LOLC subsidiary to mobilise Forex deposits

Ravi LADDUWAHETTY

Lanka ORIX Finance Company Limited, a member of the LOLC Group, will shortly accept foreign currency deposits, making it the first finance company in Sri Lanka to do so.

“We have received Central Bank approval to mobilise foreign currency deposits, becoming the first finance company in Sri Lanka to be granted such approval. The launch will be in July,” LOLC Group Managing Director Kapila Jayawardena told Daily News Business yesterday.

He said the main focus in entering this area of business was to significantly increase the volume of inward foreign currency remittances from Sri Lankans employed around the world.

“We have already conducted due diligence in the Italian and Middle-Eastern markets and have seen immense potential for ourselves,” he said.

The strength of the LOLC group is its principal, ORIX Corporation of Japan, which is the world’s largest leasing company.

“The marketing strategy will be for Lanka ORIX Finance Co. Ltd to work with ORIX in the Gulf while it would be working with corresponding banks in other parts of the world to draw in remittances and other forms of fixed deposits”, Jayawardena said.

He said that LOLC was well placed to enter the foreign currency deposit mobilisation market in terms of the strategically located global ORIX network, the widespread local branch network, and a significant percentage of ex-banking professionals, in employment at various senior and middle levels within the LOLC group.

LOLC has a very advanced IT system which links all branches on-line real-time and a treasury management system which provides superior management information.

The company has entered into an agreement with Western Union Money Transfer earlier on this year becoming an authorised agent, to be able to use this as a channel to remit foreign currency from the various overseas locations to savings accounts, which will be maintained with Lanka ORIX Finance Company Limited.