OPEC supports LOLC for SME Development - 27 Jul 2006

Lanka ORIX LEASING Company Ltd (LOLC) the pioneer leasing company in Sri Lanka has secured a second line of credit for US $ 5 Million from OPEC to facilitate long term financing to small and medium sized enterprises (SME's). This is the second line of credit granted to LOLC which is also the first private sector organization in Sri Lanka to receive direct funding from OPEC.
LOLC which was formed in 1980 as a result of the World Banks efforts to increase the level of capital formulation in Sri Lanka through leasing, has consistently supported the development of the SME sector. Strong support from ORIX Corporation of Japan, which is the worlds' largest independent leasing company and the 2nd largest financial service provider in Japan, has enabled LOLC to maintain its position as a forerunner in the leasing industry of Sri Lanka for over two decades. The group profits for the first 3 quarters of the financial year 2004/2005 reached Rs.492 Mn reflecting a 77% increase when compared with the previous financial year.
With a network of branches in key provincial towns, LOLC is well placed to provide a range of innovative financial services to a wide cross-section of Sri Lankan entrepreneurs. A flexible business model which facilitates selective development has also enabled LOLC to diversify into factoring, insurance broking, securities trading, information technology and the establishment of a Finance Company.
The OPEC Fund has been involved in the financing of public sector development activities in Sri Lanka for over two decades, directing substantial assistance towards projects in the energy, agriculture, multi-sectoral and education sectors. In addition, the Fund has provided balance of payments support and financed commodity imports programs. The country has also benefited from a number of grants. In May 2002, an agreement for the encouragement and protection of investment was signed between the Fund and the government of Sri Lanka.
The picture shows the signing of the agreement for the second line of credit in Vienna by Mr. I C Nanayakkara, Deputy Chairman of Lanka ORIX LEASING Company Ltd and by H.E.Jamal Nasser Lootah, Chairman of the Governing Board of the OPEC Fund. The Assistant General Manager - Treasury, Mr. Adrian Perera of LOLC was also present at this occasion.

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