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Sri Lanka LOLC leasing unit to list after finance license
31 Oct, 2011 11:22:12
Oct 31, 2011 (LBO) - Commercial Leasing Company, a unit of Sri Lanka's LOLC group, said it had received a finance company license from the banking regulator and will seek a public listing.
A finance company license allows a firm to raised public deposits instead of borrowing from other banks, making it more competitive.

The finance company license was given by the Central Bank with a requirement for it to be listed.

Commercial Leasing was taken private in 2009, after an LOLC connected buyout of its promoting shareholders. Commercial Leasing was founded by Commercial Bank, Chemanex and Singer Sri Lanka.

Amid strong sales of motor cars, leasing and hire purchase of motor vehicles have become a fast growing business in Sri Lanka in 2011. A 30-year war ended in 2009, pushing economic activities in former war zones in the north east of the island.

LOLC group chief executive Kapila Jayawardena said in statement that the firm will expand into the North and the East.

The firm will also increase its small and medium industry and micro finance portfolio.

"The company is well positioned to take advantage of the exponential growth prospects of these sectors which we believe will contribute immensely to the counrtry's overall economic growth," Jayawardena said.

"We have made notable progress in the agriculture sector, and we have implemented region-specific micro loan schemes with a view to uplifting the living conditions of the rural community by have to promoting income generating activities."

Over the past two years the company's gross assets have grown 176 percent to 26 billion rupees and pre-tax profits for the year ended March 2011 was 741 million rupees, LOLC said. Net assets had grown 280 percent to 6.4 billion in the past two years.

Update III

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