Leasing Move

Sri Lanka's Prime Minister Ranil Wickremesinghe arrives with flowers to receive blessings at the Gangaramaya Buddhist Temple, Colombo, Sri Lanka on Wednesday 4 April 2018. On wednesday (4), Wickremesinghe survived a no-confidence motion in the Sri Lankan parliament with a 46 vote majority after a 12-hour debate with 122 MPs voted in his support while 76 MPs voting to remove the prime minister. (Photo by Tharaka Basnayaka/NurPhoto via Getty Images)

February 27 (LBO) – Sri Lanka’s pioneer leasing firm LOLC, is stepping into Cambodia taking an equity stake in a micro-finance firm with several international development lenders, an official said. “Cambodia is just blossoming out and opportunities are good,” Kithsiri Gunawardene told Lanka Business Online.

“They run a lean operation there and repayments are very good.”

The firm PRASAC, is into small ticket leasing but is now poised to grow with funding from international partners.

LOLC is taking a 17.9 percent stake with Japan’s BIO and Oiko Credit, Netherland’s FMO and Dragon Capital of Vietnam also taking up 17.9 percent with each putting in 600,000 US dollars.

LOLC is Sri Lanka’s pioneer specialist leasing firm set up in 1980 with Orix Corporation of Japan, local development banks and private sector equity.

Started following a recommendation emerging from a World Bank study, the leasing firm had also been funded by international agencies like NGO.

The firm had assets of 22.2 billion rupees by December 2006.