Micro-financing boosts lending portfolio of LB Finance

LB Finance said that 40 percent of its total disbursements were in micro-finance during the financial year ending March 31. The momentous rise in this less explored sphere of financing is said to be attributed to the Company’s aggressive and perceptive strategy in taking leasing to the informal economy, serving people with little access to the financial domain.

The just concluded financial year saw the Company laying a special focus on pawning facilities, lease financing for three-wheelers and agro-based equipment. With a solid presence in all the main towns in Sri Lanka, LB Finance has throughout the past year extended its presence to the more remote areas of the country where villagers have limited options when it comes to financial solutions.

LB Finance currently operates 57 pawning centres across the island, including in far-flung areas such as Pitigala, Mahiyanganaya, Matale, Moneragala and Embilipitiya, affording small-scale borrowers the services of one of the top financial institutions in the country. The Company also hopes to soon take its services to the east as well, with the opening of a branch in Batticaloa.

The Company said its significant forays into micro-financing would play a considerable part in the country’s development drive. For example, the periodical promotions in three-wheeler leasing conducted at specially-picked towns throughout the island give people in the provinces the opportunity to lease a three-wheeler almost within an hour, thanks to an on-the-spot credit evaluation.

“The management saw it fit to concentrate more on short-term income generating assets, small investments that mitigate risk and would also help the Company be directly involved in helping provide a source of employment,” said Manager - Micro Finance Lakshman Wanniarachchi.