial inclusion’ implies having access to useful and affordable financial products and services that meet people’s financial needs. The World Bank Group considers financial inclusion as a key enabler to reducing extreme poverty and boosting shared prosperity, while the International Monetary Fund (IMF) believes that financial inclusion facilitates efficient allocation of funds among entrepreneurs, in turn, increasing aggregate output. As a result, the benefits of inclusive finance translate into higher GDP growth. For instance, Cambodia’s GDP in 2007 was US$ 8.64 Bn (Word Bank data), whereas domestic credit to the private sector as a percentage of GDP was 18.2%. Within a time span of 13 years, Cambodia’s GDP reached US$ 25.87 Bn, while domestic credit to the private sector grew to 139.6% of GDP, making Cambodia one of the fastest growing nations in the world, with an annualised GDP growth of 9.9% within this time period. During the same period, LOLC Cambodia’s gross loan portfolio grew from US$ 18.1 Mn to US$ 830.9 Mn by a CAGR of 37.6%.

Inclusive finance is critical for borrowers at the bottom of the pyramid as it gives them quick funding for entrepreneurial finance, unlike traditional finance, which is known for red tape and a slow credit financing process, with obstacles such as the borrower not being either eligible to get a loan or the lengthy loan processing times defeating the purpose of quick loans. The difference in LOLC’s inclusive finance services is that it provides quick financing, understanding the urgency of the bottom of the pyramid entrepreneurs and their lack of collateral. Committed to supporting the growth of micro borrowers, LOLC engages in continuous dialogue with borrowers and encourages significant adoption of technology to provide smaller ticket size loans.

This has significantly boosted the global economies – with the elevation of per capita GDP of the population.

LOLC’s ambitious global growth and expansion have been propelled by its passion to provide inclusive finance. The group commenced operations in 1980 with ORIX Corporation of Japan, and then set up a leasing company to pioneer leasing in Sri Lanka in partnership with IFC and BOC. At the time, it was providing asset-backed financing, since it was difficult to access financing through traditional financial institutions. LOLC grew rapidly and by early 2000 adopted an inclusive finance strategy to enhance access to its array of innovative financial products for people at the bottom of the pyramid. Within a short span of time, LOLC became the largest inclusive finance operator in Sri Lanka. LOLC’s unique business methodology is also referred to in academia, as reflected by its inclusion as a case study in the INSEAD Business School’s prestigious MBA programme.

LOLC expanded its horizons outside Sri Lanka in 2007 by setting up its first operation in Cambodia. Since then it has been on a phenomenal journey, expanding globally and serving the bottom of the pyramid populations in each of its markets successfully. As of now, LOLC’s financial model is empowering communities in 15 countries. By the end of 2023, it will have a presence in 22 countries. Its largest inclusive finance target markets are in the developing countries of Asia, Africa and potentially Latin America. LOLC is positioned to cover a population footprint of over 2.1 Bn in Asia, which provides a glimpse into its powerful influence. Similarly, it has a presence in 7 countries in Africa, covering a 482 million population base. By the end of 2023, LOLC is looking to enter Latin America, which will be another breakthrough market for the group. Accordingly, the group will be the only finance house with a scale that has the ability to cover most of the addressable inclusive finance markets globally.

LOLC has implemented greater digitalisation of its systems and processes and is able to on-board customers digitally at the field level by empowering field officers with mobile devices such as tabs, thereby eliminating duplication, since the branch can access data directly from the tabs in real time. This enables field officers to also access information in real-time and take quick decisions at customers’ doorsteps, thereby enhancing efficiency internally while shortening the time taken to approve and disburse loans.

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Business

Sri Lanka pitches Saudi investors for new investment partnerships

Published

7 hours ago

2026/09/29

Sahan Weerasooriya

Saudi and Sri Lankan dignitaries at the National Day reception.

By Ifham Nizam

Sri Lanka is pitching Saudi Arabia for greater investment and deeper trade ties, seeking to attract Saudi capital into new development opportunities while aligning bilateral economic cooperation with the Kingdom’s ambitious Vision 2030 agenda, Ports and Civil Aviation Minister Anura Karunathilaka, chief guest at Saudi Arabia’s 96th National Day celebrations in Colombo, said.

Addressing the National Day reception at ITC Ratnadipa, Karunathilaka said Sri Lanka was keen to identify new areas of economic cooperation with the Kingdom and create fresh opportunities for Saudi investors and businesses.

‘We look forward to creating new opportunities for the people of both countries by working in cooperation with Saudi Arabia’s Vision 2030 and its broader development initiatives, he said.

The minister said Sri Lanka wanted to move beyond its existing development cooperation with Saudi Arabia and build a broader economic partnership encompassing investment, trade and new development projects.

He noted that Saudi Arabia had already made a substantial contribution to Sri Lanka’s development. Since 1981, the Kingdom has provided concessional financing amounting to around Saudi Riyals 1.5 billion for 13 projects in Sri Lanka, supporting key sectors including energy, healthcare, education, drinking water and infrastructure.

Karunathilaka said Sri Lanka appreciated this support and was keen to build on the foundation created by those projects by opening further avenues for Saudi investment.

The minister’s investment pitch comes as Saudi Arabia advances its Vision 2030 programme, with the Kingdom seeking to diversify its economy and develop new international partnerships. Sri Lanka, meanwhile, is seeking to attract investment and expand economic opportunities through closer engagement with international partners.

Karunathilaka also highlighted the strong people-to-people links between the two countries, noting that nearly 250,000 Sri Lankans currently work and reside in Saudi Arabia.

‘They serve as an important bridge between our two countries and contribute significantly to strengthening the people-to-people ties between Sri Lanka and Saudi Arabia, he said.

He expressed appreciation for Saudi Arabia’s continued assistance to Sri Lanka and thanked the Saudi government for the facilities extended to Sri Lankan Muslims undertaking Hajj and Umrah pilgrimages.

Karunathilaka said Sri Lanka looked forward to working more closely with Saudi Arabia to strengthen political relations, broaden investment opportunities and enhance development cooperation.

Yaser Abdulrahman Al-Hazme, Chargé d’Affaires of the Royal Embassy of Saudi Arabia to Sri Lanka, said the embassy remained committed to strengthening bilateral relations by promoting political, economic and cultural communication between the two countries.

‘The embassy of the Kingdom of Saudi Arabia in Colombo has been keen during the past period to strengthen bilateral relations between the two countries by playing its role in supporting political, economic, and cultural communication, Al-Hazme said.

Al-Hazme also highlighted the embassy’s role in strengthening communication between Saudi and Sri Lankan institutions and following up on the interests of Saudi citizens in Sri Lanka.

‘On this precious national occasion, I extend my sincere thanks and appreciation to the government and people of the Democratic Socialist Republic of Sri Lanka for the attention and care given to relations between our two countries, and for the constructive cooperation that has contributed to strengthening the bonds of friendship and partnership between the Kingdom and Sri Lanka, he said.

Business

Sonali Rodrigo earns national recognition from Australia’s finance industry

Published

7 hours ago

2026/09/29

Sahan Weerasooriya

Sonali Rodrigo receiving the prestigious AFG Women on the Move Scholarship at the awarding ceremony held in Melbourne.

Australian finance professional Sonali Rodrigo has been recognised with the prestigious AFG Women on the Move Scholarship, presented by Australian Finance Group (AFG), in recognition of her leadership, industry contribution and impact spanning more than two decades in Australia’s finance industry.

The AFG Women on the Move program is dedicated to supporting and advancing women in the finance and mortgage broking industry, recognising individuals who demonstrate leadership, professional contribution, growth, impact and a commitment to empowering other women. The scholarship is supported by leading industry partners, including HSBC and Thinktank.

Sonali’s career spans more than 20 years in Australia’s finance industry, encompassing senior leadership, financial advisory and governance roles. Alongside her professional responsibilities, she has actively mentored and supported women in their career development, contributed to financial literacy, and helped individuals make more informed financial decisions. Her recognition reflects both her professional achievements and the broader impact of her leadership, particularly in creating opportunities and empowering the next generation of women in finance.

Business

Beyond the crisis: Sectoral paths to durable growth

Published

7 hours ago

2026/09/29

Sahan Weerasooriya

Institute of Policy Studies of Sri Lanka (IPS)

Continued From last Friday

Regional infrastructure improvements beyond the Western Province are essential to close market-access gaps and improve efficiency. The Western Province alone generates 42% of Sri Lanka’s GDP, but the dynamics of such agglomeration may also be highly underestimated. Officially, barely a fifth is deemed ‘urban’ in the province, but IPS re-estimates from the 2024 census using population density and infrastructure access, place the true figure at nearly 61%. The absence of strong secondary cities and industrial clusters outside the province reduces the potential gains from this agglomeration, thereby weakening incentives for firms to locate elsewhere or decentralise operations.

Fiscal incentives can promote decentralised corporate operations by offering tax rebates, lower property taxes, and land access in secondary cities like Kalutara and Gampaha, leveraging the connectivity of Southern and Colombo-Katunayake Expressways. The Hambantota seaport and airport, along with Koggala and Mirijjawela Export Processing Zones, can help develop the Southern Province through geography-based tax concessions.

Immediate measures, such as pricing vehicle entry into Colombo city will support regional agglomeration while tackling the acute problem of city congestion. Adopting a low-cost, technology-anchored free-flow method, similar to the Automated Number Plate Recognition (ANPR) currently used in commercial parking facilities for vehicles entering the city, is one such means. Installing high-mounted overhead ANPR gantries at key arterial entry points can operationalise congestion pricing without disrupting traffic speed. Fee collection can use a system like E-Tags electronic toll collection on expressways, integrated with digital payment gateways like GovPay and LankaQR for dynamic, time-of-day variable pricing.

The renewable energy transition is vital to drive competitiveness, external shock resilience, and green growth. Sri Lanka’s transition to renewable energy (RE) has advanced from a mere aspiration to tangible progress. Yet, the evidence suggests the transition is advancing faster on the generation side than the system built to absorb it. Transmission capacity, market design, financing channels, and digital infrastructure have not kept pace with capacity additions, and this gap is what will determine the pace of the transition through 2030.

Capital spending on transmission must be ring-fenced by legally, operationally, and financially separating the electricity grid (the transmission network) from the rest of the energy sector or by the broader government budget as a protected public investment within the medium-term budget framework. Funding should shift from general budget support to dedicated multilateral facilities, reinforced by sovereign guarantees for eligible borrowing. To safeguard public funds, this must be paired with a clear tariff pass-through mechanism that effectively limits open-ended Treasury exposure.

To build market trust, domestic budget funding should be earmarked for market-design technical assistance, signalling strong policy ownership rather than relying on external donors. Transparency too should be strengthened by publishing a firm implementation timeline in the Budget statement and fully disclosing long-term fiscal commitments from Power Purchase Agreements, capacity arrangements, and ancillary services.

(Concluded)