NEWS & HIGHLIGHTS

Elevating our vision: Unveiling the inspiring new head office of LOLC Life Assurance and LOLC General Insurance in Grandpass, where innovation meets ambition. The grand opening ceremony was held under the patronage of our Group Managing Director, Mr. Kapila Jayawardena on the 21st of March 2024.

Mr. Kithsiri Gunawardana, Chairman LOLC General Insurance PLC, Ms. Nadika Opatha, Executive Director/Chief Executive Officer LOLC Life Assurance, Mr Nimal Perera, Chief Executive Officer LOLC General Insurance, Directors of LOLC Life Assurance and LOLC General Insurance, Management and the staff of both organizations were present at the opening ceremony.

LOLC General, the General Insurance arm of the renowned LOLC Group, has secured its position as the fastest-growing brand in the country with an impressive 36% increase in brand value, reaching Rs. 513.39 million on the Brand Finance Index 2023.

LOLC General Insurance PLC stands as one of Sri Lanka's premier and rapidly expanding General Insurance providers, driving a transformative shift in the country's insurance landscape through their innovative solutions. As a fully-owned subsidiary of the esteemed LOLC Group, a conglomerate with an extensive presence across 25 countries in Asia, Africa, and Australia, the company has earned its reputation for excellence.

The company's remarkable growth can be attributed to its proactive approach in developing customer focussed Insurance solutions during the socio-economic challenges over the past years, which has not only enhanced brand familiarity, but also promoted customer consideration and loyalty among stakeholders. This success is evidenced by a thirteen-point increase in the Band Strength Index Score, the highest growth in this metric across the entire ranking.

The unveiling of the 'Honours' loyalty programme in October 2022 marked one of the most important milestones for LOLC General. The first ever cash back scheme launched by a local insurer, the ''Honours'' programme enables customers to benefit from merchant discounts, while accumulating loyalty points that can be utilised to offset the cost of their future insurance premiums. All LOLC Motor customers will receive valuable discounts and benefits through the loyalty partner network consisting of over 110 merchants including Supermarkets, Salons, Car wash, Hotels and Restaurants, Hospitals, Shopping, etc.

Amidst all headwinds, the company experienced a robust financial growth and expanded their footprint significantly. LOLC General inaugurated 29 new branches during the last financial year, reaching a total of 82 branches across the island, demonstrating their commitment to providing accessible insurance services to policyholders.

LOLC General also concluded the last fiscal year with a resounding success, achieving it's best-ever performance to date. Notably, the consolidated Gross Written Premium (GWP) for LOLC General Insurance (motor and non-motor) as of December 31, 2022, amounted to Rs. 8.551 Bn, representing a prominent 17% improvement compared to the preceding financial year.

Commenting on the outstanding feat, Mr. Kithsiri Gunawardena, Director/Chief Executive Officer of LOLC General Insurance PLC stated, ''I am immensely proud of our team's dedication and unwavering commitment to delivering customer-centric solutions. Our remarkable growth on the Brand Finance Index 2023 reflects the trust and support of our stakeholders, and it is a testament to the hard work and innovative spirit of every individual at LOLC General.

The future of LOLC General remains bright, and we are poised to continue making a significant impact in the insurance landscape of Sri Lanka. As we forge ahead with branch expansion and embrace the ever-changing needs of our customers, we are confident that LOLC General will remain a dominant force in meeting customer needs, setting new benchmarks and elevating the industry standards.''

LOLC General consistently demonstrate their firm commitment to conducting business with transparency, fairness, equity, and sustainability, all while striving to improve the lives and livelihoods of individuals across the nation.

Brand Finance Lanka, renowned for its brand valuation and strategy expertise, recently unveiled its 20th annual review of Sri Lanka's 100 most valuable brands. The challenging financial landscape during the review period resulted in a significant 16% decline in the annual index. Brand Finance Lanka's comprehensive analysis combines custom market research and publicly available financial data, providing valuable insights into the performance of Sri Lanka's brands.

LOLC Group's Insurance arm concluded FY 2022 on a high note, recording its best -ever performance to date. Consolidated GI GWP (motor and non-motor) for the year ended 31st December 2022 stood at Rs. 8.551 Bn, reflecting a commendable 17% improvement over the previous financial year. LOLC Life and General together also accounted for the industry best combined PAT of Rs. 2,418 Mn. What is more remarkable is that these results come amidst the backdrop of a significant decline in industry-wide performance owing to severe external challenges throughout 2022.

In the current financial year, LOLC General Insurance recorded Profit before Tax of Rs.1.65 Bn, denoting a solid 30% increase year on year, along with Profit After Tax of Rs. 1.40 Bn representing 28% improvement over the figure reported for the previous financial year. The Total Comprehensive Income of the company recorded at Rs. 449 Mn. Furthermore, with the Company’s market share in the Motor segment edging up to 10% in the year 2022, LOLC General to move up 2 spots in the industry league tables from 7th position in 2021 to claim 5th place in the in 2022.

Similarly, LOLC Life Assurance also soared ahead to deliver exceptional results and reach some important milestones in the current financial year. Reporting overall Premium income growth of 12% year on year, the company was recognised as having the Highest New Business growth (FYP) in the industry at 31%, a monumental achievement given the severe challenges encountered during 2022. Meanwhile growing by 74% year on year, Profit After Tax (PAT) crossed the 1Bn mark for the first time in the company’s history. Backed by strong bottom line results, LOLC Life Assurance reported Return on Equity (ROE) of 33%. Moreover, with a 4% market share in GWP terms, LOLC Life moved up to 7th spot in the industry rankings for 2022 from 8th position occupied in the previous financial year.

The formation of the Insurance arm, - Life and non-Life (General) operations in 2010 denotes a key milestone in LOLC's strategic diversification agenda. A little over a decade on, LOLC life and general businesses have proven themselves as the most preferred insurance providers in the market.

LOLC Life Assurance Ltd (LOLC Life) continues to offer a comprehensive suite of Insurance covers from Life Insurance plans, pension plans, child plans, critical illness plans and home loan protection solutions, all tailored to suit the bespoke needs of each customer. The business model of the Life business revolves around providing sustainable solutions to ensure the safety of people and communities. A robust business model coupled with sound underwriting principles, has put LOLC Life on an accelerated growth trajectory for the past few years.

LOLC General caters to all customer segments through specialized lifestyle Insurance solutions for vehicles, homes, businesses, travel, cargo, personal accident cover etc. Seeking to emulate a more inclusive approach to business LOLC General also offers Takaful Insurance - an alternative solution for risk averse customers to benefit from the risk sharing concept promulgated by the Islamic banking principles.

Over the past ten years, LOLC General has recorded a number of milestones, most notably the listing on the Colombo Stock Exchange in December 2021. The unveiling of the 'Honours' loyalty programme in October 2022 marks another important milestone for LOLC General. The first ever cash back scheme to be launched by a local insurer, the ''Honours'' programme enables customers to benefit from merchant discounts, while accumulating loyalty points that can be utilised to offset the cost of their future insurance premiums.

The recent growth acceleration in LOLC's Life and General business has been supported by the expansion in the island-wide branch network. The branch network which until end-2021 stood at 59 was expanded in 2022 with 23 new branches added within the course of the year. As part of the overall expansion strategy, both companies have also started investing heavily in digital technology. These investments are expected to facilitate end-to-end system transformation that would see the entire insurance process from customer acquisition, due diligence and policy issuance to claim settlement, managed digitally.

Both companies operate on sound business principles to focus not only to drive business excellence, but also serve a larger purpose to bring socio economic progress to people, especially women around Sri Lanka. Both companies deliver on their commitment to women's empowerment through the agent network, where female representation stands at 60%. Over 1100 company-appointed women Insurance agents around the country benefit from flexible work-time schedules which gives them the opportunity to become productive members of society who contribute towards the economic wellbeing of their communities, while also experiencing a healthy work-life balance.

Seeking to replicate these concepts on a global scale, the LOLC Group took the next step to grow its insurance footprint by setting up Serendib Micro Insurance Ltd - Cambodia in June 2021. Serendib Micro Insurance Ltd - Cambodia is jointly owned by LOLC Life and LOLC General, with each entity having a 45% stake.

LOLC Life Insurance and LOLC General Insurance are both part of the LOLC Holdings PLC (LOLC /Group). The LOLC Group today has a presence in 23 countries and continues to expand its global footprint.

Although financial services has remained the mainstay of LOLC's operations for over two decades, in recent years the Group has been on an aggressive diversification drive to establish its presence in all critical sectors of the Sri Lankan economy from agriculture and plantations, tourism and leisure and information technology to trading, manufacturing, mining, construction and real estate. Through its collective investments in these sectors, LOLC fuels economic activity in Sri Lanka, supports job creation and augments the Country's export revenue generation capacity. LOLC's strategic expansion onto the global stage in 2007 and successive investments since then have facilitated the Group's transformation into a truly global conglomerate with a footprint in 23 countries across three continents.

LOLC General Insurance (LOLC GI), the fastest growing Motor Insurer of the country has announced a strategic tie-up with Stafford Motor Company (Stafford Motors), the sole agent for Honda vehicles in Sri Lanka. The two companies signed a memorandum of understanding (MOU) recently, to formalize their collaboration. Under the agreement, LOLC GI customers who have a full insurance cover for their Honda vehicles will be able to have collision repairs done at Stafford Motors without having to pay for brand-new body parts. LOLC GI will pay the full amount without any deductions, according to the agent's recommendation. This ensures customers get access to high quality and genuine body parts at no additional cost.

The collaboration between LOLC GI and Stafford Motors will also enable customers to access quality repairs and services without any hassle and delays to get their vehicles back. Additionally, LOLC GI customers are entitled to a 10% discount on vehicle grooming services and a 10% on labour, and a 12% on parts discount for general repairs and services.

Speaking at the signing ceremony, officials from both companies expressed their enthusiasm about the partnership. ''We are thrilled to be partnering with Stafford Motors, '' said Mr. Kithsiri Gunawardena, Director/CEO of LOLC General Insurance. He also mentioned; ''this partnership will undoubtedly be beneficial for the vehicle owners providing easy access to quality repair services and generous discounts. Honda customers can now enjoy a hassle-free experience when it comes to collision repairs and general maintenance services. We are confident that this partnership will be a success''.

Commenting on the tie-up, the Executive Director, Stafford Motors, Mr Tarindra Kaluperuma said, ''We are delighted to have partnered with LOLC GI to offer our customers the best services and benefits available. With this agreement, we aim to make the lives of our customers more convenient and hassle-free while providing them with peace of mind''.

Furthermore, Stafford Motors customers will be offered LOLC GI's new Motor lifestyle loyalty program, 'Honours'. The program offers valuable discounts and benefits to LOLC GI Motor Policyholders through the loyalty partner network - Channel 17 (CH17). Members can accumulate 'Honours' loyalty points while transacting with any of the merchants within the network and can donate the accumulated points to LOLC's humanitarian programmes.

LOLC General Insurance PLC is a fully owned subsidiary of the LOLC Group, among Sri Lanka's largest and most diversified conglomerates, with operations in 22 countries in Asia, Africa and the Middle East. Reaffirming its people-centric approaches demonstrated during the past few years, LOLC General has received multiple awards including for 'Best General Insurance Company of the Year' at the Emerging Asia Insurance Awards 2021, Asia's Best Employer Brand Awards 2021, and was also ranked amongst the Top Nation's Most Popular Service Providers by LMD in 2021 and 2022.

Caption – L to R – Deepthi Wasana - Business Promotion Associate, LOLCGI, Dinusha Thilanka – Head of Motor Underwriting, LOLCGI, Ajantha Ruman – Chief Motor Engineer, LOLCGI, Ajantha Amarasinghe – Head of Broker Servicing, LOLCGI, Kithsiri Gunawardana –Director/Chief Executive Officer, LOLCGI, Tharindra Kaluperuma – Executive Director, Stafford Motors, Sanjeeve Goonarathne – General Manager Automobiles , Stafford Motors, Upul Perera – Deputy General Manager Automobile After sales, Stafford Motors, Lakshan Jayasuriya – Head of Body and Paint Division, Stafford Motors, Keshan Abeyewardena – Assistant General Manager, LOLCGI.

LOLC General Insurance PLC and LOLC Life Assurance Ltd, two of Sri Lanka's finest and fastest growing Insurance companies, together with Pan Asia Bank which is one of the leading commercial banks in Sri Lankan banking industry, jointly held a felicitation ceremony to reward the top performers of Bancassurance.

The ceremony was graced by Mr. Naleen Edirisinghe, CEO Designate, Pan Asia Bank, Mr. Kithsiri Gunawardena, Director/CEO of LOLC General Insurance PLC, Mrs. Nadika Opatha, Director/CEO of LOLC Life Assurance Ltd, Mr. Shiyan Perera, Assistant General Manager - Retail Credit and Mr. Yohan Ebell, Head of Bancassurance and Private Banking, Pan Asia Bank. The award ceremony was held at Waters Edge Hotel on 16th December 2022.

The main award-winning stars of the night were Mr. Trishane De Mel (Regional Manager - Colombo Inner Region, PABC) for the ‘Best Regional Performance' and Mr. Kevin Edward (representing PABC, Dehiwala Branch) for the ‘Best Lead Generator'. Further to the individual awards, Pan Asia Bank - Dehiwala branch emerged as the ‘Best Branch, PABC Bancassurance', while the Central Leasing Unit of PABC was awarded the ‘Best Unit for General Insurance'. Kollupitiya Branch and Kalubowila Branch emerged first and second runners-up respectively, within the same category.

Under the strategic view of capitalizing fee-based income and proving all customer needs under one roof, Pan Asia Bank has joined hands with LOLC Insurance in 2015 to provide Insurance solutions for its clientele across the country. LOLC Insurance and Pan Asia Bank are keen on further strengthening the scope of Bancassurance to provide enhanced wider range of solutions to its customers across both their networks.

Both LOLC General and Life are fully owned subsidiaries of the LOLC Group, with operations in 22 countries including Asia, Africa and Middle East. LOLC will continue to explore possibilities to elevate the Insurance needs of the community at large through practical and affordable Insurance solutions in promoting sustainable economic retrieval and affluence.

Pan Asia Bank customers can enjoy the convenience of attending to their banking and insurance needs, under one roof, at any of the Bank's 85 branches of the network island wide. The Bank's financial performance has been characterized by strength and resilience. Its spirit of innovation and growth coupled with a prudent approach to growth and risk has served it well in the most challenging year in the banking industry.

L-R: Mrs. Nadika Opatha, Director/CEO of LOLC Life Assurance Ltd, Mr. Kithsiri Gunawardena, Director/ CEO of LOLC General Insurance PLC and Mr. Naleen Edirisinghe, CEO Designate, Pan Asia Bank arriving at the event.

LOLC General Insurance PLC (LOLC GI), one of the fastest-growing General Insurance companies in Sri Lanka is disrupting the general insurance industry by making motor insurance a lifestyle product with its unique loyalty program 'Honours' with rich rewards, in addition to unveiling its first ever Electronic Point-of-Sale (ePOS) - the digital policy issuance network.

LOLC GI's new lifestyle loyalty program 'Honours' is crafted with seamless and delightful experiences that provide consumers with real value. Loyal customers will be grouped into four (04) tiered multi-level memberships such as Classic, Silver, Bronze and Platinum and continuously rewarded with benefits every day.

The rewards scheme is applicable for all LOLC GI Motor Policyholders who will receive valuable discounts and benefits through the loyalty partner network - Channel 17 (CH17). The first ever 'reward-back' program offers customers a cash back scheme operated by way of merchant discounts/loyalty points, which LOLC GI believes will offset the cost of customer insurance premium and more.

Loyalty points may be accumulated through the partner merchant network and can be redeemed towards a customer's own policy renewal or contribute to a social cause. The Honours program will unveil the widest insurance loyalty platform in Sri Lanka, with a reach of over 1,000 partner locations.

Simple, yet descriptive, 'Honours' the Loyalty Program reflects an eco-system designed to fuel a sustainable business model during challenging economic times. LOLC GI understands the difficulties faced by customers due to the current situation and that of the merchants who are also constrained due to inflation and current macro-economic factors. Seeking to support both stakeholders recover, LOLC General Insurance strives to protect its customers and to help the Sri Lankan business sector.

Thus, 'Honours' has been designed not as a usual loyalty platform, but a strategic eco-system built to benefit motor policyholders whilst ensuring SME businesses and other business entities in Sri Lanka remain active.

Customers can accumulate 'Honours' loyalty points while transacting with any of the merchants within the network and are free to redeem points through selective partners or during their policy renewal. Going further, 'Honours' enables its policyholders to donate the accumulated points to LOLC's humanitarian program 'Divi Saviya' aimed at protecting families affected by the Sri Lankan economic crisis. Honours is a comprehensive network, designed to self-sustain and protect Motor policy holders, SME's, Shareholders, Employees and citizens of Sri Lanka.

Further, LOLC GI firmly believes that going digital is the way forward to minimise the strain on the economy. Digital products are easy to transact, less costly to distribute and demands less resources unlike traditional channels. LOLC GI's Electronic Point-of-Sale (ePOS) solution offers enhanced convenience and process simplification. Customers are provided their policy in under five (05) minutes, with the added advantage of real time policy processing and involving zero paperwork. Delivering an end-to-end solution, the ePOS enables Digital Certificates, Proposals and real time premium settlements. Due to the company's expanded reach, over 250 ePOS Centres are located islandwide and easily accessible to customers.

Firmly believing that insurance should be a product which is easy to comprehend to the end customer, LOLC GI aspires to increase the user-friendliness of its products for its customers throughout the policy life cycle and launches its journey towards an ergonomic policy design platform know as 'Build Your Own' (BYO). BYO offers a unique intuitive quotation design, for easy customer reference across different motor insurance products and concepts including tailor-made insurance solutions to fit each customer's wallet.

Additional features of the platform includes product comparison, the widest range of add-on covers and a free LOLC Credit Card with easy payment plans, (subject to eligibility). Delivering a differentiated experience, the solution ensures that the entire product and features of the motor insurance market is on the palm of the customer.

LOLC GI aspires to be the premier motor insurance brand evolving through these three (03) new innovations to the market. LOLC General relaunched its motor insurance brand positioning itself as LOLC Motor Insurance 'Benefit Everyday', driven by the Honours Loyalty Program, the EPOS digital solution and the BYO platform, perfected to offer benefits daily to Sri Lankans as the only lifestyle motor insurance brand in the country.

LOLC General Insurance PLC is a fully owned subsidiary of the LOLC Group, among Sri Lanka's largest and most diversified conglomerates with operations in 21 countries in Asia, Africa and middle east. At present, LOLC General Insurance is classified as a large-sized company and the 5th largest General Insurer in Sri Lanka.

The company was recognized as the fastest to achieve the Rs. 7 Billion milestones within the General Insurance industry. During 2021, LOLC General Insurance recorded a premium income growth of 19.2% which was the highest growth recorded by a mid/large sized company in the General Insurance industry and reported paid claims of Rs. 2.5 Billion.

Reaffirming its people-centric approaches demonstrated during the past few years, LOLC General has received multiple awards including for 'Best General Insurance Company of the Year' at the 3rd Emerging Asia Insurance Awards 2021, Asia's Best Employer Brand Awards 2021, and was also ranked amongst the Top Nation's Most Popular Service Providers by LMD.

LOLC General Insurance PLC and LOLC Life Assurance Ltd, two of Sri Lanka's finest and fastest growing insurers, recently entered into a strategic partnership agreement with Cargills Bank, the banking arm of the Cargills Group.

The partnership focuses on strengthening both entities portfolio through offering a wider customer base, a range of best-in-class Insurance solutions comprising of protection and investment while helping further with the best Insurance advice. As a result of this strategic tie-up, Cargills Bank customers will have the opportunity to experience the products and services offered by both LOLC General Insurance PLC and LOLC Life Assurance Ltd.

The official agreement signing ceremony was held at the Cargills Bank Head Office. The event was conducted with the participation of the official signatories from each entity; Kithsiri Gunawardena, CEO of LOLC General Insurance, Nadika Opatha, CEO of LOLC Life Assurance and Lasantha Mahendrarajah, AGM - Retail & SME Business, Cargills Bank. The ceremony was also attended by other officials from LOLC Insurance and Cargills Bank.

Jointly commenting on the significant tie-up, Kithsiri Gunawardena, CEO of LOLC General Insurance together with Nadika Opatha, CEO of LOLC Life Assurance mentioned "With the launch of this partnership, LOLC General Insurance PLC and LOLC Life Assurance Ltd will be able to leverage on the strong brand presence and reach of Cargills Bank. We are confident that this partnership will reach greater heights since both Cargills Bank and LOLC Insurance companies share a strong commitment for customer value creation and exceptional service. We are truly excited to embark on this journey with one of the oldest conglomerates in the country"

Lasantha Mahendrarajah, AGM - Retail & SME Business, Cargills Bank also commented that "Cargills Bank is always committed to exploring the possibilities of creating convenience and value to our customers. We are highly excited with the strategic partnership and looking forward to create a new milestone in the industry"

The dynamism which LOLC General and Life brings in to the industry is the correct blend of flexible customer service and customized product solutions, in reaching different market segments comprehensively. Recently, LOLC General won the awards for 'Best General Insurance Company of the Year' at 3rd Emerging Asia Insurance Awards 2021, Asia's Best Employer Brand Awards 2021, and was also ranked amongst the Top Nation's Most Popular Service Providers by LMD. While, LOLC Life secured the 'Asia's Best Employer Brand Award 2021', declared 56 members of their sales team as qualifiers for the Million Dollar Round Table (MDRT) membership including 03 Court of The Table (COT) winners for the year 2021, and was also ranked amongst the Top Nation's Most Popular Service Providers by LMD.

Both the companies are fully owned subsidiaries of the LOLC Group, which is one of Sri Lanka's largest and most diversified conglomerates with operations in 20 countries including Asia, Middle East and Africa. LOLC General and Life Assurance will continue to explore possibilities to elevate the Insurance needs of the community at large through practical and affordable Insurance solutions in promoting sustainable economic retrieval and affluence.

Cargills Bank, as one of the most progressive banks in Sri Lanka, has grown to serve over 175,000 customers through 500+ touch points and 21 branches. With a vision to be Sri Lanka's most inclusive bank driven by digital enablement, Cargills Bank is rated A+(lka) by Fitch Ratings Lanka and is the financial services arm of the Cargills Group, providing a full range of banking and financial services.

From Left to Right: Ushan Goonawardane, Senior Chief Strategy Manager of LOLC Insurance, Rupika Nawarathne, Consultant Bancassurance of LOLC Life Assurance, Kithsiri Gunawardena, CEO of LOLC General Insurance, Nadika Opatha, CEO of LOLC Life Assurance, Lasantha Mahendrarajah, AGM - Retail & SME Business of Cargills Bank, Kithmini Kumaranayake, Senior Manager, Inward Remittances and Insurance Operations of Cargills Bank and Chithma Samaraweera, Junior Executive, Inward Remittances and Insurance Operations of Cargills Bank.

LOLC General Insurance PLC and LOLC Life Assurance Ltd, two of Sri Lanka's finest and fastest growing insurers, recently entered into a strategic partnership agreement with Cargills Bank, the banking arm of the Cargills Group.

The partnership focuses on strengthening both entities portfolio through offering a wider customer base, a range of best-in-class Insurance solutions comprising of protection and investment while helping further with the best Insurance advice. As a result of this strategic tie-up, Cargills Bank customers will have the opportunity to experience the products and services offered by both LOLC General Insurance PLC and LOLC Life Assurance Ltd.

The official agreement signing ceremony was held at the Cargills Bank Head Office. The event was conducted with the participation of the official signatories from each entity; Kithsiri Gunawardena, CEO of LOLC General Insurance, Nadika Opatha, CEO of LOLC Life Assurance and Lasantha Mahendrarajah, AGM - Retail & SME Business, Cargills Bank. The ceremony was also attended by other officials from LOLC Insurance and Cargills Bank.

Jointly commenting on the significant tie-up, Kithsiri Gunawardena, CEO of LOLC General Insurance together with Nadika Opatha, CEO of LOLC Life Assurance mentioned "With the launch of this partnership, LOLC General Insurance PLC and LOLC Life Assurance Ltd will be able to leverage on the strong brand presence and reach of Cargills Bank. We are confident that this partnership will reach greater heights since both Cargills Bank and LOLC Insurance companies share a strong commitment for customer value creation and exceptional service. We are truly excited to embark on this journey with one of the oldest conglomerates in the country"

Lasantha Mahendrarajah, AGM - Retail & SME Business, Cargills Bank also commented that "Cargills Bank is always committed to exploring the possibilities of creating convenience and value to our customers. We are highly excited with the strategic partnership and looking forward to create a new milestone in the industry"

The dynamism which LOLC General and Life brings in to the industry is the correct blend of flexible customer service and customized product solutions, in reaching different market segments comprehensively. Recently, LOLC General won the awards for 'Best General Insurance Company of the Year' at 3rd Emerging Asia Insurance Awards 2021, Asia's Best Employer Brand Awards 2021, and was also ranked amongst the Top Nation's Most Popular Service Providers by LMD. While, LOLC Life secured the 'Asia's Best Employer Brand Award 2021', declared 56 members of their sales team as qualifiers for the Million Dollar Round Table (MDRT) membership including 03 Court of The Table (COT) winners for the year 2021, and was also ranked amongst the Top Nation's Most Popular Service Providers by LMD.

Both the companies are fully owned subsidiaries of the LOLC Group, which is one of Sri Lanka's largest and most diversified conglomerates with operations in 20 countries including Asia, Middle East and Africa. LOLC General and Life Assurance will continue to explore possibilities to elevate the Insurance needs of the community at large through practical and affordable Insurance solutions in promoting sustainable economic retrieval and affluence.

Cargills Bank, as one of the most progressive banks in Sri Lanka, has grown to serve over 175,000 customers through 500+ touch points and 21 branches. With a vision to be Sri Lanka's most inclusive bank driven by digital enablement, Cargills Bank is rated A+(lka) by Fitch Ratings Lanka and is the financial services arm of the Cargills Group, providing a full range of banking and financial services.

LOLC General Insurance Limited (LOLC GI), one of the fastest-growing General Insurance companies in Sri Lanka recently signed a Memorandum of Understanding (MOU) with Body Shop by Access Motors. Access Motors (Pvt) Ltd. is the sole agent of Jaguar and Land Rover (JLR) in Sri Lanka. The prime aim of this strategic tie-up is to provide a superior level of service to JLR customers of Access Motors. The MOU was signed by LOLC General Insurance Ltd. Chief Executive Officer Kithsiri Gunawardana and Access Motors, Customer Service Director Grahame Leitch. Senior management officials of both organisations were also present during the occasion.

Under this new arrangement, if a LOLC General Insurance customer has obtained a comprehensive Insurance for their Land Rover or a Jaguar, the company will pay in full for body repairs carried out at Access Motors. Once the accident repair is complete, Access Motors will carry out an interior cleaning, defect scanning and car wash at absolutely no charge. In addition, customers are offered a hassle-free settlement of the claim to Access Motors.

Furthermore, through this partnership, LOLC Insurance policyholders who are JLR customers of Access Motors are now able to enjoy a variety of benefits ranging from free 24-hour breakdown service within Colombo city limits, free vehicle health checks to vehicle grooming at discounted rates subjected to availability. (Prior appointments are needed)

LOLC General Insurance, Chief Executive Officer Mr. Kithsiri Gunawardena commenting about the newest tie-up said, "Partnering with the reputed Access Motors gives us the unique opportunity to expand our reach and exposure, further. It also augments our aim of enhancing Insurance penetration in Sri Lanka by ensuring access to all. Further, since both LOLC GI and Access Motors believe in offering the best possible service and benefits, this partnership would offer customers the best of both organisations".

LOLC General Insurance policyholders who own Jaguar and Land Rover Vehicles and are customers of Access Motors will be provided services through Access Motors' state of art body shop located at Boralesgamuwa.

Mr. Lalantha Abeywardena, Manager of Access Motors Bodyshop said, "We strive for service excellence through flawless execution, resulting in convenience and the highest quality standards. Having established our mark as the sole agent for Jaguar Land Rover vehicle repairs and the only repair facility with Jaguar Land Rover (JLR) qualified technicians in Sri Lanka, we are now diversifying to offer more value-added services to our customers".

Body Shop by Access Motors, is fully equipped to carry out all types of Aluminium Repairs using the latest Riveting Technology and all repairs are carried out under the strict guidelines and repair procedures set out by Jaguar Land Rover.


The MOU was exchanged between LOLC General Insurance, Chief Executive Officer Kithsiri Gunawardena and Access Motors, Customer Service Director Grahame Leitch. Also, in the picture are (L-R) Ajantha Ruman - Chief Motor Engineer LOLCGI, Keshan Abeyewardene - Assistant General Manager LOLCGI, Heshan Ferdinand - Deputy General Manager LOLCGI, Shanesh Rathanweerage - General Manager-After Sales Access Motors, Mahesha Jayasinghe - Manager Administration Access Motors and Lalantha Abeyawardena - Manager, Bodyshop Access Motors.

LOLC Life Assurance Limited and LOLC General Insurance Limited, two of the fast growing Insurance companies in Sri Lanka were recognised for its profound commitment to its staff at the recent Asia's Best Employer Brand Awards 2021 organized by World HRD Congress in partnership with CMO Asia. Asia's Best Employer Brand Awards 2021 is the 12th Edition of the event and this year's event was hosted virtually from Taj Lands End Hotel, Mumbai due to the COVID 19 restrictions.

More than 100 brands from over 20 countries in Asia compete for this coveted award each year. This year, LOLC Life & LOLC General Insurance were two of the six Sri Lankan companies that emerged as winners under stringent competition criteria.

Speaking on the achievement, Ms. Nadika Opatha, Chief Executive Officer of LOLC Life Assurance, said, "As a company that has been in existence for less than 10 years, we are indeed honoured to have been selected for this prestigious award. Last year was a challenging year not just in Sri Lanka but the world over, yet the engagement that we had with our own staff and with our customers have really proven strong in a world body recognizing our efforts. Employee success and wellbeing are key priorities at LOLC Life Assurance as it is for the entire LOLC Group. There were many engagement programs conducted, not only to our own staff but to our community as well. Most importantly I take this opportunity to thank our staff who worked tirelessly at getting this recognition. This award is a true testament that our efforts in Human Resources management is progressing in the right direction and we are truly honoured by this recognition. We will continue with our efforts to uplift the lives of our people - our most important and strongest asset of all".

LOLC General Insurance, Chief Executive Officer Mr. Kithsiri Gunawardena commented, "We are honoured and delighted to receive this prestigious award. Attracting, grooming and retaining talent is a key focus area and our human resource strategy has worked well for us over the years, making LOLC General Insurance one of the most desirable places to work with opportunities for personal and professional development. Recently introduced people practices has resulted in greater employee engagement and the service to our customers has improved tremendously, which has resulted in greater performances and reaching many milestones in this short period of time. We are also extremely proud to be the only two Sri Lankan Insurance companies to be recognized this year at the Asia's Best Employer Brand Awards and the youngest Sri Lankan Insurance company to have been recognised in this category through the years".

The performance-based culture at LOLC Life & LOLC General continues with substantial budgetary allocation each year for Human Resource training and development purposes. A significant investment is being directed towards e-learning programmes so that staff can engage in learning at their own convenience. Both companies are committed to promoting an optimal work-life balance with focused training and rewards schemes being organised throughout the year for staff to improve quality, productivity and persistency.

LOLC General Insurance and LOLC Life Assurance are fully owned subsidiaries of the LOLC Group - one of the largest and most diversified conglomerates in Sri Lanka with international presence. LOLC Life & LOLC General Insurance envisages to aggressively expand its nation-wide reach by establishing over 100 dedicated service points, penetrating into new regions during this financial year. During 2021, LOLC Insurance opened over 40 new branches. The two Insurance Companies look forward to spread its wings to strategically selected overseas markets as well. Both entities have already acquired the license to operate in Cambodia and the operations have already commenced.

31 May 2021, Colombo: Sri Lanka's most valuable and globally diversified financial conglomerate, the LOLC Group, posted a record-breaking performance for the financial year ending 31st March 2021, achieving unprecedented bottom line results of Rs. 57Bn in Profit Before Tax (PBT), and a Profit After Tax (PAT) of Rs. 53Bn - a first for any corporate in the country. By achieving profits on this massive scale in the history of Sri Lanka's corporate world, the Group once again consolidated its position as the top most profitable diversified corporate in the country, three years in a row - establishing LOLC as one of the largest Micro and Small & Medium Enterprises (MSME) platforms in the world.

This stunning performance by LOLC resulted in a Rs. 28Bn being recorded as Profits Attributable to the Equity Holders of the Parent company. The Group results denote an impressive Earnings Per Share of Rs. 59.01 compared with Rs. 22.93 recorded in the previous year. Whereas, the total comprehensive income was Rs. 81Bn out of which Rs. 37Bn is attributable to the Equity Holders of the Parent company. Furthermore, the total attributable comprehensive income per share was Rs. 77.84. The resultant Net Assets Value per Share as at the year-end was Rs. 286.23 compared to Rs. 194.72 reported last year, demonstrates the exceptional value creation by the Group during the concluded financial year.

The story of LOLC's rise into an elite blue-chip within a span of 40 years is nothing short of awe-inspiring, surpassing competitors who have been in existence for over a century. A pioneering leasing company established in the year 1980, in collaboration with ORIX Corporation of Japan and International Finance Corporation (IFC), LOLC, revolutionized the future of MSMEs in Sri Lanka and rose in stature as Sri Lanka's largest Non-Banking Financial Institution (NBFI). Having established a high performance microfinance business model, LOLC rapidly exported its expertise to global markets such as Cambodia, Myanmar, Indonesia, Philippines, and Pakistan in Asia; as well as Zambia and Nigeria in East and West Africa, bringing prosperity to people at the bottom of the pyramid. In addition, the Group has established its footprint in the Maldives and Sierra Leone in the arena of Non-Financial Services.

In Sri Lanka, the LOLC Group diversified into agriculture and plantations, leisure, renewable energy, construction, manufacturing and trading, information services, as well as research and innovation over and above its flagship financial services. All of these businesses recorded an upward trend in profitability in 2020/21, despite the adverse effects of COVID-19 being felt by Sri Lanka's economy through 2020, coupled with weak GDP growth in the preceding year. Despite the global economic downturn experienced during the period, a strong pipeline of multilateral and bilateral funding has been available to LOLC and its operating companies both locally and globally - a testimonial to the confidence these institutions have placed in the LOLC Group due to its strong and unblemished track record and the potential for growth even during turbulent times.

Performance of Financial Services Companies

LOLC's financial services have brought about life-changing financial inclusion in MSMEs in Sri Lanka, empowering frequently marginalized communities to build a better future for their families - driving women's empowerment and financial independence by encouraging their entrepreneurial ambitions. Overall, the LOLC Group's Financial Services achieved a Rs. 17.3Bn as bottom line despite allowing for a strong level of risk mitigating provisions amounting to Rs. 30Bn for bad and doubtful debts on a very conservative basis against Rs. 17Bn last year. Livelihoods of people in all sectors have been badly affected by the COVID 19 pandemic and at the request of the regulators of each country, the Group's Financial Services Companies have extended moratoriums to affected customers - extending a safety-net to those in need.

LOLC's finance companies in Sri Lanka experienced a strong level of deposit inflows despite the all-time low interest rates. The flagship finance company - LOLC Finance PLC (LOFC) - with a Total Assets base of Rs. 170Bn, recorded PAT of Rs. 4.4Bn. Commercial Leasing & Finance PLC (CLC) with a Total Assets Base of Rs. 77Bn also recorded strong performance, posting a PAT of Rs. 2.2Bn in 2020/21. Meanwhile, with a Total Assets Base of Rs. 19Bn, LOLC Development Finance (LODF) PLC recorded a PAT of Rs. 155Mn.

Seylan Bank succeeded in delivering a steady PAT of Rs. 3Bn for FY2020. Deposits increased by 9.9% and advances increased by 4%, whereas the CASA Ratio stood at 33%.

LOLC's global success took seed in 2007, when it invested in PRASAC - a Cambodian microfinance organisation - and grew it into a billion-dollar organization in less than 12 years. A 70% stake was recently acquired by the Republic of Korea's largest commercial bank, Kookmin Bank, for US$ 603 Mn - thereby contributing to overall Group profitability and strengthening its balance sheet with a put option to divest the remaining stake in December 2021.

LOLC's overseas financial services entities made strong contributions to the profitability of the Group in 2020/21 - with LOLC Cambodia leading the way with a US$ 45 Mn in PAT with the Total Assets base exceeding over US$ 1 Bn. In Cambodia, LOLC continues to hold a 97% stake in LOLC Cambodia - the fourth-largest microfinance company in terms of market position, and the second most profitable microfinance institution in Cambodia after PRASAC.

Venturing into Myanmar in 2013 as a greenfield operation, LOLC Myanmar Microfinance Company Limited has now become the fourth-largest among the 176 MFIs, with an asset base of US$ 175 Mn, a portfolio of US$ 126 Mn and a growing deposit book of US$ 20 Mn. LOLC Myanmar has seen exceptional performance in FY2020/21 by posting a profit of US$ 3 Mn as PAT, and envisages strong growth prospects amidst the atmosphere of a large unbanked population.

In 2017, LOLC ventured into Pakistan by investing in Pak Oman Microfinance Bank (POMB), a joint venture with the Islamic republic of Pakistan and the Sultanate of Oman, which is now poised for rapid growth in a country with a population of over 200 million - offering attractive industry fundamentals. POMB operates through 66 branches, extending its services to over 50,000 clients. The Group ventured into Indonesia in 2018, acquiring the controlling interest in PT Sarana Sumut Ventura (SSV), further expanding its global footprint. SSV is now well-positioned to capture the industry potential in a country with a population of 270 million with over a 100 million bottom of the pyramid population. SSV operates through 28 branches, extending its services to over 60,000 clients.

Tapping into other neighbouring emerging markets, LOLC invested in the Philippines - a country with a population of 110 million - through LOLC ASKI Finance and LOLC Bank Philippines - a thrift bank in 2019. LOLC ASKI operates through 15 branches, extending its services to over 3,000 clients, while LOLC Bank operates through 10 branches, extending its services to over 8,000 clients.

In the year under review, the Group made its first finance sector investment in the African region by acquiring a controlling stake of FinaTrust Microfinance Bank in Nigeria - a west African nation with the largest population in the continent of 206 million. FinaTrust will provide support to MSME entrepreneurs for significant financial inclusion in the country - operating through 8 branches and extending its services to over 3,000 clients. The Group commenced operations in Zambia by incorporating LOLC Finance Zambia as a greenfield operation - which currently operates through 6 branches.

The global expansion strategy for the financial services sector remains a key focus, with plans being made for expanding into more markets in both Africa and Asia.

LOLC's two insurance companies: LOLC General Insurance Ltd. and LOLC Life Assurance Ltd. demonstrated strong resilience against the unprecedented impacts of the pandemic and other socio-economic adversities. LOLC Life Assurance registered a GWP of Rs 3.2 Bn - the first Life Company in the industry to achieve this milestone in less than 10 years - and posted a growth of 21% in GWP, backed by a robust growth of 59% in first year premiums: the highest new business growth in the insurance industry. Meanwhile, LOLC General Insurance achieved Rs. 6Bn in Gross Written Premium in 2020 in less than 10 years - a first for Sri Lanka.

After success in the overseas MSME sector, the company is leveraging on its vast international customer base and technical synergies to enter the micro insurance arena, already securing licenses in Cambodia and a representative office in Myanmar - thereby offering end-to-end financial security for the MSME sectors in these markets. One of the key factors for LOLC's success in overseas sectors will be that it is penetrating markets with large populations, in order to serve the MSME segments in those countries and help them scale up the value chain.

LOLC Securities (LOSEC) Private Limited, a leading stock broker with strong retail and local and foreign institutional client base, expanded its market share from 7% to 9.5% in FY 2020/21. The company is ranked 2nd among peers in terms of Total Market Turnover during the year under review. Improved brokerage earnings, ongoing expense management policies, and positive stock market sentiment helped the company to record impressive performance.

LOLC's expertise in financial services has been further underscored by the launch of iPay, a unique payment aggregator which has garnered close to 90,000 subscribers and enables a wide range of financial transactions through the app. It has been successfully launched in Sri Lanka and Cambodia, along with implementation plans already in place for Myanmar, Pakistan and Indonesia. iPay became the market leader in Sri Lanka in terms of customer acquisition and transaction volumes on its launch. As a tech-savvy global player, LOLC is continuously investing in technology and technology-enabled services, bringing in technology to its business to automate processes - thereby becoming a predominantly 'phygital' financial service provider. LOLC has standardized its local and global operations on an Oracle based common core banking platform built by LOLC Technologies named Fusion X for greater operational efficiencies.

Performance of Non-Financial Sector Companies

Brown & Company PLC with a history of 146 years, together with its investments arm, Browns Investments PLC (BI), under which LOLC's non-financial services businesses are structured, recorded resilient performance during the year under review. Despite the challenges encountered in the macroeconomic environment and in the intensity of the competitive landscape, Browns' trading business recorded one of its highest revenues with an increase of 45% with a gross profits increase of 47% for the FY 2020/21, while posting a PAT of Rs. 1.8Bn.

Browns and BI, has energized many vital sectors of the Sri Lankan economy, including trading and manufacturing, precision engineering, mechanization of agriculture, automotive, power storage, renewable energy, leisure & hospitality, plantations, construction, marine and veterinary pharmaceuticals.

Browns is the most trusted, reliable and preferred partner for many leading global brands, introduced the world-renowned Massey Ferguson tractors back in 1952, becoming the first distributor in the whole of South and South East Asia. Further, the company harnessed its superior enterprise capabilities to make TAFE the highest selling tractor brand in Sri Lanka. Today, TAFE and Massey Ferguson enjoys a 50% market share. Yanmar Combined Harvester, the most preferred brand in the Japanese segment holds over 60% market share while SUMO, its Chinese counterpart, holds over 50% market share in that particular segment.

The Auto Power Market, with its distinctive competitiveness in technology, innovation, is well ahead of its competition with a 75% market share combined with the superior Exide, Lucas and Dagenite range. Further, RADCO, the number one brand of radiators in Sri Lanka is the market leader holding over 50% market share.

Browns also partners with leading global veterinary brands such as Zagro, MSD and Eukanuba.

In collaboration with the world's leading brands, the company provides an unmatched range of heavy machinery - Hitachi and Sakai, and tools - Makita and Tailin, reputed for trusted technology, advance functionality and energy efficiency. In the Electric Energy Solutions, Browns has a partnership with F G Wilson. The success of FG Wilson in Sri Lanka demonstrates the technical marketing proficiency of the company. It also markets Yanmar & Hyundai and PARSUN, the world's most reliable and durable Marine engines.

The Group's local plantations sector operates through Maturata Plantations and Gal Oya plantations, two businesses that recorded strong performance in the year under review.

Maturata's business focus lies in the management of the company's tea plantations profitably while the future strategies are aligned to create long term value from cinnamon, with the company having the largest cinnamon plantation in the country. The BI Group acquired a 67% stake in Tropical Island Commodities Pvt Ltd., a cinnamon exporter in the country with a focus of developing value-added cinnamon products to attract global markets with strong demand for Sri Lankan cinnamon. During the year, Maturata recorded a historic performance with an excellent profit contribution to the Group, a PAT of Rs. 382Mn.

Gal Oya Plantations continued to enhance its sugar cane growing and production capacity with Hingurana Sugar Factory being expanded to meet local demand, which will also help the Government to reduce expenditure on sugar imports. Gal Oya also produces the highest grade ethanol in Sri Lanka.

BI Group, invested in Sunbird Bioenergy (SBSL) Limited in 2019, an agro-based company incorporated in Sierra Leone, the largest land extent allocated for sugar cane plantation in the region with 23,791Ha with the ability to increase up to 50,000Ha, produces Extra Neutral Alcohol (ENA) as per the global industrial standards. The company achieved its plantation target of increasing the sugar cane extent up to 6,500Ha from 900Ha in 2019, a remarkable achievement for the Group and produced an ENA of 14.3Mn liters. SBSL also generates and exports power to the national grid with a power generation capacity of 32MWh.

In the renewable energy sector, Sagasolar Power (Pvt) Limited, the first utility scale solar plant in the country, has been in operation for over 4 years since its commissioning in 2016 and generates steady profit contributions to the BI Group.

Browns Engineering, the Construction and Engineering arm of BI, aims to improve its market share in the telecommunication industry in Sri Lanka to be the turnkey solutions provider for telco operators. The company has performed extremely well with Rs. 1.6 Bn revenue along with Rs. 361 Mn in PAT. Further, Browns Engineering plans to expand its operations in infrastructure development projects in roads and bridges, water and sewerage, and electrical and piling work in Sri Lanka and the Maldives.

Complementing the construction business of BI, Ajax Engineers (Pvt) Ltd., (Ajax), with its strong track record in the aluminium fabricating business, became the No. 1 player in the Aluminium facade industry in Sri Lanka with large development projects being awarded to the company for end-to-end aluminium solutions. Gurind Accor Private Limited, the renowned Glass Processing company with the brand Gurind Tough is the no. 1 local glass processor, the pioneer toughened glass supplier in the country holding a dominant market share together with General Accessories & Coating Pvt Ltd. recording strong financial performance despite COVID-19 challenges directly impacting the country's construction industry. Creation Wooden Fabricators (Pvt) Ltd, engaged in custom build furniture solutions too reported commendable financial performance during the year.

Excel World is being upgraded to become the premier food & beverage and MICE destination in Colombo City. Meanwhile, Excel Restaurants Pvt Ltd. was granted franchise rights of 7 leading restaurant brands in Colombo.

Browns Hotels & Resorts, a subsidiary of BI continued to enjoy a strong presence in the leisure sector with Eden Resort & Spa in Beruwala with 158 keys, The Paradise in Dambulla with 67 keys, Dickwella Resort & Spa with 76 keys and The Calm Resort & Spa in Pasikudah with 70 keys. With the assistance of Sri Lanka Tourism Development Authority (SLTDA), the government has formulated short-term and long-term plans to rebuild the tourism industry impacted by the pandemic. The Group's timely conversion of these properties into repatriation hotels helped the operating hotels to enjoy a steady stream of revenues generating operating profits. Sheraton Kosgoda Turtle Beach Hotel with 172 keys, a five-star property managed by Sheraton was commissioned during the year. The Group recommenced the construction activities of Riverina Resorts Beruwala, another 365 key five-star property.

Anticipating strong growth in the leisure business in the medium to long term, BI leisure subsidiary, Eden Hotels Lanka PLC acquired the controlling stake of Serendib Hotels PLC. This acquisition adds the Dolphin Hotel in Waikkal with 154 keys, Avani Bentota with 75 keys, Hotel Sigiriya with 79 keys, and the Reveal Collection of Villa properties under Frontier Capital Pvt Ltd with 28 keys into the Group's leisure footprint. Dolphin Hotel, Avani Bentota and Hotel Sigiriya are currently operating as Quarantine properties.

The Group's leisure footprint expanded to the global arena with a significant investment in Maldives in the last few years. Nasandhura Maldives, a luxury city hotel with 136 rooms, 118 apartments and a sophisticated retail mall, is nearing completion. This is a flagship property and will be an iconic development in the Male city. Another project in progress on the island of Bodhufarufinolhu with 100 keys, in the Ari Atoll, Maldives is to be completed in December.

The Group signed a shareholder agreement with the Barcelo Hotel Group to develop a three-hotel complex in North Male' Atoll, Maldives, Bodufaru Beach Resorts Lts, which consists of 470 keys. The total value of the development which is estimated at US$ 150 Mn with Barcelo investing US$ 30 Mn for a stake of 33.33%. Apart from this shareholder agreement, Barcelo Hotel Group entered into a management agreement to manage 5 leisure properties in Sri Lanka and Maldives.

Having grown its leisure footprint significantly and with the expansion planned for the medium term, the Group will hold 2,000 plus keys in Sri Lanka and overseas leisure properties to be positioned as a significant leisure operator.

Browns Investments PLC entered into a landmark agreement to partner with China Harbour Engineering Company Limited (CHEC) to commence the Colombo International Finance Centre (CIFC) Mixed Development Project, which has strategic development project status, in Colombo Port City (CPC). This project comprises of a land area under development of 6.8 Hectares with an investment value totaling US$ 1 Bn. The total investment in Phase One amounts to US$ 450 Mn with a buildable land area spanning 3.06 hectares, which is leased from CHEC Port City Colombo (Private) Limited to the new SPV that will be jointly managed by Browns and CHEC. This will be a significant undertaking involving the construction of two residential apartment towers, one serviced apartment tower, one office tower and a retail podium on the ground floor.

The LOLC Group is also exploring Technology and Innovation aligned to His Excellency the President of Sri Lanka's vision and to infuse local value addition. LOLC Advanced Technologies has built capacity to convert graphite to graphene and in partnership with SLINTEC, in which it has invested, is also conducting value additions such as fortifying rice with nutraceuticals; and researching organic fertilisers to cater to the current demand. LOLC's thirst for new knowledge and scientific innovation remains insatiable. More importantly, the Group provides opportunities for local scientists to work on exciting projects and encourages a spirit of discovery and innovation not abundantly available in Sri Lanka.

Recording the highest profitability by a corporate in Sri Lanka in just a span of 40 years, LOLC Group proves that a local Company with a big heart and bigger ambitions with strong leadership, drive and agility can create a global footprint and achieve market leadership in the new territories, creating brand equity for the island-nation. The profitability levels achieved by LOLC in 2020/21 could be the historical pivot point for a new dawn in corporate sector performance for Sri Lanka. Amidst a global trend of economic uncertainty, the Group's strategic investments and robust financial performance have infused formidable stability and resilience to Sri Lanka's economy.

Mr. Ishara Nanayakkara, Deputy Chairman of LOLC Group with Group Managing Director/CEO of LOLC Group, Mr. Kapila Jayawardena

Sri Lanka’s fastest growing Insurance companies, LOLC General Insurance and LOLC Life Assurance that operate under the wing of Sri Lanka’s iconic diversified financial conglomerate – LOLC, recently expanded its operations to Wellawaya, Higurakgoda and Horana. This is in line with the expansion drive that the two companies commenced last year in order to reach out to more customers and to offer superior personalised service.

The new LOLC General and LOLC Life branches were ceremonially inaugurated at No. 191, Tissa Road, Wellawaya, No. 8, Airport Road, Hingurakgoda and No. 540, Panadura Road, Horana. Speaking about the latest expansions, Mr. Kithsiri Gunawardena, Chief Executive Officer of LOLC General Insurance said, “We are extremely excited for the opportunity to grow and serve in the fast emerging cities of Wellawaya, Higurakgoda and Horana. We look forward to serve these communities to our fullest potential. These new locations are conveniently situated and is staffed by a team of experienced insurance professionals”.

LOLC General and LOLC Life Insurance envisage to aggressively expand its nationwide reach by establishing approximately 70 dedicated service points, penetrating into new regions during the 2021 financial year. During the 3rd quarter of 2020, LOLC Insurance opened over 15 new branches. The two Insurance Companies look forward to spreading their wings to strategically selected overseas markets as well in the year ahead. Both entities have already acquired the license to operate in Cambodia and the operations are scheduled to commence in 2021.

LOLC General Insurance and LOLC Life Assurance are fully owned subsidiaries of the LOLC Group - one of the largest and most diversified financial conglomerates in Sri Lanka with international presence.

LOLC General Insurance, a fully-owned subsidiary of the LOLC Group recently became Sri Lanka’s first General Insurance company to achieve Rs. 6 Billion Gross Written Premium (GWP) in less than 10 years. The company reached the Rs. 6 Billion mark in December 2020, becoming the fastest General Insurance company to achieve this milestone in the industry. LOLC General Insurance CEO, Mr. Kithsiri Gunawardena talks of the many key attributes that helped reach this achievement.

What were the main factors that helped LOLC General Insurance reach the 6 Billion GWP mark in less than 10 years?
LOLC General Insurance is a young company compared to the rest in the industry. During the last few years we continuously streamlined the processes and achieved greater coordination between different units of the company. The entire staff was motivated to work as one team and embark on a customer centric approach. A scheme was introduced whereby a pre-designated percentage of the company profits are shared with our staff thereby elevating them to become true stakeholders of our business. We also critically analysed our expenses and introduced mechanisms to achieve greater efficiency and productivity. The combination of these measures and our aggressive sales model supported by the commitment of our team resulted in the company being able to secure a substantial volume of new business outside of the group reflecting that we are well aligned to the needs of the market. With a service first mind-set and the strong backing of the LOLC Group, LOLC General Insurance became the fastest growing Insurer in the industry with the highest growth in Motor as well as Non-Motor portfolios. This achievement was also made possible by the trust and confidence placed in us by our customers throughout the country as well as the indispensable contribution made by our staff. The aggressive approach in sales, flexibility in policy options and a customer centric product portfolio has enabled this growth over the years. The company hopes to maintain the same focus, approach and excellence in the years ahead to sustain this growth momentum.

How did the company manage to progress despite the pandemic in 2020?
Year 2020 was probably the most challenging year for most businesses in the country and the insurance industry recorded a negative growth. Interestingly, LOLC General Insurance managed to record its best performance during this year. Although external operating conditions remained challenging, the General Insurance business performed steadily. Most disruptions create opportunities and we capitalised on becoming even more aggressive when most others opted to be cautious. By December 2020, we were able to reach the Rs. 6 Bn mark mainly because of the commitment of our team who were always geared and motivated to offer uninterrupted services to the customers even during the pandemic.

What makes LOLC General Insurance different from the rest in the industry?
The aggressive business model, highly motivated and loyal staff, passionate leadership, unstinted reputation within the market on service quality and last but not least the strong backing of the LOLC Group is what makes us stand apart.

How do you view the opportunity and potential in the local market for General Insurance?
The opportunities are immense in the market. With a saturated Motor market and the challenge of limited new registrations for the foreseeable future, the price and service will be key in this sphere. The Non-Motor market is noticeably underpenetrated and this gives LOLC General Insurance opportunities to grow with our unique products and services to customers.

What are your future expansion plans?
2021 will see innovations in terms of customer engagement with respect to digital transformation as well as unique product ranges and service standards being introduced. By locating branches strategically, the company is enhancing customer convenience. Our focus on accomplishing full automation remains strong with the entire process automated end-to-end, from meeting the customer to the point of delivery while policy servicing is achieved via technology platforms. The country-wide reach will be enhanced with the formation of new regions/branches and close to 70 dedicated service points being established.

Any plans to venture into international markets?
With LOLC expanding into many markets in Asia and Africa, we too hope to expand the insurance services and products to several selected and potential international markets in the near future. LOLC Group has a very strong and highly respected brand presence in all the markets we operate. In some of these markets, the Insurance industry is in the early stages of development. Thus, the regulators are keen on the introduction of micro insurance products to support small and medium scale businesses for systemic stability.

LOLC Life Assurance Limited, one of Sri Lanka's fastest-growing insurance companies which is a subsidiary of the LOLC Group, recently announced the appointment of Mrs. Nadika Opatha as its Chief Executive Officer. Mrs. Opatha is a highly experienced and accomplished strategic leader in the field of Sales and Marketing, counting over 24 years of experience in the Financial Services Industry, both locally as well as internationally. She is an MDRT qualified Insurance professional with expertise in Sales, Channel Development and management, setting up business partnerships and performance management. Out of the many accolades she has been bestowed with throughout her career, winning the Best National Sales Head Sri Lanka award at the 2018 SLIM NASCO was her most recent achievement.

Nadika Opatha commenced her career at John Keells Holdings Limited in 1995. In 1997, she joined LOLC's Factoring arm and in 2002 she left LOLC and joined her family in Canada. She joined RBC (Royal Bank) Insurance Company in Canada as a Financial Services Advisor attached to the Bank. She worked from 2003 to 2011 at RBC where she garnered much of her international experience and exposure in Bancassurance and senior insurance positions.

In 2012, after a successful career at the Royal Bank of Canada, Mrs. Opatha returned to LOLC as the Head of Corporate Sales of LOLC Life Assurance Limited. She was successful in pioneering Bancassurance at LOLC Life entering into exclusive partnerships and establishing LOLC Life as one of the market leaders in Bancassurance. Over the years, she progressed in her career at LOLC Life to its Head of Sales and Chief Operating Officer. Her leadership and strategic planning helped the company to have all key performance indicators perform beyond expectations during the last 12 months. LOLC Life recorded the highest growth in new Life Business among similar sized Insurance companies at the end of the 2nd quarter of 2020 with an overall double-digit growth in GWP while most Insurance companies showed a negative growth in the industry.

Mrs. Opatha holds a Bachelor of Science (BSc) 1st class honours degree and a Master of Business Administration Degree from the University of Colombo. She also holds a Diploma from the Institute of Canadian Bankers Association.

LOLC Life Assurance believes that her appointment comes at an opportune time considering the growth LOLC Life has been experiencing over the recent past.

LOLC Insurance sponsors the 141st Battle of the Blues

LOLC Insurance sponsors the 141st Battle of the Blues

LOLC General Insurance Limited signed up as the official Insurance Partner for the upcoming 27th Fox Hill Supercross 2019 for the second consecutive year. The cheque was presented by Mrs.Nadika Opatha - Head of Sales to Mr. S.K. Eshwaran, Brigadier, Commandant, Sri Lanka Military Academy and Chairman of the Organising Committee at the Marco Polo Hall at the Hilton, Colombo

LOLC General Insurance Limited recently inaugurated its new Regional Office in the heart of Kurunegala. The new office is located at the CLC Building, No. 35, Mihindu Mawatha, Kurunegala. Mrs. Nadika Opatha Head of Sales graced the opening ceremony as the Chief Guest amidst a gathering of Senior Management of LOLC Group and the company staff.

Addressing the gathering at the opening of the new LOLC General Insurance Regional Office in Kurunegala, Mrs. Opatha said, "LOLC Insurance is always committed to explore the possibilities of creating utmost convenience to its customers. Through the new Regional Office in Kurunegala, the company hopes to reach closer to its customers and offer them a personalised service. This is the first Regional Office of LOLC General Insurance Limited and the team is truly excited to embark on this journey to create value to its customers through unparalleled expertise in the Insurance industry". LOLC General Insurance Limited is a fully-owned subsidiary of one of Sri Lanka's largest diversified conglomerates - he LOLC Group. LOLC General Insurance is currently one of the fastest growing Insurance Companies in Sri Lanka. The company offers a comprehensive range of insurance solutions to both individuals and businesses with products such as Motor Insurance, Fire Insurance Including Home (Sureki Piyasa), Personal Accident Insurance, Engineering Insurance, Marine & Travel Insurance, Title Insurance and Shop Insurance.

LOLC General Insurance leverages on LOLC's strong distribution channel of 142 outlets to expand its market share. Since its inception in 2011, the company has been experiencing rapid and sustainable growth. The company boasts of a professional General Insurance sales force that is poised to further penetrate the segment in the year ahead through all channels.

Mrs. Nadika Opatha, Head of Sales of LOLC Life Assurance, ceremonially opening the new Regional Office

LOLC emerged as one of the biggest winners at this year's National Sales Congress Awards (NASCO) by securing two prestigious accolades including the Gold Award in the National Sales Manager Category.

The SLIM NASCO is organised by the Sri Lanka Institute of Marketing (SLIM) & held for the 18th consecutive year. This year, NASCO Introduced three different categories of which the National Sales Manager category was the looked forward to title. LOLC Life Assurance Ltd Mrs. Nadika Opatha, secured the overall Gold of this category which was selected irrespective of the industry they represent. The trophy was presented by the Minister of Housing and Construction, Hon. Sajith Premadasa.

Commenting about her victory, Mrs. Nadika Opatha said, "At LOLC we are nurtured and encouraged to think outside the box, with a continuous focus on a forward thinking attitude and excellence to all that we do. This support and encouragement of the LOLC Group and its management lead me to this victory in addition to my commitment and passion for my role at LOLC Life Assurance. It is hugely satisfying to be recognised for my achievement".

Mr. Lalindra Rupasinghe, Senior Executive, Business Development (Broker and Partnerships) of LOLC General Insurance too claimed a top accolade during the glittering awards ceremony Mr. Rupasinghe clinched the Silver award for Front Liner, General Insurance. He added, "It is an honour to be recognised at such a prestigious event. I would like to share this moment with the entire sales and marketing force of LOLC General, who truly helped to reach my full potential,".

Over the last 17 years, SLIM NASCO has risen to become the pre-eminent awards, which recognises and rewards the sales forces of companies and industries, across Sri Lanka. As a national level event organised annually, SLIM NASCO creates motivation, training and learning opportunity and self-development for sales personnel as a core element of its Awards. This year about 900 professionals from the sales and marketing fraternity, representing various corporates participated at the awards presentation night.

Chief Operating Officer of LOLC Insurance, Mr. Nilanga Wickramasinghe said, "I am truly pleased and honoured that two top performances of LOLC Insurance have been recognised in this manner. And I am delighted that as the Insurance arm of the dominant LOLC Group, we have been able to achieve this feat within just a few years of operations. This reflects the dedication, competitive spirit and the fortitude of our team. Both, LOLC General Insurance and LOLC Life Assurance follow a customer focussed strategy, backed by the strength and stability of the LOLC Group. Our people are the backbone of the company and together we continue to forge ahead with a vision to become the most innovative, customer focussed insurance service provider of Sri Lanka. These accolades will undoubtedly motivate our entire staff further and to fulfil their potential,".

LOLC which began as a non-bank financial institution has rapidly yet sustainably evolved to become one of the largest and most diversified conglomerates in Sri Lanka. LOLC Group’s meteoric rise to become one of the nation's most profitable entities is a result of the talents, commitment and dynamism of its people. LOLC believes that its people have been the key differentiator in achieving sustained growth over the years. Therefore, the Group continues to foster and focus on its people, their service orientation, integrity and loyalty which are the hallmarks of its culture.

Mrs. Nadika Opatha, Head of Sales of LOLC Life Assurance receiving the National Sales Manager Award from the Minister of Housing and Construction, Hon. Sajith Premadasa.

Mr. Lalindra Rupasinghe, Senior Executive, Business Development (Broker and Partnerships) of LOLC General Insurance receiving the Silver Award for Front Liner, General Insurance.

LOLC General Insurance Limited signed up as the official Insurance Partner for the upcoming 26th Fox Hill Supercross 2018. The sponsorship cheque was officially handed over recently at the "Jubilee Ballroom" Galle Face Hotel, Colombo.

The cheque was presented by Mr. Nilanga Wickramasinghe - Chief Operating Officer - LOLC - Insurance to the Brigadier H.H.S.P.K. Senarathna RWP Commandant of Sri Lanka Military Academy, Diyathalawa.

Sponsors the 3^rd SAMN Biennial Conference held in Sri Lanka for the first time

The South Asia Micro-Entrepreneurs Network (SAMN), represented by Afghanistan, Bangladesh, India, Nepal, Pakistan and Sri Lanka will hold its 3rd SAMN Biennial Conference in Colombo, Sri Lanka for the first time, on the 6th and 7th of March 2018, at Cinnamon Lakeside. SAMN, established in 2008 as a pan regional forum where South Asian pioneers learn from one another to move in a direction to strengthen regional collaboration and interaction, is identified as the thought leadership on financial inclusion in South Asia.

The LOLC Group, renowned for it's distinctive and globally accepted Microfinance model has come onboard as Gold Sponsor of the 3rd SAMN Biennial Conference that probes the progress and explores the possibilities for accelerating financial inclusion, under the theme of 'Deepening Financial Inclusion in South Asia'. The two-day programme will bring together leading Microfinance practitioners, donors, investors, research organisations and private sector players devoted to promoting inclusive finance, from the South Asian Region with a view to exchange knowledge and stimulate debate. This exclusive gathering of financial inclusion stakeholders is envisaged to bring together more than 300 domestic and international speakers and delegates under one roof.

The SAMN Conference in Colombo will be hosted by the Lanka Microfinance Practitioners Association (LMFPA), the apex umbrella oragnisation of Sri Lankan microfinance institutions. The previous SAMN Conferences were successfully held in Islamabad in 2014 and in Delhi in 2016.

LOLC's uniquely effective microfinance business model and its success stories in countries such as Sri Lanka, Myanmar, Cambodia and Pakistan continues to transform and enable Micro businesses to become Small and Medium level enterprises through sustainable industrialization. Commenting on the participation as sponsors for the conference, LOLC Group Managing Director/CEO, Mr. Kapila Jayawardena stated, "We are truly delighted to have come forward to become a part of the SAMN Biennial Conference 2018 as Gold Sponsors and we look forward to an enlightening experience through unique networking opportunities and thought provoking discussions. The conference will provide a great platform for intellects and experts to share their experiences and strategies, and I hope that this programme will inspire future directions in financial inclusion which is a key enabler for alleviating poverty".

LOLC which began as a non-bank financial institution has rapidly yet sustainably evolved to become one of the largest and most diversified conglomerates in Sri Lanka. The portfolio of the LOLC Group encompasses a wide spectrum, from financial services to leisure, plantations, trading and manufacturing, renewable energy and other strategic investments. Today, LOLC is well positioned to remain on a high-paced growth trajectory, mainly by expanding the positive impact on the lives of thousands of people through its multi-geographic footprint in microfinance.

LOLC Group Managing Director/CEO, Mr. Kapila Jayawardena presenting the cheque of the gold sponsorship to Mr. Imran Nafeer, Honorary President, Lanka Microfinance Practitioners Association and Mr. Yasitha Munasinghe, Manager, Lanka Microfinance Practitioners Association.

Renowned for delivering innovative and real-world financial solutions, LOLC Finance PLC, Sri Lanka's Non-Banking Financial Institution (NBFI) giant, has unveiled yet another cutting-edge financial service that provides a high degree of convenience and security to its customers. The 'LOLC Finance Savings Cash Collection' service offers the unparalleled convenience of depositing cash to the customer's savings account without having to visit the branch. The LOLC Finance officer will visit the client at his/her doorstep to accept the cash and it will be credited instantly to the customer's savings account through a POS (point-of-sale) machine. The accountholder will receive an instant SMS alert confirming the fund transfer. The customer can also check the Real Time fund transfer through the Real Time App.

Aimed at promoting a savings culture, the 'LOLC Finance Savings Cash Collection' service is a convenient option that reduces the risk of carrying and keeping cash as well as not having to go through the hassle of travelling to a branch. The service is offered free of charge and is supported by a 24-hour call centre. Friendly and professional cash collection officers have been deployed to execute the service in an efficient manner.

The 'LOLC Finance Savings Cash Collection' service will immensely benefit both the individual savings accountholder as well as business owners said, Director/CEO of LOLC Finance, Mr. Ashan Nissanka, elaborating on the new solution. "It will save their time spent on travelling to and from the branch. Our island-wide network of 141 locations will facilitate the Savings Cash Collection service which has been designed to nurture the habit of savings amongst our customers. LOLC Finance has always been at the forefront in offering innovative, customer friendly products and services, and I am confident that this service too will deliver optimum convenience and security to our customers".

LOLC Finance PLC is the largest Non-Banking Financial institute with the largest Fixed Deposit and Savings Deposit base among the Registered Finance Companies. It is the flagship finance company of the LOLC Group, that offers carefully tailored financial solutions to a diverse customer base ranging from grass root level entrepreneurs to multinational organisations. The portfolio of products and services of LOLC Finance includes the maintenance of Savings and Term Deposit Accounts in Sri Lankan Rupees and Foreign Currency, Inward Worker Remittance, Money Changing, Issue of Visa Debit Card, Islamic Financing, Auto and SME Finance, Working Capital and Foreign Currency business. LOLC Finance is rated (SL) A (Stable) by ICRA Lanka Limited and is licensed by the Monetary Board of the Central Bank of Sri Lanka.

An LOLC Finance officer accepting cash from a customer and depositing it instantly through a POS machine

LOLC General Insurance Limited signed up as the Co-sponsor for the upcoming Ananda vs Nalanda Cricket encounter 2018. The sponsorship cheque was officially handed over yesterday evening at the Ananda College

The cheque was handed over by Mr. Sujeewa Vidanapathirana, Deputy General Manager, Business Development of LOLC General Insurance to the Principals of Ananda & Nalanda.

The Insurance arm of the LOLC Group is actively promoting health and wellness amongst its staff as well as amongst the general public. Both LOLC Life Assurance and LOLC General Insurance joined hands to organise, "Walk for health 2018" which commenced from the LOLC Insurance head office premises located at No. 481, T.B. Jaya Mawatha (Darley Road), Colombo 10. The walk proceeded towards the Nelum Pokuna Theatre and concluded by returning to the Head Office. The two entities stepped into the New Year with the "Walk for Health" campaign, and throughout the walk displayed key health tips to encourage and promote healthy living.

"Healthy living is not just about losing weight. It's a combination of good nutrition, regular exercise and having a positive mental attitude. As a responsible corporate citizen, we at LOLC Insurance felt the need to encourage our staff as well as the public to lead healthy lifestyles" said, Mr. Nilanga Wickramasinghe, COO of LOLC Insurance. Wickramasinghe added, "Today, physical inactivity has been identified as the fourth leading risk factor for global mortality, causing an estimated 3.2 million deaths globally. Sitting for long periods at work can cause numerous health implications such as increased risk for cardiovascular diseases, diabetes and even cancer. This is why we have come to the forefront to promote healthy lifestyles, because it ensures a healthy workforce, a healthy workplace and ultimately a healthy society".

"LOLC Insurance Walk for Health 2018" concluded with a "Health Camp" for staff, offering free eye check-ups conducted by Vision Care and health check-ups by Browns Hospitals. Free of charge instructions on different types of workouts as well as introduction to Yoga and Zumba were also provided at the Health Camp. Furthermore, staff members were given the opportunity to discover and experience a range of spa treatments by expert therapists at the Siddhalepa SPA. The Health Camp also consisted of various healthy food stalls to encourage and educate staff on consuming healthy food.

A fully owned subsidiary of the LOLC Group, LOLC General Insurance Limited is currently one of the fastest growing insurance companies in Sri Lanka offering a comprehensive range of bespoke insurance solutions to both individuals and businesses with products such as Motor insurance, "Sureki Piyasa" Home Insurance, Engineering Insurance, Travel Insurance, Title Insurance, Shop Insurance, and much more. Renowned as one of Sri Lanka s fast-growing Life Insurance companies, LOLC Life Assurance too is a fully owned subsidiary of the LOLC Group. The company offers tailor-made Life Insurance Solutions ranging from "Sureki Daru" Child Insurance, Life Protect, Life Protect Plus, Reality Plan, "Piyawara" Pension Plan and Home Loan Protections. Both LOLC Life Assurance and LOLC General Insurance leverages on the Group's strong distribution channel of 173 outlets to expand its market share. LOLC Life and LOLC General were established in 2011 and since then both entities have been experiencing rapid and sustainable growth and have strategically expanded their product portfolios.

The Eden Resort & Spa has done it again by winning another Gold Award at the National Business Excellence Awards (NBEA) 2017, making it three years in a row as the best in the Hospitality and Tourism Sector category. The Eden Resort & Spa competed with its industry peers to emerge the most outstanding in the Hospitality sector, once again.

The National Business Excellence Awards are held each year to award and recognise the best business entities across 29 sectors. Over 100 awards are presented under Extra-large, Large, Medium, Small and Micro and diversified industry sector categories, and over the past 14 years, the NBEA has gained tremendous prestige.

The Eden Resort & Spa which is the flagship resort of Browns Hotels & Resorts is picturesquely located on the iconic 'Golden Mile', a pristine stretch of beach in Beruwela. Since the Resort's refurbishment in 2013, it has seen a rapid increase in occupancy levels. Over the recent years, the hotel has been recognised locally as well as globally for its outstanding service standards. The 2015 Booking.com award, the Trip Advisor Certificate of Excellence 2015, Holiday Check 2016, as well as the Gold Excellence, Gold, Silver and Bronze awards won at the Chef's Guild, are some of the recent accolades and honours received by the hotel.

Speaking about the recent win at the NBEA 2017, Mr. Eksath Wijeratne, Group General Manager of Browns Hotels & Resorts said, "The Eden has steadily grown over the years to become one of the most sought after luxury hotels in Sri Lanka. Today, the hotel enjoys a very high occupancy rate throughout the year. We attribute this success to Eden's ability in adapting to the needs of the various types of travellers who visit us from across the globe. Winning the Gold award for three years in a row at the NBEA is an exceptional acknowledgement of our superior service standards, world class facilities and above all, the warm hospitality for which 'The Eden' is famed for."

The Eden Resort & Spa which operates under Browns Hotels & Resorts offers 158 elegantly furnished rooms, suites and penthouses, and an exclusive spa, the hotel was awarded with the prestigious ISO 22000:2005 certification in November 2015 for food safety and food quality standards. Backed by these phenomenal credentials, the Eden Resort & Spa continues with its commitment to providing world class hospitality by exceeding the expectations of its guests, and continually upgrading its range of offerings.

Browns Hotels & Resorts is a subsidiary of the Browns Group which is one of the largest conglomerates in Sri Lanka. The Company has exciting plans to launch many new properties in Sri Lanka including the Turtle Beach Resort in Kosgoda and the Riverina Resort in Beruwela along with many expansions in the Maldives.

(From Left - Right) Mr. Deepthi Lamahewa, Deputy Programs Director, World University Service of Canada and Mr. Deepal Nelson, Secretary, The National Chamber of Commerce, presenting the Award to Mr. Eksath Wijeratne, Group General Manager of Browns Hotels & Resorts. Also in the picture are Mr. Nilusha Fernando, Chief Accountant, The Eden Resort & Spa, Mr. Jeewantha Perera, Finance Manager, Browns Hotels & Resorts and Mr. Prasanna De Alwis, Resident Manager, The Eden Resort & Spa.

A bird s-eye-view of the Eden Resort & Spa, Beruwela

Al-Falaah, the Islamic business unit of LOLC Finance PLC took top honours at the 2nd consecutive Islamic Finance Forum of South Asia (IFFSA) Awards 2017, held in Colombo Sri Lanka. The event was organised by UTO EduConsult in conjunction with KPMG adjudication. LOLC Al-Falaah took home the night s top accolades including the Silver award for the Entity of the year, where the Gold was clinched by Meezan Bank of Pakistan and Bronze by Dubai Islamic Bank of Pakistan. Further, LOLC Al-Falaah won metals in the categories of Window/Unit of the year and CSR Project of the year for which it won Gold and Silver awards respectively.

The second edition of this regional awards presentation, recognised industry players from countries across the South Asian region including India, Pakistan, Bangladesh, the Maldives and Sri Lanka. The IFFSA awards were evaluated and assessed by a panel of independent judges of repute and were presented country-wise with a few awards bestowed on intra-regional basis. This year s awards ceremony was held under the theme, "Cooperation, Consolidation and Concentration".

Mr. Krishan Thilakaratne, LOLC Group Head of Islamic Finance, commenting about the win said, "the IFFSA Awards is a competitive process where awards are given to entities servicing the South Asian Islamic Banking and Finance market (IBF), and the honours bestowed upon LOLC Al-Falaah demonstrates the efforts and the pivotal role we play in the Islamic Finance (IF) industry of Sri Lanka. Today, LOLC Al-Falaah plays the lead role in Islamic SME and Microfinance business and we have taken significant measures to take the IF concept to the rural areas. The success of LOLC Al-Falaah is the result of our fully compliant business model, our comprehensive Islamic Finance product portfolio and LOLC s brand strength. In addition to this, the efficient processes driven by the advanced technological platform has made Al-Falaah an unparalleled player in the industry".

Mr. Shiraz Refai, Deputy General Manager, Al-Falaah Islamic Business Unit of LOLC Finance said, "the recognition we received at the 2nd IFFSA awards pay tribute to the commitment and dedication of our staff. The awards bestowed upon LOLC Al-Falaah at a time when it is celebrating the 10th anniversary will certainly motivate the team to further push the boundaries of excellence".

Al-Falaah, established in 2007 functions directly under the auspices of LOLC Finance PLC, which is one of Sri Lanka s largest non-banking financial institutions. LOLC Finance which is a regulated Finance Company of the Central Bank is rated [SL] A with stable outlook by ICRA Lanka Limited, a wholly owned subsidiary of ICRA Ltd - an associate of Moody s Investors Service.

LOLC Group Head of Islamic Finance - Krishan Thilekaratne receiving the "Gold award for the Window/Unit of the year" from Group MD/CEO, Adl Capital - Ishrath Rauff.

The Silver award for the CSR Project of the year award received by Senior Executive - Channel Marketing - Rishard Muhammad from Founder & Chairman, The Citizens Foundation (TCF) Pakistan - Mushtaq Chhapra.

Shafin Iqbal - Senior Executive - Institutional Marketing, Imran Zarook - Senior Executive - Recoveries Supervision, Ramzi Majeed - Senior Executive - Operations and Rishard Muhammad - Senior Executive Channel Marketing of Al-Falaah Islamic Business Unit with the LOLC Group Head of Islamic Finance - Krishan Thilekaratne.

Plan your festive season early this year with Browns Hotels & Resorts and ensure a relaxing and unforgettable stay with your loved ones. Indulge and celebrate the holiday season at any of the four spectacular properties of Browns Hotels & Resorts which comprises of The Eden Resort & Spa in Beruwela, Dickwella Resort & Spa in Dickwella, The Calm Resort & Spa in Passikudah and The Paradise Resort & Spa in Dambulla. These properties which have been tastefully transformed into alluring festive destinations offer the best of Sri Lankan authenticity with scenery and serenity.

All four properties of Browns Hotels & Resorts have lined up exciting programmes this season ranging from Christmas eve gala lunch and dinner buffets, fireworks, music, raffle draws and amazing giveaways, Christmas carols, fun-packed games, new year s eve lunch and dinner and many more sensational surprises. The beautifully lit up atmosphere of each property of Browns Hotels & Resorts located in four distinctive locations in the island will add to the festive cheer. All this is complemented with the wide assortment of food and drinks prepared by the world class chefs of each resort.

Located along the pristine and world renowned golden mile beach, The Eden Resort & Spa in Beruwela offers the most extravagant 5 star comforts that satisfy every discerning desire. Surrounded by the charm of a tiny fishing village, The Eden provides plenty to see and do in the vicinity. The stunning long coastline and delightful comforts of Dickwella Resort & Spa in Dickwella is hard to beat. The resort is ideal for a family vacation and a memorable Christmas break as it boasts of world class spa facilities, pizzeria, kiddies play area and infinity terrace.

The calm waters of The Calm Resort & Spa in Passikudah is the perfect destination to unwind in sophisticated charm. Guests at The Calm Resort can take a stroll on one of the world s longest stretches of shallow coastline, and take part in thrilling water sports activities or visit a range of local attractions located mere hours away from the property. The Paradise Resort & Spa in Dambulla is a lavish fusion of local heritage as it is enchantingly positioned deep inside the nation s cultural triangle. This year, The Paradise Resort & Spa too is beautifully decked, adding much magic and splendour to the festive season ahead.

As the most anticipated holiday season of the year approaches, visit any of the Browns Hotels & Resorts properties and experience a truly magical and memorable holiday season with your loved ones. Whatever your age, whatever your taste or desire, you will find it all at the Browns Hotels & Resorts that will assure you, a Christmas to remember.
Browns Hotels & Resorts is a subsidiary of the Browns Group which is one of the largest conglomerates in Sri Lanka. The Company has exciting new plans on the horizon, to launch many new properties including the Turtle Beach Resort in Kosgoda with many expansions in the Maldives.

The Eden Resort & Spa

The Eden Resort & Spa

The Eden Resort & Spa

Dickwella Resort & Spa

Dickwella Resort & Spa

Dickwella Resort & Spa

The Calm Resort & Spa

The Calm Resort & Spa

The Calm Resort & Spa

The Paradise Resorts and Spa

The Paradise Resorts and Spa

The Paradise Resorts and Spa

As the season to be jolly makes headway, the Eden Resort & Spa in Beruwela took the lead in preparing for the festive season with its annual cake mixing ceremony. The traditional mixing of the Christmas cake is one of the most looked forward to events at the Eden Resort & Spa and this year too, the ceremony was held with much enthusiasm and excitement with the participation of an expert culinary crew as well as the management team of the hotel.
A large gathering of in-house guests, invitees and the staff of the Eden Resort & Spa adorned in chef hats, took part in the fun-filled cake mixing ceremony. Distinguished in-house guests, Mr. Michael and Mrs. Susan Richards, Mr. Nicholas and Mrs. Kathryn Burrows, Mr. Alan and Mrs. Wendy Griffin from the United Kingdom, Mr. Zehnder Kurt, a longstanding repeat visitor from Switzerland, Ms. Maryam from Iran and the Balan family from Ukraine were among the guests who took part in the celebrations. Group General Manager of Browns Hotels & Resorts, Eksath Wijeratne, Corporate Chef, Deepal De Alwis, and the Resident Manager of the hotel, Prasanna de Alwis were also present.
Beautifully positioned on the pristine coastline of Beruwela, The Eden Resort & Spa is an ultimate beach paradise that provides an out of the world experience to its customers to unwind in the southern coast of Sri Lanka. Eden operates under Browns Hotels and Resorts which boasts a rich history of over 20 years in the hospitality industry of Sri Lanka. Recognised as a TripAdvisor Certificate of Excellence Hall of Fame winner, Eden Resort & Spa offers 158 elegantly furnished luxury rooms, suites and penthouses and an exclusive spa. This has earned the hotel the prestige of being the first 5-star hotel in Sri Lanka to offer spa facilities. The hotel was also awarded with the prestigious ISO 22000:2005 certification in relation to food safety and food quality standards.

In-house guests, invitees and the staff of Eden Resort & Spa taking part in the annual cake mixing ceremony 2017.

The Global Banking & Finance Review Award for the Best Brokerage Research House in Sri Lanka 2017 was awarded to LOLC Securities Limited (LOSEC), the stock broking company of the LOLC Group. With this latest accolade, LOSEC becomes one of the most awarded research team in the broking industry of Sri Lanka, over the last few years. It is noteworthy that LOSEC clinched the "Best Brokerage Research House, Sri Lanka award" - a category which was introduced for the first time in the country by the Global Banking & Finance Review.
Established in 2011, and now a fully owned subsidiary of the LOLC Group, LOLC Securities has been built for excellence in all its dimensions, keeping in mind the assurance sought by discerning investors. The company has devised a new operational model centered on the investors portfolio management strategy to ensure that LOSECs investment advice is backed strongly by an in-house advanced research team of highly qualified analysts. The market reports compiled by LOLC Securities are detailed and analytical and offer valuable insights into market and economic trends and statistics. LOSECs subsidiary company, LOLC Capital One established about a year ago, is a boutique investment bank which provides advisory services for mergers and acquisitions, debt capital markets and alternative investments. Sharing his thoughts about the achievement, Sriyan Gurusinghe- CEO/Managing Director of LOSEC said, "Being recognized as the top brokerage research house in the country is a great accomplishment achieved by LOLC Securities Research Division. I am extremely pleased and take humble pride of our experienced research team and expect they will continue to provide research with valuable investment insights to our clients to grow their wealth while helping to move the company towards the pinnacle of success."
Shehan Bartholomeuz, the Research Head of LOSEC added, "LOLC Securities has over the years set the benchmark in equity research in Sri Lanka with unwavering focus in catering to the research needs of a wide range of clients from retail, institutional to foreign. The innovative culture we have inculcated in our team since the inception, has resulted in driving our analysts to continuously improve and innovate, creating unique research products to capture vagaries in a frontier market like Sri Lanka. It is very humbling to see the prestigious global financial magazine "Global Banking and Finance Review Magazine" recognizing us, cementing LOLC Securities place as an industry leader in equity research."
Commenting, Senior Research Analyst of LOSEC, Gayan Rajakaruna said, "As an analyst at LOLC Securities, I am delighted and encouraged by being recognised by the "Global Banking and Finance Review Magazine" as the top brokerage research house in the country. Our strong team effort and the drive for producing high quality investment research were perhaps the key factors of paving the way to such accolade. We will continue to provide unbiased and investor-oriented research opinions through more in-depth and timely research to address a larger range of client needs". The Global Banking & Finance Review is among the world s leading online and print magazines, which has evolved from the growing need to have a more balanced view, for informative and independent news within the financial community.

(L-R) Senior Research Analyst Gayan Rajakaruna, LOSEC Chief Operating Officer Manjula Kumarasinghe, Research Intern Subhanie Tennekoon, LOSEC Chief Executive Officer/Managing Director Sriyan Gurusinghe, Associate Research Analyst Hiruni Perera and Head of Research Shehan Bartholomeuz.

Both LOLC General & LOLC Life are now geared to serve the nation from one location


LOLC General Insurance Limited, one of Sri Lanka s fastest growing insurance companies recently relocated their head office to a modern and spacious premises located at No. 481, T. B. Jaya Mawatha (Darley Road), Colombo 10. Strategically situated in a prime, business location in Colombo, LOLC General Insurance relocated to the same premises as LOLC Life Assurance and the two entities are now geared to offer greater convenience to its customers from the new head office complex.
LOLC Group Managing Director/CEO, Kapila Jayawardena graced the inauguration ceremony as the Chief Guest together with Mrs. Kalsha Amarasinghe, Executive Director of LOLC. The new head office complex was declared open amidst a gathering of Directors and Senior Management of LOLC Group, COO of LOLC Insurance - Nilanga Wickramasinghe, company staff and well-wishers.
Addressing the gathering at the opening ceremony, LOLC Group Managing Director/CEO, Kapila Jayawardena said, "In just 6 years of operations, today LOLC General Insurance is moving to its own corporate office; moreover, to the same premises as LOLC Life Assurance. This is a great achievement for LOLC General Insurance as it will open up new avenues of growth, expand its presence in the insurance industry and deliver a superior level of service to its customers." Nilanga Wickramasinghe, COO of LOLC Insurance added, "The relocation to a brand new, modern and spacious working environment will further boost the enthusiasm and efficiency of our staff and with this new move, LOLC Insurance will continue to offer an array of exquisite products and services, all under one roof. We believe in best care for our staff, so that as a result they will always be with an attitude to provide the best services to our customers."
LOLC General Insurance offers a comprehensive range of bespoke insurance solutions to both individuals and businesses with products such as motor insurance, engineering insurance, travel insurance, title insurance, shop insurance, Sureki Piyasa home insurance, and much more. LOLC General Insurance understands the needs of the customers and its experienced and professional sales force is geared to meet the personal and commercial needs of their clients throughout the country whilst offering best of benefits, flexible terms and competitive pricing.
Both LOLC Life and LOLC General leverages on the Group s strong distribution channel of 173 outlets to expand its market share. Since its inception in 2011, the company has been experiencing rapid and sustainable growth and has expanded its product portfolio ever since

LOLC Group Managing Director/CEO, Kapila Jayawardena ceremonially opening the new LOLC General Insurance head office. Also seen in the picture is Kithsiri Gunawardena, COO - LOLC/Chief Legal Officer - LOLC Group.

The new head office premises of LOLC General Insurance and LOLC Life Assurance located at No. 481, T. B. Jaya Mawatha (Darley Road), Colombo 10.

LOLC Group Managing Director/CEO, Kapila Jayawardena receiving the first set of business proposals from a member of the LOLC General Insurance sales force, at the new LOLC Insurance Head Office premises. Also in the picture are (from left to right) Sujeewa Vidanapathirana, DGM, Business Development - LOLC General Insurance, Dharini Fernando, COO, LOLC General Insurance, Kalsha Amarasinghe, Executive Director of LOLC and Nilanga Wickramasinghe, COO, LOLC Insurance.

LOLC General Insurance sign-up as a corporate sponsor for the YCF Premiership 2017 organized by the Young Constructors Forum

Sri Lanka s Non-Banking Financial Institution (NBFI) giant, LOLC Finance PLC bagged three top awards at the LankaPay Technnovation Awards 2017 held recently for the very first time competing against prestigious Banks and NBFIs to gain these top positions. At the glittering awards ceremony, LOLC Finance was bestowed with the following coveted titles:

1) Financial Institution of the year for Customer Convenience
2) Most Popular Electronic Payment Product
3) Best Mobile Payment Application of the Year

LankaPay Technnovation Awards, an initiative of Lanka Clear, the operator of the national payment network is an effort to enhance the efficiency of the country s national payment infrastructure and promote the use of electronic transactions. The awards recognise member banks and non-banking financial institutions who have excelled in electronic transactions during the financial year starting 1st April 2016 to 31st March 2017. Central Bank of Sri Lanka Governor Dr. Indrajit Coomaraswamy graced the occasion as the Chief Guest.

Commenting about the achievements at the first ever LankaPay Technnovation Awards, Director/CEO of LOLC Finance, Mr. Ashan Nissanka said, "Winning three prestigious awards at the LankaPay Technnovation Awards 2017 clearly demonstrates that our customers have come to embrace our value-added payment process and that it is well accepted in the industry purely due to its hassle-free and user friendly features. This is also an honour bestowed upon us that pays tribute to the expertise and dedication of our team of professionals".

Mr. Nissanka further stated, "Through our sustained focus on innovation, we continue to lead the market with a range of value added services, thereby engaging with our customers more than ever before and offering them the very quintessence of convenience. Our vision is to become a truly customer centric organisation that is on par with any international bank or NBFI, by adopting digitalisation because we believe that digital services have become the preferred means of interaction between customers and their financial institutions. Digitalisation has helped us to know our customers better and to offer them truly personalised products and services. We are ever so vigilant of our customers needs and move with the times to provide them with the latest and best in the industry. At LOLC Finance, our business model is driven by trust and confidence, underpinned by close customer relationships which helps us to forge ahead as a leading Financial Institution in digital transformation". Mr. Conrad Dias, LOLC Group s Chief Information Officer said, "In the 2015/2016 financial year, the total number of instant transactions through LOLC Real Time was 3,257. However, this has surged tremendously in the last financial year to 28, 394 transactions. These statistics as well as the recent wins at the Technnovation Awards prove that LOLC Real Time is now immensely popular amongst customers as it is not only a convenient tool that offers direct and easy access to our customers LOLC Finance accounts but it is also designed on a scalable architecture that complies with the highest levels of information security standard. We also have USSD base option specially catering to our micro financing customers who are not using smart devices. Moving further, we hope to introduce the ability to utilise pre-approved loans online and implement trilingual support for the convenience of customers. We also hope to introduce the low value payment for merchants facilitated through Justpay from Lanka Clear and integrate it to LOLC Real Time".

(Standing from Left to Right) Mr. Channa de Silva, General Manager/CEO, Lanka Clear (Pvt) Ltd, Mr. Anil Amarasuriya, Chairman Lanka Clear (Pvt) Ltd, Dr. Indrajit Coomaraswamy, Governor of the Central Bank of Sri Lanka, Mr. Ashan Nissanka, Director/CEO of LOLC Finance, Mrs. Roshani Weerasekera, Head of Liability Management, LOLC Finance and Mr. Chinthaka Jayasinghe, Head of Business Solutions, Banking - LOLC Technologies.

Mr. Ashan Nissanka, Director/CEO of LOLC Finance receiving the award for the Most Popular Electronic Payment Product from Central Bank Governor, Dr. Indrajit Coomaraswamy.

LOLC Securities Limited (LOSEC), the stockbroking company of the diversified conglomerate - the LOLC Group, recently conducted a workshop on Capital Market and Mobile App Awareness. The workshop was organised in collaboration with the Securities & Exchange Commission of Sri Lanka (SEC) and the Colombo Stock Exchange (CSE) with the objective of creating awareness on Capital Market and Online Trading through the new Mobile App. The programme was held recently at the Sri Lanka Institute of Information Technology (SLIIT) in Malabe.

About 300 undergraduates took part in the Capital Market and Mobile App Awareness Workshop which was held with the participation of senior officials and representatives from LOLC Securities, the SEC and the CSE. The Workshop covered a range of key topics including the benefits of investing in Capital Market instruments, how to make use of Online Trading facilities in the Capital Market as well as the regulatory aspects relevant to the Capital Market of Sri Lanka.

Commenting about the Workshop, Mr. Sriyan Gurusinghe, Managing Director / Chief Executive Officer of LOLC Securities Limited said, This joint workshop is a timely initiative. In an age when technology is developing rapidly with constant innovation, we need to create awareness that investors can now manage their investments with great ease, anytime and from anywhere. This Mobile Trading App offers live streaming prices, charts, latest news on stock trading and much more.

During the workshop, LOLC Securities donated a real time Market Viewer Monitor Screen to SLIIT in order to facilitate and display live market streaming at the SLIIT University premises. The main objective of this donation is to provide real time updates on the Capital Market as well as expand and broad base exposure for the Capital Market among all stakeholders in order to build a sustainable relationship between both institutions.

This workshop, the first of its kind in Sri Lanka was conducted by a stockbroking firm in collaboration with a Private University with representation from all stakeholders in the Capital Market of Sri Lanka.

Established in 2011, and now a fully owned subsidiary of the LOLC Group, LOLC Securities has been built for excellence in all its dimensions, keeping in mind the assurance sought by discerning investors. LOSECs investment advice is backed strongly by an in-house advanced, award winning research team of highly qualified analysts. The market reports compiled by LOLC Securities are detailed and analytical and offer valuable insights into market and economic trends and statistics.

Mr. Sriyan Gurusinghe, Managing Director / Chief Executive Officer of LOLC Securities presenting the real-time Market Viewer Monitor Screen to Professor Chandana Perera Dean, Business faculty and Head of SLIIT Research Centre.

Resource personnel of the workshop from L-R: Dr. Malitha Wijesundare Dean, Education and Student Experience SLIIT, Professor Chandana Perera Dean, Business faculty and Head of SLIIT Research Centre, Mr. Sriyan Gurusinghe MD and CEO of LOLC Securities Limited, Mr. Niraj Jayamanne - Investment Advisor, LOLC Securities Limited and Mr. Damith Chaminda - Investment Advisor, LOLC Securities Limited.

Colombo, Sri Lanka, 17^th March, 2017 - LOLC International Private Limited (a wholly-owned subsidiary of Lanka ORIX Leasing Company Plc (“LOLC”)) and The Bank of East Asia, Limited (“BEA”) announced today that they have acquired a majority interest in PRASAC Microfinance Institution Limited (“PRASAC”) from Belgian Investment Company for Developing Countries SA (“BIO”), Dragon Capital Group Limited (“Dragon Capital”) and Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (“FMO”).  Under the new ownership structure, the LOLC Group’s stake in PRASAC increased to 70%, while BEA holds 21% and 9% is held by P S Co., Ltd.

As a Cambodia-incorporated financial institution, PRASAC has evolved significantly since its inception in 1995 as a credit provider involved in financing to rehabilitate the agricultural sector in rural Cambodia. During the last 10 years, PRASAC has grown its asset from US$37 million to US$1.3 billion, and is now the largest micro finance company in Cambodia.

PRASAC’s operations have a far-reaching impact at a national level, providing mainly individual loans through 181 branches in all 25 provinces in Cambodia with more than 6,400 employees and an outreach of 350,000 customers in mostly rural communities. PRASAC also has approximately 530,000 depositors with a deposit base of over US$660 million as of February 2017. PRASAC has plans to diversify its business and transform into a licensed commercial bank in the near future.

Sim Senacheert, CEO of PRASAC, said: “We would like to express our gratitude towards BIO, Dragon Capital and FMO for their strong support over the past 10 years and look forward to a renewed partnership with our existing shareholder LOLC and strategic investor BEA to further contribute to sustainable economic development and financial inclusion in Cambodia.”

Ishara Nanayakkara, Deputy Chairman of the LOLC Group, stated: “We saw great potential in PRASAC from the outset, and it was therefore LOLC Group’s maiden overseas investment. We would like to convey our appreciation to the outgoing shareholders for their contribution and look forward to working closely with BEA and the PRASAC management in fulfilling the shared goal of elevating and empowering micro entrepreneurs to create a sustainable, inclusive economy in Cambodia.”

“We at BEA are pleased to establish a foothold in Cambodia, a core member of the ASEAN Economic Community, with LOLC and PRASAC Management,” said Dr. David K.P. Li, Chairman & Chief Executive of BEA. “Through PRASAC, our Bank will further strengthen its presence in Southeast Asia. This strategic investment will enable us to better capitalise on the opportunities arising from China’s ‘Belt and Road Initiatives’.”

About LOLC

The LOLC Group is one of the leading conglomerates in Sri Lanka with a diversified portfolio in multiple industries. LOLC Group’s unprecedented growth accounts to its core business - financial services, which have a special focus on Micro and SME sectors. LOLC also has a strong microfinance presence in Cambodia, Myanmar and Pakistan. For more information, please visit LOLC’s homepage at www.lolc.com.

About The Bank of East Asia, Limited

Incorporated in 1918, BEA is Hong Kong’s largest independent local bank, with total consolidated assets of HK$765.7 billion (US$98.7 billion) as of 31^st December, 2016. Listed on The Stock Exchange of Hong Kong, BEA is a constituent stock of the Hang Seng Index.

BEA offers customers a comprehensive range of corporate banking, personal banking, wealth management, and investment services through an extensive network of more than 220 outlets covering Hong Kong and the rest of Greater China, Southeast Asia, the United Kingdom, and the United States. For more information, please visit any BEA branch or its homepage at www.hkbea.com.

LOLC won the hearts of the people when it was crowned the “Financial Services Provider of the Year 2017” at the SLIM-Nielsen People’s Awards 2017.  LOLC Group Managing Director/CEO, Mr. Kapila Jayawardena received the coveted award during a glittering awards ceremony held at the Water’s Edge, Battaramulla, recently.

Organised for the 11th year, the SLIM-Nielsen People’s Awards is a joint initiative of the Sri Lanka Institute of Marketing (SLIM), the national body for marketing, and Nielsen Sri Lanka, the local arm of the largest information and research company in the world. Known as one of the much awaited events in the corporate calendar, SLIM-Nielsen People’s Awards rewards and recognises brands that have made a powerful impression in the minds of the people. Winners are based on consumer responses or people’s choice rather than on a decision of a panel of judges. 

Speaking about the achievement, LOLC Group Managing Director/CEO, Mr. Kapila Jayawardena said, “This award is a true reflection on how well the LOLC brand is embedded in the minds of the public and how well the brand has given back to society in terms of benefits, value and more importantly uplifting the socio economic status of the community. Unlike any other awards presentation, at the SLIM-Nielsen People’s Awards, it is the people who decide, who walks home a winner. The people have judged us and they have shown how close we are to their hearts and minds. Being adjudged the Financial Services Provider of the Year, reflects our connection, our strong bond with the people of Sri Lanka, and we consider this as the ultimate recognition.”

The LOLC Group is a leading diversified conglomerate present in the foremost economic sectors of the country such as financial services, leisure, plantations, agri-inputs, renewable energy, construction, manufacturing and trading and other strategic investments.  Pursuing new markets and taking Sri Lanka to the world, LOLC has ventured into overseas investments setting up operations in Cambodia, Myanmar and Pakistan with many more plans in the pipeline for regional expansion. 

Seen in the picture is Mr. Kapila Jayawardena, Group Managing Director/CEO of the LOLC Group (right) accepting the prestigious award from Mr. Kumar Samarasinghe, Director - Marketing, Singer (Sri Lanka), the main sponsor of the event. Also seen in the picture is Mr. Susaan Bandara, Chief Officer, Marketing Communications, LOLC Group.

Renowned for delivering real-world financial solutions, LOLC Finance PLC, Sri Lanka’s Non-Banking Financial Institution (NBFI) giant, has unveiled a comprehensive payment platform named, LOLC Real Time. This mobile and internet banking solution enables LOLC Finance customers to send and receive money, instantly via CEFT (Common Electronic Fund Transfer Switch) and SLIPS (Sri Lanka Interbank Payment System). LOLC Real Time which is a fully integrated, online payment platform, offers unparalleled convenience to customers who seek a superior level of speed, ease and security within the financial ecosystem.

With LOLC Real Time, customers can now transfer funds directly and instantly from their LOLC Finance savings account to any bank account of the recipient, using any device. This service is aptly supported by a 24-hour call centre which is equipped to handle customer enquiries on LOLC Real Time as well as ATM registration and other enquiries. Customers can register at any LOLC Finance branch to access the services of LOLC Real Time.

Through LOLC Real Time, customers can make their utility bill payments and schedule payments that can be effected at a future date. It also facilitates LOLC Leasing and Insurance payments. In addition, customers can enjoy attractive interest rates on LOLC Savings accounts, with a zero cost on any transaction of any value. LOLC Real Time enables customers to manage multiple LOLC accounts, anytime from any location with just a click of a button.  It allows customers to be in control of their day to day financial management in real-time, experience paperless transactions and save time.

Since the establishment of LOLC Finance in 2003, the company has been in the vanguard of introducing ground-breaking financial services and products to the domestic financial services sector. LOLC Finance was one of the first NBFI’s that received the mandate to introduce Foreign Currency Savings accounts and the first NBFI to register for SWIFT transactions. The company also pioneered the transferable Fixed Deposit Bond.  In the internet and mobile banking landscape, LOLC Finance became one of the first NBFIs to connect with the CEFTS. Adding to this, the LOLC Real Time mobile app is one of the most advanced and secure Real Time payment gateways launched thus far in the NBFI industry of Sri Lanka.

Elaborating on LOLC Real Time, Director/CEO of LOLC Finance, Mr. Ashan Nissanka said, “Connecting people and businesses with user-friendly solutions has been one of our key priorities. With continuous technological innovation and improvement, we are geared to provide secure, next generation connectivity to our consumers, 24 hours of the day, 7 days of the week. Through the LOLC Real Time payment platform, all fund transfers will occur in real-time, at zero cost.”

Explaining about the technological aspect of LOLC Real Time, Mr. Conrad Dias, LOLC Group’s Chief Information Officer said, “We are delighted to introduce our customers a service beyond traditional banking that enables them to transact, any day anytime via LOLC Real Time. This is just the beginning of the digital journey for our customers that brings convenience to their fingertips with positive customer experience in mind.  LOLC Real Time is designed on a scalable architecture that complies with the highest levels of information security.”

LOLC Finance is the flagship finance company of the LOLC Group, that offers carefully tailored financial solutions to a diverse customer base ranging from grass root level entrepreneurs to multinational organisations. Its portfolio of products and services include the maintenance of Savings and Term Deposit Accounts in Sri Lankan Rupees and Foreign Currency, Inward Worker Remittance, Money Changing, Issue of Visa Debit Card, Islamic Financing, Auto and SME Finance, Working Capital and Foreign Currency business. LOLC Finance is rated (SL) A (Stable) by ICRA Lanka Limited and is licensed by the Monetary Board of the Central Bank of Sri Lanka.

LOLC Real Time, the fully integrated, online payment platform from LOLC Finance PLC

Strengthening its product portfolio, the dynamic Insurance arm of the LOLC Group, LOLC Insurance launched two new products under its two entities, LOLC General Insurance Limited and LOLC Life Assurance Limited.  The two new products namely, LOLC Suraki Piyasa, unveiled under LOLC General Insurance and LOLC Reality launched under the LOLC Life Assurance banner are simple and affordable insurance policies, designed to cater to the needs of a diverse customer base.

LOLC General Insurance has designed a special home insurance policy named LOLC Suraki Piyasa providing customers the chance to obtain a policy for a selected value instead of insuring for the full value of the property. As a result, customers need not pay the premium based on the total value of the asset.  Instead, they could select the insurance cover they need based on values ranging from Rs. 1,000,000 to Rs. 3,000,000 and pay their premiums accordingly.  Though the insured value selected by the customer does not represent the actual value of the property, no deductions will be made at the time of claim. Through LOLC Suraki Piyasa, LOLC General Insurance hopes to encourage customers to insure their homes at affordable premium rates.

LOLC Reality is a distinctive insurance solution launched by LOLC Life Assurance. Through this policy, customers can obtain the highest cover for a minimum premium with flexible term options between 5 and 30 years. With convenient premium payment options, ranging from monthly, quarterly, half-yearly, annually to single premium, the LOLC Reality policy allows the customer to enjoy a range of additional covers.

Both LOLC General Insurance and LOLC Life Assurance follow a customer focussed strategy, backed by the strength and stability of the mother company - the LOLC Group. Both entities have leveraged on the strengths of the Group, particularly its branch network and the broad spectrum of sectors the company is engaged in. With the expertise and support of the LOLC Group, LOLC Life and LOLC General continue to forge ahead with a vision to become the most innovative, customer focussed insurance companies of Sri Lanka. 

Al-Falaah, the Islamic Business Unit of LOLC Finance PLC has been recognized globally on multiple occasions for the financial year 2016/17 by winning several awards at globally recognised award presentations.

Al-Falaah secured the IFN Deal of the Year for Sukuk (Alternate option for Securitization) at the IFN Deals of the Year for 2016 awards ceremony held on the 28th of February 2017 at the Ritz Carlton, DIFC Dubai U.A.E. This was the first year that Al-Falaah was eligible to compete for the subject category, as it developed a signature financial instrument that can be offered as an alternate format for the conventional securitization product.

This award is significant not only by its own right; it signifies innovation, industry value addition, raising local standards and international benchmarking. It is the first-time a Sri Lankan entity won an award in the global-category having qualified for an entry competed by global banking & financial institution giants. The adjudication and evaluation was done by an independent panel appointed by IFN/Redmoney with weightages given in recognition of the specific underlying transactions which created history in specific markets as first time transactions or ground-breaking transactions.

Further, LOLC Al-Falaah, was also recognized at the Islamic Finance News, Global Poll, IFN-Best Banks Awards 2016 for the fourth consecutive year. With over 26,000 overall votes for all categories, the global Islamic finance fraternity has voted Al-Falaah, Islamic Business Unit of LOLC Finance PLC to be amongst the top of global industry giants. The recognitions received of the two nominated categories are Best Islamic Leasing Provider, Runner Up where LOLC Al-Falaah has moved up from 3rd Place in 2015 and maintained the position of Best Islamic Bank Sri Lanka, Runner Up for 2016 as well.

Commenting on these prestigious wins, Mr. Krishan Thilakaratne, LOLC Group Head of Islamic Finance said, We are excited to accept these accolades which adds to our list of global recognitions in the Islamic Finance space locally as well as internationally. This is a true demonstration of our robust and innovative approach as an industry trendsetter, focussed on developing financial tools that cater to the growing needs of the industry.

Also sharing his thoughts, Mr. Shiraz Refai, Deputy General Manager, Al-Falaah Islamic Business Unit of LOLC Finance said, Securing the IFN Deal of the Year 2016 is both a first for us as well as the Islamic Finance industry in Sri Lanka. Being recognized under the IFN Global Best Banks Polls is always phenomenal to Team Al-Falaah. It is a significant milestone and accomplishment for the financial year 2016/17 and we are elated that LOLC Al-Falaahs deliberations to the industry is accepted by our stakeholders and also clearly signifies our continued commitment for innovation, compliance and customized financial solutions on offer.

Adding to its bucket list of Global recognitions, LOLC Al-Falaah also secured two prestigious awards at the Global Banking & Finance Review (GBFR) Awards 2016 - United Kingdom, by being crowned the Best Islamic SME Leasing and Finance Company and the Most Innovative Islamic Investment Product (Wakala) in Sri Lanka for 2016. This is Al-Falaahs first win at the GBFR which is created to recognize companies of all sizes that are prominent in particular areas of expertise and procure excellence within the global financial community.

LOLC Al-Falaah, which is in its 10th year in operation, functions directly under the auspices of LOLC Finance PLC, which is one of Sri Lankas largest non-banking financial institutions (NBFIs). LOLC Finance which is a regulated Finance Company of the Central Bank of Sri Lanka (CBSL) is rated [SL] A with stable outlook by ICRA Lanka Limited, a wholly owned subsidiary of ICRA Ltd. (an associate of Moodys Investors Service).

Mr. Krishan Thilakaratne, Group Head of Islamic Finance, LOLC and Mr. Shiraz Refai, Deputy General Manager, Al-Falaah, Islamic Business Unit of LOLC Finance PLC together with Andrew Morgan, Managing Director & Publisher of REDmoney Sdn Bhd

The Paradise Resort & Spa, the luxury resort situated in the heart of the Cultural Triangle in Dambulla has been recognised for its exceptional service by Booking.com, a global leader in booking accommodations, online. The hotel received an outstanding score for consistently receiving glowing reviews, based on months of remarkable guest experiences.

Hospitality properties throughout the world are bestowed with the Guest Review Award on an annual basis in recognition of their outstanding achievements in guest service and making Guests feel at home whilst creating a lasting impression. Award winners are evaluated by guest reviews on Booking.com with an overall score of 8.0 and above. The Paradise Resort & Spa received a notable 8.2 index score in 2016.

Mr. Eksath Wijeratne, Group General Manager, Browns Hotels & Resorts, expressing his thoughts on the Booking.com Guest Review Award said, “We are sincerely delighted and grateful to be awarded and recognised as a provider of world class service, offering distinctive experiences to Guests from all over the world. This is a reflection of our consistent service and the efforts and expertise of our dedicated, well trained staff.  Further, we would not have been able to win this prestigious award without the positive feedback of our Guests. At Paradise Resort & Spa, we will continue to provide the best services to our Visitors, in our own unique way”.   

Set amidst lush greenery, The Paradise Resort & Spa boasts 67 luxurious eco villas ranging from Deluxe Rooms, Superior Duplex Rooms and Garden Suites, tastefully designed with modern amenities and comforts to satisfy the discerning traveller. It is renowned as one of the most prominent holiday destinations in the Central Province of Sri Lanka.

Browns Hotels and Resorts (BH&R), owned by Browns Investments, a subsidiary of the Browns Group owns and manages The Paradise Resort & Spa as well as several other key properties in Sri Lanka including The Eden Resort & Spa and Dickwella Resort & Spa, both located along the Southern Coast, and The Calm Resort & Spa, located on the unspoilt, sandy beaches in the East Coast.  

The Paradise Resort & Spa received an overall score of 8.2 on Booking.com Guest Review Award in 2016

A well-appointed eco villa at the Paradise Resort & Spa

A panoramic view of the Paradise Resort & Spa

The Swimming Pool is every Guest’s favourite at the hotel

3 February 2017, Colombo: The LOLC Group inked a historic joint venture with Pak Oman Microfinance Bank Limited to introduce LOLC’s exceptional and globally accepted Microfinance model to the people of Pakistan. Having observed LOLC’s uniquely effective microfinance business model and its success stories in Sri Lanka, Myanmar and Cambodia, Pak Oman Microfinance Bank Limited which is a joint venture between the Islamic Republic of Pakistan and the Sultanate of Oman, invited LOLC to take a majority stake in their Microfinance venture.

Pak Oman Microfinance Bank has been offering a range of micro credit and micro savings products and services to the people of Pakistan, since its inception in May 2006. Through its new partnership with LOLC, Pak Oman Microfinance Bank hopes to capitalise on the speciality of LOLC’s distinctive Microfinance model which keeps transforming and enabling Micro businesses to become Small and Medium level enterprises through sustainable industrialization.

In Sri Lanka, LOLC’s microfinance model has made remarkable progress within a short span of time and is successfully steered by four LOLC Group companies, namely, LOLC Micro Credit Limited, LOLC Finance PLC, BRAC Lanka Finance PLC and Commercial Leasing and Finance PLC. These entities promote sustainable development by uplifting the livelihoods of the grassroot level entrepreneurs who are the backbone of the Sri Lankan economy.  By empowering the rising entrepreneurs to overcome income disparities, LOLC has successfully empowered communities and revived many different sectors and villages over the years.

LOLC’s maiden international investment, PRASAC Microfinance Institution, is currently Cambodia’s largest Microfinance institution, providing access to financial services to rural communities. PRASAC is driven by its ultimate goal to raise the economic standards of the Cambodian people by ensuring financial returns, supplemented by social and environmental protection.  In just over 2 years in operation, LOLC Myanmar Microfinance Company Limited (LMML) became the 8^th largest microfinance provider in Myanmar, among 168 licensed microfinance institutions operating in the country. LMML consolidated its position in the highly competitive Myanmar market through its unique and innovative microfinancing approach.    

Mr. Kapila Jayawardena, Group Managing Director and CEO of the LOLC Group in a statement at the ceremony said that helping thousands of entities and opening up billions of business opportunities to the smallest businesses have shown a boost in growth of an economy. By helping ‘startup and small businesses’, we assist them to gain greater confidence through a simplified and unique financial model to progress in any industry of choice. He went on to state that we are glad that the State Government of Pakistan and the Sultanate of Oman, currently holding 100% of Pak Oman Microfinance Bank Limited, have invited LOLC to join hands with them and take on a major stake of the venture, to bring about a distinctive operationally excellent model, to make a game changing difference, thereby uplifting the financial and social performances in the region. He also said that this transaction will continue to spread LOLC’s global footprint and is a compelling opportunity to continue to invest and pursue short and long term growths with operational flexibility. We look forward to working with these two sophisticated investors and roll-out this unique Micro Finance model in the region.

Blessed with abundant natural and historical riches, Pakistan is the sixth-most populous country in the world with a population exceeding 200 million people. Agriculture accounts for more than one-fourth of output and two-fifths of employment, while textiles and apparel account for most of the country’s export earnings.

LOLC which began as a non-bank financial institution has rapidly yet sustainably evolved to become one of the largest and most diversified conglomerates in Sri Lanka. Today, the portfolio of the LOLC Group encompasses a wide spectrum, from financial services to leisure, plantations and renewable energy and other strategic investments. This transaction with Pak Oman Microfinance Bank perfectly complements the Company’s growth trajectory, expanding the positive impact on the lives of thousands of people in Sri Lanka and beyond. 

For the second consecutive year, the Eden Resort & Spa was crowned the best in the Hospitality & Tourism Sector of Sri Lanka. The hotel received this recognition at the National Business Excellence Awards (NBEA) 2016 when it won Gold in the Hospitality & Tourism Sector category. The luxurious, Eden Resort & Spa competed with its industry peers to emerge the best in the sector. The award for business excellence in the Hospitality sector at the NBEA is one of the most closely contested and coveted awards. 

Speaking about the achievement, Mr. Eksath Wijeratne, Group General Manager – Browns Hotels & Resorts said, “We are honored to have received this recognition for the second consecutive year. It is a sign of our continued efforts to maintain the highest standards. At Eden, we pride ourselves on offering exceptional customer service. We are humbly proud of this victory and I would especially like to thank the staff for playing a pivotal role in this significant achievement”.

The Eden Resort & Spa is located on the iconic ‘Golden Mile’, a pristine stretch of beach in Beruwela. Since its refurbishment in 2014, the property has seen a rapid increase in occupancy levels. Over the recent years, the hotel has been recognised locally as well as globally for its outstanding service standards. The 2015 booking.com award, the Trip Advisor Certificate of Excellence 2015, Holiday Check 2016, as well as the Gold Excellence, Gold, Silver and Bronze awards won at the Chef’s Guild, are some of the recent awards and honours received by the hotel.

Eden operates under Browns Hotels and Resorts which boasts a rich history of over 20 years in the hospitality industry of Sri Lanka. Offering 158 elegantly furnished luxury rooms, suites and penthouses, and an exclusive spa, the hotel was awarded with the prestigious ISO 22000:2005 certification in relation to food safety and food quality standards. Backed by these phenomenal credentials, the Eden Resort & Spa continues with its commitment to providing world class hospitality by exceeding the expectations of its guests, and continually upgrading its range of offerings. 

From L-R, Mr. Eksath Wijeratne, Group General Manager, Browns Hotels & Resorts, Mr. K. B. S. Bandara, Deputy General Manager, Sales & Channel Management, Bank of Ceylon, Mr. Nandika Buddhipala, Chairman, Technical Evaluation Panel NBEA 2016 – presenting the Award.

A panoramic view of the Eden Resort & Spa, Beruwela

The LOLC Group, one of the largest and most diversified conglomerates in Sri Lanka has embarked on several Renewable Energy initiatives within the organization as well as on a national scale, with a mission to commit towards a sustainable future, by meeting the needs of the present without compromising the needs of the future generations to meet their own.  

                                                                                                                    
Playing a significant role in the foremost economic sectors of the country, the rapidly evolving LOLC Group employs over 5000 staff members in various regions across the island. With a firm belief that promoting renewable energy starts from within, LOLC initiated several programs to increase the awareness and promote the adoption of sustainability amongst the Group staff, recently. In line with this, a Group-wide competition titled ‘Rewarding you for Sustainability’ was implemented with the objective of promoting active involvement of the staff. Ten lucky winners were picked and rewarded through a competition which was conducted across the Group representing all districts. At the awards presentation which took place at the LOLC Head Office, the winners were also appointed as Ambassadors to carry the message of Sustainability to the various regions and divisions.

The LOLC Group stepped into the year 2017 with a bold initiative to contribute to the forest cover of Sri Lanka. Today, deforestation is considered one of the most serious environmental issues in the country and the concerns keep growing.  In this backdrop, the LOLC Group commenced the new year with a tree planting campaign named, “Ratak Surakinna, Gasak Sitawanna – Plant a tree and Preserve the Country””.  The staff of all LOLC Group companies actively took part in the tree planting program during the first working week of 2017 by planting a tree in their office premises, home garden or in a nearby public place such as a school or a park.  In addition to inculcating the good habit of tree planting, one of the key objectives of this program is to ensure that the staff members nurture the plant until it grows to a tree. LOLC aims to plant 2,000 trees in 2017 and hopes to continue with its tree planting effort annually to enhance the forest cover, island wide. In doing so, LOLC also hopes to reward and recognize the Group companies and staff members who are committed to this campaign over a period of time.

Furthermore, all new employees joining the LOLC Group are educated about the Group’s sustainable energy efforts at the staff induction programs. The Group also plans to launch some innovative products with a view to promote Renewable Energy amongst its vast customer base.

Commenting on LOLC’s ongoing Renewable Energy efforts, Mr. Kapila Jayawardena, LOLC Group Managing Director/CEO said, “We are extremely pleased with the level of enthusiasm and engagement demonstrated by our staff, based right throughout the country. This also demonstrates that through collective action we can confront the common, central challenges and achieve lasting change. As a Group, we have taken an aggressive approach on developing and promoting renewable energy sources and reforestation. Our commitment is to create a sustainable environment whereby making an overall impact on the environment we live and operate in”.

On a national context, LOLC ventured into solar power generation when its Group company, Sagasolar Power (Private) Limited recently opened Sri Lanka’s first and largest Utility Scale Solar Power plant in Hambantota. The plant which is the first of its kind initiated by the Private sector has the capacity to produce 10 MW of power to the National Grid.  With continuous expansion, LOLC also envisages to take its Renewable Energy initiatives worldwide by introducing it to its Cambodian and Myanmar offices.  

In 2008, LOLC became a signatory to the United Nations Global Compact (UNGC) strategic policy initiative which seeks to promote sustainable and responsible businesses throughout the world. Sustainable initiatives have always been widely practiced in all LOLC’s core businesses since its early inception. The LOLC Group’s sustainability journey is not a mere effort to improve its systems and operations but an effort to positively impact the processes beyond the boundaries of the company.

A few winners receiving their awards at the ‘Rewarding you for Sustainability’ awards ceremony from Mr. Kapila Jayawardena, LOLC Group Managing Director/CEO, Mrs. Kalsha Amarasinghe, Executive Director, LOLC Group and Dr. R. A. Fernando, Director, LOLC Group.

Some images from the many regions and divisions that took part in the “Ratak Surakinna, Gasak Sitawanna – “Plant a tree and Preserve the Country”” programme of LOLC, launched on 1st January 2017.

Some of the Group’s Senior Members receiving plants from Mr. Kapila Jayawardena, LOLC Group Managing Director/CEO.

LOLC Group company, Sagasolar Power (Private) Limited (Sagasolar) announces the opening of the first ever Utility Scale Solar Power plant in Sri Lanka. The plant based in Baruthankanda, Hambantota has the capacity to produce 10 MW of power that will be supplied to the National Grid.  Sagasolar is a subsidiary of the LOLC Group and is a collaboration with Faber Capital Limited.

The development of this landmark plant is in line with Sri Lanka’s National Energy policy, which has the key focus of converting fossil fuel used in Electricity Generation to Sustainable Renewable Sources. Sri Lanka’s renewable energy journey began with Hydro power, supplemented by Wind Power, where this landmark project, has now embarked on generation through Solar Power, is arguably the most abundant and sustainable energy resource available in the country.

The 10 MW Solar plant, has been built on 45 acres of land within the Energy Development Area declared by Gazette notice 1720/5 on the 23rd of August 2011 under the Sri Lanka Sustainable Energy Authority Act.  This project, the first of its kind by the Private sector, is over seven times the size of the largest Solar project in Sri Lanka at present; which is the 1.3MW pilot project owned and operated by the Sustainable Energy Authority, located in Hambantota.

Hambantota has one of the highest levels of Annual Global Horizontal Irradiation (GHI) in Sri Lanka.  After energizing, the project will supply approximately 20 GWh, which will be sufficient to provide the annual electricity needs of approximately 15,000 typical Sri Lankan homes.  The project will also reduce carbon dioxide emissions from power generation in the national electricity system by a margin of 11,000 tonnes per year.

The Power Plant was ceremoniously opened on the 21st of December 2016 under the patronage of Hon.  Ranjith Siyambalapitiya, Minister of Power and Renewable Energy and Hon.  Ajith P. Perera Deputy Minister of Power and Renewable Energy.  

The project debt is financed by a banking consortium experienced in renewable energy projects, with DFCC Bank taking the largest exposure followed by Commercial Bank and Hatton National Bank.

The project is a collaboration between the LOLC Group and Faber Capital Limited, the key equity providers.  

“At LOLC, we believe our achievements in sustainability are more than fulfilling a responsibility, or a feather in our cap; it is embedded in our business model, and has made us who we are today. In the recent years, Renewable energy has gained prominence in the Sri Lankan economy, and LOLC Group is poised to play a key role in enhancing our commitment in environmental stewardship. We are highly excited to venture into Solar power generation, first of its kind and magnitude by the private sector, reflecting our true passion for a greener tomorrow”, said Mr. Ishara Nanayakkara, Deputy Chairman, LOLC Group.

Faber Capital Limited is a boutique investment Bank which specializes in the implementation and financing of renewable energy projects in Asia, Africa and the Middle East.  Dilshan Hettiaratchi, Managing Director of Faber Capital said, “We are indeed honoured to be involved in the development of Sri Lanka’s first Utility Scale solar project. Generation of Energy from Solar power is the next frontier in Sri Lanka’s energy generation journey.  The country has successfully harnessed sustainable resources for generation of energy needs for over half a Century.  The main resources used were Hydro, with Wind supplementing generation capacity over the last decade.  With this exciting project, Solar has also been introduced to the generation mix. We at Faber Capital invested in this landmark project over a year ago and combined the implementation and financing elements required to complete the project. We hope this project will be a catalyst to popularize energy generation through Solar Power, which is arguably the most sustainable green resource available in the country.”

Hon. Ranjith Siyambalapitiya, Minister of Power and Renewable Energy and Hon. Ajith P. Perera Deputy Minister of Power and Renewable Energy touring the site with Mr. Ishara Nanayakkara, Deputy Chairman, LOLC Group, Dilshan Hettiaratchi, Managing Director of Faber Capital and Eng. J.D.K. Wikramaratne, Chairman of Sri Lanka Sustainable Energy Authority.

Hon. Ranjith Siyambalapitiya, Minister of Power and Renewable Energy and Mr. Ishara Nanayakkara, Deputy Chairman, LOLC Group unveils the plaque.

Hon. Ranjith Siyambalapitiya, Minister of Power and Renewable Energy and Hon. Ajith P. Perera Deputy Minister of Power and Renewable Energy and Mr. Ishara Nanayakkara, Deputy Chairman, LOLC Group ceremonially opening the largest Solar Power plant in Sri Lanka.

An aerial view of the solar panels

The head office of LOLC Life Assurance was relocated to their modern premises at No 481, T. B. Jaya Mawatha (Darley Road), Colombo 10 recently. Located in the heart of Colombo, LOLC Life Assurance is now geared to offer greater convenience and access for customers from its spacious, new head office complex. LOLC Group Managing Director/CEO, Mr. Kapila Jayawardena graced the opening as the Chief Guest together with Mrs. Kalsha Amarasinghe, Executive Director amidst a gathering of Directors and Senior Management of LOLC Group, COO of LOLC Insurance, Mr. Nilanga Wickramasinghe, and the company staff and well wishers.

LOLC Life Assurance offers an extensive range of insurance products to help both individuals and businesses prepare for the unexpected with products such as Child Protection Plan, Life Protect Plan, Life Protect Plus Plan, Pensions Plan, and Loan Protection Plans applicable for both individuals from all walks of life and Corporates.

LOLC Assurance understands customers’ diverse needs hence the reason to have a range of products to suit individual requirements. The LOLC Life Assurance Life Protect is a flexible insurance policy that offers the security of guaranteed protection with the added benefit of periodical returns to the fund account, offering the flexibility of choosing an ideal combination of savings and protection. LOLC Life Assurance also offers Critical Illness Cover on 29 identified illnesses and daily hospitalization benefits along with a Life Cover. Meanwhile, the LOLC Life Assurance Pension Plan is an insurance policy designed to build a retirement fund whilst extending the option of enhancing the policy with protection covers. Further, the LOLC Life Assurance Child Plan is a unique policy designed to provide security for children’s future to take care of future educational and other financial needs. Also, Life/Family Takaful provides the breadwinner of the family both a protection policy and long-term savings. The LOLC Life Assurance Home Loan Protection Policy settles all outstanding loans and releases any mortgaged property upon the Death or Permanent Disability of the borrower.

LOLC Life Assurance leverages on LOLC’s strong distribution channel of 173 outlets to expand its market share. Since its inception in 2011, the company has been experiencing rapid and sustainable growth. The company boasts of a professional Life Insurance sales force that is poised to further penetrate the market in the year ahead via all channels. The Life Insurance posted significant growth by recording 73% growth in GWP in the first half of 2016 over the corresponding period in FY2015. 

LOLC Group reached the pinnacle of Excellence when it was crowned as the overall Gold Award Winner at the National Business Excellence Award (NBEA) 2016 at a glittering awards ceremony held recently in Colombo. Whilst securing the overall Gold Award, LOLC Group also won a number of other sub-sector awards at the NBEA 2016, organised by the National Chamber of Commerce of Sri Lanka (NCCSL) for the 13th consecutive year. NBEA is recognised as Sri Lanka’s highest Corporate Award.

In addition to the overall Gold Award, the LOLC Group also won Gold in the Extra Large Category as well as in the Diversified Group of Companies Category. The Group’s flagship luxury hotel, The Eden Resort & Spa won Gold in the Hospitality & Tourism Sector. The Group also won three Bronze Awards for Excellence in Performance Management, Excellence in Business and Financial Results and Excellence in Local Market Reach.

The NBEA which is presented annually by the NCCSL recognizes business enterprises which have demonstrated excellence in business, whilst contributing to the socio-economic progress of the nation.  This year, many corporate establishments stepped forward to compete in the NBEA with the introduction of the new evaluation model scheme and criteria. According to the new model, Business Enterprises were evaluated under a newly structured evaluation model of 7 perspectives, which included Excellence in Leadership, Excellence in Corporate Governance, Excellence in Capacity Building, Excellence in Performance Management, Excellence in Local and Global Market Reach, Excellence in Corporate Social Responsibility and Environmental Sustainability and Excellence in Business and Financial Results.

Sharing his thoughts about the victory, LOLC Group Managing Director/CEO, Mr. Kapila Jayawardena said, “This is a remarkable achievement and it clearly signifies LOLC’s exceptional performance, dynamism and excellence in corporate Sri Lanka. We are very pleased that LOLC has been ranked number 01 and I believe our rank confirms the success of our efforts in ensuring continuous improvement, unwavering professionalism and long standing partnerships”.

The LOLC Group is a leading diversified conglomerate present in the foremost economic sectors of the country. LOLC has evolved rapidly over the past few years from a leading financial services provider to one of the largest and most diversified conglomerates in the country. Today, LOLC’s portfolio is broadly categorised as financial services and non-financial services, encompassing leisure, plantations, agri-inputs, renewable energy, construction, manufacturing and trading and other strategic investments. Pursuing new markets and taking Sri Lanka to the world, LOLC has ventured into two overseas investments setting up operations in Cambodia and Myanmar with many more plans in the pipeline for regional expansion.  

The NBEA is one of Sri Lanka’s pioneering Awards Competitions which was launched in 2004 by the NCCSL. Over the years the awards have maintained its high standard and has gained much prestige and popularity among the business community due to the well-structured Awards Scheme that is carefully adjudicated by a competent and eminent panel of judges.

LOLC Group Managing Director/CEO, Mr. Kapila Jayawardena and LOLC Group Deputy Chairman, Mr. Ishara Nanayakkara receiving the National Business Excellence Award 2016 from the Chief Guest, Dr. Indrajit Coomaraswamy, Governor – Central Bank of Sri Lanka.

25 November 2016, Colombo: The LOLC Group and Club Mediterranee - France, signed a historic agreement on 25th November 2016 which will witness the Riverina Resort in Beruwela being branded as the First Club Med Resort in Sri Lanka. The landmark agreement was signed between LOLC Group Managing Director/CEO, Mr. Kapila Jayawardena and Mr. Henri Giscard d’Estaing, President and CEO of Club Mediterranee, on behalf of the respective companies. The establishment of the globally-reputed Club Med brand in Sri Lanka opens a new chapter in the country’s higher value tourism prospects. Under the terms of the agreement, Club Med will brand, market and manage the property as one of its many exotic Club Med destinations attracting affluent tourists from Europe and Asia to Sri Lanka. This development will further the industry’s aspirations to develop the island as a magnet for high spending tourists while simultaneously creating a significant number of direct and indirect employment opportunities. Club Méditerranée SA, commonly known as Club Med, is a French company specialising in operating Club Resorts at a number of exotic destinations around the world.

The LOLC Group is a leading diversified conglomerate present in the foremost economic sectors of the country and over the past few months has aggressively expanded its leisure portfolio of properties in neighbouring Maldives. It has made significant investments in the Maldives, by securing some of the most sought after real estate in Male and in strategic locations among other Atolls. The LOLC Group is also diversifying its interests in the leisure sector by having set up a destination management company, an out-bound arm and a popular entertainment complex.

Commenting on the new milestone, Mr. Kapila Jayawardena, Group Managing Director of the LOLC Group, said, “We are pleased to have Mr. Henri Giscard D’Estaing, the President and CEO of Club Méditerranée, to sign this historic venture that ushers in one of the most prestigious tourism brands in the world to Sri Lanka. We are confident that this will be a mutually rewarding partnership that will add immense value to Sri Lanka Tourism. As a tourism destination, Sri Lanka has a rich and diverse offering spanning nature, culture, religion, adventure and eco-tourism, and we are confident that it will ascend in popularity and profitability to become one of Club Med’s premier properties. LOLC has forged strategic partnerships across its business sectors and this collaboration with yet another international brand reflects the strong investment potential of the group. Scheduled for completion in 2018, Sri Lanka’s First Club Med is yet another pioneering initiative by LOLC.”

President and CEO of Club Mediterranee, Mr. Henri Giscard D’estaing added, “We are delighted to embark on setting up the first Club Med in Sri Lanka, which is an exceptional destination. The beautiful island and the strategic location of the property reflects the exclusivity that Club Med looks for in its new locations. We believe that the Sri Lanka Club Med will be much in demand with our members. We have found in the LOLC Group, a dynamic partner with whom we expect to have a rewarding relationship. Doing business in Sri Lanka thus far has been a pleasure and we expect to forge closer bonds with this gorgeous island country going ahead. I am grateful to the Board of Directors and senior management of the LOLC Group for their warm welcome. I would like to thank the Government of Sri Lanka and the tourism authorities for facilitating the first Club Med in the country.”

Over the past 65 years, Club Med has been the specialist in helping transform emerging destinations into international high level tourist places, generating great global interest and immediate traffic wherever it settles.  Bali, Cancun, Punta Cana, the Maldives and Phuket are perfect examples of destinations launched into the list of world-class destinations after Club Med’s first resort was established in those locations.

LOLC Group was represented by Mr. Ishara Nanayakkara, Deputy Chairman, Directors Mrs. K. Amarasinghe and Mr. Kamantha Amerasekera and Mr. Ajit Jayemanne, Consultant Director of the Leisure Division, whilst Club Med was represented by Mr. Xavier Desaulles and Mr. Marc De Jouffroy.

Henri Giscard D’estaing, CEO of Club Med speaking at the landmark sigining ceremony

LOLC and CLUB Med signs landmark deal

LOLC GMD - CEO addressing the gathering

November 25th, 2016 - LOLC Micro Credit Ltd. (LOMC), one of the largest and leading microfinance companies in Sri Lanka and subsidiary of the LOLC Group, successfully concluded its 7th annual ‘Isuru Diriya Sisu Upahara Scholarship Awards Ceremony’ at a gala event held at the BMICH Colombo.  The ‘Isuru Diriya Sisu Upahara Scholarship’ is LOMC’s most valued and dedicated CSR project which is held annually to felicitate the children of LOMC customers who achieved top marks at the national Grade 5 scholarship examination conducted by the Department of Education.

Covering all districts in the country, a total of 797 students were awarded scholarships with cash prizes and gifts of stationery, books, sports items and school shoes. During the official ceremony held at the BMICH, 251 students were awarded with scholarships to support their first steps into secondary school while the gifts and scholarships of the balance 546 students were delivered to their homes. Similar to previous years, the selection criteria for the Sisu Upahara Scholarship programme continues to be well structured and transparent extending the scholarships to deserving students based on both merit and financial need.  

Hon. Minister of Education, Akila Viraj Kariyawasam graced the ceremony as the Chief Guest. Professor J. B. Dissanayake who is an eminent writer and consultant on language, grammar and culture, participated as the Guest Speaker. Speaking at the Awards Ceremony, Professor Dissanayake encouraged and motivated the young achievers and shared some valuable insights on how to successfully reach their future educational goals. Also in attendance were, LOLC Group Deputy Chairman, Mr. Ishara Nanayakkara, LOLC Group Managing Director/CEO, Mr. Kapila Jayawardena, Executive Director of LOLC, Mrs. Kalsha Amarasinghe, and Director/Chief Executive Officer LOMC, Mr. Ravi Tissera. Senior management members of LOLC, staff members, parents of students and well-wishers were also present.  

During this year's ceremony, top three achievers, namely, Sudaraka Heshan Deshabandu from Galgamuwa, Selwakumar Shehan Kanishka from Horana and Kuganeswaran Kulavili from Vavuniya along with other high-achievers were recognised and presented with special gifts.

Mr. Ravi Tissera, Director/CEO of LOLC Micro Credit Limited speaking at the award ceremony said, “Since our very first Isuru Diriya programme which was held in the 2010/11 financial year, we have felicitated over 2,500 outstanding scholarship students. By awarding and celebrating their achievements we not only give them the necessary impetus to further their education but create the inspirational platform for them to aspire to achieve greater success in the future.  Therefore, this annual event is a unique and special one.”

Inaugurated in 2009, LOLC Micro Credit, with the financial strength of renowned overseas Development Finance Institutes and the support of the LOLC Group, rose among Sri Lankan corporates as one of the leading microfinance solutions providers dedicated towards uplifting the low income segment of the country. The Company has also been the first and only Sri Lankan microfinance institute to be awarded with the certification for Client Protection Principle. With a disbursement portfolio of Rs. 47 Billion and a growing borrower base of nearly 400,000, the Company has gained success and recognition both at home and overseas. 

251 students were awarded at the official ceremony held at the BMICH

Chief Guest Hon. Minister of Education, Akila Viraj Kariyawasam addressing the gathering

LOLC Micro Credit felicitates over 750 top-achieving scholars

LOMC successfully concluded its 7th annual Isuru Diriya Sisu Upahara Scholarship Awards Ceremony in Colombo

Professor J. B. Dissanayake addressing the gathering

With an ambitious aim towards expanding and intensifying its operations in Anuradhapura, LOLC Finance PLC relocated its branch in the great monastic city to its very own sophisticated premises at No. 242/2, Maithripala Senanayake Mawatha, Anuradhapura. From the new, full-fledged building, LOLC Finance is geared to offer a superior level of financial services to the existing and potential customer base in Anuradhapura. The branch will also function as the regional office, catering to the diverse financial requirements of the people in the Northern Province and the North Central Province. 

The new LOLC Finance Anuradhapura branch was inaugurated by the LOLC Group Managing Director/CEO, Mr. Kapila Jayawardena. The event was attended by senior management officials, staff members, customers and well-wishers. Addressing the gathering, Mr. Jayawardena said, “Over the years, we have witnessed the vast potential for growth in Anuradhapura. This new move to a more centralised location is a result of the considerable growth LOLC Finance has registered in this area over the past years. I am confident that this will further support the growth ambitions of the varied businesses in and around the Anuradhapura area."

Also, speaking at the event, Mr. Ashan Nissanka the Director/ Chief Executive Officer of LOLC Finance emphasized that, “Our new address here will not only bring us closer to the substantial number of customers we already serve in Anuradhapura but it will also be a reflection of our steadfast commitment to providing high quality, bespoke financial services. I can ensure that our offerings will continue to grow with further planned expansions in this very lucrative region”.  

Anuradhapura was once a political and religious capital of Sri Lanka that flourished for nearly 1,300 years.  A city that dates back to the 5th century BC, Anuradhapura is world renowned for its rich collection of architectural wonders. It was one the most powerful kingdoms of ancient Sri Lanka, boasting a rich economic and cultural heritage.  Anuradhapura which was a central point of ancient Sri Lankan civilization is almost synonymous with Sri Lanka’s irrigation system which dates back over 2000 years. Sri Lanka’s hydraulic civilization mainly developed during the Anuradhapura era, paving the way to an agricultural and cultural revolution.  Named a UNESCO World Heritage Site, Anuradhapura today continues to make great strides towards becoming a modern, economically vibrant city. 

Driven by its demand for services, the new LOLC Finance branch in Anuradhapura will cater to the financial requirements of individual customers and the diverse business community. The new branch will offer unparalleled financial solutions such as leasing, micro loans, corporate loans, all types of fixed deposits and savings.  With this new move, LOLC Finance looks forward to support the budding and highly promising Micro and SME community in this region through various services and awareness programmes. 

LOLC Group Managing Director/CEO, Mr. Kapila Jayawardena is seen lighting the traditional Oil Lamp at the occasion. Also in the picture are Mr. Ashan Nissanka the Director/ Chief Executive Officer of LOLC Finance and Mr. Gamini Jayaweera, DGM, Northern and North Central Regions, LOLC Finance.

LOLC Group Managing Director/CEO, Mr. Kapila Jayawardena accepting the first transaction of the newly relocated Anuradhapura branch.

LOLC Finance PLC has successfully issued a Rs. 500 million (US$3.37 million) Sukuk from the domestic market, setting a precedent for corporate Sukuk issuances in South Asia. Sukuk is commonly referred to as ‘Sharia’h compliant’ securitisation which is a fast emerging source of alternative funding often referred to as Islamic securitisation.

The Sukuk Al Ijarah issuance of LOLC Finance was subscribed entirely by the Bank of Ceylon. The three-year Ijarah facility proceeds will contribute to further develop the Islamic Finance capital market, by not only opening a new window for companies seeking Islamic Finance but also provide a viable investment instrument for any potential Islamic investor. The Trustee to the issuance was HNB Custodial Services while Trillion Securities (Pvt) Limited acted as the financial adviser, arranger and lead manager. The Legal aspect was handled by Nithya Partners. 

Elaborating on Sri Lanka’s first Sukuk Al Ijarah issuance, Mr. Krishan Thilakaratne, the Group Head of Islamic Finance of LOLC said, “As there has never been a Sukuk issuance in Sri Lanka, we had the challenge of drafting the agreements and arranging the parties. Further, we are building a fairly substantial Ijarah base and we have the capacity to go with a larger issue in the future. Ideally, we would like to get off shore investors but there are hurdles to overcome such as exchange risk options”. 

Mr. Thilakaratne further said, “There is a great appetite for investment in the company but we lacked a proper Sukuk structure or product that we could bring to the capital market. The focus for us now is to fine-tune what we have now for the international market. I would also like to make special mention of the members of Al-Falaah’s Shari’ah Supervisory Board, Ash-Shaikh Fazil Farook, Ash-Shaikh Murshid Mulaffer and Mufti Shafiq Jakhura, who are all well-known, eminent Scholars in the industry for their pivotal role in structuring and drafting the agreements according to the precepts of Islamic Finance”. 

Having successfully raised Islamic capital from the domestic market, LOLC Finance is focusing on capturing foreign funds, in a Sharia’h compliant manner. Backed by Japan’s multinational conglomerate ORIX Corporation, the LOLC Group is renowned for its strong international funding base. 

Speaking about the landmark deal, Mr. D.M Gunasekera, General Manager of Bank of Ceylon (BOC) said, “The experience and the learning curve of this joint effort is one of the convergence the industry is vying for and therefore others too can join hands with us for win-win deals. BOC being the No. 1 Bank in the country has the responsibility to support the financial industry to introduce various types of products depending on the requirements of the depositors and the borrowers”. 

Meanwhile, Sampath Kulatunga, Director / CEO of Trillion Securities (Pvt) Limited (TSL), the arranger and lead manager of the issue said, “The challenge to us was that this issue was the first ever Sukuk Al Ijarah receivable securitisation transaction, structured in the Sri Lankan capital market. The first ever Sukuk Al Ijarah securitisation transaction became a reality due to the effort of all stakeholders who worked tirelessly to ensure the successful launch of this issue”.  

Mr. Jonathan Alles, Managing Director and CEO of HNB commented that the Bank is proud to be appointed as the trustee to the Rs. 500 million Bank of Ceylon funded, Sri Lanka’s first Sukuk Al Ijarah securitisation of LOLC Finance PLC and this mandate is a testament of the level of confidence that the market has placed on HNB as the preferred corporate banking partner. 

LOLC Finance PLC, which is one of Sri Lanka’s largest non-banking financial institutions is a regulated Finance Company of the Central Bank. LOLC Finance is rated [SL] A with stable outlook by ICRA Lanka Limited, a wholly owned subsidiary of ICRA Ltd, an associate of Moody’s Investors Service. 

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LOLC’s dominant financial services sector companies, led the Group to record strong profits in the first three months of 2016/17, a PBT of Rs. 3.2Bn when compared to  Rs. 2.7Bn recorded in the same period last year. The current year’s performance, strengthened by the outstanding performance of the Group in 2015/16 of Rs. 11.9Bn of PBT, is a 45% growth over the last year. The financial services companies which account for 82% of the Group’s PBT, showed a remarkable growth in terms of an increase in the lending portfolio consequent to the aggressive growth in their lending books. As a result, the total Asset base of the Group reached Rs. 380Bn. The contribution to the high growth was achieved, resulting a portfolio growth of 52% to Rs. 213 Bn from Rs. 140 Bn.

Group Managing Director / Chief Executive Officer, LOLC Group - Mr. Kapila Jayawardena

The Eden Resort & Spa reached yet another milestone in its long continued efforts of uplifting the lives and livelihoods of the Beruwala community by inaugurating the first phase of the building project at the Moragalla Junior School in Beruwala.

Initiated by the management and staff of The Eden Resort & Spa, financial assistance for the first phase of the Moragalla Junior School building was provided by Miss Chris McGrail, a frequent visitor to Eden hailing from West Midlands, UK.  Affiliated to the Redhill School of England as the Deputy Head Teacher, Miss Chris McGrail spearheaded the fundraising activities for the construction of the school building through the students and parents of Redhill, UK.

Miss Chris McGrail of Redhill UK, and General Manager of The Eden Resort & Spa, Mr. Eksath Wijeratne being welcomed by the students and Principal of the Moragalla Junior School.

Students of the Moragalla Junior School welcoming the guests

The completed first phase of the school which was ceremonially declared open

Miss Chris McGrail of Redhill UK, opening the new school building

Students of the Moragalla Junior School in their new classroom

Al-Falaah, the Islamic Financial Services arm, brought glory and honour to LOLC Group by winning two Gold awards and one Silver at the 1st Islamic Finance Forum of South Asia (IFFSA) Awards 2016 which was organised by UTO EduConsult and adjudicated by KPMG Sri Lanka.  In the country category, Al-Falaah, Islamic Business Unit of LOLC Finance won the Silver Award for the Islamic Finance Entity of the Year, Sri Lanka and a Gold for the Social Upliftment Award.  Meanwhile, Mr Nadheer Siddeeq of Al-Falaah Takaful of LOLC General Insurance Limited garnered the honours by winning the Gold Award for the ‘Rising Islamic Finance Personality of the Year’.

The 1st Annual IFFSA Awards ceremony recognised industry players from countries across the South Asian region including India, Pakistan, Bangladesh, the Maldives and Sri Lanka. The awards were evaluated and assessed by a panel of independent judges of repute and were presented country wise with a few awards bestowed on the intra-regional basis. Islamic Finance industry players were recognised against their peers in their respective countries, with some selected awards also being presented to players whose services span across the region.

The inaugural IFFSA Awards 2016 was held alongside the first Islamic Finance Forum of South Asia which encompassed the entire South Asian region. The forum discussed the key challenges and the potential for Islamic Finance in the South Asian region as a bloc that comprises a large concentration of Muslims in the world.

Commenting on Al-Falaah’s win, Mr Krishan Thilakaratne, General Manager, Al-Falaah Islamic Business Unit of LOLC Finance said, “We are truly pleased to see our efforts in making a meaningful and broader impact on the Islamic Finance industry of Sri Lanka, being recognised in this manner.  It is also heartening to see how the industry players in the entire South Asian region have come together to encourage and support each other whilst exploring new avenues for future growth”.

Also sharing his views, Mr Shiraz Refai, Assistant General Manager, Al-Falaah Islamic Business Unit of LOLC Finance said, “The concluded IFFSA conference and Awards featured some of the most prominent opinion leaders and industry contributors and players from the region. We take humble pride in being recognised as a key player and a socially responsible financier in the region and strive to add more value for all industry stakeholders both locally as well as regionally, going forward”.

Speaking about the Gold award won by Mr Nadheer Siddeeq of Al-Falaah Takaful of LOLC General Insurance Limited, Nilanga Wickramasinghe Chief Operating Officer of LOLC General Insurance Limited and LOLC Life Assurance Limited said, “We are truly delighted and beyond proud of Mr Siddeeq for being adjudged the Rising Islamic Finance Personality of the Year. This achievement has fully manifested the continuous effort and commitment of our staff and their focus on building long-term relationships with clients”.

Al-Falaah Takaful, the Takaful Business Unit was established in August 2014 and is operating directly under the patronage of LOLC General Insurance Ltd, which is one of Sri Lanka’s fastest growing insurance companies. LOLC General Insurance Ltd is regulated by the Insurance Board of Sri Lanka (IBSL) and within a short span of 5 years has risen to be amongst the top leagues of the Insurance Industry.

Mr. Shiraz Refai, Assistant General Manager, Al-Falaah Islamic Business Unit of LOLC Finance receiving the Silver Award for the ‘Islamic Finance Entity of the Year, Sri Lanka’.

Mr. Nadheer Siddeeq of Al-Falaah Takaful of LOLC General Insurance Limited was bestowed with the Gold Award for the ‘Rising Islamic Finance Personality of the Year’.

Mr. Shiraz Refai, Assistant General Manager, Al-Falaah Islamic Business Unit of LOLC Finance receiving the Gold Award for the ‘Social Upliftment Award’.

A jubilant Al-Falaah team at the 1st IFFSA Awards night

28th July 2016. Colombo: The Insurance arm of the LOLC Group, one of Sri Lanka’s fastest-growing companies in the Life and General insurance sectors, recorded a satisfactory half-yearly performance for FY2016. The Life insurance segment posted significant numbers by recording 73% growth in GWP in the first half of 2016 over the corresponding period in FY2015, which is an indicator that the Life Insurance business will most likely end this financial year on a sound note. The company closed first half of FY 2016 with an overall GWP growth of 47% over the previous year, recording Rs. LKR 2,537 Mn in GWP.

Group Managing Director/Chief Executive Officer, LOLC Group & Chairman, LOLC General Insurance, Mr. Kapila Jayawardena.

Chief Operating Officer, LOLC General Insurance Ltd and LOLC Life Assurance Ltd, Mr. Nilanga Wickramasinghe

Sri Lanka’s first ever Auto Spa organised by LOLC Motors Limited (LOMO) was conducted on a grand scale recently. The inaugural LOLC Motors Auto SPA 2016 was a runaway success with over 200 vehicles receiving the best interior and exterior car care facilities under one roof by some of the leading local and international car care brands. This unique Auto Spa was held at the LOLC Motors premises located in Gothatuwa over two days.

Customers were offered the best in flexibility, customer service and technology at the LOLC Motors Auto SPA 2016 with discounts up to 25% on all repairs and services during the two-day Auto Spa. Various car care services were offered by renowned brands such as Mobil, Bosch, Britol, Wurth and BG car products. Body wash and vacuum, scanning and inspection report services worth Rs. 2,500 were offered by LOLC Motors. While their automobiles got pampered, vehicle owners were also offered free eye check-ups by optometrists and cataract testing from Suwanetha Lions eye hospital. Eye testing for spectacles and glaucoma treatment were also offered free of charge for customers who visited the LOLC Motors Auto SPA. Overall, each customer received approximately Rs. 14,000 worth services absolutely free.

Commenting on the success of the LOMO Auto Spa, Ms. Mehra Mendis, DGM of LOLC Motors Ltd said, “We have received a very good response for the Auto Spa and we are delighted to see the enthusiasm of our existing and new customers. I would like to congratulate the LOMO team for organising the first ever Auto Spa and thank all our valued customers for participating and making it a resounding success.”

Ramesh Kariyawasam, Head of Operations of LOMO said, “We hope to organise many similar events in the future with the aim of offering our customers the best of convenience and care. At LOLC Motors we will continue to service our customers quickly, efficiently and with attention to detail.”

LOLC Motors Limited, a subsidiary of the LOLC Group, is an ISO/9001:2008 certified automotive workshop specialising in vehicle repair and maintenance services of automobiles. It is one of the largest automotive workshops in Colombo, with a floor space of 5,600 sq. metres. The contemporary, eco-friendly workshop is equipped to handle over 100 vehicles at any given time. The workshop offers a wide range of automobile services including mechanical repairs, preventive maintenance, paint refinishing or touch-ups, quick lube service, lubrication service, collision repairs, wheel-alignment, wheel-balancing unit repairs and many more.

The workshop is equipped to service 750 vehicles per month, including hybrids with the services of a qualified and experienced team of engineers, supervisory staff and highly skilled technicians. With a combination of modern technology and world class service, LOMO has successfully been able to reduce the turnaround time for repairs, in collaboration with the relevant insurers.

LOLC Motors Auto SPA 2016 in Gothatuwa

The inaugural LOLC Motors Auto SPA 2016 attended by a large number of customers

Customers expereincing the best of automobile service

A large number of vehicles at the Auto Spa

Customers expereincing the best of automobile service at the 2016 LOMO Auto Spa

Al-Falaah, the Islamic business unit of LOLC Finance PLC, brought honour to Sri Lanka and the LOLC Group, when it received recognition on one of the top award categories at Redmoney’s Annual Global Awards - Islamic Finance News (IFN) Best Banks Poll 2015. Al-Falaah was adjudged Runners-Up in the category of “Best Islamic Leasing Provider (Overall) 2015”, whilst the Gulf International Bank of Bahrain clinched the top spot. The awards-giveaway ceremonies took place in February this year with the Asian awards ceremony scheduled and the Middle-East awards being held in Kuala Lumpur and Dubai respectively.

The annual Islamic Finance news Best Banks Poll recognizes the industry leading providers of Islamic financial services across global markets and varied sectors, where votes casted by readers of Islamic Finance News, Islamic finance investors, issuers, banking & non-banking financial intermediaries as well as regulatory and government bodies being invited to participate in the process. Voting takes place during December each year and the results are announced by the first week of January. This year’s poll has attracted a record number of over 30,000 votes exceeding the 10,000 votes received last year. Financial institutions representing Europe, The Americas, Africa, South East Asia, Asia Pacific and the Indian Sub-Continent as well as the Middle East were featured in this global annual poll.

Speaking about this prestigious win, Mr. Krishan Thilakaratne, General Manager, Al-Falaah Islamic Business Unit of LOLC Finance said, “Al-Falaah has re-established its brand strength yet again as the most trusted and reliable non-bank Islamic financial service provider in Sri Lanka. To be recognized at global level is indicative of its appeal beyond the shores of Sri Lanka and the confidence our overseas investors and customers have of Al-Falaah. We are indeed proud of this recognition.” Also sharing his views, Mr. Shiraz Refai, Assistant General Manager, Al-Falaah Islamic Business Unit of LOLC Finance said, “We have been featured at IFN-Awards on multiple occasions over the past years. This is due to the acceptance of our commitment to offer reliable and innovative Islamic Finance Solutions by our valued customers. Their confidence placed with us from inception establishes the reliability and superior service levels that we continuously strive to offer our valued customers. We are extremely pleased with the results and take humble pride in representing Sri Lanka in a global platform. This is the fourth consecutive year that Al-Falaah was recognized at the top-tier ranks at the IFN Best Banks Poll. I thank our loyal customers, stakeholders and employees of Al-Falaah and LOLC for their steadfast trust and commitment to our products, services and values. I also commend the efforts taken by industry peers in continuously upholding the standards of Islamic Finance.”

On home soil, Al-Falaah, clinched the top Gold award for being adjudged the ‘Islamic Finance Entity of the Year 2014’ at the 4th Sri Lanka Islamic Banking & Finance Industry (SLIBFI) Awards and the top award for the ‘Social Upliftment Award (CSR)’ category.

Al-Falaah, established in 2007 functions directly under the auspices of LOLC Finance PLC, which is one of Sri Lanka’s largest non-banking financial institutions. LOLC Finance which is a regulated Finance Company of the Central Bank is rated [SL] A with stable outlook by ICRA Lanka Limited, a wholly owned subsidiary of ICRA Ltd - an associate of Moody’s Investors Service.

Krishan Thilakaratne, General Manager of Al-Falaah Islamic Business Unit of LOLC Finance PLC

Mr. Shiraz Refai, Assistant General Manager, Al-Falaah Islamic Business Unit of LOLC Finance PLC

• Total loan amounts to USD 247 million 
• Led by FMO and other Development Finance Institutions 

24 February 2016 Colombo: The LOLC Group is pleased to announce a landmark syndication obtained by three of its key financial institutions. The official signing ceremony of the loan agreements took place at the Cinnamon Grand Hotel in the presence of the Honourable Minister of Finance, Mr. Ravi Karunanayake, the Governor of the Central Bank of Sri Lanka, Mr. Arjuna Mahendran, ambassadors of the participant funding agencies and other dignitaries. A total of USD 247 million was received from multiple foreign funding partners and consists of 3 loans, demonstrating international investor confidence and reliability of the LOLC Group.

This funding amount represents a significant national milestone, as it includes the largest syndication of the Non-bank Financial Institution sector in Sri Lanka. A USD 153.1 million loan was granted to Commercial Leasing and Finance PLC, through FMO (Financierings Maatschappij Ontwikkelingslanden), the Dutch Development Bank that provided the loan and acted as Mandated Lead Arranger and Facility Agent. The loan consists of a senior loan of USD 39.2 million from FMO and a USD 113.9 million syndicated loan from 11 distinguished funding partners for Commercial Leasing & Finance PLC (CLC).

The 11 partners are: The OPEC fund for International Development (OFID) (USD 20 million); Finnfund- the Finnish Fund for Industrial Cooperation (USD 11 million); Proparco – a subsidiary of the Agence Française de Développement (AFD) (USD 10 million); BIO - the Belgian Investment Company for Developing Countries (USD 7 million); DEG – the German Investment and Development Corporation (USD20 million); OeEB the Austrian Development Bank(USD 10 million); responsAbility Investments AG (USD 12 million); Blue Orchard Finance (USD 10.1 million); Symbiotics (USD 9.0 million) and Dutch Oikocredit (USD 5 million). ACTIAM also participated by providing USD 5 million via FMO’s fund structure.

Speaking on the occasion, Linda Broekhuizen, Chief Investment Officer of FMO, said, “FMO is proud to act as Mandated Lead Arranger and Facility Agent of this USD 153 million facility. It is encouraging to see so much commitment to job creation and economic growth, both among the other lenders and CLC. FMO is particularly proud to lead this facility for the LOLC Group, with which we have a long lasting relationship for more than 25 years. LOLC Group’s efforts to strengthen small businesses and entrepreneurship in Sri Lanka is an important basis for sustainable economic development and lasting improvement of people’s living conditions in the country.”

In addition to the syndicated loan transaction, FMO – in partnership with other lenders in the syndicate – is committed to supporting CLC with a tailored technical assistance programme to further strengthen CLC’s operation standards. The technical assistance includes capacity building in the area of Asset and Liability Management, environmental, social and governance standards, client protection principles and a management development program focused on leadership and skill training for employees.

LOLC Finance PLC received a USD 69 million loan consisting of USD 30 million from the Asian Development Bank (ADB) and a USD 39 million syndicated loan from prominent Middle Eastern banks. Transcending business, this is also a symbolic moment in multilateral relations, as this is the first syndicated loan from a consortium of Middle Eastern banks to the NBFI sector Sri Lanka.

The ADB syndication of USD 69 million to LOLC Finance PLC is structured in two tranches: Tranche A is for a period of 7 years and has been funded by ADB; and Tranche B is for a period of 3 years and has been funded by Emirates NBD Bank, Bank Muscat, First Gulf Bank, National Bank of Oman and Rakbank. ADB has acted as a Lender of Record for both the tranches, with Bank Muscat and First Gulf Bank as the Mandated Lead Arrangers for Tranche B, while Dubai Based Investment Bank, Alpen Capital ME Limited acted as the financial advisor.

LOLC Micro Credit Limited, the largest microfinance company in the country, received a USD 25 million senior loan from ADB, making it the single-largest loan received by the company in the present financial year.

In addition to the loan transaction, ADB will also provide a technical assistance package to LOLC Micro Credit Limited and LOLC Finance PLC, comprising mobile banking support and the development of Environmental and Social Management Systems.

Over the years, these programs have played a vital role, supplementing funding assistance by providing LOLC with the training in the technology and procedures required to maintain their standing at the top level of the Sri Lankan finance industry.

"ADB is very pleased to partner with LOMC and LOLC Finance to provide long-term funding to micro-entrepreneurs and SMEs- critical segments of the Sri Lankan economy. The ADB loans build upon our relationship with the LOLC Group, which was initiated with a loan in 2007. It also complements other funding that ADB has done recently to support growth of the private financial sector in Sri Lanka. In addition to senior loans, ADB partnered with a consortium of leading Middle Eastern Banks to provide a B loan to LOLC Finance to meet their expanding needs," said Christine Engstrom, Director for Financial Institutions at ADB’s Private Sector Operations Department.

The Honourable Minster of Finance of the Government of Sri Lanka, Mr. Ravi Karunanayake, in his statement, said: “On behalf of the Government of Sri Lanka, I would like to thank the overseas partners in this landmark transaction for placing their confidence in the LOLC Group. This is a proud occasion not just for the LOLC Group but for the country as a whole. These loans will greatly assist the macroeconomic environment, thereby restoring the confidence, stability and growth required as Sri Lanka is entering a new chapter in its economic development and we are optimistic that more investor interest of this magnitude will further fuel the nation’s progress. I would like to commend LOLC for tirelessly assisting in the development of the SME and Micro Segment activities, and for its success in securing this funding. The most efficient economic policies cannot completely eradicate uncertainties that a country faces, as borrowings from domestic and international markets are a necessity for economic progress. The government is making a strong effort to bridge the financial deficit and drive public finances on a sustainable path, and FMO, ADB and its consortium of partners need to be recognized for the great role they play in transforming the nation’s future.”

Commemorating this landmark syndication, the Group Managing Director of LOLC Group, Mr. Kapila Jayawardena said, “We are pleased to be the recipients of near a quarter billion dollars by renowned Development Financial Institutions (DFIs) around the world. The group has one if not the largest array of international funding partners. These institutions consider LOLC Group as their preferred conduit in achieving their development and commercial goals. Over the years these partnerships have expanded and strengthened and contribution extends beyond funding. Our foreign partners have offered us invaluable assistance ranging from capacity building to exposure to global standards over the years, which has enabled us to achieve operational excellence offering the competitive edge. With such a strong platform as the long-lasting relationships we have created with the funders, I hope to see our Group harness our strengths and further promote our vision, especially in the micro and SME sector; inclusive, sustainable growth and flourishing prosperity for all Sri Lankans”.

LOLC Group Managing Director Mr. Kapila Jayawardena addressing the gathering

The Governor of the Central Bank of Sri Lanka, Mr. Arjuna Mahendran addressing the gathering

Minister of Finance Mr. Ravi Karunanayake speaking at the official signing ceremony of the largest Syndicated Loan for Sri Lanka’s NBFI Sector

Al-Falaah, recently moved to its very own Corporate Office premises.Strategically located at No. 481, T.B. Jayah Mawatha (Darley Road), Colombo 10 , Al-Falaah is now better equipped than ever before to offer its clientele a wide range of competitive and innovative Islamic Financial Solutions.

LOLC Group Managing Director/CEO, Mr. Kapila Jayawardena declared open the new Al-Falaah Corporate Office in Darley Road. General Manager of Al-Falaah Islamic Business Unit Mr. Krishan Thilakaratne, Director/CEO of LOLC Finance PLC, Mr. Ashan Nissanka, Assistant General Manager of Al-Falaah Islamic Business Unit, Mr. Shiraz Refai and members of the senior management of the LOLC Group were amongst the distinguished guests gathered at the opening ceremony. 

Addressing the gathering, LOLC Group Managing Director/CEO, Mr. Kapila Jayawardena said, “It gives me great pleasure to witness Al-Falaah expanding its footprint further by moving into its very own premises. Looking back at Al-Falaah’s vibrant track record and its rising influence as one of the leading Islamic Finance entities of the country, I am confident that the company will use this as an impetus to become even stronger.”

Speaking at this momentous event, General Manager of Al-Falaah Islamic Business Unit, Mr. Krishan Thilakaratne said, “Financial services offered by Al-Falaah are geared towards providing our customers better returns on their investments and more flexibility backed by stringent compliance with Islamic Finance principles. With the opening of this modern and dedicated Al-Falaah Corporate Office in Darley Road, our customers will get the opportunity to experience better and more personalised Islamic Financial services, as well as to invest further in their business aspirations.”

Mr. Shiraz Refai, Assistant General Manager of Al-Falaah made mention that Al-Falaah is closely monitored and guided by an in-house Shari’ah Supervisory Board (SSB) to ensure that it is at all times and in every way compliant with the rules, principles and values of Islamic Financing. Explaining further, he said that Al-Falaah also plays a pivotal role in the subsidiaries of the LOLC Group, which is renowned today as one of Sri Lanka’s largest conglomerates that also look into potential Islamic business opportunities within the synergies of the group. The key differentiator of Al-Falaah is its innovative and customised product portfolios which addresses both business and socio-economic requirements of the diverse market segments, whilst meeting the specialized needs of individuals. Al-Falaah’s product portfolio offers a superior range of Islamic Financial Solutions in areas of Profit Sharing investment & Savings Accounts, Leasing, Trade Financing, Import Financing, Property & Project Financing and Working Capital financing. Customers can conveniently access these products and services via dedicated windows within LOFC’s extensive network of over 100 branches & service centres island wide, including 5 stand-alone Al-Falaah centres across the country. All financial activities of Al-Falaah are supervised by a dedicated, Independent SSB chaired by a mix of industry leading local and international scholars.

Al-Falaah, established in 2007 functions directly under the auspices of LOLC Finance PLC, which is one of Sri Lanka’s largest non-banking financial institutions. LOLC Finance which is a regulated Finance Company of the Central Bank is rated [SL] A with stable outlook by ICRA Lanka Limited, a wholly owned subsidiary of ICRA Ltd - an associate of Moody’s Investors Service.

Al-Falaah, was recognised on a global platform when it won 02 top awards at the Redmoney’s Annual Global Awards - Islamic Finance News (IFN) Best Banks Poll 2014. Al-Falaah was adjudged Runners-Up in the category of “Best Islamic Bank by Country - Indian Sub-Continent – Sri Lanka” and was also ranked 3rd place in the “Best Islamic Leasing Provider” category, becoming the only Sri Lankan financial institution to win a metal in the Best Islamic Leasing provider category for the region.

On home soil, Al-Falaah, clinched the top Gold award for being adjudged the ‘Islamic Finance Entity of the Year 2014’at the 4th Sri Lanka Islamic Banking & Finance Industry (SLIBFI) Awards night. The entity also emerged at the top for the ‘Social Up liftment Award (CSR)’ category by winning Gold and a further recognition with a Silver award in the category for the ‘Rising Islamic Personality of the Year 2014’

The newly opened Al-Falaah Corporate Office Premises at Darley Road

The newly opened Al-Falaah Corporate Office Premises at Darley Road

LOLC Group Managing Director/CEO, Mr. Kapila Jayawardena addressing the gathering. Also in the picture are (L-R) Mr. Isaac Devshanker DGM Metro Region LOLC, Mr. Shiraz Refai Assistant General Manager of Al-Falaah, Mr. Ashan Nissanka Director/CEO of LOLC Finance PLC and Mr. Krishan Thilakaratne General Manager of Al-Falaah.

The Al-Falaah Corporate Office Premises

A few staff members of the Al-Falaah team at the Corporate Office

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December 10th, 2015 -LOLC Micro Credit Ltd. (LOMC), one of the largest and leading microfinance companies in Sri Lanka and subsidiary of the LOLC Group, held its 6th annual “Isuru Diriya Sisu Upahara” felicitation ceremony for Grade 5 scholarship students at a grand ceremony held at the BMICH Colombo. The Isuru Diriya Sisu Upahara programme is held annually to felicitate children of LOMC customers who scored top marks at the national Grade 5 scholarship examinations. 

A total of 618 students were felicitated under this program for this year, out of which 269 students were provided with scholarships and gifts at the official ceremony held at the BMICH. A further 349 students residing in far rural areas received their gifts personally from LOMC officials. Each child received a gift pack worth Rs. 15,000/-as well as a savings account with a deposit of Rs. 1000/-.

LOLC Group Chairman Mr. Rajah Nanayakkara graced the ceremony as the Chief Guest. Also in attendance were, LOLC Deputy Chairman, Mr. IsharaNanayakkara, Group Managing Director/CEO, Mr. Kapila Jayawardena, Mrs. Kalsha Amarasinghe Executive Director of LOLC, Director/Chief Executive Officer LOMC, Mr. Ravi Tissera and Chief Operating Officer, Mr. Rohana Kumara. Senior management members of LOLC, staff members, parents of students and well-wishers were also present.

Grade 5 scholarship students Gavesha Kumudesh from Matugama, Yasodh Ranasingha from Elpitiya and Akashi Hettiarachchi from Divulapitiya obtained the highest scores of 187, 186 and 185 respectively.

Mr. Ravi Tissera, Director/CEO of LOLC Micro Credit Ltd said, “I remember, at our very first Isuru Diriya programme we felicitated only 40 children.  Today, I am happy to say that over a period of 6 consecutive years, LOMC has felicitated exceptional educational achievements of over 1800 students from diverse communities across the country. LOMC has supported and partnered farmers and local entrepreneurs since inception, paving the way for their livelihood development. The Isuru Diriya Sisu Upahara programme fortifies that endeavor by supporting and providing educational assistance to communities in need”.

Also commenting, Mr. Rohana Kumara, COO of LOLC Micro Credit Ltd said, “LOMC drives forward not purely on a business agenda but with a deep responsibility and consciousness towards the wellbeing of especially the citizens residing in the rural areas of Sri Lanka. Isuru Diriya Sisu Upahara is not merely a CSR Project. Our vision is to provide opportunities for children from grass root communities to further their education, bringing about a meaningful, long term change in the socioeconomic landscape in some of the most remote areas of this country”.

Inaugurated in 2009, LOLC Micro Credit, with the financial strength of renowned overseas Development Finance Institutes and the support of the LOLC Group, rose among Sri Lankan corporates as one of the leading microfinance solutions providers dedicated towards uplifting the low income segment of the country. The Company has also been the first and only Sri Lankan microfinance institute to be awarded with the certification for Client Protection Principle. With a disbursement portfolio of Rs. 34 Billion and a growing borrower base of more than 300,000, the Company has gained success and recognition both at home and overseas.

LOLC Group Deputy Chairman, Mr. Ishara Nanayakkara presenting a gift to a Grade 5 scholarship top scorer. Also in the picture are LOLC Group Chairman Mr. Rajah Nanayakkara, Group Managing Director/CEO, Mr. Kapila Jayawardena and Mrs. Kalsha Amarasinghe, Executive Director of LOLC

Mr. Ravi Tissera, Director/CEO of LOLC Micro Credit Limited addressing the audience

Students who scored top marks at the national Grade 5 scholarship examination participating at the event

Improvements in profitability, asset quality, ROA and track record major contributors for upgrade

ICRA Lanka Limited, a Group Company of Moody’s Investor Services has upgraded the credit rating of LOLC (Lanka ORIX Leasing Company PLC) and its financial services subsidiaries LOLC Finance PLC (LOFC) and Commercial Leasing & Finance PLC (CLC) to [SL] A with stable outlook from [SL] A- with stable outlook.

“The ratings continue to factor LOLC Group’s long track record in the retail finance sector, its leadership position in the Sri Lankan retail finance market, professional and experienced management team and adequate risk management systems with strong retail franchise.”

"ICRA Lanka’s assessment to revise the ratings follows the improvement in the asset quality and profitability indicators of LOLC over the last 12-18 months. The group GNPAs improved to 2.8% as in March 2015 as compared to 4.9% in March 2014 and the consolidated Return on Assets (RoA) improved to 3.1% for FYE2015 as compared to 1.9% in FYE2014."

Along with the upgrade of the credit rating of the company, ICRA Lanka has upgraded the credit rating of the LKR 5,000 Mn Long Term Senior Unsecured Redeemable Debenture program and LKR 750 Mn Long Term Unsecured Redeemable Debenture program to [SL]A (pronounced SL A) with stable outlook from [SL]A- (pronounced SL A minus) with stable outlook.

The Group Managing Director, Mr. Kapila Jayawardena stated that the upgrade of LOLC’s credit rating reflects the trust and confidence placed on the group by the public as a premier financial services provider in the country. With a wide array of product offerings ranging from microfinance, leasing working capital finance and Islamic finance the LOLC Group is in the forefront of providing access to finance. LOLC Finance PLC has the largest deposit base among non-bank financial institutions and LOFC and Commercial Leasing and Finance uses cutting edge technological innovation to enhance customer experience being the only non-bank financial institutions allowing real time digital fund transferring using CEFTS. Further, both LOFC and CLC provides internet and mobile digital financial facilities on SLIPS (Sri Lanka Interbank Payment System) and CEFTS.The Group provides general insurance including motor, marine, fire & engineering and casualty as well as life insurance.

The upgrade of the credit rating of LOLC Finance PLC continues to factor the company’s robust franchise, healthy competitive position given its superior market share and its professional and experienced management team. ICRA Lanka has taken note of the improvements in LOFC’s Asset-Liability Maturity (ALM) profile in terms of moderation in shorter term ALM gaps and improvement in the overall profitability levels.

Further, ICRA has taken into consideration the improved capital adequacy position of LOFC. Core Capital which stood at 13.08% as in Mar-14 has improved to 13.11% as in Mar-15, recording an improvement mainly due to healthy accretion to reserves and total Capital which stood at 13.08% as on Mar-14 has increased to 18.12%, following the subordinated debentures issued by the company during the period.

Along with the upgrade of the credit rating of LOFC, ICRA Lanka has upgraded the credit rating of the LKR 5,000 Mn Listed Subordinated Unsecured Redeemable Debentures to [SL]A- (pronounced SL A minus) with stable outlook from [SL]BBB+ (pronounced SL triple B plus) with stable outlook.

The upgrade of the credit rating of Commercial Leasing & Finance PLC factors the demonstrated track record of operating profitably in the retail finance segment, its well established franchise combined with a professional and experienced management team, improvement in profitability indicators, comfortable liquidity and its adequate capitalization levels.

Along with the upgrade of the credit rating of CLC, ICRA Lanka has upgraded the credit rating of the LKR 5,000 Mn Listed Senior Unsecured Redeemable Debentures to [SL]A (pronounced SL A) with stable outlook from [SL]A- (pronounced SL A minus) with stable outlook.

Group Managing Director / Chief Executive Officer of LOLC, Mr. Kapila Jayawardena

BRAC Lanka Finance PLC, LOLC Group’s newest addition to its micro-financing sector recently opened its first regional office at E.M.W. Jayasooriya Mawatha, Nupe, Matara.  BRAC’s first regional office is equipped with modern service facilities and is driven by a team of highly experienced and dedicated personnel.

Last year, Commercial Leasing Company PLC, a group company of LOLC acquired BRAC Lanka Finance. Catering to the lowest end of the Micro lending segment in the country, BRAC is renowned as Sri Lanka’s only micro finance company with the highest level of female participation.  BRAC’s total client base of 160,000 comprises entirely of female borrowers whilst 93% of its staff members are female. Furthermore, the field operations are completely handled by BRAC’s female staff. Through a large network of service centres scattered throughout many rural areas of the island, BRAC steers ahead with its primary objective of empowering women .The company focuses on lending exclusively to women entrepreneurs who are engaged in self-employment, manufacturing, trade and service providing.

Speaking at the opening ceremony of BRAC’s first regional office in Matara, Mr. Kapila Jayawardena, Group Managing Director and CEO who participated as the Chief Guest said, “BRAC has the potential to further enrich the group’s microfinance vision through its unique business model by penetrating more into the business activities of female entrepreneurs in the bottom layer of the pyramid across the country”.

Sharing his thoughts, Deputy CEO of BRAC Lanka Finance PLC, Mr. Rohana Kumara said, “This is just the beginning of our expansion plans. In addition to expanding our footprint, we hope to introduce a new IT system which will enable us to expand our product portfolioto our female borrowers. Currently we offer group loans and leasing facilities, but in the very near future we hope to provide urban micro financing loans, individual loans, development loans as well as home improvement loans”.

Mr. Ashan Nissanka, Chief Executive Branch Network of the LOLC Group, other Senior Management members and staff members of LOLC and BRAC, as well as customers were present during the ceremonial activities that took place at the Matara regional office opening. Central Bank Regional Manager of the Matara Regional Office, Mr. Upali Hettiarachchi also attended the ceremonial opening.

Driven by a unique and sustainable business model, BRAC intends to offer its clientele a range of other meaningful, value added services such as training and knowledge enhancement sessions, literacy improvement workshops and marketing and sales training and basic knowledge in book keeping. Together with its sister company LOLC Insurance; BRAC also plans to introduce a micro insurance scheme to mitigate the risks faced by its borrowers.

Backed by LOLC’s extensive experience in the micro credit business and with the support of international agencies, BRAC hopes to introduce industry best practices to reinforce its unique business model and there by ensure the sustainable improvement of the less privileged rural communities it caters to. 

Chief Guest Mr. Kapila Jayawardena being welcomed by the BRAC staff of the Matara Regional Office

Mr. Ashan Nissanka, Chief Executive, Branch Network, lights the traditional oil lamp whilst Mr. Kapila Jayawardena and Mr. Rohana Kumara looks on.

Mr. Kapila Jayawardena handing over an initial group loan facility to a BRAC Customer

One of the initial transactions

Taking yet another important stride towards enabling faster and reliable real-time electronic payment, LOLC Finance PLC is now connected to the Common Electronic Fund Transfer Switch (CEFTS), creating a superior level of convenience to its customers. LOLC Finance becomes one of the first Non-Banking Financial Institutions to register with this system.

CEFTS is a cost effective, convenient, integrated electronic payment gateway operated by LankaClear (Pvt) Ltd with the guidance of the Central Bank of Sri Lanka. The system facilitates secure real-time payments, offers standardised security and provides greater efficiency in payment scheme integration.

LOLC Finance customers can now transfer funds between the CEFTS member banks such as Bank of Ceylon, People’s Bank, Commercial Bank, Hatton National Bank as well as Commercial Leasing Company PLC, a company within the LOLC group. Through this payment system, LOLC Finance customers can save time and benefit from the effective management of their finances.

Customers can simply register with the Online Banking Service of LOLaC Finance and avail the benefits of this payment gateway that offers maximum banking convenience. Savings Account holders of LOLC Finance can execute cashless and paperless transactions with just a click of a button. The maximum value of a transaction is Rs. 5 million with no limitation of the number of transactions per day. The seamless electronic payment system can be used for fund transfers and settlement of bills and utility payments.

Sharing his thoughts on this latest initiative, LOLC Finance, Managing Director/Chief Executive Officer, Brindley de Zylva said, “Welcome to the world of digital money - CEFTS has changed the concept of Banking. This initiative will add significant value for us especially in terms of introducing new products and services. With this latest technological initiative, LOLC Finance is now equipped more than ever before to offer our customers an unparalleled level of service and banking convenience.”

Managing Director/Chief Executive Officer, LOLC Finance, Mr. Brindley de Zylva.

Lanka ORIX Leasing Company (LOLC) has leaped a significant 5 notches to reach the top ten in the latest edition of LMD’s Most Respected entities in Sri Lanka. LOLC is recognised by the magazine as one of the ‘movers and shakers’ in the 2015 list.

Commissioned and conceptualised by LMD, and conducted by a leading Research Company, AC Nielsen, the ranking of the 11 most respected entities was based on the views of 800 business leaders such as chairpersons, managing directors and CEOs.  This year’s edition of the Most Respected bears testimony to the can-do corporate spirit. The final rankings were compiled, taking into account key factors such as professional management, good financial performance, size of the organisation, innovative nature, diversification, social responsibility, service standards and contribution to developing the national economy.

The magazine reports that LOLC was highly regarded among the Most Respected entities for its financial performance. It reiterates that the group’s revenue exceeded Rs. 45 billion in the 2014/15 financial year while profit after tax more than doubled – to register Rs. 6.3 billion. LOLC also acquired a 60% stake in a Cambodian microfinance entity – Thaneakea Phum Cambodia (TPC) for US$ 20.3 million. It has also invested in two properties in the Maldives, to expand its leisure footprint. The conglomerate made a notable entry to the top 10 for the first time this year, when some multinational companies lost their footing, falling drastically in the list.

Sixty-eight listed companies make the cut in the 2015 edition of the Most Respected, followed by 47 private entities, 22 multinationals and 11 state-owned enterprises. As for sector preferences, conglomerates, food and beverage entities, and the banking sector continued to be the most favoured, with nearly a quarter of the Most Respected organisations in the island coming from within the ranks of diversified businesses.

The special annual edition notes that investors, financiers and consumers across the world are making greater demands from corporates to adopt responsible and ethical business practices. “Honesty, after all, is a key measure of respect”, states the Most Respected edition which has keenly analysed transparency, commitment to ethics, honesty, mutual trust and equality in its evaluation process. “Integrity and internal honesty are key indicators of an ethically managed company. Smart marketing, alone, will not deliver corporate respect. Therefore, corporates that are better attuned to uplifting ethics and values will outperform others in the longer term”, underscored the magazine.

In an exclusive interview with LMD’s Most Respected entities Edition, Group Managing Director / Chief Executive Officer of LOLC, Mr. Kapila Jayawardena noted that honesty and ethics take on even more weight for financial services entities. “Respect has to be earned; it can’t be bought. Companies wishing to be successful have to work hard to prove themselves to their stakeholders and their peer groups; shortcuts won’t do”, he added.

From a leading financial services provider, to the largest non-banking financial institution, LOLC is today one of the largest and most diversified conglomerates in Sri Lanka. Its portfolio is broadly categorised as financial services and non-financial services encompassing leisure, plantations, agri-inputs, renewable energy, construction as well as manufacturing and trading.  Backed by the two overseas investments in Cambodia and Myanmar, LOLC plans to expand its international presence and actively pursue new opportunities in the region.

Group Managing Director / Chief Executive Officer of LOLC, Mr. Kapila Jayawardena

“Al-Falaah Takaful” the Motor Takaful window operated by LOLC Insurance Company Limited celebrated a successful and promising first year in the fast expanding Takaful Industry.  

Backed by the strength and stability of the LOLC Group and an island wide footprint of Service Outlets, Al-Falaah Takaful has made headway in the industry in just one year by building a customer base touching 5000, and Gross Written contribution exceeding Rs. 125 Million in Motor Takaful alone. The significance of Al-Falaah Takaful is that all features of this product is stringently supervised by a dedicated Shari’ah Supervisory Board (SSB) and an in-house advisor to ensure that all product features and processes adhere to set standards and principles. In addition, an efficient service is ensured by a dedicated and experienced team of customer service personnel operating through a wide network of branches.

Al-Falaah Takaful is offered with a host of added benefits which include, a free cover for replacement of air bags, free towing facility within the greater Colombo area, 3^rd party property damage cover up to Rs. 500,000 for commercial vehicles (unlimited for private cars), optional settlement process in the event of a claim, 24 hour customer care hotline, efficient and hassle free handling of claims through an island-wide network of garages and assessor panels, and most importantly, sharing of surplus by way of distributing the excess funds in the participant fund amongst the customers who have not claimed.   

Commenting, CEO of LOLC Insurance, Mr. Gehan Rajapakse said, “We are indeed heartened by the performance of the Al-Falaah Takaful product within a period of just one year. Moving forward, we hope to expand our offerings to customers and provide unmatched benefits to policy holders.”

Explaining further, Mr. Nadheer Siddeeq, Manager, Al-Falaah Takaful said, “Al-Falaah Takaful, provides customers an exclusively designed and hassle free motor insurance service. Whether customers purchase the vehicle though LOLC or not, Al-Falaah Takaful will guarantee that every aspect of safeguarding their vehicle is well thought of on behalf of them”.

Also sharing views, Mr. Shiraz Refai, Assistant General Manager of Al-Falaah Islamic Business Unit of Lanka ORIX Finance PLC said, “We continuously strive to offer innovative financial solutions to our valued customers. In our efforts to provide complete financial solutions under one roof, we signed up with Al-Falaah Takaful to cater to the Insurance demands of our customers last year. We believe that this initiative has provided more convenience and flexibilities to our customers. We look forward to more variants of Takaful options, so that we could make available same in future for our valued customers”.

All Al-Falaah financial products are designed in accordance with Shari’ah principles of profit sharing and regulated by the Central Bank of Sri Lanka. Lanka ORIX Finance PLC is rated [SL] A- by ICRA Lanka Ltd and is licensed by the Monetary Board of the Central Bank of Sri Lanka under the Finance Business Act No. 42 of 2011, and the Insurance Board of Sri Lanka for respective product offering.

LOLC Insurance Co. Ltd., launched in 2011 is a fully owned subsidiary of the LOLC Group offering a range of insurance products and services under Life and General Segments spanning from Life, Motor, Fire, Marine to Travel, among others. In a short span of four years, the Company has risen amongst the top leagues of the insurance industry, notably strengthening its presence as one of the largest motor insurance providers in Sri Lanka. LOLC Insurance is licensed by the Insurance Board of Sri Lanka and is poised to become the largest total insurance solutions provider in the country, in the near future. 

CEO of LOLC Insurance, Mr. Gehan Rajapakse

Mr. Nadheer Siddeeq, Manager, Al-Falaah Takaful

Due to the increased demand for its services, Lanka ORIX Finance PLC (LOFC) moved its existing branch in Ambalangoda to a new and spacious location at No. 50/1, New Road, Ambalangoda. Strategically relocated to a more conveniently accessible location, the branch now offers modern facilities and increased staff strength, to serve its customers swiftly and efficiently.

Ambalangoda, the vibrant coastal town located in the Galle District, is a fast growing tourist site renowned mostly for the manufacture of wooden masks and puppets. Having recognized the great potential of Ambalangoda, LOFC continues to play a vital role in further developing the business community of this area.

The newly relocated LOFC branch offers a diverse range of innovative financial solutions including Savings, Leasing, Auto Finance, Factoring, Islamic Financial Services, Foreign Currency Savings, Speed Draft as well as Flex Loans.

The branch was ceremonially declared opened by LOLC Group Director Mrs. Kalsha Amarasinghe together with other Senior Management members, regional heads, staff members, customers and well-wishers.

Since its entry into Ambalangoda five years ago, LOFC has been able to build a significant customer base by supporting the varied financial requirements of the region. Currently, LOFC has over 141 service points to service its increasing customer base across the island.

Mrs. Kalsha Amarasinghe - Executive Director of LOLC Group cutting the ribbon.

LOLC Securities Limited (LOSEC), the stock broking company of the LOLC Group was honoured with both Gold and Silver awards for the Best Equity Research report 2014/15 at the Capital Market Awards & Forecast Dinner organised by CFA Society Sri Lanka. This year, the CFA Capital Market Awards, which is the flagship event of the CFA Society Sri Lanka recognised and honoured the efforts of Capital Market participants for establishing industry benchmarks, spearheading governance and ethics to advance domestic financial markets. 

Shehan Bartholomeuz of LOLC Securities won the Gold Award for The Best Equity Research Report for the research conducted on Central Finance PLC, while the Silver Award was also won by LOLC Securities’ Damith Wasantha for his report on Access Engineering. The Best Equity Research Report which is the key award was evaluated by a panel of eminent industry experts in equity markets covering financial analysis, valuation, industry overview and competitive landscape, company overview, value drivers and share dynamics and investment risks and recommendations.

 The CFA Capital Market Awards is the most exclusive award ceremony stock brokerages and other capital market stakeholders look forward to each year, as recognition from CFA is considered as the gold standard in the global investment industry. Initiated in 2013, the annual CFA Capital Market Awards were made in three categories; Best Equity Research Report, Best Investor Relations and the Best Stockbroker Research Team.

Commenting about the dual wins, Mr. Kapila Jayawardena, Chairman of LOLC Securities Limited and the Group Managing Director/CEO of LOLC said, “The significant performance in the award show is a testament to the quality of the independent research work carried out by the research team of LOLC Securities Limited. It also reflects the fact that their work is well recognised by the industry and is on par with global standards”.

 Also sharing his views, Mr. Sriyan Gurusinghe, Managing Director/Chief Executive Officer of LOLC Securities Limited said, “We are extremely pleased with the results and take humble pride for being recognized the best in the industry in terms of equity reporting. I thank our staff for their dedicated service and the Directors for their steadfast trust. I take this opportunity to also ensure that LOLC Securities Limited will continue to uphold the standards and set new benchmarks”.

 Established in 2011, and now a fully owned subsidiary of the LOLC Group, LOLC Securities has been built for excellence in all its dimensions, keeping in mind the assurance sought by discerning investors. The company has devised a new operational model centered on the investors’ portfolio management strategy to ensure that LOSEC’s investment advice is backed strongly by an in-house advanced research team of highly qualified analysts. The market reports compiled by LOLC Securities are detailed and analytical and offer valuable insights into market and economic trends and statistics.

From left to right: IBM World Trade Corporation CEO, Ms.Rachini Rajapaksa, CFA Sri Lanka President, Mr. Sanjay Kulatunga, Head of Research LOLC Securities Limited, Mr. Shehan Bartholomeuz and Chairman CSE, Mr. Vajira Kulatilake.

Premier financial services provider, Lanka ORIX Finance PLC (LOFC), opened its latest branch in Kaduwela recently. The new branch is located at No. 475/1, Main Street, Kaduwela. With this latest addition, LOFC’s island wide branch and service center network has now expanded to 141.

Lanka ORIX Finance PLC entered Kaduwela offering its wide array of financial services at a time when the area is fast becoming a landmark commercial hub.The city of Kaduwela, historically known for its strategic location is a bustling city home to many entrepreneurs and businessmen.

The new LOFC branch with modern facilities is located in the heart of Kaduwela, offering the complete gamut of financial services and solutions including Savings and Deposits, Leasing and Auto Finance, Factoring, Islamic Financial Services, Insurance, Foreign Currency Savings, Speed Draft and Flex Loans.

LOFC’s newest branch was ceremoniously declared open by Mrs. Rohini Nanayakkara, Chairperson of the LOLC Group.Managing Director/CEO of Lanka ORIX Finance PLC Mr. Brindley de Zylva, Chief Executive Branch Network, Mr. Ashan Nissanka, and DGM LOLC Metropolitan Branch Network Mr. Isaac Devshanker, were also present along with other Senior Management members, regional heads, staff members, customers and well-wishers.

Commenting, Mrs. Rohini Nanayakkara said, “LOFC’s branch network with over 140 touch points caters to the diverse requirements of Sri Lankan customers in rural as well as urban settings and it is encouraging to see LOFC partnering in their financial empowerment. I am confident that Lanka ORIX Finance will help boost the economic development of the Kaduwela region by catering to the fast expanding financial requirements of this vibrant metropolis.”

The Chairperson of the LOLC Group, Mrs. Rohini Nanayakkara addressing the customers and staff members of the branch.

The Chairperson receiving the branch’s first deposit

Mr. Brindley de Zylva, Managing Director/CEO of Lanka ORIX Finance PLC and Chief Executive Branch Network, Mr. Ashan Nissanka along with the Chairperson.

The Staff Members of the Kaduwela Branch with the Senior Management

LOLC Insurance Company Ltd, one of Sri Lanka’s fastest growing Companies in the life and general insurance sectors, felicitated top rung sales performers of their life and general insurance sales force at a gala awards ceremony held at the Water’s Edge recently.

The 2nd Consecutive Sales Convention and Awards Night of LOLC Insurance was attended by Mr. Ishara Nanayakkara, Deputy Chairman of LOLC Group, Mr. Kapila Jayawardena, Chairman of LOLC Insurance and Group Managing Director/CEO of LOLC, Mrs. Kalsha Amarasinghe, Executive Director of LOLC and Director LOLC Insurance Mr. Swaminadan. Also present were Mr. Ashan Nissanka, Chief Executive – Branch Network, Mr. Gehan Rajapakse, Chief Executive Officer of LOLC Insurance and Ms. Dharini Fernando, Chief Operating Officer of Insurance and other Senior Management members and staff of both LOLC and LOLC Insurance.

Addressing the gathering, Mr. Kapila Jayawardena said, “The sales staff is the backbone of our company and I am extremely proud of their exceptional performance and accomplishments during the year. In this highly competitive industry, the talent, the fierce drive and commitment of our people has been the cornerstone of our success in the Life and General segments.”

The awards night saw more than 175 top sales personnel comprising of Financial Planners, Team Leaders, Sales Executives and Zonal Managers being awarded for their outstanding sales performance. Top performers in the “Best Financial Planner”, “Best Team Leader”, “Best Sales Executive” and “Best Zonal Manager”, categories were awarded with Bronze, Silver, Gold and Platinum awards based on their individual performances, team achievements and branch achievements respectively. The crowning moment of the night was when the best of the best in the same categories were singled out and honored with Winner, 1st Runner up and 2nd Runner up awards.

LOLC Insurance, established in 2010 is backed by a team of experienced and dynamic insurance professionals who are capable of effectively handling and managing risks in the spheres of life and general insurance.

Speaking at the awards night, Mr. Ashan Nissanka said, “In such a short span of time, we have been able to fortify our sales force in the life insurance segment with over 800 well-trained sales personnel who are geared to deliver a superior level of service with attention to detail.”

Also sharing his views Mr. Gehan Rajapakse said “I congratulate the achievers for their topnotch performance and encourage other sales staff members to follow suit. We launched the LOLC Insurance Sales Convention and Awards Night to raise the standards of our services by showcasing top class performance, and I must say it has been a great success.”

Mr. Ishara Nanayakkara and Mr. Kapila Jayawardena, lighting the traditional oil lamp together with Mrs. Kalsha Amarasinghe.

Best Team Leader Bancassurance Award, presented by LOLC Group Deputy Chairman, Mr. Ishara Nanayakkara and Group Managing Director/Chairman LOLC Insurance, Mr. Kapila Jayawardena.

Best Zonal Manager Award – Life Insurance Sector

Financial Planner Award – Life Insurance

LOLC Micro Credit Ltd (LOMC), the largest microfinance company in Sri Lanka and subsidiary of the LOLC Group, held its 4th annual “Pillars of our Success” best performer awards ceremony, to appreciate and recognise its star performers in sales and marketing. 

The event celebrated the exceptional annual performance of 46 sales and marketing personnel of LOMC. Top 10 best performers were selected from four categories including Branch wise highest sales executions, IsuruDiriya Centre (IDC) highest sales executions, group lending highest sales volume and highest number of contracts. Three awards were presented for the highest sales executions in the individual loans category.

 LOLC Group Deputy Chairman, Mr. Ishara Nanayakkara, Group Managing Director/CEO of the LOLC Group, Mr. Kapila Jayawardena and Mrs. Kalsha Amarasinghe - Executive Director, LOLC Group graced the awards with their presence as Chief Guests. Also present were, LOLC Micro Credit Director/Chief Executive Officer, Mr. Ravi Tissera and other senior management members of the LOLC Group.

Commenting Mr. Kapila Jayawardena said, “I am extremely proud of the LOLC Micro Credit Sales and Marketing staff, based right throughout the country. I commend LOMC for its exceptional performance and its effort towards enriching micro entrepreneurship throughout the country. Today, I must say that LOMC has become a pillar of success to the LOLC Group.”

Also, expressing his views, Mr. Ravi Tissera Director/CEO of LOLC Micro Credit Co. Ltd said, “The sales force of LOMC is one of the largest in Sri Lanka’s financial sector. I take this opportunity to congratulate the award winners for their excellent performance and encourage others to do the same and even better.”

Mr. Ravi Tissera addressing the gathering

Members of the sales and marketing staff of LOMC

Chief Guests Mr. Kapila Jayawardena and Mrs. Kalsha Amarasinghe in conversation.

Awards presented by LOLC Group Deputy Chairman, Mr. Ishara Nanayakkara and Group Managing Director Mr. Kapila Jayawardena

Mr. Ravi Tissera with the winners

The Small and Medium Enterprises Business Unit of Lanka ORIX Finance PLC (LOFC) recently felicitated 21 Business Introducers (BI’s) for their exceptional performance during the months of April and May, this year.

 The inaugural Business Introducer performance ceremony which was named ‘Avurudu Thilina’ recognisedand celebrated the exceptional performance of 21 Business Introducers from various regions of the country. A large number of Registered Business Introducers were evaluated on the business they generated towards LOLC Micro Credit Ltd. (LOMC) and Lanka ORIX Finance PLC (LOFC). Valuable prizes were presented to the 21 BI’s in recognition of their outstanding performances.

 Mr. Kapila Jayawardena, LOLC Group Managing Director/CEO graced the event as the Chief Guest. Speaking at the ceremony, Montini Warnakula, Head of the SME Business Unit said, “We take this opportunity to commend our BI’s for their dedication and enthusiasm and congratulate them on their exceptional achievements. We are also pleased to announce that from now on, we intend to review the performances of our Business Introducers on a quarterly basis”.

Left to Right: Mr. Solomon Jesudason, Chief Officer Marketing Operations LOLC, Mr. Isaac Devshanker, CEO LOLC Factors Ltd. & DGM Metro Region LOLC, Montini Warnakula, Head of SME Business UnitLOLC, Mr. Kapila Jayawardena, LOLC Group Managing Director, Mr. Ashan Nissanka, Chief Executive, Branch Network LOLC and Mr.Jayantha Kelegama, Chief Credit Officer, LOLC Group

Registered Business Introducers of LOMC & LOFC participating at the event

LOLC Group Managing Director/CEO Mr. Kapila Jayawardena, addressing the gathering

Mr. Kapila Jayawardena handing over the prizes

Mr.Monti Warnakula, Head of SME Business Unitpresenting a prize to a BI

With the promise of offering better facilities and a superior service to the residents of the heritage city, Kandy, Lanka ORIX Finance PLC (LOFC) relocated its Kandy branch to a new fully fledged building at No.245, Katugastota Road, Kandy.

LOFC Chairman and LOLC Group Managing Director/CEO, Mr. KapilaJayawardena together with the Deputy Chairman of the LOLC Group, Mr. Ishara Nanayakkara, senior management officials, staff members, customers and well-wishers, took part in auspicious activities and declared the new branch building open for business, at an official ceremony held recently.

Commenting on the relocation, Mr. Jayawardena said, “Kandy is our first ever branch office and today we are delighted to see it reopened in its very own premises. LOFC has grown tremendously in all aspects since opening its first branch. With this branch relocation, we are well poised and in a better position to utilize the maximum opportunities available mainly to develop the Micro and SME sectors of this region”. 

The new regional office in Kandy is set in a convenient location with a modern, spacious and unique interior. A multitude of financial solutions such as Savings and Deposits, Leasing and Auto Finance, Factoring, Insurance, Foreign Currency Savings, Speed Draft, Flex Loans together with other financial solutions aimed at fulfilling a diverse number of financial requirements are offered at this branch.

Deputy Chairman of the LOLC Group, Mr. Ishara Nanayakkara cutting the red ribbon together with LOFC Chairman and LOLC Group Managing Director/CEO, Mr. Kapila Jayawardena.

Lighting the traditional oil lamp

LOLC staff members, customers and well-wishers at the opening ceremony

LOLC Group records Rs. 8.1Bn as Profit Before Tax (PBT) for 2014/15 with LOLC’s financial services sector dominating the growth in profits compared with 2013/14 of Rs.4.4Bn. LOLC’s main financial services entities comprising of the flagship finance company, Lanka ORIX Finance PLC (LOFC), Commercial Leasing and Finance PLC (CLC) and LOLC Micro Credit Ltd (LOMC), led the financial services sector to PBT growth of 73%, an increase from Rs. 4.1Bn last year to Rs. 7.1Bn in the current year. The trading sector too contributed Rs. 577Mn in PBT, recording moderate growth over last year.

The financial services sector increased its interest income by 15% from higher revenues from top line growth, following aggressive growth in the lending portfolio. This growth is commendable given the declining interest rates in the market. The overall lending book expended by Rs. 48Bn taking the lending portfolio to Rs. 140Bn from Rs. 91Bn in 2013/14. The Group was geared for higher growth with growth in the lending book amidst reducing interest rates commensurate with even lower borrowing from both foreign funding partners and local banks further reducing borrowing costs, a 17% drop in absolute terms compared with last year. This drop is despite the overall growth in the borrowing book by Rs. 47Bn.

LOFC recorded Rs. 2.2 Bn as PBT for the current year, a 54% growth compared with Rs. 11.4Bn recorded in 2013/14. CLC grew its PBT signature by 34% ending the year with Rs. 1.7Bn PBT compared with Rs.1.3Bn recorded in the previous year. LOLC’s micro lending arm LOMC too saw an excellent year with PBT reaching Rs.1.6Bn, a 53% growth compared with last year. During the year, while progress was made on aggressive portfolio growth, focused efforts were also channeled into collection of dues, improving the cash position and the portfolio quality. Conservative provisions were made for bad and doubtful debts and these were well above the regulatory requirements, strengthening the portfolios for the years to come.

LOLC’s financial services sector becomes even stronger with PBT contribution from the two foreign investments in Cambodia in PRASAC and TPC, together adding Rs.1.8Bn to the bottom line and LOLC’s stake in Seylan Bank which derived a profit contribution of Rs.1.1Bn. LOLC owns 22.25% in PRASAC, the largest micro finance company in Cambodia. PRASAC grew its profits by 65% compared with the previous year. LOLC acquired the controlling stake of TPC, the fifth largest micro finance institution in Cambodia in 2014 and the company grew its profits by 59% during the year. LOLC’s green field lending operation in Myanmar has made promising progress with solid expansion in portfolio growth and is expected to breakeven in the near future.

The trading business of the Group led by Brown & Co. PLC (Browns) too made operational profits this year of Rs.520Mn compared with the operational loss recorded in the previous year of Rs.761Mn. Completion of the restructuring process at Browns together with implementation of strong business strategies has resulted in the company turning around to make operational profits.

Browns Investments PLC(BI) the company focusing on the future investments of the Group, made several investments during the year with a view of consolidating its long term business strategy of investments into sectors with strong growth potential in the longer term. The leisure sector which comes under BI, recorded losses of Rs. 560Mn as the Group continues with the expansion of the sector with several development projects nearing completion in the coming months/years. While The Eden Resort and Spa, Dikwella Resort and Spa and The Paradise Resort & Spa contributed to the turnover of the Group, The Calm Resort and Spa in Pasikuddah was commissioned for business and is about to receive its external guests in the coming weeks. The Samudra Beach Resort is nearing completion and the 363 key property in Beruwala, Riverina Resorts is progressing in line with the plans. The Group invested into two properties in Maldives, expanding its leisure sector footprint and these properties are to commence construction in the coming months.

During the financial year, BI acquired the balance 50% stake in Free Lanka Joint Venture Ltd, securing the 100% holding of the company which owns the plantation companies, Maturata Plantations and Pussellawa Plantations along with affiliate companies in the plantation sector. BI has commenced the restructuring process in these companies aligning them to the overall long term business and growth strategies of LOLC.

“Looking at the overall profit, growth and the business expansion, we are very happy with the results achieved in the year 2014/15 which is remarkable considering the challenging and turbulent business environment that prevailed throughout the year. Our financial services sector has performed exceptionally well while the other busisnesses are being geared up, aligning to the long term business strategy of the Group”, said Mr. Kapila Jayawardena, explaining the strong profit growth of the Group.

Al-Falaah, The Islamic Business Unit of Lanka ORIX Finance PLC (LOFC), clinched the top Gold award for being adjudged the ‘Islamic Finance Entity of the Year 2014’at the recently concluded 4th Sri Lanka Islamic Banking & Finance Industry (SLIBFI) Awards night.

Al-Falaah also emerged at the top for the ‘Social Upliftment Award (CSR)’ category by winning Gold. A further recognition with a Silver award in the category for the ‘Rising Islamic Personality of the Year 2014’ was awarded to Ilsam Awfer, a member of the Al-Falaah team. LOFC’s Islamic Business Unit was honoured with these prestigious awards following a stringent assessment process, judged by a panel of independent industry experts and adjudicated by KPMG Sri Lanka.

The SLIBFI Awards is Sri Lanka’s only annual award scheme that recognises institutions and individuals who have excelled in the country’s Islamic banking and finance industry. The award ceremony, organised by UtoEdu Consult, is closely contested by Sri Lanka’s leading Islamic banking and finance organisations. This year’s awards night was graced by Minister of Industry & Commerce, Rishad Bathiudeen.

The ‘Islamic Finance Entity of the Year Gold award was received by Mr. Krishan Thilakaratne, General Manager, Al-Falaah Islamic Business Unit of LOFC. Speaking at the awards ceremony, Mr. Thilakaratne said, “Over the years, Al-Falaah has been working tirelessly to become the most trusted and reliable Islamic financial service provider in Sri Lanka, offering a superior range of Shari’ah compliant financial solutions. We have been knocking on the door for some time; today we have achieved that top slot, and there is no better timing than this”. Mr. Thilakaratne also thanked the Shari’ah Supervisory Board and LOLC’s Board of Directors for their steadfast trust and commitment.

Receiving the Social Upliftment Gold Award, Mr. Shiraz Refai, Assistant General Manager, AlFalaah Islamic Business Unit of LOFC said, “This award is a reminder for us of the blessings best owed by the Almighty and also will be a constant reminder to continue with the little we have been privileged enough to do, to extend a helping hand to the needy, poverty alleviation, assisting people to do business by giving them a startup and contributing for education and health related needs of under-privileged individuals of all communities. We hope to continue in our efforts, to make a change in the society we live in, not limiting to a specific community but serve the Nation at large”.

The Al-Falaah team was also represented by Mr. Brindley de Zylva, Managing Director/CEO of Lanka ORIX Finance PLC and Mr. Ashan Nissanka, Chief Executive of LOLC Branch Network.

Al-Falaah, established in 2007 functions directly under the auspices of Lanka ORIX Finance PLC, which is one of Sri Lanka’s largest non-banking financial institutions. LOFC which is a regulated Finance Company of the Central Bank is rated [SL] A- with stableoutlook by ICRA Lanka Limited, a wholly owned subsidiary of ICRA Ltd - an associate of Moody’s Investors Service. Al-Falaah is closely monitored and guided by an in-house Shari’ah Supervisory Board to ensure that the IBU is at all times and in every way compliant with the rules, principals and values of Islamic financing. Al-Falaah is also the Islamic business unit of the LOLC Group, which is renowned today as one of Sri Lanka’s largest conglomerates that also look into potential Islamic business opportunities within the synergies of the group.

Al-Falaah, was recognisedon a global platform when it recently won 02 top awards at the Redmoney’s Annual Global Awards - Islamic Finance News (IFN) Best Banks Poll 2014. Al-Falaah was adjudged Runners-Up in the category of “Best Islamic Bank by Country - Indian Sub-Continent – Sri Lanka” and was also ranked 3rd place in the “Best Islamic Leasing Provider” category, becoming the only Sri Lankan financial institution to win a metal in the Best Islamic Leasing provider category for the region.

Mr. Krishan Thilakaratne, General Manager, Al-Falaah, receiving the Islamic Finance Entity of the Year award from ReyazMihular, Managing Partner of KPMG Sri Lanka.

The Social Upliftment Award, received by Mr. Shiraz Refai, Assistant General Manager, Al-Falaah from Suresh Perera (Director/Principal of the Tax and Regulatory Division, KPMG Sri Lanka)

Ilsam Awfer, receiving the Rising Islamic Personality of the Year Silver award.

The jubilant Al-Falaah team

Staff members of the LOLC Group and their families celebrated the traditional Sinhala and Tamil New Year festival recently at the head office premises in Rajagiriya.

LOLC Group Managing Director, Mr. Kapila Jayawardena graced the occasion. The day’s events started with the lighting of the traditional oil lamp, after which the staff was invited to the traditional Avurudu table.

Members of the staff also took part in many exciting games and prizes were distributed among the winners.

LOLC Avurudu celebrations at the Head Office premises

Mr. Kapila Jayawardena, LOLC Group Managing Director lighting the traditional oil lamp.

Mr. Kapila Jayawardena greeting the staff.

Staff members enjoying the event.

Traditional activities and games.

Lighting of the hearth.

LOLC Motors Limited (LOMO), a subsidiary of the LOLC Group, is proud to announce that it has achieved the ISO/9001:2008 certification for its top-notch, vehicle repairing and maintenance services of automobiles.

LOLC Motors Ltd., one of the largest automotive workshops in Colombo, owns a state-of-the-art automotive workshop with a floor space of 5,600 sq. metres which is equipped to handle more than 100 vehicles at any given time. This modern, eco-friendly facility can handle mechanical repairs, preventive maintenance, lubrication service, quick lube service, collision repairs, paint refinishing or touch-ups, wheel-alignment, wheel-balancing unit repairs and much more.

Servicing nearly 750 vehicles per month, including hybrids, LOLC Motors offers the services of a qualified and experienced team of engineers, supervisory staff and highly skilled technicians. With a blend of modern technology and world class service, LOMO has successfully been able to reduce the turnaround time for repairs, in collaboration with the relevant insurers.

Within the short span of operations, LOLC Motors has built an extensive customer portfolio including both state and private sector institutions. Commenting on the achievement of the ISO certification, K.A.K.P. Gunewardena, Chairman of LOLC Motors Ltd said, “This certification will certainly establish our credentials and validate our efforts in the market. It clearly reveals our assurance to quality and commitment to standardization. Our aim now is to maintain this certification and strive to offer our customers even higher levels of quality”.

Ramesh Kariyawasam, Head of Operations of LOLC Motors said, “Through our after-sales services we ensure that maximum care and attention is given to all our customers. We are well equipped to address the individual requirements of our customers quickly and efficiently.”

Established in 2010, LOMO was the pioneer in Sri Lanka’s motor industry to utilise ‘green house technology’. Rain-water harvesting and waste-water treatment and recycling in the workshop, enables the company to reduce dependence on the main water supply. The distinctive design of the facility is structured to utilize maximum natural light during working hours, thus reducing its dependence on the national grid by more than 50%. With plans to install solar panels, LOLC Motors aims to take its green energy initiative to the next level.

Caption: Mr. Ramesh Kariyawasam, Head of Operations of LOLC Motors receiving the ISO certificate from Mr. Nimal Godamune.

Caption: The LOLC Motors team with their latest achievement. (Left to Right) - Mr. Sumanasiri Batuvita, Nimal Godamune, Ramesh Kariyawasam, Dhammika Buddhasinghe and Neeyaz Junus.

Same-day fund transfers now enabled through all LOFC branches

Providing yet another value addition to its superior customer service, Lanka ORIX Finance PLC (LOFC) became the latest finance company to join the Sri Lanka Inter Bank Payment Systems (SLIPS) network enablingsame-day financial transactions between LOFC and all other LankaPay SLIPS participants.

SLIPS is an online interbank electronic fund transfer system operated by LankaClear (Pvt) Ltd, facilitating the movement of funds from one account to another. Electronic fund transfers can be performed between banks and finance institutions already connected with the LankaPay SLIPS network. It ensures speedy transactions without the hassle of handling intermediary level documentation, providing island wide reach for added convenience to all its users.

Through this partnership, LOFC customers are provided a highly efficient and secure system to fulfill their daily financial transactions. Individual and corporate customers alike can now access any one of LOFC’s branches located island wide and perform their transactions as and when required. The SLIPS network is comprised of 26 Banks, 5 Specialized Banksand 7 NBFI’s, and is accessible from any part of the country.

Commenting on the partnership Chief Executive Officer and General Manager of LankaClear Mr. Sunimal Weerasooriya stated, “We welcome LOFIN as a valued member on Sri Lanka’s largest electronic fund transfer network and we are certain this partnership will help LOFIN innovate and deliver next generation financial services to its valued customers. The LankaPay SLIPS network has grown rapidly over the years and today we proudly boast of 38 member institutions extending our service reach at well over 3000 branch locations island wide. I take this opportunity in inviting all institutions to take full advantage of the payment infrastructure facilities we offer and assure anexciting new year on electronic payments with “LankaPay” where, retailreal-time payments will be a reality in the immediate future”

LOLC won a prestigious “Silver Award” at the recently held HRP awards organized by the Human Resources Professionals Sri Lanka. After three of LOLC Finance Companies were ranked among the best 5 Corporates to work in Sri Lanka in 2013, LOLC continued to be rewarded and recognized in the recent past. LOLC being a firm believer in nurturing its Human Capital was rewarded with a “Gold Award” at the People Development Awards in 2013, organized by the Sri Lanka Institute of Training and Development.  Moreover, LOLC’s unique and harmonious industrial atmosphere was felicitated at the recently held island-wide competition for workplace co-operation and social dialogue, organized by the Labour Regulator; Department of Labour Sri Lanka and was selected as the winner under Service Sector large scale category.

“At LOLC we have created a total learning culture within the Group, where ample opportunities are available for each and every employee to develop their knowledge/skills and competencies as well as their career paths horizontally and vertically within the Group,” said the Group Managing Director/CEO, Mr. Kapila Jayawardena. “The Group retains and motivates the work force by treating each and every employee with equal opportunities, pride and dignity” he added.

The Group differentiates itself from the rest in terms of attracting the best talent and by offering highly competitive remuneration packages to commensurate the employees, their qualifications, past experience, skills, talents and attitudes, etc.

Mr. Pradeep Uluwaduge, Group Head of Human Resources stated that LOLC has a thorough Performance based rewarding culture where career development is considered purely on their Performance Evaluations. High Performers are recognized and rewarded according to their individual Performance levels and also their team contributions. We at all times encourage very dynamic teams to work towards achieving common goals. The Performance Evaluations Process is not merely being  carried out to rank employees, but it goes beyond, where the Appraiser and the Appraisee engages in a continuous “quality conversation” and the employee is supported to bridge gaps or short comings in order to come up to the required standard of Performance. It is in fact a continuous evaluation process.

The LOLC Group maintains at all times an open door culture where employees have access to their superiors at all times and hence creates a very democratic culture. The staff is comparatively young and able to think strategically and outside the box. The opportunity to do their best in such an environment attracts the young talent, pool to the group.

Winning a Silver Award at the HRP Awards is a true testament of the best practices adopted by the Group and we are honoured to be set amongst the very best in this league, closed Mr. Uluwaduge.

Premier non-bank financial institute, Lanka ORIX Finance PLC (LOFC), expanding its footprint further opened a new fully fledged branch at No. 286 B, Galle Road, Colombo 03 recently. This new branch is established in the wake of a series of LOFC branch upgrades and new branch openings in Maradana, Maharagama, Thambuththegama, Nittambuwa, Kuliyapitiya, Digana and Ambalantota among others.

LOFC Chairman and LOLC Group Managing Director/CEO, Mr. Kapila Jayawardena together with senior management officials, staff members, customers and well-wishers, took part in auspicious activities and declared the new branch opened for business, at an official ceremony held on the premises.

Commenting, Mr. Jayawardena said, “With this new LOFC branch in Kollupitiya, our branch network has risen to 10 within the Colombo and Greater Colombo area. In addition, we have continued to expand our service network in the regions, offering financial solutions to SMEs. As a financial entity that upholds values of financial inclusivity, we are committed to serving all strata of customers.”

Financial solutions such as Savings and Deposits, Leasing and Auto Finance, Factoring, Insurance, Foreign Currency Savings, Speed Draft together with other financial solutions aimed at fulfilling a diverse number of financial requirements are now available at the new LOFC branch in Kollupitiya.

Mr. Kapila Jayawardena, Chairman of Lanka ORIX Finance PLC and Group Managing Director/CEO of LOLC ceremonially opening the new LOFC Branch in Kollupitiya

Mr. Kapila Jayawardena, Chairman of Lanka ORIX Finance PLC and Group Managing Director/CEO of LOLC engaging in first customer transactions at the new LOFC Branch in Kollupitiya

From L-R: Mr. Kapila Jayawardena, Chairman of Lanka ORIX Finance and Group Managing Director/CEO of LOLC; Mr. Brindley de Zylva, Managing Director/CEO of Lanka ORIX Finance; Mr. Ashan Nissanka, Chief Executive – Branch Network; Mr. Isaac Devshanker, DGM – Metro Region and Chief Operating Officer, LOLC Factors Ltd.

The Human Resource Division of the LOLC Group organized its annual CSR project at the National Institute of Mental Health in Angoda (NIMH) recently. This hospice is home to 950 male and female patients and consists of a ward for the elderly. LOLC officials distributed much needed provisions and spoke with hospital authorities for possible extension of assistance in the future.

LOLC’s CSR program was held under the patronage of its Chairperson, Mrs. Rohini Nanayakkara, Group Managing Director/CEO, Mr. Kapila Jayawardena and LOLC Head of Human Resources, Mr. Pradeep Uluwaduge. All members of the HR division also participated in organizing all aspects of this project.  

In addition, LOLC officials visited the Halfway Home Mulleriyawa of NIMH and donated essential items and clothes to over 450 women who are currently admitted under the hospital’s long term inpatient care service.

Commenting Mr. Pradeep Uluwaduge, Head of Human Resources of the LOLC Group said, “All donated provisions were obtained from generous contributions made by our staff members and various other divisions of the Group. It helped to fulfil some of the immediate requirements of this Hospital. When we met with hospital authorities, we were informed that Mental Health Care facilities are not usually given focus under corporate community outreach programs. There is a vast need at NIMH to meet various requirements of its inpatients, which they are struggling to fulfil. Therefore, the HR division of the LOLC Group cordially urge interested parties of the Corporate Community to include some of the much needed requirements of this Hospital and its facilities to their CSR programs as well.”

During the previous years too LOLC’s HR division conducted CSR activities at divisional level in addition to supporting the Company’s main CSR initiative “LOLC CARE”. Through “LOLC CARE”, the Company jointly manages a Children’s Home in Madiwela with the support of National Council for Child and Youth Welfare (NCCYW).

LOLC Chairperson, Mrs. Rohini Nanayakkara and Group Managing Director/CEO, Mr. Kapila Jayawardena handing over provisions to hospital authorities

The Human Resources Team of the LOLC Group led by Head of Human Resources, Mr. Pradeep Uluwaduge (2nd row, standing, 3rd from right)

The revitalized Hingurana Sugar Factory managed under Gal Oya Plantations (Pvt) Ltd, a subsidiary of the LOLC Group has recorded the highest ever sugar production of 19,960 metric ton for the year 2014/15 through successful sugar cane cultivation spanning 3,440 ha of land. This record breaking production is achieved after 38 years and is by far the largest sugar production output compared with other local producers in 2014. This is a significant achievement for the factory considering its tumultuous past.

The Hingurana sugar manufacturing factory located in the Galoya valley was first built and opened in the 1960s. Gifted by the Czechoslovakian Government, the factory was fondly known as “The Giant of Asia” and was one of the largest sugar factories to be built using modern machinery in the region. During the intervening years, it functioned as a government and semi government body providing direct employment to over 1,000 employees and livelihoods to over 4,000 cane farmers, whilst generating direct and indirect employment and revenue streams to over 20,000 people in general, until it was privatized in the 1980s. During this time, other sugar producing factories located in Sevanagala, Pelwatte and Kantale also had successful operations, steering Sri Lanka towards becoming a self-sufficient nation in sugar production and sugar cane cultivation.

The Hingurana factory functioned well into 1993, until it was forced to cease operations due to poor management, labour and union issues. The Sri Lankan Government at the time took over the property under its wings until an investor was found to reestablish operations. As a result, in 2009, restructuring of the once abandoned Hingurana sugar factory was begun subsequent to a joint venture between the Government of Sri Lanka and a private sector consortium led by Brown & Company PLC and LOLC. This venture marked a milestone in history as the first public-private partnership in the country. According to this partnership, 51% of the ownership of the property was retained by the Government while 49% owned by the Browns Group together with LOLC.

The revitalized sugar factory commenced operations under the Management and Board of Directors of the new managing company, Gal Oya Plantations (Pvt) Ltd, which was formed in 2009. The factory, after initial renovations, commenced operations on the 16^th of July 2012, for the first time after 15 years.

At present, the operations of the Hingurana factory are overseen by Chief Executive Officer of Gal Oya Plantations (Pvt) Ltd, Mr. Gamini Ratnayake and its Chief Operating Officer, Mr. Danesh Abeyrathne. Under this new management, steps were taken towards restoring the operations of the factory from the bottom up. They reappointed skilled workers who were previously employed by the factory as they possessed vast experience and seasoned knowledge about cultivation, existing machinery etc.

Explaining, Mr. Gamini Ratnayake, Chief Executive Officer said, “Once the Gal Oya Plantations was formed, it was an uphill battle to reinstate the Hingurana sugar factory to its former glory. By the time we restored operations, many of the employees and farmers who had previously engaged in sugar cultivation and production had abandoned hope due to various issues they had experienced in the past. Therefore, initially, great efforts and investments were made towards creating awareness among them by way of door-to-door campaigns, group discussions, meetings etc to restore their faith and confidence once more.”

In addition, the Company set up a separate research division, the Agronomy Department, in 2010 to oversee and improve the production of sugar cane seeds and to conduct research on various aspects of sugar cane cultivation. This division has been successful in multiplying 08 SRI bred varieties including the popular commercial varieties in Hingurana, and maintains over 134 SRI sugarcane clones as future planting material sources as well as for trial programs. In addition, the Agronomy Department conducts extension programs and provides regular awareness on sustainable agronomy practices to farmers to yield high, disease-free crops. 

Illustrating major achievements to date, Mr. Ratnayake said, “By 2013/14, we have been extremely successful in cultivating more than 3,800 ha of land which is 85% of the total cultivable extent. We hope to cultivate the remaining extent of land by next year.”

According to him, new sugar cane cultivation has increased by 10 folds since 2010/11 which had only occupied 1,562 ha of land. By 2013/14, the total cultivated area had been increased by 13 folds spanning 3,440 ha of land. As a direct result of this revitalization program, 3,718 farmers are currently engaged in sugar cane cultivation which is 82% of the total number of farmers required. The Company hopes to increase this number up to 100% by next year.

Further explaining, Mr. Ratnayaka added, “Our objective is to uplift the income and socioeconomic standard of the farmers and the community as a whole. We have also aimed at developing domestic production of sugar and contribute towards uplifting the national economy by helping to retain outflow of foreign currency for sugar imports.”

According to statistics made available in the Agriculture Symposium 2014, the annual sugar requirement of Sri Lanka is 600,000 MT. However, the country produces only 9% of this total requirement whilst the rest is imported. In 2012 alone Sri Lanka has spent Rs. 45 Bn in sugar imports. With the Government planning to increase domestic production by 40% by the year 2020, and with 4 existing sugar factories identified to be upgraded to meet this demand, the Management and Board of Directors of Gal Oya Plantations (Pvt) Ltd are confident in the future output of the Hingurana sugar factory, which has already demonstrated notable progress.

Also commenting, Mr. Danesh Abeyrathne, Chief Operating Officer of Gal Oya Plantation (Pvt) Ltd said, “We are celebrating the 3^rd successful year of sugar production after commencing operations in 2012. Within a short period, we were able to record the highest production of sugar, the highest sugar recovery percentage from sugarcane cultivation and the highest percentage of cane crushing in Hingurana since its launch in 1960. In addition, we became the highest sugar producer in Sri Lanka for the year 2014. We expect higher output records in the near future. We have also been able to elevate our sugar cane cultivation and sugar production standards to reach global industry levels”.

As at 30^th September 2014, Gal Oya Plantations (Pvt) Ltd has invested Rs. 3.2 Bn towards the resuscitation of the Hingurana sugar factory. The year’s turnover has risen to Rs. 1.8 Bn from the previous Rs. 938 Mn in 2013/14. The Company further hopes to invest Rs. 2.6 Bn towards the completion of the Distillery and Power Generation projects currently in the pipeline. An agreement has been already drawn for a new 21.5 KLPD distillery which is expected to commence operations in October 2015 and a power generation project to commence in May 2015.

In addition, the company already possesses capacity to produce 2 MW of electricity for the factory’s usage and has a separate water treatment plant with capacity to generate up to 250,000 liters per hour. The water generated is used for factory operations while the excess purified water sold to the national water supply and drainage board. 

Further explaining, Mr. Danesh Abeyrathne said that Gal Oya Plantations had been able to successfully create more than 20,000 direct and indirect employments, whilst extending employment opportunities to areas such as Ampara and Siyambalanduwa.

He said, “In addition to employment generation, the re-opening of the Hingurana sugar factory has uplifted livelihoods in surrounding communities and generated new revenue streams. We have witnessed development seeping into the surrounding areas during the past few years, especially in infrastructure development. Development efforts of roadways and canals have helped the communities immensely. Inner roadways have been upgraded for easy access and transportation, while canals have been renovated with the assistance of the Department of Irrigation and Drainage for irrigational purposes.” He concluded.

LOLC Micro Credit Ltd (LOMC), the largest microfinance company in Sri Lanka and subsidiary of the LOLC Group, held its 5^th annual “Isuru Diriya Sisu Upahara” felicitation ceremony for Grade 5 scholarship students yesterday (4^th September 2014), at a grand ceremony held at the BMICH Colombo. This program is held annually to felicitate children of LOMC customers who scored top marks at the national Grade 5 scholarship examinations. 

A total of 750 students were felicitated under this program for this year, out of which 212 students were provided with scholarships and gifts at the official ceremony held at the BMICH. 538 students living in far rural areas received their gifts personally from LOMC officials.

Mr. Ajith Nivard Cabraal, Governor of the Central Bank of Sri Lanka graced the event as Chief Guest, while Mr. J. P. R. Karunarathne, Director, Department of Supervision of Non-Bank Financial Institution also attended as the Honoured Guest.

Special Invitees, LOLC Directors; Chairperson, Mrs. Rohini Nanayakkara; Deputy Chairman, Mr. Ishara Nanayakkara; Group Managing Director/CEO, Mr. Kapila Jayawardena; Executive Director together with LOMC officials, Director/Chief Executive Officer, Mr. Ravi Tissera; Chief Operating Officer, Mr. Rohana Kumara and members of LOLC senior management, staff members, parents of students and well-wishers were also in attendance.

Top achievers, Lasindu Deshan Pathirana from Divulapitiya, Yohan Randika Fernando from Kuliyapitiya and Dinuka Malith Sandeepa from Mathugama obtained 191, 189 and 187 marks respectively.

Commenting, Mr. Ravi Tissera, Director/CEO of LOLC Micro Credit Ltd said, “For 5 consecutive years, LOMC has felicitated exceptional educational achievements of our microfinance customers’ children. During these years, we provided scholarships to over a thousand students from diverse communities across the country. By being a financial catalyst to rural micro entrepreneurs, the Company made significant strides in bringing positive transformation to thousands of men and women across Sri Lanka. Isuru Diriya Sisu Upahara thereby, is an extension of such an endeavor to their children, whilst providing educational assistance to communities in which they live.”

Also, commenting, Mr. Rohana Kumara, COO of LOLC Micro Credit Ltd said, “This is not just another CSR program but a long term holistic initiative to bring prosperity to people’s lives and to ensure that their right to socioeconomic development is fulfilled. LOMC’s unique triple bottom line business model cohesively integrates business with social development enabling economic empowerment of grass roots women and alleviating poverty among low income families. In addition, the Company has been successful in encouraging sustainable agro farming, promoting the continuity of education among children from low income families, ensuring long-term community development and providing employment opportunities to youth, among others.”

Inaugurated in 2009, LOLC Micro Credit, with the financial strength of renowned overseas Development Finance Institutes and the support of the LOLC Group, rose among Sri Lankan corporates as the largest microfinance solutions provider dedicated towards uplifting the low income segment of the country. The Company has also been the first and only Sri Lankan microfinance institute to be awarded with the certification for Client Protection Principle. With a disbursement portfolio of Rs. 23bn and a growing borrower base reaching 230,000, the Company has gained success and recognition both at home and overseas.

Mr. Ajith Nivard Cabraal, Governor of the Central Bank of Sri Lanka, Mr. J. P. R. Karunarathne; Director, Department of Supervision of Non-Bank Financial Institution; LOLC Chairperson, Mrs. Rohini Nanayakkara; Deputy Chairman, Mr. Ishara Nanayakkara; Group Managing Director/CEO, Mr. Kapila Jayawardena; LOMC Director/Chief Executive Officer, Mr. Ravi Tissera together with students who received scholarships and gifts to further their education from LOLC Micro Credit Ltd.

Mr. Ajith Nivard Cabraal, Governor of the Central Bank of Sri Lanka addressing the gathering at the 5th Annual Isuru Diriya Sisu Upahara event organized by LOLC Micro Credit Ltd. Also in the picture are Mr. J. P. R. Karunarathne; Director, Department of Supervision of Non-Bank Financial Institution; LOLC Chairperson, Mrs. Rohini Nanayakkara; Deputy Chairman, Mr. Ishara Nanayakkara; Group Managing Director/CEO, Mr. Kapila Jayawardena and LOMC Director/Chief Executive Officer, Mr. Ravi Tissera.

LOLC Group, for the six months ended September recorded 118% growth in PBT reaching a strong profit signature of Rs. 3.7 Bn compared with Rs. 1.7 Bn reported for the same period last year. The main contributor to this growth in the profits comes from LOLC’s core business, financial services, where all three regulated companies recorded excellent performance for the first six months of 2014. The trading sector too contributed to strong profitability while the other sectors and equity accounted investments yielded higher returns further strengthening Group performance.

LOLC’s financial services sector including, Lanka ORIX Finance PLC (LOFC), Commercial Leasing & Finance PLC (CLC) and LOLC Micro Credit Ltd (LOMC) contributed Rs. 3 Bn to the profits of the Group compared with Rs. 1.8 Bn recorded last year. LOFC records Rs. 1 Bn in PBT, a 34% growth over last year. CLC also records Rs. 1 Bn profits against Rs. 745 Mn in September 2013. LOMC too contributed Rs. 780 Mn as profits in the current year against Rs. 542 Mn recorded in the same period last year.

The financial services sector significantly benefited from an aggressive growth in the lending portfolio and the prevalent low interest rates, which has reduced the borrowing costs. As the Group makes investments for future growth in terms of human capital and capacity building, operating expenses saw an increase with personnel costs moving up by 32%.

Concentrated efforts put in towards strengthening the recovery efforts of the financial services sector paid dividends witnessing a 22% reduction in provisioning for bad and doubtful debts, compared with September 2013 enhancing the overall profitability of the Group.

LOLC Insurance Co. Ltd. (LOIC), the fully owned composite insurer of LOLC has performed extremely well in the current year with Rs. 1.3Bn revenue, a 61% growth over last year. LOIC has a strong presence in the non- life business and the life business is gathering momentum with a strong agency network established backed by LOLC Group’s island wide branch network. 

Share of profits of equity accounted investments includes the Group’s investment in Seylan Bank and LOLC’s direct investment in PRASAC Micro Finance Institution Ltd of Cambodia. These investments together contributed Rs. 1 Bn as profits to the Group, a 90% growth during the last twelve months.

LOLC making further expansion in its core business of financial services acquired 60% controlling stake of TPC (Thaneakea Phum Cambodia Limited) of Cambodia, the fifth largest micro finance company in Cambodia. This investment complements LOLC’s long term strategy of expanding the core business in the region. LOLC’s investment in this company was Rs. 2.6Bn and the Group expects strong profitability growth from this investment, considering the past performance of TPC and the future potential of microfinance within Cambodia which is a growing economy.

Complying with the Central Bank of Sri Lanka’s (CBSL) financial services sector consolidation exercise, CLC bought the controlling stake of BRAC Lanka Finance PLC (BRAC) for Rs. 608 Mn, a further investment by the Group into this company increasing the overall holding to 94.35 %. BRAC’s strong presence in the micro finance sector will contribute positively to the growth objectives of CLC who strengthening its presence in this high potential market segment. CLC’s strong presence in the regions together with BRAC’s contribution to the overall footprint will enable CLC to increase its micro finance business deriving stronger results in the medium to long term. BRAC will be merged with CLC in the near future in line with the consolidation strategy of CBSL.

Brown and Company PLC (BCL) led trading sector has generated strong operating profits in the current year overcoming difficult times in the agriculture equipment sales and the consumer sector. The on-going restructuring process within the Browns Group is expected to bring about strong profitability growth going forward and higher contribution to the overall performance of the LOLC Group.

The on-going development projects in the leisure sector are in line with the estimates and two projects are nearing completion and will be commissioned in the near future. The three properties that are in operations are contributing well in revenue terms and are awaiting stronger results in the coming months, which is the season with higher tourist arrivals.

Browns Hotels & Resorts signed up with Starwood Hotels & Resorts recently to offer the management rights to five-star Sheraton Kosgoda Turtle Beach Resort and this property will be commissioned shortly.

Kapila Jayawardena, Group Managing Director/CEO of LOLC said, “The financial performance of the Group demonstrates the robust and aggressive growth strategy of LOLC. We expect the positive trend set in the first six months to continue in the future which would position LOLC as one of the best performing Conglomerates in the country”.         

Staying true to the innovative spirit of the LOLC Group, subsidiaries, LOLC Insurance Company Ltd (LOLC Insurance) and Al-Falaah, the Islamic Business Unit of Lanka ORIX Finance PLC (LOFC), partnered to introduce a Motor Takaful product named “Al-Falaah Takaful” to its new and existing clientele recently. With this new addition, the total Islamic Financial solutions portfolio of the Group has expanded further and marks its first entry into the Takaful industry. 

Commenting, Mr. Gehan Rajapakse, Chief Executive Officer of LOLC Insurance Co. Ltd., said, “This joint venture between LOLC Insurance and Al-Falaah cements the Group’s efforts to provide inclusive financial solutions to all segments of customers with the added convenience of making them available under one roof.”

Also sharing his views, Mr. Shiraz Refai, Assistant General Manager, Al-Falaah IBU said, “Al-Falaah Takaful is designed exclusively to offer greater convenience to customers, and is a significant step taken towards ensuring that the entire gamut of auto and finance solutions is made available to them through our extensive island wide reach.”

The significance of Al-Falaah Takaful is that all features coming under this product is stringently supervised by a dedicated Shari’ah Supervisory Board (SSB) and an in-house advisor to ensure that all product features and processes adhere to set standards and principles. In addition, through a wide network of branches an efficient service by a dedicated and experienced team of customer service personnel is ensured. 

Explaining further, Mr. Nadheer Siddeeq, Manager, Al-Falaah Takaful said, “Customers who are specific on patronizing Islamic Finance options are now able to fulfill all their motor solutions requirements via Al-Falaah Takaful, which provides them an exclusively designed and hassle free motor insurance service, guaranteeing that every aspect of safeguarding their vehicle is well thought of on behalf of them”

According to him, the added benefits of Al-Falaah Takaful include, a free cover for replacement of air bags, free towing facility within the greater Colombo area, 3^rd party property damage cover up to Rs. 500,000.00 for commercial vehicles (unlimited for private cars), optional settlement process in the event of a claim, 24 hour customer care hotline, efficient and hassle free handling of claims through an island-wide network of garages and assessor panels, 20% discount on purchase of Exide batteries from Browns Power Marts and most importantly, sharing of surplus by way of distributing the excess funds in the participant fund amongst the customers who have not claimed.   

Since the inception in 2007, the Al-Falaah Business Unit of LOFC has striven to offer personalized and innovative financing solutions to customers, whilst simultaneously addressing the business and socioeconomic requirements of its diverse market segments and fulfilling individual financing needs. All Al-Falaah financial products are designed in accordance with Shari’ah principles of profit sharing and regulated by the Central Bank of Sri Lanka. Lanka ORIX Finance PLC is rated [SL] A- by ICRA Lanka Ltd and is licensed by the Monetary Board of the Central Bank of Sri Lanka under the Finance Business Act No. 42 of 2011, and the Insurance Board of Sri Lanka for respective product offering.

LOLC Insurance Co. Ltd., launched in 2011 is a fully owned subsidiary of the LOLC Group offering a range of insurance products and services under Life and General Segments spanning from Life, Motor, Fire, Marine to Travel, among others. In a short span of three years, the Company has risen amongst the top leagues of the insurance industry, notably strengthening its presence as one of the largest motor insurance providers in Sri Lanka. LOLC Insurance is licensed by the Insurance Board of Sri Lanka and is poised to become the largest total insurance solutions provider in the country, in the near future.

From L-R: Ishara Nanayakkara - Deputy Chairman, LOLC Group ; Kapila Jayawardena - Chairman, Lanka ORIX Finance PLC, Chairman, LOLC Insurance Co Ltd and Group Managing Director/CEO, LOLC Group ; Mrs. Kalsha Amarasinghe - Executive Director, LOLC Group and Gehan Rajapakse - Chief Executive Officer, LOLC Insurance Co. Ltd.

The burgeoning cities of Nittambuwa and Thambuththegama warmly welcomed two new branches of Lanka ORIX Finance PLC (LOFC) recently at No. 495/2, Nambadaluwa, Nittambuwa and No. 140, Rejina Junction, Thambuththegama.

The opening ceremonies of the new branches were graced by Mr. Brindley de Zylva, Managing Director/CEO of LOFC and Mr. Ashan Nissanka, Chief Executive – Branch Network together with senior management members and staff.

The new branches were an upgrade from the post office centres which previously operated in the areas as cash collection points for LOFC, and are now operating as fully-fledged branches catering to the rising demands for diverse financial services, which have arisen from these localities.

Accentuating on ease of accessibility, convenience, speedy and efficient customer service, the new LOFC branches located at Nittambuwa and Thambuththegama offers comprehensive financial products and services such as Savings and Fixed Deposits, Leasing, Auto Finance, Foreign Currency Business, SME Finance, Working Capital solutions among others.  

Commenting, Mr. Brindley de Zylva said “In tandem with the region’s rapidly developing SME segments, we have thus upgraded our previous service centres to fully-fledged branches, offering total financial solutions to its people. Providing ease of accessibility to our regional customers is of great importance to us and we have offered them the opportunity to realize their financial goals and aspirations by joining hands with us.”

Mr. Brindley de Zylva, Managing Director/CEO of LOFC and Mr. Ashan Nissanka, Chief Executive – Branch Network engaging in first customer transaction at the new LOFC branches in Nittambuwa and Thambuththegama.

Further strengthening its island wide footprint, Lanka ORIX Finance PLC (LOFC) recently expanded its branch network in the greater Colombo area when it opened two new branches at No. 217, High Level Road, Maharagama and No. 615, Maradana Road, Colombo 10.

The new branches are fully equipped with modern and superior customer service centric settings and are situated at convenient and easily accessible locations catering to the rising financial services requirements of customers located within the metropolitan area.

The opening ceremonies of both new branches were attended by the Directors and Senior Management of LOFC and LOLC together with staff members and well-wishers.

Mrs. Rohini Nanayakkara, Chairperson of the LOLC Group was the honoured Chief Guest at the opening ceremony of the new LOFC branch in Maradana, whilst Mr. Kapila Jayawardena, Chairman of LOFC and Group Managing Director/CEO of the LOLC Group participated as the honoured Chief Guest at the opening ceremony of the new branch in Maharagama. In addition, Mr. Brindley de Zylva, Managing Director/CEO of LOFC, Mr. Ashan Nissanka, Chief Executive – Branch Network, Mr. Isaac Devshanker, DGM – Metro Region/COO, LOLC Factors Ltd participated as distinguished guests.

Commenting, Mrs. Rohini Nanayakkara said, “LOFC’s branch network provides a channel for prosperity to reach all corners of the country and for people from all customer segments to reap the benefits as the country moves towards reaching the upper middle-income status. With over 130 touch points catering to diverse requirements of Sri Lankan customers in rural and urban settings, it is heartening to see LOFC partnering in their financial empowerment.”

Sharing his views, Mr. Kapila Jayawardena said, “LOFC has remained a brand that consistently delivers what it promises - financial prosperity, security and trust. In doing so, we have continuously focused our attention on enhancing our branches and staff capacity in meeting the rising financial requirements of our customers. The rapid expansion of our footprint is ample testimony to the high penetration of our brand among the masses which has earned their solid trust and confidence.”

Mrs. Rohini Nanayakkara, Chairperson of the LOLC Group and Mr. Kapila Jayawardena, Chairman of LOFC and Group Managing Director/CEO of the LOLC Group engaging in first customer transactions at the new LOFC branches opened in Maradana and Maharagama

Monday, September 29, 2014, Colombo: Browns Investments PLC (BI) today, announced the re-branding of LOLC Leisure to Browns Hotels and Resorts.

In March this year, Browns Investments acquired sole shareholder status of LOLC Leisure. BI previously held a minority interest of 30% in LOLC Leisure; the investment into the hotel sector was made jointly along with BI’s parent company, LOLC. As part of its consolidation efforts, LOLC divested its direct exposure in leisure to BI, giving the Company the opportunity to focus on nurturing and growing this sector. LOLC continues to be the holding company for the Browns group.

Hotels under the Group include: Eden Resort & Spa, Dickwella Resort & Spa and Green Paradise, Dambulla. The Company also announced the construction of a 71-room four star hotel in Passikudah, which is scheduled to be opened later this year.

The Company’s current portfolio holds 308 keys, with plans to increase it to around one thousand within the next few years.

“Browns Investments has expanded its footprint in the leisure sector and made a number of significant acquisitions. This increased interest will lead us to soon be one of the largest hotel operators in Sri Lanka. This is extremely timely, considering the country’s increased focus on tourism.” stated Rimoe Saldin, Managing Director/ Chief Executive Officer, Browns Investments PLC.

A 363-roomed, 25 acre property located along the golden mile of Beruwala, currently under construction and scheduled to be completed in 2016, will be included in the portfolio of hotels; as will be a 172-roomed five-star property, already under construction in Kosgoda which will be completed during the first half of 2015. The Company also owns properties in Nilwella and Trincomalee, and is looking at options for a new city hotel.

Adrian Jansz, Head of Sales & Marketing, Browns Hotels and Resorts also added, “This is an exciting year for us, with our current properties being upgraded to suit the demands of the modern tourist. Our current portfolio includes a number of landmark properties, with the promise of more exquisite properties earmarked. The changes taking effect have made us step back and re-evaluate our offerings, and has led us to draw parallels between the emotional connect of our customers and their satisfaction. This is the promise of Browns Hotels and Resorts.”

Browns Investments PLC is a subsidiary of the legendary 135+ year old Brown & Company PLC, with its ultimate parent company being LOLC. Browns Investments operates in fast-growing sectors of the economy such as leisure, agriculture and plantations, construction, marine and manufacturing and power generation.

Eden Resort and Spa is a five star resort on the golden beaches of the Southern Coastline in Beruwela. The resort offers its guests 158 recently renovated luxury rooms and suites, an Ayurveda spa, signature restaurants, cafes and bars to indulge themselves in.

Nestled away within the jungles of the Cultural Triangle adjacent to world heritage sites, Green Paradise offers luxury to all its guests whether it’s by dining above the trees, relaxing by the padded pool or in the comfort of your Italian crafted villa.

Dickwella Resort and Spa is located on a peninsula on the golden sands of the Southern Coastline in Dickwella, and offers its guests a very relaxing experience where simple pleasures like breathtaking views of the Indian Ocean and tucking into the catch of the day can be enjoyed by everyone.

The LOLC Group acquired a 60% stake in Thaneakea Phum Cambodia (TPC), for USD 20.3 Mn. The acquisition was through LOLC’s fully owned subsidiary, LOLC Micro Investments Ltd (LOMI), which is the microfinance investment arm of LOLC. The LOLC Group has received all required regulatory approvals, including approvals from the Central bank of Sri Lanka, Ministry of Finance of Sri Lanka, National Bank of Cambodia and the Ministry of Commerce of Cambodia for the acquisition.

TPC is the 5^th largest microfinance company in Cambodia with a gross loan book of USD 100 Mn. TPC carries out its business operations through 52 branches distributed throughout Cambodia, with a total staff of 1,100 personnel and currently has a customer base of 170,000 microfinance borrowers. Further, it has a strong capital base and maintains a capital adequacy ratio of 16.8%, enabling the company to withstand potential shocks as well as providing a stable platform for strong growth.

This is LOLC’s second overseas acquisition, having successfully established its maiden overseas venture in Cambodia in 2006 through its investment in PRASAC Micro Finance Institution Ltd (PRASAC), the largest microfinance Company in Cambodia. LOLC Currently holds 22.25% of PRASAC. The company carries out its business operations through its network of 182 branches and total staff strength of 3,400 personnel. It has an active client base of 231,000 clients and a gross loan portfolio of USD 485 Mn and total assets of USD 585 Mn. The company is currently in line with projected earnings of USD 30Mn for 2014.

In addition to the above acquisitions, LOLC commenced operations of its microfinance company in Myanmar - LOLC Myanmar Micro-Finance Company Ltd (LMML) - in 2013 as a green field operation. The LOLC Group was the 1^st Sri Lankan organization and the 4^th international operator to commence operations in the Myanmar financial sector.

Identifying the immense potential in emerging economies of the South East Asian region, particularly in the microfinance sectors of Myanmar and Cambodia, together with the Group’s ability to create an impact as a practitioner of microfinance as well as taking in to consideration the potential for growth in these markets as an active investor, LOLC secured its third overseas venture when it acquired the majority share in TPC.

In 2008, LOLC decided to spin off its microfinance business unit as a separate company - LOLC Micro Credit Ltd (LOMC). The Netherlands Development Finance Company FMO has been a shareholder of LOMC since its inception. LOMC was the first regulated microfinance institution in Sri Lanka with foreign equity partnership. Demonstrating its continuing commitment towards furthering its goals of financial inclusivity, in 2013, FMO, along with a consortium of development financial institutions provided LOMC with a syndicated loan of USD 55.5 Mn, which is among the largest syndications by a microfinance institution globally. Further, LOMC is the only microfinance institution in Sri Lanka to have received the certification for its client protection principles from a recognized international body.

Commenting on this significant milestone, Mr. Ishara Nanayakkara, Deputy Chairman of the LOLC Group said, “The LOLC Group’s business expansion strategy is aimed at strengthening its core financial services business further. Within Sri Lanka, we have firmly and consistently held our position as the largest diversified Non-Bank Financial Institution to date whilst our top performing companies have each held strong footholds in diverse sectors of the country’s economy. We are pleased that we were able to take our strategies and expertise overseas and to strengthen our position in the regional microfinance sphere. We hope to continue to explore opportunities to expand our overseas presence beyond Myanmar and Cambodia.”

Adding further, Mr. Nanayakkara said, “The South East Asian region is a largely untapped market with immense potential for the financial services industry. The LOLC Group has a strong commitment towards financial inclusivity and will continue to pursue opportunities towards crystalizing this vision”.

Officials present during the signing ceremony held in Cambodia. Mr. Sok Sophal – CFO –TPC, Mr. Stephen Higgins – Director –TPC, HE. Kim Vada- Director General Banking Supervision- National Bank of Cambodia, Mr. Ravi Tissera- Director- LOLC Micro Investments Limited, Mr. Michael Moormann- Director TPC, Mr. Bun Mony- Chairman-Cambodia Microfinance Association, Mr. Ishara Nanayakkara – Deputy Chairman LOLC Group, Mr. Sok Voeun – CEO – TPC, Mr. Chandula Abeywickrama- Director –TPC, Mr. Kithsiri Gunawardane- Director- LOLC Micro Investments Limited and Mrs. Fernanda Lima- Chairperson- TPC/ Director Private Equity- Developing World Markets.

DEG – Deutsche Investitions und Entwicklungsgesellschaft mbH – recently provided a USD 15 Mn credit facility on a 5 year term period to Commercial Leasing & Finance PLC (CLC), a member of the LOLC Group, for the development of its SME portfolio.

An official signing ceremony was held at the LOLC Head Office premises on the 4th September 2014 with senior officials from DEG, CLC and LOLC in attendance. Dr. Michael Bornmann, member of the Management Board of DEG and Mrs. Maria Spoelgen, Vice President of DEG’s Asia Department participated from DEG whilst Mr. Kapila Jayawardena, Group Managing Director/CEO of LOLC Group, Mr. Ishara Nanayakkara, Chairman of CLC and Deputy Chairman of LOLC Group and Mr. Krishan Thilakaratne – Director/CEO participated from CLC.

This is the second DEG credit facility for the LOLC Group. Previously, a Euro 7.5 Mn loan was made available to LOLC in 2007 to enhance the Company’s lending portfolio towards the SME Sector.

Furthermore, DEG extended its technical assistance to LOLC Group of Companies to develop their Treasury Risk Management system which enabled the Group to enhance mitigation measures.

DEG, a subsidiary of KfW, finances investments of private companies in developing and transition countries. As one of Europe’s largest development finance institutions, it promotes private business structures to contribute to sustainable economic growth and improved living conditions.

CLC, a subsidiary of the LOLC Group, is a reputed and stable non-bank financial institution providing a diverse portfolio of financial solutions to the SME and Micro segments in Sri Lanka. Over the years, the Company has displayed a consistent and resilient growth in financial performance and stability. In the June quarter of FY 2014/15, CLC maintained a commendable record of PBT at Rs. 1,288 Mn compared with the previous year and an impressive growth in deposits from Rs. 3 Bn to Rs. 7.5 Bn.

CLC has a strong investment grade rating of A- with a stable outlook from ICRA Lanka Limited which is a wholly owned subsidiary of ICRA Ltd, a group company of Moody’s Investors Service.

Standing (L-R): Mr. Rohan Perera, Group Treasurer of LOLC ; Mr. Krishan Thilakaratne – Director/CEO of CLC and Mr. Geeth Balasuriya, Consultant, DEG. Seated (L-R): Mr. Kapila Jayawardena, Group Managing Director/CEO of LOLC ; Mr. Ishara Nanayakkara, Chairman of CLC and Deputy Chairman of LOLC ; Dr. Michael Bornmann, member of the Management Board of DEG and Mrs. Maria Spoelgen, Vice President of DEG’s Asia Department.

ICRA Lanka Limited, a wholly owned subsidiary of ICRA Ltd., a group company of Moody’s Investors Service, has in its annual credit review affirmed the “[SL] A-“ credit ratings for Lanka ORIX Leasing Company PLC (LOLC or the HoldCo) and its key financial services subsidiaries Lanka ORIX Finance PLC (LOFC) and Commercial Leasing & Finance PLC (CLC) with a stable outlook.

Mr. Kapila Jayawardena, the Group Managing Director/CEO of LOLC stated that he is pleased with the continued confidence placed on the group by credit institutions, which is being reflected in the credit rating of the holding company and its subsidiary companies.

The report further stated that “The ratings continue to factor LOLC Group’s long track record in the retail finance sector, its leadership position in the Sri Lankan retail finance market, professional and experienced management team and adequate risk management systems with strong retail franchise. The rating also derives support from the committed support and oversight from its largest investor–ORIX Corporation of Japan (rated Baa2 with stable outlook by Moody’s), which has a 30% stake in the entity. ICRA Lanka takes note of the consistent progress made by the management to de-leverage the Holdco as the reported gearing levels improved from 0.6 time as on end Mar-13 to 0.4 time by end Mar-14 through the transfer of the residual lending portfolio to its financial services subsidiary and reducing intra-group exposures. ICRA Lanka however notes that the group level gearing indicators have increased over the past 2 FYs from 2.16 times as of end Mar-12 to 2.65 times as on end Mar-14. Ability of the HoldCo and the LOLC group to improve on their operating margins while reducing the standalone leverage would be critical from a rating perspective.”

Mr. Jayawardena further stated that, that despite the volatile market conditions, the Group was able to maintain healthy operating margins whilst having a strong long term funding pipeline in place.

Moreover, ICRA Lanka noted that “the group has been able to secure longer tenure borrowings at favourable rates, which is expected to support the overall liquidity profile and profitability going forward. Group level earnings recovered during the FY2014 with the ROAA improving to 1.84% from 1.66% in FY2013 largely on account of improved margins in the financial services subsidiaries and improved financial performances of the non-financial services businesses.”

Mr. Kapila Jayawardena, the Group Managing Director/CEO of LOLC

LOLC Group’s 2014 first quarter results show strong momentum and growth over last year. The PBT for the three months of 1.35Bn is 45% over the last year’s Rs. 934Mn. This is a reflection of the strong profitability recorded from its operating activities which grew by 23% compared with 2013 June.

External effects on the Company, namely, significant reduction in interest rates have contributed positively to the reduction in borrowing costs which saw an overall drop of 20% compared with last year and this is despite the growth in savings and deposits increasing the overall borrowings of the Group. The increase in the borrowings base reflects the growth strategy fuelling higher executions strengthening the financial sector lending portfolio. A reduction in lending interest rates were also seen during the current period however, the higher quantum of lending resulted in the interest income from the Group’s lending business moving up 7% compared with last year June quarter end.

The financial services sector shows tremendous performance in the lower interest rate regime along with better collection results coming from all three financial services companies of the Group. The contribution to profits (PBT) from this sector increased from Rs. 672Mn to 1.14Bn which is an increase of 71%. LOLC’s flagship finance company, Lanka ORIX Finance PLC (LOFC) posted strong profits for the quarter, with Rs. 325Mn as PBT which is an impressive increase of 222% over previous year June. This reflects the strong collections together with lower interest costs. The Company has managed to reduce its borrowing costs as a result of the reduction in interest rates on its deposits base which grew by Rs. 2Bn to Rs.45Bn over the last year. Strong growth in the deposit base of the Company reflects strong financial strength and the customer confidence in LOFC which has drawn funds even at low interest rates. LOFC looks positively to year 2014/15 with lower borrowing costs and higher level of income fuelled by the expansion in the lending book increasing its core interest income.

Commercial Leasing & Finance PLC (CLC) too showed strong performance and maintained profits at the same level as in the last year, despite pressures on collections. The PBT for the June quarter was Rs. 381Mn. The Company’s deposit base grew from Rs.3Bn to Rs.9Bn, a growth of 200% over the comparative period last year. CLC commenced its deposit mobilizing activities two and a half years ago and the deposit base growth shows its financial stability and depositors’ confidence in the Company. The higher level of deposits and other borrowings will fuel higher level of lending, targeting an increase in the asset book, higher earnings from interest income, the key focus for the year 2014/15.        

LOLC Micro Credit Ltd (LOMC) too recorded strong profits in the first quarter, with Rs.407Mn as PBT compared with Rs.268Mn in the last year. The Company shows strong profits as a result of the reduced interest rates coupled with superior collections, which was a challenge throughout the year of 2013/14 due to poor weather affecting its agriculture centric customer base. However, strong recovery is seen in the current year, resulting in higher collections.

The two associate Companies of LOLC operating in the financial services sector, Seylan Bank and PRASAC Micro Finance Company in Cambodia continues to give strong positive growth in profits, an impressive increase of 74% over last year. The contribution from the share of profits from its associate companies 

was Rs. 423Mn against Rs. 243Mn in June 2013. PRASAC’s contribution to these profits is a Rs. 201Mn compared with Rs. 86Mn in June 2013.

Though the trading sector of the Group shows lower profits compared to last year, Brown and Company PLC which is the main contributor to the trading business of LOLC, shows promising recovery in its core business trading, which was at negative profits last year vs. strong profits in the current quarter of Rs. 148 Mn. Last year’s profits were mainly from other income which is seen shifting to its core activities, trading and manufacturing.

LOLC, the Parent Company records higher profits compared with last year, a 202% growth over last year, reaching Rs. 44Mn. The Company continues to reduce its lending book which is passed on to its subsidiaries in line with its conversion into a core Holding Company. The Company earns income from the shared services activities that provides, common services to Group Companies. The Company also continues to reduce its borrowings, strengthening its balance sheet with stronger gearing. The borrowing book saw a drastic reduction, Rs. 22Bn reducing to Rs. 15Bn which has improved the Company’s gearing ratio to a strong holding company ratio of 0.46

Envisioning LOLC’s financial services expansion strategy, LOLC entered into Myanmar through LOLC Micro Investment Ltd (100% subsidiary of LOLC) in 2013, obtaining formal approval to commence lending business in Myanmar. LOLC is one of the first financial services giants to enter Myanmar which is essentially an untapped market with great potential for the industry. LOLC’s operation has already made a positive impact in Myanmar, with its first three branches being opened in Myangone, North Okkalapa and Dalla. The business is already flourishing and the Group is extremely positive of this investment which is expected to derive steady growth in business and long term profitability.

In the coming months, LOLC will align group strategies towards strengthening its financial position further with increasing interest income with higher executions coupled with stronger collections in the financial services sector. The other sectors too will further strengthen its business operations, to derive medium to long term profitability. The Group is well positioned and all sectors are being developed with strong investment backing to strengthen its business proposition for long term profitability growth.

LOLC ranked among the top 20 most respected entities in Sri Lanka

Source : LMD, Most respected entities in Sri Lanka – 10^th edition

Read more on most respected entities in Sri Lanka

LOLC Insurance Company Ltd, one of the fastest growing Companies in the life and general insurance sector, felicitated top achievers of their life sales force at a glittering gala, which celebrated the Company’s inaugural Life Sales Convention. The event was held at the Eagles Lakeside Banquet and Convention Hall in Attidiya recently.

It was attended by Mr. Ishara Nanayakkara, Deputy Chairman of LOLC ; Mr. Kapila Jayawardena, Chairman of LOLC Insurance and Group Managing Director/CEO of LOLC and Mrs. Kalsha Amarasinghe, Executive Director of LOLC as Chief Guests, whilst Mr. Ashan Nissanka, Chief Executive – Branch Network; Mr. Gehan Rajapakse, Chief Executive Officer of LOLC Insurance and Ms. Dharini Fernando, Chief Operating Officer of Insurance attended as Honoured Guests together with Senior Management members and staff of both LOLC and LOLC Insurance.

The event celebrated the exceptional annual performance of over 500 officials comprising of Financial Planners, Team Leaders, Executives, Zonal Managers and Branch Heads. The most outstanding performers in the “Best Team Leader”, “Best Sales Executive”, “Best Zonal Manager”, “Best Branch” categories were awarded with Bronze, Silver, Gold and Platinum, whilst the crowning glory of the ceremony was the felicitation of the “Best Financial Planner” with a Grand Award. 

LOLC Insurance established in 2010 began its Life Operations last February and within the first year of its operations, the Company was able to hold its first Sales Convention, on the day of the first year anniversary of its Life Sales distributions. This was deemed a significant milestone for the Company.

Commenting Mr. Kapila Jayawardena said, “I am extremely proud of the LOLC Insurance Team and the exceptional achievements this young company has gained over a short period of time. It is indeed their fierce drive and commitment that has placed this Company on the top most rungs of the Life and General segments.”

Also, sharing his views Mr. Ashan Nissanka said, “Since commencing our life sales operations, we have been successful in recruiting over 800 sales personnel for our life insurance distribution channel alone. We were able to draw on group synergies to meet our targets and ensure that the end results were fruitful. This enabled us to felicitate their successful achievements within a span of a single year.”

In addition, Mr. Gehan Rajapakse also shared his comments as follows; “I would like to give my heartiest thanks to our Life Team for this momentous occasion of celebrating our first sales convention and awards night, and I congratulate the achievers for their drive and remarkable accomplishments. I would also like to extend my appreciation to the support given by their families as well.”

Award for Best Sales Executive - Mrs. Kalsha Amarasinghe, Executive Director – LOLC Group (far left, unseen), Mr. Ishara Nanayakkara, Deputy Chairman - LOLC Group (2nd from left), Mr. Kapila Jayawardena, Chairman - LOLC Insurance Co Ltd and the Group Managing Director/CEO - LOLC (centre), Mr. Gehan Rajapakse, CEO - LOLC Insurance (2rd from right) and Mr. Ashan Nissanka, Chief Executive – Branch Network (far right).

Award for Best Team Leader - Mrs. Kalsha Amarasinghe, Executive Director – LOLC Group, Mr. Ishara Nanayakkara, Deputy Chairman - LOLC Group and Mr. Kapila Jayawardena, Chairman - LOLC Insurance Co Ltd and the Group Managing Director/CEO – LOLC.

Award for Best Zonal Manager - Mrs. Kalsha Amarasinghe, Executive Director – LOLC Group (far left), Mr. Ishara Nanayakkara, Deputy Chairman - LOLC Group (2nd from left), Mr. Kapila Jayawardena, Chairman - LOLC Insurance Co Ltd and the Group Managing Director/CEO - LOLC (centre), Mr. Gehan Rajapakse, CEO - LOLC Insurance (2rd from right) and Mr. Ashan Nissanka, Chief Executive – Branch Network (far right)

Grand Award for Best Financial Planner - Mrs. Kalsha Amarasinghe, Executive Director – LOLC Group (far left), Mr. Ishara Nanayakkara, Deputy Chairman - LOLC Group (2nd from left), Mr. Kapila Jayawardena, Chairman - LOLC Insurance Co Ltd and the Group Managing Director/CEO - LOLC (center), Mr. Gehan Rajapakse, CEO - LOLC Insurance (2rd from right) and Mr. Ashan Nissanka, Chief Executive – Branch Network (far right)

The LOLC Group, as a preferred employer and one of the best places to work in Sri Lanka, successfully organized a two day health camp themed - “Neeroga” - at head office premises recently.

Nearly a thousand employees and their family members took part in the event, which featured a number of well-known medical and healthcare institutions. This is the first ever health and wellness event of this magnitude hosted by the Company.

The health camp was chiefly facilitated by the Human Resources Division of the Group and was ceremonially opened by Mr. Kapila Jayawardena, Group Managing Director/CEO of LOLC in the presence of a large gathering comprised of senior management and staff members.

“Neeroga” Health Camp featured renowned healthcare establishments such as the Nawaloka Hospital, Vision Care, Siddhalepa Hospital, Forever Skin Naturals, whilst other related notable service providers such as the Dangerous Drugs Control Board, Blood Bank, Marine Fitness 365, Yoga instructor - Mr. Chamin Warnakula, Zumba Instructor – Mr. Nalinda Subasinghe, Helpage Sri Lanka, Nestle Lanka PLC, LOLC Insurance Company Ltd and students from the Medical Faculty of Sri Jayawardenapura University also took part.

Parallel to the main event, there were a number of awareness sessions and workshops conducted by renowned medical specialists and institutions in relation to health and wellbeing, fitness, nutrition, Ayurvedic treatments, stress management, vision and hearing, identification and prevention of contemporary ailments and health issues, and many more. Participants were educated about the importance of maintaining a healthy lifestyle and overall wellbeing.

In addition, mobile clinics and stalls that were set up at the premises provided employees an opportunity to undergo free medical checkups, vision tests, obtain diagnoses, and special discounts for further medical investigations whilst facilitating other necessary support. A blood donation drive was also simultaneously organized during the two day event.

Commenting, Mr. Kapila Jayawardena said, “The LOLC Group is comprised of 3,000 plus employees and we have placed great emphasis on looking into their overall wellbeing. Over the years, as part of good HR practices we have provided numerous medical and healthcare benefits to our employees and assisted them in their emergency medical needs. We believe that organizing an event of this caliber where we take our resources to the next level; by educating our employees and providing them opportunities to achieve wellness, was a step taken in the right direction to enhance effective employee relations. We hope to take our Neeroga Health Camp to our regional employees and their families, in the near future.”

LOLC has maintained an impressive record of maintaining sound HR structures and employee development initiatives over the years and is one of the top corporate entities in Sri Lanka to be adjudged Gold Winners at the SLITAD People Development Awards and Best Companies to Work for in Sri Lanka.

Seen in picture (L&R above) - Mr. Kapila Jayawardena, Group Managing Director/CEO of LOLC Group, Mr. Pradeep Uluwaduge, Head of Human Resources, LOLC Group and Mr. Gehan Rajapakse, CEO of LOLC Insurance Company Ltd.

Being true to its innovative spirit, Lanka ORIX Finance PLC (LOFC) recently became the first in the non-bank financial services sector to introduce a trailblazing new investment product named “Fixed Deposit Bond” to new and existing clientele. Incidentally, this is the first time that a transferable term investment product has been introduced to the financial services sector in Sri Lanka.

Lanka ORIX Finance Fixed Deposit Bond is a secure and long term investment option, which yields higher returns whilst making it an easy and hassle-free financial product, which can be used in any number of transactions or for ownership transfers. As its first step, the Company has made this product widely available to the Individual and Corporate customer segment for a 3-5 year term on fixed interest rates.

The most attractive feature of this product is that it is a tradable instrument and can even be gifted. Lanka ORIX Finance Fixed Deposit Bond can be transferred or sold to a 3^rd party anytime between the date of deposit and maturity, whilst maintaining the original investment value intact.

The maturity value is stated on the certificate together with the relevant ownership information and time period, thereby, ensuring that the transaction is trustworthy, transparent and secure at all times. The transfer of ownership does not require additional costs or lengthy processes. All it requires is the existing owner’s signature together with instructions and the new owner to register him or herself with the nearest LOFC branch. This makes it an easy and accessible investment which can be used for over a number of different transactions.     

Commenting, Mr. Brindley de Zylva, Managing Director/CEO of Lanka ORIX Finance said, “The difference between a regular Fixed Deposit and the Fixed Deposit Bond is that ownership can be transferred without impacting the conditions applicable at the time the deposit was made. In addition, this highly secure and long term investment will grow yielding a higher return at maturity, whilst enabling the customer to fulfill his or her desired transactions anytime he or she wants. The hassle of waiting for the maturity date to arrive to fulfill a desired transaction or seek monthly interest therefore will not be applicable here”.

Explaining further Mrs. Roshani Weerasekera, Deputy General Manager Marketing (Savings & Deposits) said, “The most convenient aspect of the Fixed Deposit Bond is that it acts as an instant transferrable instrument, which means that the transaction itself does not require actual cash being exchanged; this guarantees that your hard earned money is handled and maintained in a safe and transparent manner. Certain mandatory protective measures are also put in place to ensure that even if the certificate is misplaced or stolen, the customer’s investment continues to be intact and safe with us.”

The minimum deposit amount for investment begins at Rs. 7,600.00, Rs. 6,800.00 and Rs. 6,300.00 for 36, 48 and 60 months respectively, with provisions to invest higher. Hence, Lanka ORIX Finance Fixed Deposit Bonds are ideal and safe for gift-giving, whether it is for a wedding, a birthday or even as a gift for a minor. This product can also be used for various high value transactions such as settling suppliers by Businesses and Corporates.     

By introducing pioneering products and services such as the Fixed Deposit Bond, LOFC has contributed immensely to the growth of the NBFI sector in Sri Lanka. In the recent times, the Company launched new product extensions for its Speed Draft short term loan facility and introduced Al-Falaah Ladies Islamic Financial Services via its Islamic Business Unit – Al-Falaah.

In addition, as a Registered Finance Company of the Central Bank of Sri Lanka, LOFC is authorized to dispense financial products and services such as Leasing, Hire Purchase, Savings and Fixed Deposits, Foreign Currency Business among others. Since inception in 2001, the Company has been deeply active and committed to financially powering the SME and large corporate segments in Sri Lanka, earning the trust of people, stakeholders and the industry alike.

Mrs. Rohini Nanayakkara along with Mr. Brindley de Zylva, Mr. Ishara Nanayakkara, Mr. Kapila Jayawardena, Mrs. Kalsha Amarasinghe, Mr. Ashan Nissanka engaging in first customer transaction at the launch of Lanka ORIX Finance Fixed Deposit Bond.

Lanka ORIX Finance PLC (LOFC) together with LOLC Technologies Ltd was feted for their notable contribution to the Islamic Finance Industry, at the recently concluded Sri Lanka Islamic Banking and Finance Industry (SLIBFI) Awards held at the Galadari Hotel, Colombo.

LOLC Technologies was awarded the Gold Award for “Best Islamic Finance IT Solutions Provider” whilst Al-Falaah, the Islamic Business Unit of LOFC bagged two Silver awards for “Islamic Finance Entity of the Year” and “Islamic Finance Product/Deal of The Year” and a Merit Award for “Social Upliftment Recognition”.

Held annually, the SLIBFI Awards recognizes and rewards Sri Lankan Banking and Financial Institutions that contribute towards the sustainable development of Islamic Financial Products and Services. This year’s awards ceremony was held for the 3rd consecutive year and was participated by Mr. Shibly Aziz PC, Former Attorney General as the Chief Guest. Many other notable financial institutions too participated and were feted for their excellence in the industry.

Commenting, Mr. Krishan Thilakaratne, General Manager, Al-Falaah IBU said, “These accolades validate the untiring efforts and dedication put in by our LOLC Teams to ensure that our products and services are of the highest caliber, even going beyond industry standards. To support that, we have a strong infrastructural network, IT processes and a team of highly skilled professionals who dispense diverse and customized financial solutions to the masses.”

Also sharing his views, Mr. Conrad Dias, Managing Director/CEO of LOLC Technologies said, “We are honoured to be recognized as the Best Islamic Finance Solutions Provider and we dedicate this award to our customers who are the driving force behind our continuous progress and innovation. This award recognizes our commitment to the industry.”

The winning LOLC Group Companies have previously demonstrated their outstanding performance and innovative contributions to the Islamic Finance Industry by winning three major accolades at last year’s awards ceremony.

The winning LOLC Team : (from L-R) Mr. Harshan Senadhira, Team Lead – Solution Delivery, LOLC Technologies Ltd ; Ms. Chamini Attanayake, Head of Business Development, LOLC Technologies Ltd ; Mr. Dineth Chinthaka, Head of Business Solutions – Banking, LOLC Technologies Ltd ; Mr. Krishan Thilakaratne, General Manager, Al-Falaah IBU ; Mr. Brindley de Zylva, Managing Director/CEO of Lanka ORIX Finance PLC; Mr. Shiraz Refai, Assistant General Manager, Al-Falaah IBU; Mr. Rehan Mussadiq, Junior Executive , Al-Falaah IBU and Mr. Zifan Zahir, Officer – IBU Operations.

The LOLC Group completed a year of consolidation and steady growth in Profits recording a Profit before Tax (PBT) of Rs. 4.5Bn, a 22% growth over last year. The Profits of the Group is mainly derived from its core business of financial services, complemented by the rest of the businesses. To achieve the 22% growth profits, the Group made a Rs. 45Bn Gross income and interest income of Rs. 28Bn which is a 20% growth over last year. The year 2013/14 was considered a year of consolidation for the Group with strategies taking shape in all sectors to gear for growth and long term profitability. The operating environment was full of challenges for the financial services business as well as for other sectors. The lowering interest rates in the latter part of the year was welcome as the Group believes that this positive move will trigger an increase in SME lending which will positively impact the Group’s lending business.

LOLC continued in its strategy of deleveraging itself which is now fully converted into a holding company. LOLC was the pioneering leasing company in the country and in 2011, the Company opted to move out of the leasing business gradually transferring its lending and borrowing book to its flagship finance company Lanka ORIX Finance PLC (LOFC). The Company embarked on diversification in 2009 and entered into potential growth sectors, leisure, manufacturing and trading, construction, renewable energy, agriculture and plantations.

LOLC’s financial services businesses experienced a 20% increase in interest income in line with the expansion of the portfolio. Finance costs too increased by 13% to reach Rs. 16.4Bn from 14.5Bn recorded in the previous year mainly due to the higher quantum of borrowing required for the lending business of LOFC, Commercial Leasing and Finance PLC (CLC) and LOLC Micro Credit Ltd (LOMC). However the growth in interest costs slowed down due to the lowering of interest rates on short term borrowing and SWAP costs. The two listed finance companies and the leasing company recorded steady growth in profits despite provisions made on bad and doubtful debts required as a result of the pressure on collection ratios experienced by the financial services industry.

LOFC increased its profit signature by 45% which is remarkable despite higher provisions made during the year on possible defaults. The Company’s deposits grew by 33% clearly demonstrating the confidence placed by the public on LOFC’s financial stability.

CLC recorded Rs. 1.2Bn as profits and continues to be strong in its business sector and is experiencing a positive impact from reducing interest rates even as the quantum of borrowing is increasing to support the growth in the portfolio.

LOMC remains strong in its profits signature contributing well to the Group. The Company’s micro business is performing well despite the clients facing two years of bad weather impacting the agriculture business affecting collections. The company posts strong results despite these challenges and also seeing benefits from the reducing interest rates and SWAP costs. The company continues to source 100% of its borrowing from the bilateral and multilateral funding partners who have lined up further funding for the Company’s next phase of growth. LOMC’s profit contribution to the Group was Rs. 1Bn.

LOLC Insurance Company which completed its third year of operation shows great potential in profits contribution to the Group with both the life and general businesses performing well in growing the book. The Company contributed Rs.82Mn as profits to the Group.

LOLC’s strategy to expand its business in the region brings strong profits from its associate PRASAC Micro Finance Company in Cambodia and the Group’s total associate company profit share was Rs. 1.5Bn for the year.

Despite the challenging market conditions in the consumer durable market and the agriculture equipment market, the trading sector with Brown & Company contributed a profit of Rs. 541Mn. The leisure sector recorded a loss of Rs. 334 Mn though the operating hotel - Eden Resort and Spa contributed profits to the Group. The loss mainly comes from the hotels which are being constructed. Two hotels of the group are expected to be commissioned in the first and the second quarter of 2014 and the resort construction in Beruwala is estimated to be completed in 2016. With the completion of these projects LOLC will have one of the largest numbers of keys in the country’s leisure business.

LOLC Group is currently positioned to strengthen its presence in each of the business sectors while positioning its long term strategies to derive profitability and leadership in each sector.

Mr. Kapila Jayawardena, Group Managing Director/CEO in his concluding remarks said that “the Group has performed up to the expectations and all segments are showing a healthy growth trend. A strong Balance sheet and P&L will improve the long term potential of the Group”.

LOLC Group Managing Director/CEO and LOFC Chairman, Mr. Kapila Jayawardena

Extending its island wide foot print further, Lanka ORIX Finance PLC (LOFC) opened its latest branches in Digana and Kuliyapitiya recently.

Digana is an emerging economy located in the Central Province of Sri Lanka vastly abundant with natural mineral deposits such as Dolomite, whilst Kuliyapitiya is renowned for agro based economy and crop cultivation in the Kurunegala district. 

Mr. Kapila Jayawardena, Group Managing Director/CEO of LOLC and Chairman of LOFC ; Mr. Brindley de Zylva, Managing Director/CEO of LOFC ; Mr. Ashan Nissanka, Chief Executive – Branch Network were in attendance as Chief Guests and Guests of Honour during the opening ceremonies of the new branches together with customers, members of staff and well-wishers.

Commenting on this significant occurrence, Mr. Kapila Jayawardena said, “With the opening of the two new service points in Digana and Kuliyapitiya, our island wide network of 134 touch points has further improved and strengthened. We are fully equipped to dispense diversified financial solutions to meet the requirements of the entrepreneurially active SME segments of the central province of Sri Lanka, and we have plans of upgrading our footprint further to offer customers the best of service”.

The new LOFC branches are spacious and modern in interior and will provide financial solutions spanning from Leasing, Hire Purchase to Fixed Deposits & Savings, Foreign Currency Business, and Microfinance among others.

The interior layout of the new Lanka ORIX Finance branch in Kuliyapitiya

First customer transactions at the new LOFC branch in Kuliyapitiya. (L-R) Mr. Brindley de Zylva, Managing Director/CEO of LOFC and Mr. Ashan Nissanka, Chief Executive – Branch Network

First customer transactions at the new LOFC branch in Digana. (L-R) Mr. Kapila Jayawardena, Group Managing Director/CEO of LOLC and Chairman of LOFC ; Mr. Brindley de Zylva, Managing Director/CEO of LOFC and Mr. Ashan Nissanka, Chief Executive – Branch Network

Establishing yet another revolutionary bench-mark for rewarding customer loyalty in the industry, Al-Falaah, the Islamic Business Unit of Lanka ORIX Finance PLC (LOFC) launched its privileged discount card - “Empress”.

The ‘Empress’ discount card is exclusively offered to all customers of Al-Falaah Ladies which caters to the financial needs of its lady customers. This was introduced as a way of rewarding ladies on their multiple roles in life as mothers, entrepreneurs, housewives, workers, caregivers etc.

The “Empress” special discount card is the first of its kind to be offered by an Islamic Bank or Financial Institution in Sri Lanka. It enables card holders to shop and save simultaneously, manage household expenditure and avail themselves of exclusive seasonal and year-round offers.

Moreover, it offers attractive special discounts, discount vouchers and special privileges from an island-wide network of over 60 partner-merchant brands spanning from household items, electronics, pharmaceuticals, opticians, leisure, clothing and accessories, telecommunication, jewelry, personal care to insurance and many more.

The “Empress” card is issued free of charge and is available to both new and existing lady customers from all LOFC and Al-Falaah branches located island wide. Card holders will receive updates and notifications on special offers through email, SMS and twitter (@LankaORIX).

Al-Falaah Ladies was launched in April 2013 to offer specialized ‘Financial Services’ for lady entrepreneurs, employed and self-employed ladies, as well as busy housewives with increasing family commitments and responsibilities in the household. A dedicated business unit was established by the company to cater to this niche segment, becoming the first ever financial institution exclusively dedicated towards offering financial solutions to ladies.

Commemorating the launch of “Empress”, a special event was organized by Al-Falaah at the LOLC Head Office Auditorium earlier this week. The event was graced by Mrs. Rohini Nanayakkara, Chairperson of the LOLC Group as Chief Guest and Mrs. Kalsha Amarasinghe, Executive Director of the LOLC Group as the Guest of Honour.

Also in attendance were Mr. Ishara Nanayakkara, Deputy Chairman of the LOLC Group ; Mr. Kapila Jayawardena, Group Managing Director / CEO of the LOLC Group and Chairman of LOFC ; Mr. Brindley de Zylva, Managing Director/CEO of LOFC ; Mr. Krishan Thilakaratne, General Manager, Al-Falaah Islamic Business Unit ; Mr. Shiraz Refai, Chief Manager, Al-Falaah Islamic Business Unit ; Ash-Shaikh Zaid Nooramith, in-house Shari’ah advisor for Al-Falaah ; Senior Management members of LOLC and LOFC ; valued customers and distinguished invitees representing partner-merchant brands ; staff members and well-wishers.     

Speaking at the occasion, Chief Guest - Mrs. Rohini Nanayakkara said, “I am happy to unveil the Empress Card today and I wish to congratulate the Al-Falaah team for introducing this new value addition in recognition and appreciation of our esteemed lady customer base. The Al-Falaah Ladies brand recognizes and financially empowers the woman of the 21^st century. It encourages women to achieve their ambitions and aspirations driven by the spirit of enterprise and rewards them in return for their achievements. In addition, it provides long term value to all our stakeholders and builds lasting relationships whilst in keeping with religious beliefs.”

Also speaking, Guest of Honour - Mrs. Kalsha Amarasinghe said, “I am deeply honoured and privileged to be a part of this historic milestone. Al-Falaah is probably the first among the Islamic banking and financial services sector to introduce such a novel and exclusive discount card, ‘Empress ’ with a very large number of valued business partners and brands, island-wide. In doing so, Al-Falaah is living up to its brand value - Success - by extending it to its lady customers.  With a superior customer service and a trailblazing innovative spirit, Al-Falaah is moving well beyond the industry standards to offer unique products and services tailor made to specific customer requirements.”

Giving an overview of Al-Falaah’s achievements, Chief Manager - Mr. Shiraz Refai, said “Al-Falaah’s journey has been an immensely successful one since inception in 2007. Our exponential growth over the years has been largely due to our business unit offering 360 degree financial solutions catering to individual customer needs whilst integrating the business, customer and business community beyond the scope of banking and finance. Key elements in our journey of success are the strict guidelines we adhere in maintaining transparency in transactions, equality in all business relationships and conscious efforts at Corporate Social Responsibility, supported by our team of fully trained and certified members of staff across the channel network, who ensure that all transactions are done in accordance with the principle guidelines at all times. ”

All “Al-Falaah Ladies” products and functions are designed in accordance with Islamic principles of economics and are supervised and periodically audited by Al-Falaah’s eminent Shari’ah Supervisory Board. Accessibility to their services are provided via LOFC’s 66 main branches and 5 dedicated Al-Falaah branches, with access to over 600 ATM machines island wide.

The “Empress” discount card launched by Al-Falaah Ladies

Mrs. Rohini Nanayakkara, Chairperson of the LOLC Group and Mrs. Kalsha Amarasinghe, Executive Director of the LOLC Group handing over the first set of “Empress” discount cards to lady customers.

Eden Resort & Spa of LOLC Leisure Ltd laid the foundation stone for a new building at the Moragalla Junior School in Beruwala. Upon completion, the new school building will comprise of 08 additional classrooms, which would be constructed at a total investment of approx Rs. 16 Mn.

This project is part of Eden’s CSR initiative to uplift and develop the Beruwala community at large, by focusing on fulfilling its immediate requirements in areas such as education, youth employment, health, community wellbeing and other.

The construction project of the two-storey new school building is expected to be completed in two stages. The 1^st phase would be completed with the initial financial assistance provided by Miss Chris McGrail, a frequent visitor to the Eden hotel hailing from West Midlands, UK.  She is affiliated to the Redhill School of England as the Deputy Head Teacher, and funding for the new building in Moragalla Junior School has been raised through various fund raising activities conducted by the students of Redhill, UK. The 2^nd phase of the project would be completed with fund raising activities which Eden Resort & Spa is aiming to initiate in the coming months.

A formal ceremony was organized by the Hotel to lay the foundation stone to this new school building. The auspicious activities were presided over by General Manager, Mr. Eksath Wijeratne together with Religious Leaders; Key officials from the Kalutara Zonal Education Office, Beruwala Divisional Secretariat and Sanasa Development Bank; Principal of Moragalla Junior School together with teachers and students; Hoteliers from Bentota-Beruwela area; Community Members; Management and Staff members of Eden Resort & Spa.

Commenting, Mr. Eksath Wijeratne said, “It is with deep gratitude that I commend the generosity of our honoured guest, Miss Chris McGrail and the students and staff of the Redhill School. Ms. McGrail expressed her keen interest to partner Eden’s CSR initiatives, and together we identified that the Moragalla Junior School was immediately in need of financial assistance. With her school’s contribution, we will complete the first phase of the project and look at other possibilities of partnering with well-wishers, aiming at an early completion of the new school building.”

Moragalla Junior School at present provides education to 210 students, with 20 teachers and staff members on its cadre. In previous years too, Eden Resort & Spa has provided financial assistance and held educational programs aimed at providing greater educational facilities and development opportunities for the children of this school.

In the picture : Mr. Eksath Wijeratne, General Manager - Eden Resort & Spa ; Mrs. C. D. Kumarasiri, Principal - Moragalla Junior School ; Ms. Inosha Anuradhi Edirisinghe, Secretary – School Development Society ; Ms. Inoka de Silva, Development Director - Kalutara Zonal Education Office ; Ven. Moragalle Chandawimala Thero from Purana Sri Gangaramaya Temple of Moragalla ; Mr. Upali Jayaratne, Director - Sanasa Development Bank; Ms. Mary Nolan – visiting English Development Teacher from UK; students; well-wishers and officials participating in auspicious activities.

Lanka ORIX Finance PLC (LOFC) aiming to provide an enhanced service and convenience to customers relocated its branches in Vavuniya and Kohuwala to spacious new homes. The Vavuniya branch was relocated to No. 27, 2nd Cross Street, Vavuniya whilst the Kohuwala branch was moved to No. 176 & 176 1/1, Dutugamunu Street, Kohuwala.

Mrs. Rohini Nanayakkara, Chairperson of the LOLC Group participated as Chief Guest at the ceremony in Vavuniya whilst the ceremony at Kohuwala was attended by Mr. Kapila Jayawardena, Group Managing Director/CEO of LOLC and Chairman of LOFC. Also in attendance were, Mr. Brindley de Zylva, Managing Director/CEO of LOFC, Mr. Ashan Nissanka, Chief Executive – Branch Network and other senior officials of both LOLC and LOFC.

In a statement to press, Mr. Kapila Jayawardena said, “When relocating our branches, we have looked at providing a renewed interior which welcomes our customers to an open, friendly and modern world of superior customer service. Together with an enhanced service and a wide ranging portfolio of products, we are poised to serve the entrepreneurial communities of Vavuniya and Kohuwala better.”

Chief Guests, LOLC Group Chairperson, Mrs. Rohini Nanayakkara and LOLC Group Managing Director/CEO and LOFC Chairman, Mr. Kapila Jayawardena engaging in customer transactions at the relocated branches in Vavuniya and Kohuwala.

LOLC, achieving yet another milestone, laid the foundation stone for a spacious new regional office, on own land, located at No. 242, Maithripala Senanayake Mawatha, Anuradhapura recently.

A formal ceremony was organized, at which Mr. Gunendra Jayasena, Chief Administration Officer - LOLC Group; Mr. Gamini Jayaweera, Assistant General Manager – North and North Central Regions – LOLC Group and Mr. Sumeda Kulathilaka, Branch Head – Polonnaruwa – Lanka ORIX Finance PLC together with religious leaders, staff members and well-wishers took part in auspicious activities.

This four-storeyed new building will deliver a dual function: it will serve as the regional administrative hub of the Group’s service network located within the North and North Central regions and house service units of Lanka ORIX Finance PLC, LOLC Micro Credit Ltd and LOLC Insurance Ltd among others.

The new Regional Office would be constructed at an approximate cost of Rs. 130 Mn and is scheduled to be completed by the 3rd quarter of 2015. Features consist of spacious three storeys dedicated for office and administrative functions, a conference hall, a spacious roof terrace, open lobby areas on each floor and ample parking facilities. The contemporary design of this building was conceptualized and executed by renowned architect, Mr. Thusara Waidyasekara together with Sierra Property Development Pvt Ltd. 

Architect’s sketch of the proposed new LOLC regional office in Anuradhapura

(L-R) Mr. Gamini Jayaweera, Assistant General Manager – North and North Central Regions – LOLC Group ; Mr. Gunendra Jayasena, Chief Administration Officer - LOLC Group and Mr. Sumeda Kulathilaka, Branch Head – Polonnaruwa – Lanka ORIX Finance PLC partaking in auspicious activities.

LOLC Micro Credit Ltd (LOMC) was recently conferred the “Smart Campaign Client Protection Certification”, becoming the first ever Sri Lankan MFI (Microfinance Institution) to be evaluated and presented with this top global honour.

This certification guarantees that LOMC and its members of staff subscribe to set Principles designed to practice good ethics, sound business and protection of clients set out by this global initiative of over 4,000 endorses. The Smart Campaign unites worldwide MFIs around a common goal: to protect clients and to ensure their continuity as the driving force of the microfinance industry.

This initiative, together with its panel of established certifiers, analyzes and evaluates the compliancy levels of organizations against a set code of principles. These are: Appropriate Product Design and Delivery, Prevention of Over-Indebtedness, Transparency, Responsible Pricing, Fair and Respectful Treatment of Clients, Privacy of Client Data and Mechanisms for Compliant Resolution.

LOMC, in this regard, has been guaranteed by Micro-Credit Ratings International Limited (M-CRIL) - a licensed certifier of the Smart Campaign’s Client Protection Certification Program - as compliant, including fulfilling all 30 standards of care in the treatment of their clients.

The Smart Campaign initiative encourages MFIs to incorporate client protection principles and practices into their institutional culture and to the overall operations of the microfinance industry. It encourages MFIs to foster strong relationships with clients, increase client-retention, ensure healthy returns, reduce financial risk and thereby, sustain a robust microfinance industry.

Commenting, Mr. Ravi Tissera, Director/CEO of LOMC said, “It is indeed an honour to have been the first Sri Lankan Micro Finance Institution to be conferred this prestigious accolade amongst 13 other International Establishments. This demonstrates our commitment to responsible lending and I would encourage all microfinance providers to obtain this certification and recommend that industry authorities develop this into a process.”

Adding further he said, “This distinction also manifests our deep commitment to our staff members. As an organization bestowed with the Great Places to Work award, this achievement is a testament to their dedication and passion to place the LOLC Micro Credit brand in par with global standards.”

Ms. Isabelle Barres, Director, Smart Campaign observed the following; “Certified financial institutions have demonstrated their commitment and practice to treat the people they serve fairly. They contribute to a microfinance industry that prioritizes client care”.

Mr. Kapila Jayawardena, Group Managing Director/CEO of the LOLC Group stated that, “Aligning the Group’s business strategy with the national vision to fully harness Sri Lanka’s post war potential, has always given rise to

our companies to grow. This certification has been bestowed upon LOLC Micro Credit as a true sentiment of its vision to empower people to achieve their dreams, with a focus on the practices and policies of Client Protection.”

LOLC Micro Credit Ltd, which commenced operations in 2009, is at present crowned an industry leader in microfinance in Sri Lanka. Its unique business model is founded on the triple bottom line approach which is further enhanced by its socially focused business strategy. LOMC has been consistently dedicated towards uplifting the micro segment of the country as demonstrated by its growing borrower base of 200,000 and total portfolio of Rs. 20 Bn.

Backed by the financial strength and technical support of bilateral and multilateral funding agencies as well as the LOLC Group, the Company has taken greater measures to ensure continued development and protection of their clients, whilst paving the way for peers and industry authorities to implement stronger client protection measures and systems within the overall financial services landscape of the country.

Mr. Kapila Jayawardena, GMD/CEO of the LOLC Group

Mr. Ravi Tissera, Director/CEO of LOLC Micro Credit Ltd.

Lanka ORIX Information Technology Services Ltd (LOLC Tech), a subsidiary of the LOLC Group, was recently certified against the ISO/ IEC 20000:2011 standard, covering services rendered through its Service Desk. In this regard, LOLC Tech is conferred the rare distinction of being the first and only institution predominantly serving the banking and financial service sector to have the ISO 20000:2011 certificate.

In addition, LOLC Tech is already ISO/ IEC 27001: 2005 and ISO 9001: 2008 certified and with this recent achievement, the Company joins an elite and exclusive group of few institutions to have all three certificates in good standing – an achievement which is the first of its kind in Sri Lanka.

ISO/IEC 20000 is the first international standard for IT service management. It was developed in 2005, by ISO/IEC JTC1 SC7 and revised in 2011. It is based on and intended to supersede the earlier BS 15000 that was developed by the BSI Group. ISO/IEC 20000, like its BS 15000 predecessor, was originally developed to reflect best practice guidance contained within the ITIL (Information Technology Infrastructure Library) framework, although it equally supports other IT service management frameworks and approaches including Microsoft Operations Framework and components of ISACA's COBIT framework.

"This achievement shows our continuous commitment to standardization, service delivery and management, assurance to quality, due diligence and risk mitigation whilst benchmarking against the world's best", said Conrad Dias, Managing Director/CEO of LOLC Tech.

In addition, Parakum Pathirana, Principal Consultant said; “The ISO Management System gives the ability to have flexible and measurable objectives, actionable conversations and continues improvement. Combined, these three management systems provide a holistic approach to information assurance and information security”.

LOLC Technologies Ltd, the Information Technology Services arm of the LOLC Group, in strategic partnership with Oracle Corporation Singapore PTE Ltd held an awareness session under the theme “Information Security, Threats and Opportunities” among C-level corporate officers from Banks and Licensed Finance Companies in Sri Lanka, at the Cinnamon Grand Hotel recently.

This high-level gathering included Mr. Ajith Nivard Cabraal, Governor of the Central Bank of Sri Lanka (CBSL) as the Honoured Chief Guest. The participants included the highest echelon of distinguished Banking Executives – Chairpersons and Chief Executive Officers - from renowned banks and financial establishments such as the Hatton National Bank, Commercial Bank, Peoples Bank, Bank of Ceylon, and Union Bank among others.

Mrs. Rohini Nanayakkara, Chairperson of the LOLC Group ; Mr. Kapila Jayawardena, Group Managing Director of the LOLC Group and Mr. Conrad Dias, Managing Director / Chief Executive Officer of LOLC Technologies Ltd together with officials from the LOLC Group and Oracle Corporation Singapore PTE Ltd were also present.

The aim of the program was to create a broader discourse and an understanding in the Financial Services community about securing the integrity of Information Services within their organizations and the Financial Services sector, whilst taking measured responses against cyber threats and exploring opportunities.

Mr. Ajith Nivard Cabraal, Governor, CBSL shared his views in this regard, “As we prepare to reach 4,000 USD per capita income and to fulfill the next phase of our country’s development, we have taken the necessary steps in all sectors of our economy to progress ahead seamlessly. In this endeavor, to sustain a resilient Banking and Financial Services sector in Sri Lanka, we have taken timely measures to be ‘IT Ready’. All efforts in this regard are made to prepare and strengthen ourselves for the future and to progress forward.”

Providing an insight into the program, Mr. Kenneth Hee, Director, Identity Management and Security, Oracle Asia-Pacific explained as follows; “We see more targeted cyber-attacks on systems now where attackers have an understanding about their targets and their vulnerabilities. The key is not to view cyber-attacks in fear; as problems which require immediate technical solutions, but to approach them as opportunities to take measured steps to strengthen the existing systems and strategically prepare them well in advance.”

He further went on to encourage participants to view cyber threats from the perspective of Risk Management and to understand them as long term opportunities for business enhancement.

“The key is to identify vulnerabilities in your systems and strategically prepare them to mitigate threats from within. By adopting a Security Inside Out approach, you can understand how resilient your security structures are and thereby transform these threats into opportunities that create long term value for your business.” he concluded.

Mr. Kapila Jayawardena, Group Managing Director/CEO, LOLC Group also shared his views; “This is indeed a timely event to have a discussion about mitigating cyber threats. Business leaders in the financial services sector, especially those in the banking sector, will require the necessary resources to prepare and upgrade their IT processes and procedures. We are privileged to have begun an initial dialogue as a step forward in this direction.”

LOLC Technologies Ltd is at the forefront of providing a comprehensive portfolio of IT services with a special focus on banking and financial services sector of the country. The Company partners with principles such as Oracle, Microsoft and VM Ware® to provide integrated ICT solutions and services, while maintaining strategic alliances with other delivery partners in the region. LOLC Technologies Ltd has a special focus on Information Security Consultancy with its InfoSec division. The Company also holds the IP (Intellectual Property) Fusion Financial Solution Suite (FusionFSS), a specialized Non-Banking Financial Services System that is deployed in many NBFIs in the country. Further, the company provides implementation and consultancy services as system integrator for other enterprise software applications such as Oracle Enterprise Resource Planning (ERP), Customer Relationship Software Solutions (CRM) and Business Intelligence Solutions.

Mr. Ajith Nivard Cabraal, Governor of the Central Bank of Sri Lanka

Mr. Kapila Jayawardena, GMD/CEO of the LOLC Group

Mr. Kenneth Hee, Director, Identity Management and Security, Oracle Asia-Pacific

Mr. Conrad Dias, MD/CEO of LOLC Technologies Ltd

Distinguished Gathering : Chairpersons and CEOs from Banks and Financial Institutions in Sri Lanka

Expanding its outreach across Sri Lanka, Lanka ORIX Finance PLC (LOFC) opened its latest branch in the coastal city of Ambalantota recently. Offering a diverse product mix aimed at developing the SME and Micro sectors of this region, LOFC established this new branch with spacious and modern facilities together with a team of highly dedicated customer care officials.

The opening ceremony of the new branch was attended by Mrs. Rohini Nanayakkara, Chairperson of the LOLC Group as Chief Guest and Mr. Brindley de Zylva, Managing Director / CEO of LOFC and Mr. Ashan Nissanka, Chief Officer – Branch Network as Honoured Guests.

Commenting, Mrs. Rohini Nanayakkara said, “Ambalantota is a vibrant city with a rich history of maritime trade. With prosperity rapidly seeping into all corners of the country, we have experienced a rise in demand for financial services among the people of this region. In order to uplift the enterprising businessmen and women of this city, we have upgraded our service center previously located at the Ambalantota Post Office to a fully-fledged branch. A range of financial products and services are available to fulfill their aspirations.”

This new LOFC branch will offer financial products such as Fixed Deposits and Savings, Foreign Currency Business, Speed Draft facilities, Hire Purchase, SME finance, Islamic Finance among others.

Mrs. Rohini Nanayakkara, Chairperson of the LOLC Group ceremonially opening the new LOFC branch at Ambalantota.

Mrs. Rohini Nanayakkara, Mr. Brindley de Zylva and Mr. Ashan Nissanka

With the dawn of peace in the country and spread of good news across the globe that Sri Lanka is a safe haven to all including tourists visiting this beautiful island, Eden Resort & Spa of LOLC Leisure Ltd - the newly renovated 5-star resort on the Golden Mile of Beruwela - was privileged with the opportunity and honour of accommodating guests from 41 nations worldwide.

These guests belonging to vibrant and diverse nationalities and ethnic backgrounds visited the hotel during the festive period and are scheduled to stay over until the end of the peak season.

They were hosted to a special New Year celebration on the topmost deck of the hotel - the “7th Heaven” - where they were served with Tea and Cakes during morning hours of 1st January 2014. The occasion was also graced by the Management Team and Executives of Eden – where both parties exchanged pleasantries.

Mr. Eksath Wijeratne, General Manager of Eden Resort & Spa and staff members together with the guests.

LOLC Micro Credit Ltd (LOMC) reiterating its commitment to uplift the educational standards of children of Sri Lanka, held its annual “Isuru Diriya Sisu Upahara Scholarship Award Program” at the Bishop’s College Auditorium in Colombo yesterday (19th December 2013).

This year’s event was held for the 4th consecutive year, at which LOMC awarded scholarships and gifts to over 550 students from diverse communities across the country. Out of this, 200 students who obtained top results were felicitated at the official ceremony held in Colombo.

Mr. Lalith Weeratunga, Secretary to His Excellency the President participated as Chief Guest along with Dr. P. N Weerasinghe, Deputy Governor, Central Bank of Sri Lanka ; Mr. H. B. D. Karunaratne, Additional Director, Department of Supervision of Non-Bank Financial Institutions, Central Bank of Sri Lanka ; Mrs. Rohini Nanayakkara, Chairperson, LOLC Group ; Mr. Ishara Nanayakkara, Deputy Chairman, LOLC Group and Chairman, LOLC Micro Credit Ltd ; Mr. Kapila Jayawardena, Group Managing Director/CEO, LOLC Group ; Mrs. Kalsha Amarasinghe, Executive Director, LOLC Group and Mr. Ravi Tissera, Director/CEO, LOLC Micro Credit Ltd.

Out of the children who scored high marks, Miss Malisha Parindi from Elpitiya obtained 190, Master Kaveesha Eshan Kumarasinghe from Balangoda obtained 189 and Miss Thabirasa Thenuka from Vavuniya scored 189 bringing great pride to their families and communities.

Commenting, Mr. Ravi Tissera, Director/CEO of LOLC Micro Credit said, “Isuru Diriya Sisu Upahara is a sustainable CSR program of LOLC Micro Credit. In this endeavor, our vision is to provide opportunities for children from grass root communities to further their education. We recognize and reward exceptional achievements of Grade 5 scholars, from communities in which we operate, who excel at the annual Grade 5 National Scholarship Examination. When we commenced this program in 2010, our main objective was to felicitate and provide support to children of our group loan customers.”

Also, speaking, Mr. Kapila Jayawardena, Group Managing Director/CEO of LOLC said, “Education is one of the most powerful ways of improving and enhancing the lives of many. It provides immeasurable opportunities for these children to aspire for a better future and we provide them and their families the required support and encouragement to do just that.”

LOLC Micro Credit Ltd is the leading microfinance provider in Sri Lanka. The Company which commenced operations in 2009 is dedicated towards uplifting the micro segment of the country. Its unique business model comprises of a triple bottom line approach backed by the financial strength and technical support of bilateral and multilateral funding agencies.

Malisha Parindi from Elpitiya receiving her scholarship and gift from Mr. Lalith Weeratunga Secretary to His Excellency the President, Also, in the picture are: from L-R; Mr. H. B. D. Karunaratne, Additional Director, Department of Supervision of Non-Bank Financial Institutions, Central Bank of Sri Lanka ; Mr. Kapila Jayawardena, Group Managing Director/CEO, LOLC Group ; Dr. P. N Weerasinghe, Deputy Governor, Central Bank of Sri Lanka ; Mrs. Rohini Nanayakkara, Chairperson, LOLC Group and Mr. Ishara Nanayakkara, Deputy Chairman, LOLC Group and Chairman, LOLC Micro Credit Ltd.

Kaveesha Eshan Kumarasinghe from Balangoda receiving his scholarship and gift from Mr. Lalith Weeratunga Secretary to His Excellency the President. Also, in the picture are: from L-R Mr. Kapila Jayawardena, Group Managing Director/CEO, LOLC Group and Mrs. Rohini Nanayakkara, Chairperson, LOLC Group.

Thabirasa Thenuka from Vavuniya receiving her scholarship and gift from Mr. Lalith Weeratunga Secretary to His Excellency the President. Also, in the picture are: from L-R Mr. Mr. Kapila Jayawardena, Group Managing Director/CEO, LOLC Group ; Dr. P. N Weerasinghe, Deputy Governor, Central Bank of Sri Lanka and Mrs. Rohini Nanayakkara, Chairperson, LOLC Group.

Honoured Chief Guest and Guests of Honour: From L-R; Mr. H. B. D. Karunaratne, Additional Director, Department of Supervision of Non-Bank Financial Institutions, Central Bank of Sri Lanka ; Mr. Kapila Jayawardena, Group Managing Director/CEO, LOLC Group ; Dr. P. N Weerasinghe, Deputy Governor, Central Bank of Sri Lanka ; Mr. Lalith Weeratunga, Secretary to His Excellency the President ; Mrs. Rohini Nanayakkara, Chairperson, LOLC Group ; Mr. Ishara Nanayakkara, Deputy Chairman, LOLC Group and Chairman, LOLC Micro Credit Ltd ; Mrs. Kalsha Amarasinghe, Executive Director, LOLC Group and Mr. Ravi Tissera, Director/CEO, LOLC Micro Credit Ltd.

The famed 5-star luxury resort in Beruwala - Eden Resort & Spa - has re-opened its doors after briefly closing down operations for refurbishment in May earlier this year. The Hotel has infused an exciting new range of enhanced features to its existing facilities, offering a truly global 5-star leisure experience.

Speaking, Mr. Kapila Jayawardena, Chairman of LOLC Leisure Ltd said, “At Eden Resort & Spa, we have been consistently committed to providing our guests comfort and luxury. We felt that this was an opportune time to enhance and upgrade our hotel’s facilities and interior, to reflect the requirements of modern day luxury travel and leisure. We would like to make the discerning traveler – both local and international - feel that they are looked after with astute care.”

Many of the hotel’s key interior and exterior locations have been stylishly re-touched to resonate elegance and comfort. All rooms have been upgraded to Superior category, fully furnished with state-of-the-art equipment and fittings. The entire furniture supplies have been replenished with solid teak timber. The bed-head panel is the most decorative feature of this room category. The interior design of rooms has been renewed to match the plush interior of the hotel, providing holiday-makers a unique touch of class and sophistication.

Similarly, elegantly designed and spacious Super Deluxe Rooms are furnished with a private outdoor terrace for weary travelers to relax and unwind. This is an ideal place for guests to enjoy their meals in the comfort of their own, exclusive environment.

The modern-day traveler’s requirements too have been carefully looked at with a few new additions adorning all rooms - 42” flat screen TV, Blue-ray Player and Library, a sophisticated Media Hub unit, and a Bed-side Touch Panel system along with Mini Bar and Tea/coffee-making facilities, hair dryer, IDD facilities and many more. Attached washrooms too have been fully renovated using modern and stylish designs, enhancing the overall luxurious ambiance of rooms.

To provide a unique and contemporary dining experience, the newly refurbished Main Restaurant of the hotel speaks of class and sophistication by itself. This exclusive restaurant provides both indoor and outdoor dining facilities. Its latest add-on is the adjoining new timber-wood deck built on the edge of the hotel’s swimming pool, providing that ideal dining spot for a romantic rendezvous.

The new restaurant features two, built-in live-cooking stations, where guests will be given the option of having their dishes prepared instantly, to complement individual taste-buds. The adjoining new Pool Bar will offer facilities for guests to enjoy an assortment of food and beverages whilst having a refreshing dip in the renovated swimming pool.

The “7th Heaven Roof-Top Cocktail Bar” is a signature open-air bar of the hotel, which is overlooking the pool and the deep sea. “Amazing” is the very first word that is said to come to mind as visitors step into this ambient haven. A delectable cocktail menu will offer visitors best cocktails from around the world along with a variety of appetizing food.

Being attuned to the health and fitness requirements of modern travelers, Eden Resort & Spa has constructed a new, state-of-the-art Gym facility with a brand new set of fitness equipment for its resident guests.

The redesigned and landscaped Garden of the hotel provides holiday-makers one of the best views of the sea-frontage whilst offering simple pleasures of relaxing and dozing under Palm Trees.

Eden Resort & Spa is also offering a one-of-a-kind holiday cum entertainment package for revelers of all ages during the holiday weekend of 13th – 16th of December, inclusive of 40% off on full board basis, free corkage (only available on the 14th & 15th), soft drinks and beach parties.

With such amazing offers, an enhanced service offering, ample luxury; a unique experience and a touch of elegance await guests at this star class resort located on the Golden Mile of Beruwala.

Financial powerhouse, Lanka ORIX Finance PLC (LOFC) understanding the immediate, short-term cash needs of consumers has introduced an innovative and revolutionary range of product extensions and epic benefits via the Speed Draft finance facility, which are aimed at fulfilling people’s specific finance needs.

This one-of-a-kind speedy finance facility allows individual customers and businesses to purchase goods for shop and import finance business, for home renovations and constructions, to purchase land or agri-equipment and to further educational needs.

Speaking about this unique finance solution, Mr. Kapila Jayawardena, Chairman of LOFC said; “Speed Draft is a finance solution similar to an overdraft facility, but with a range of exciting new product extensions and benefits added for customer convenience. Our main objective is to dispense finance solutions, to fulfill immediate and short-term cash requirements of individuals and businesses, without subjecting them to the hassle of lengthy processing times or exhaustive documentation procedures.”

“We have tailor made our existing services, enabling customers of all socio-economic strata to accomplish their specific finance needs and to improve every aspect of their lives. Unlike any other financing facility, Speed Draft brings peoples’ dreams and aspirations that much closer to reality at real time.” He said.

The benefits offered under this product extension include fast customer eligibility assessments, speedy cash approval, payment made directly to third party supplier on your behalf, a dedicated team of customer service agents to attend to customer queries and re-payment options tailor-made to fit individual requirements.

Mr. Jayawardena further added that at the outset, the Company has introduced six main product extensions fulfilling priority finance needs of customers with provisions to add more in the near future. “The customer chooses a facility tailor made to their every requirement and they can avail themselves of it in time of urgent cash needs”. He concluded.

Lanka ORIX Finance has made ground-breaking strides in the non-bank finance sector by offering pioneering and tailor-made financial solutions, targeting the specific requirements of Micro, SME, Corporate and Individual customer segments. With an unblemished excellence in the financial services industry, the Company has built a solid and unique identity as a financial catalyst to the burgeoning Sri Lankan enterprises, by financially empowering people to bridge the gap between aspiration and achievement. With the strength of the LOLC Group and the ORIX Corporation of Japan spurring its sustainable growth, Lanka ORIX Finance has strongly remained a trusted brand that augments a vibrant Sri Lankan economy.

Mr. Kapila Jayawardena, Chairman of Lanka ORIX Finance PLC handing over a Speed Draft product transaction to a customer. Mr. Isaac Devshanker, Head of SME/ Development Finance of Lanka ORIX Finance PLC is also present.

Mr. Ashan Nissanka, Chief Officer – Branch Network handing over a Speed Draft product transaction to a customer.

Mr. Solomon Jesudason, Chief Officer – Marketing Operations handing over a Speed Draft product transaction to a customer.

Mr. Kapila Jayawardena, Chairman of Lanka ORIX Finance PLC together with Management Members participating in auspicious activities marking the launch of innovative product extensions from Speed Draft.

The LOLC Group, reiterating its name as a top employer in the Sri Lankan Corporate Sector, was bestowed a Gold Award at the SLITAD People Development Awards 2013 held at the Water’s Edge Hotel in Colombo. LOLC, among other peer winners, received this prestigious award for excellence in Human Resource Management and Development.

Mr. Pradeep Uluwaduge, Acting Head of Human Resources of the LOLC Group accepted the Gold Award from Mr. Donglin Li, Country Director of ILO Country Office for Sri Lanka and the Maldives and Mr. Eastman Narangoda, President of SLITAD. Members of LOLC’s winning HR Team were also present at the ceremony.

Winners of this award program were evaluated on a set framework spanning ten focal points and strategies, namely; Business Strategy, Learning and Development Strategy, People Management, Leadership and Management, Management Effectiveness, Recognition and Reward, Involvement and Empowerment, Learning and Development, Performance Measurement and Continuous Improvement. The panel of judges in the audit review carried out by SLITAD included eminent Professors from the Management Faculty of the University of Colombo.

Commenting, Mr. Kapila Jayawardena, Group Managing Director/CEO of LOLC said, “It is with great pride that we celebrate this momentous win together with all employees of the LOLC Group. It is their fervent efforts that has secured LOLC’s name on the top echelons of the Sri Lankan Corporate sector. Further, this achievement has added great value to the strides we have taken to ensure that we are truly an employee centric organization. We are focused on developing our most valued resource which is our employees, and our sound HR processes together with ample opportunities provided for employee growth, have indeed made us a preferred employer of choice.”

Earlier this year, three companies of the LOLC Group were adjudged among the Top 5 Great Places to Work, in the inaugural study carried out in Sri Lanka. The LOLC Group is comprised of 2,900 employees and has a successful retention rate of 85% during the FY 2012/13. This dynamic Group provides excellent equal opportunities to men and women from diverse age groups, ethnicities and religions, and has proudly achieved many progressive strides in the HR Management and Development of the country.

LOLC Group is one of the leading Top Corporates of Sri Lanka to have a 40% representation of women in senior management positions alongside men, which is a significant accomplishment for a single corporate entity in the financial services sector of Sri Lanka.

In addition, the LOLC Group was one of the first top Sri Lankan Corporates to recruit youth from previously war torn areas of the North and East, generating employment to over 10% youth across 21 branches in the region.

Furthermore, fulfilling the needs of the leisure industry of Sri Lanka, which is one of the fastest growing sectors in the country’s economic landscape, LOLC Leisure Ltd of the LOLC Group initiated a Management Trainee Program for youth interested in furthering their careers in hospitality. LOLC intends to facilitate the growth of young professionals who will move onto become the next generation of doyens in the leisure and hospitality industry of Sri Lanka.

In addition, during the past years, LOLC successfully launched the “From Student to Professional” (FSTP) recruitment project focusing on attracting exceptionally skilled school leavers. They were provided with both academic and industrial training after which the top performers were absorbed into the LOLC staff cadre.

Mr. Pradeep Uluwaduge, Acting Head of Human Resources of the LOLC Group together with the winning LOLC HR Team, accepting the Gold Award from Mr. Donglin Li, Country Director of ILO Country Office for Sri Lanka and the Maldives and Mr. Eastman Narangoda, President of SLITAD.

Green Paradise Resort of Browns Investments PLC welcomed the Sri Lankan and New Zealand Cricket Teams, ahead of the 3rd ODI series held between the two nations at the Rangiri Dambulla International Stadium on 16th September 2013.

The hotel gave a warm and traditional Sri Lankan welcome to the two teams in the presence of Mr. Susantha Bandara, Resident Manager and Staff Members of the Hotel.

Led by Captains Angelo Mathews and Kyle Mills, the two teams and their entourage of coaches, managers and officials stayed at the hotel from the 13th to the 17th of November. During their stay, the teams took part in two day practice sessions prior to the main game. In September this year, the hotel also hosted the ‘A’ teams of both countries during New Zealand ‘A’ Team’s tour of Sri Lanka.

Speaking, Resident Manager, Mr. Susantha Bandara said, “It was our pleasure and privilege to host all members of the Sri Lanka and New Zealand cricket teams and to welcome them to the beautiful city of Dambulla. The entire Green Paradise team prepared well ahead of time to make their stay with us a comfortable experience. We extended our welcome to fans as well.”

Green Paradise Resort is a beautifully designed luxury hotel located in the historic and cultural hotspot of Dambulla. The township is an ideal stop-over for those travelling to Anuradhapura, Polonnaruwa and the East Coast Beach. With access to popular tourist attractions like the Dambulla Rock Temple, Cave Temples, Dambulla Reservoir and Sigiriya Rock Fortress only minutes away, this area is also renowned for having the largest ironwood forest and rose quartz mountain range in South Asia.

Surrounded by lush natural surroundings, Green Paradise Resort has been fully furnished using timber, glass and fittings of fine Italian make. It offers all amenities of a star class Hotel and consists of 67 ecologically appointed villas that speak volumes of 5 star luxury and comfort. Plush interior of the entire Hotel are tastefully decorated using eco-friendly material and contemporary designs, aimed at providing a cozy and elegant atmosphere.

Green Paradise Resort also boasts of an enormous swimming pool with spectacular ambient surroundings, designed to soothe and relax the weary guest. The adjoining shallow water swimming pool provides young children and their parents a safe and enjoyable environment. The Hotel owns a spacious gym with modern fitness equipment intended to cater to various fitness regimes. In addition, the hotel’s exclusive Thai Spa offers guests optimal relaxation and rejuvenation in a soothing and serene atmosphere. Tantalizing the taste buds of both foreign and local guests, the Hotel’s signature restaurants - Orchid and Salt & Pepper - Pizzeria Al Forno and the Blue Elephant Bar offer delectable organic cuisine and refreshing beverages prepared by the Hotel’s own Chefs and Barmen.

Players of Sri Lanka and New Zealand Teams receiving a warm, traditional welcome at the Green Paradise Resort

(Left) Dinesh Chandimal lighting the traditional oil lamp. (Right) Susantha Bandara, Resident Manager of Green Paradise Resort speaking to Mahela Jayawardena and Lasith Malinga.

Green Paradise Resort and its services

LOLC Insurance Company Ltd of the LOLC Group launched several new life insurance products at a soft launch ceremony held at the Galadari Hotel on the 27th of October 2013.

The new life products – LOLC Insurance Life Protect, LOLC Insurance Life Protect Plus, LOLC Insurance Child Plan and LOLC Insurance Pension Plan were unveiled and added to an existing portfolio of comprehensive life insurance products offered by the Company. The soft launch was primarily held targeting the Sales Force of the Group - Regional Heads, Branch Heads, Zone Leaders, Financial Planners and Sales Teams.

Board members of LOLC Insurance Company Ltd - Mr. Kapila Jayawardena (Chairman); Mrs. Kalsha Amarasinghe (Director) and Mr. J. M. Swaminathan (Director) were present together with Mr. Gehan Rajapakse - Chief Executive Officer of LOLC Insurance, Mr. Ashan Nissanka – Chief Officer, Branch Network, Mr. Saliya Dias - AGM - Life (Technical & Operations), Mr. Sujeewa Vidanapathirana - DGM - Business Development (General Insurance) and other officials of the Company.

The new products are exclusively designed to provide flexible insurance covers, with added benefits targeting diverse requirements of people whilst ensuring guaranteed protection and security for their future well-being and their unique requirements.

Commenting, Mr. Gehan Rajapakse, CEO of LOLC Insurance said, “We are very excited to open this new chapter of our organization, where we offer a comprehensive portfolio of life protection covers aimed at meeting life protection requirements of Individuals, Families and Corporates. We understand what matters to people the most and we are committed to provide solutions that ensure their protection and well-being. We have an island wide footprint of Service Outlets with dedicated teams of professionals to provide best solutions for customer requirements, whilst our sound systems and processes provide end-to-end technical assistance to execute operational activities swiftly and efficiently.”

LOLC Insurance Company Ltd completed its first full year of operations in 2012. This bold young entity has now evolved into one of the fastest growing companies in the local insurance industry, achieving a significant name for itself as a catalyst in the development of the micro insurance sector in Sri Lanka. With the strength of the LOLC Group backing its growth trajectory, the Company has developed a sound business plan which is focused on key strategic priorities and delivering comprehensive, integrated solutions to meet customer requirements.

Mr. Kapila Jayawardena, Chairman of LOLC Insurance Co. Ltd and GMD/CEO of LOLC speaking at the launch of new Life Insurance products.

Mr. Gehan Rajapakse, Chief Executive Officer of LOLC Insurance Co. Ltd introducing the new Life Insurance products.

From L-R; Mr. Ashan Nissanka, Chief Officer – Branch Network; Mr. Gehan Rajapakse – CEO of LOLC Insurance Co Ltd; Mr. Kapila Jayawardena – Chairman of LOLC Insurance Co Ltd; Mrs. Kalsha Amarasinghe – Director of LOLC Insurance Co Ltd; Mr. Saliya Dias - AGM - Life (Technical & Operations) (Not in the picture); Ms. Nadika Opatha – Head of Corporate Sales & Bancassurance – Life; Mr. Sujeewa Vidanapathirana – DGM Business Development (General Insurance) together with Sales Heads & Teams of LOLC Insurance Co Ltd.

Honouring the best in the Sri Lankan Islamic Banking and Finance fraternity, the annual “Sri Lanka Islamic Banking and Finance Industry (SLIBFI) Awards” held for the year 2013, honoured Al-Falaah of Lanka ORIX Finance PLC and LOLC Technologies with 02 prestigious accolades, recognizing their innovative spirit and contribution to the IBF industry amongst peer wins.

Al-Falaah and LOLC Technologies were feted for their exceptional achievements in 02 significant categories, winning Silver Awards each in “Islamic Finance Technology Provider of the Year” by LOLC Technologies and “Social Upliftment Award” by Al-Falaah.

In addition, marking yet another significant achievement, Mr. Krishan Thilakaratne General Manager of Al-Falaah was honoured with an accolade for “Outstanding Contribution to the Islamic Banking & Finance Industry of Sri Lanka”. He was instrumental in conceptualizing and introducing Islamic Finance to the LOLC Group in 2007 and is a distinguished professional in both non-bank Finance and Islamic Finance Industries of Sri Lanka.

The awards ceremony was held on the 23rd of October 2013 at Hotel Galadari, Colombo amidst a gathering of distinguished guests. The Chief Guest of the evening was His Excellency Mr. Azmi Zanuddin, High Commissioner for Malaysia in Sri Lanka.

LOLC Technologies, a fully owned subsidiary of the LOLC Group, received the Silver Award for “Islamic Finance Technology Provider of the Year” for its successful implementation of FusionIBL ®Islamic Financial module of Fusion Financial Solution Suite, uniquely designed to support Shari’ah compliant Islamic Financial processes within the LOLC Group. The Gold Award was won by an International Technology Solutions Company, placing this locally designed product in par with international standards.

Similarly, the Charity Fund of Al-Falaah, the Islamic Business Unit of Lanka ORIX Finance PLC, was honoured with Silver in the “Social Upliftment Award” category, for their unpublicized charity and social services activities carried out in the areas of Health, Education, Poverty Alleviation and Social Upliftment in all communities across Sri Lanka. This was a significant achievement for the company, as Al-Falaah was the only Financial Institution among peer awards recipients to receive this prestigious accolade.

Commenting about the multiple wins, Mr. Krishan Thilakaratne said, “We are truly honoured and humbled by this felicitation. Since inception, the Al-Falaah brand has championed ‘Values’ by providing Alternative Financial Solutions in compliance with Shari’ah principles of profit-sharing and ethical financial transactions. We are supported in this endeavor by visionary and committed teams comprising of Board of Directors, Management Members, Independent Shari’ah Supervisory Board, Associate Companies and Young Professionals – all of whom with vast expertise and commitment to empower people across Sri Lanka.”

Rewarding Innovative Spirit

At the awards, LOLC Technologies was lauded for creating the unique FusionIBL solution to meet necessary system processes required in the non-bank finance companies sector.

Explaining, Mr. Conrad Dias, Managing Director/CEO of LOLC Technologies and Chief Information Officer of the LOLC Group said, “FusionIBL is an end-to-end Islamic Banking and Finance module in which all system processes are supported to meet stringent Shari’ah compliant requirements, and the ease and flexibility of structuring tailor-made, advances-repayment options similar to a conventional banking and finance platform. This module is specifically designed for financial services management companies and comprises of core modules such as Lending Management (FusionLM), Deposit Management (FusionDM) and Savings Account Management (FusionSA).”

Adding further he said that at the time of its launch, FusionIBL Savings was the first of its kind to be introduced in Sri Lanka, where online and monthly profit distributions were supported, while providing all facilities and benefits of a standard conventional savings product, such as ATM and Debit Card facilities with international ATM access. Moreover, FusionIBL uniquely supports not only Islamic lending such as Ijarah, Murabaha and Diminishing Musharakha but Shari’ah compliant investments and savings such as Mudharabah and Mudharabaha Savings as well.

“Implementing this solution has successfully achieved the challenges in providing convenient solutions to users whilst conforming to IF principles comprehensively. The unique General Ledger (GL) Integration supports to isolate IF transactions from the rest, if there is conventional business being executed within the same organization. It also supports seamless integration with any financial Enterprise Resource Planning inclusive of proven records with Oracle Financials.” He concluded.

LOLC Technologies Ltd. was incorporated as a fully owned subsidiary of the LOLC Group. The company collaborates with principles such as Oracle, Microsoft and VM Ware® to provide integrated solutions as a service provider while maintaining strategic alliances with other delivery partners in the region. With a strategic focus on Enterprise Resource Planning (ERP) LOLC Technologies also provides consultancy services in ICT Strategy Development, Consulting Support in Governance, Risk & Compliance, Disaster Recovery Management, Mobility Device Management Solutions IT Project Management, and Hosted Application Services.

Mr. Conrad Dias, Managing Director/CEO of LOLC Technologies Limited and Chief Information Officer of the LOLC Group accepting the Silver Award for Islamic Finance Technology Provider of the Year from Mr. Mafaz Ishak – Director of Calamander Group, Singapore.

Mr. Ilsam Awfer, Executive of Al-Falaah Islamic Business Unit of Lanka ORIX Finance PLC accepting the Silver accolade for Social Upliftment Award from Mr. Reyaz Mihular, Principal of KPMG Sri Lanka.

Mr. Ilsam Awfer, on behalf of Mr. Krishan Thilakaratne, General Manager of Al-Falaah, accepting the award for Outstanding Contribution to the Islamic Banking & Finance Industry of Sri Lanka from His Excellency Mr. Azmi Zanuddin, High Commissioner for Malaysia in Sri Lanka.

The Outstanding Winning Teams of Al-Falaah Islamic Business Unit and LOLC Technologies Ltd with their Awards.

Dickwella Resort & Spa located in stunning South of Sri Lanka, welcomed the festive season during their traditional Christmas cake mixing ceremony held at the hotel premises on 12th October 2013.

Mr. Mirza Borham, Manager and Mr. Priya Abeyesinghe, Executive Chef together with other officials of the Hotel as well as Guests, took part in this much anticipated ceremony which takes place annually.

All ingredients of the cake were beautifully arranged to depict the hotel’s classic logo, the entwining palm trees signifying the allure of island life.

In view of the fast approaching festive season, Dickwella Resort & Spa Team has a multitude of events planned to keep its guests enthralled and basking in the comfort of holiday in the tropics.

Commenting, Manager, Mr. Mirza Borham said, “We are fast approaching that time of the year where festivities are aplenty, as we prepare to say adieu to a yet another momentous year. We are well prepared to give our patrons the true hospitality they deserve, as we look forward to much awaited Christmas and New Year celebrations.”

Dickwella Resort & Spa is a renowned hotel brand operating under LOLC Leisure Ltd - the leisure arm of the LOLC Group. The hotel is renowned for its beautiful vistas having strategically situated on one of the most captivating beach properties in Sri Lanka. It has 56 rooms, 8 suites and 12 family suites and provides all amenities of a star class beach resort. The hotels’ architecture and interior décor speaks of old world Sri Lankan as well as Italian charm. Hotel’s own traditional stone-oven pizzeria, main restaurant and bars offer a variety of food and drinks to keep visitors enraptured in eclectic flavours.

Mirza Borham – Manager Dickwella Resort & Spa, Priya Abeyesinghe – Executive Chef, officials and guests participating at their annual Christmas cake mixing ceremony.

Al-Falaah, the Islamic Business Unit (IBU) of Lanka ORIX Finance PLC (LOFC), has scored double Gold at popular International Annual Report Competitions, the ARC International Awards (ARC) and the League of American Communications Professionals (LACP) Vision Awards.

Al-Falaah won the accolades for its Annual Review for 2011/2012 tilted “Choice”. In addition to the 2 Gold Awards at ARC and LACP respectively, Al-Falaah also took home a Silver accolade at ARC and was placed amongst Top 10 Sri Lankan Annual Reports at LACP.

Metals won by Al-Falaah were Gold for “Printing and Production” category and Silver for “Written Text in the Financial Services” category (ARC Awards) and Gold for “Financial Services” category (LACP Vision Awards).

The ARC Awards are popularly known as the “Academy Awards” of Annual Reports. It was said that Sri Lanka has won a record number of 77 awards at this year’s competition in which 2,260 entries from 34 countries have been made. Both ARC and LACP Awards felicitate excellence in Annual Reports produced worldwide, and are renowned globally.

Commenting, Mr. Krishan Thilekaratne, General Manager of Al-Falaah IBU said “I am indeed pleased and proud of Al-Falaah’s achievement at these prestigious global awards and the diligence with which this young and dynamic business unit has progressed over the years. I thank Smart Media, the Annual Report Company for the world-class design and production of our report and the Al-Falaah IBU team for their relentless commitment towards cementing the Al-Falaah brand name at international level.”

During the FY 2011/12, Al-Falaah recorded a year of steady growth with a PBT increase of 35.99% in comparison to the previous FY. In addition, Al-Falaah recorded Al-Falaah Junior savings portfolio growth of approximately 225% together with a bottom line PAT growth of 32.81%. Al-Falaah’s contribution to the balance sheet of parent company LOFC is approximately 10%, indicative of its consistent growth within the LOLC Group.

Al-Falaah was established in 2007 as an alternate to conventional financing solutions offered by the LOLC Group, and its financial solutions are in keeping with Shari’ah principles of profit sharing and ethical business practices. Although it is deeply rooted in faith based principles, Al-Falaah offers its financial solutions to both the Islamic and non-Islamic communities alike, making it an integral part of inclusive financial services offered by LOFC.

Al-Falaah’s product portfolio consists of Mudharabah (Profit –Sharing Investments and Savings), Al-Falaah Junior (Minor Savings Account), Wakala (Long Term Investments), Ijarah (Leasing), Murabaha (Trade Financing), Musawamah (Import Finance) and Diminishing Musharakah (Property & Project Financing). Expanding its portfolio of products, the IBU recently added an exclusive finance option themed “Al-Falaah Ladies”, catering to the niche market of Ladies Financial Services. A dedicated business unit was also set up in this regard.

All Al-Falaah business transactions are overseen by an independent Shari’ah Supervisory Board headed by industry leading professionals with local and international expertise. LOFC is a licensed finance company of the Central Bank of Sri Lanka and is rated [SL] A- by ICRA Lanka Ltd.

Mr. Krishan Thilekaratne, General Manager of Al-Falaah Islamic Business Unit.

Lanka ORIX Finance PLC (LOFC) celebrated Universal Children’s Day on the 1st of October, reiterating its commitment to looking into the wellbeing of children. Activities held on this day were aimed at creating awareness and instilling the practice of saving and financial planning through minor savings brands, ORIX Champ and Al-Falaah Junior.

Commemorating this significant day, LOFC opened a new Student Savings Centre (SSC) at the D.S. Senanayake Model Primary School in Anuradhapura. The school has the distinguished identity of being South Asia’s largest primary school comprising of 4,690 students from Grade 1-5. This is the latest SSC opened following in the footsteps of the centres opened at Royal College (Primary School) in Polonnaruwa and Fathima Muslim Ladies College in Colombo 12.

A special ceremony was held at the school, at which Mr. Gamini Jayaweera, AGM – North & North Central Regions and a team of LOFC officials participated as Chief Guest and Special Invitees. Mr. Jayaweera together with the Principal of the school, Mr. Ajith Vaduge ceremonially opened the new SSC and handed-over ORIX Champ Minor Savings Accounts to some of the students.

In addition, the prize give-away for an Art Competition which was held at the school ahead of the main celebrations, also took place. Gifts sponsored by LOFC were given to 18 winners comprising top three winning students from each grade. Certificates were also presented to the 10 best paintings of each class, totaling to 560 winners. ORIX Champ branded educational gifts were also distributed whilst refreshments for the children were sponsored by the Company.

Similarly, Al-Falaah, the Islamic Business Unit of LOFC celebrated Universal Children’s Day at its SSC located at the Fathima Muslim Ladies College, Colombo 12. They distributed educational scholarships to 5 academically gifted students and in addition, Al-Falaah donated a much needed computer to the school. 

A special event was organized by the school to commemorate Universal Children’s Day, at which Mr. Shiraz Refai, Chief Manager of Al-Falaah participated as Chief Guest, Mr. Romesh Perera, Branch Head of

LOFC’s Mt. Lavinia branch as Guest of Honor together with Officials of Al-Falaah. Special Invitees from the School’s Past Pupils’ Association and Parents were also present.

At a separate event held on the same day, the Savings Business Unit of LOFC in a joint initiative with the Channels Team and the LOLC CARE Committee of the LOLC Group, organized a special Children’s Day programme for the young occupants at the LOLC CARE Child Development Centre located in Madiwela, Kotte. Each child received an ORIX Champ Minor Savings Account with a start-up saving fund sponsored by the Company. In addition, they were educated about the significance of celebrating children’s day as well as about the merits of saving for the future. Gifts and refreshments sponsored by the Company were also distributed, making their day extra special.

Highlights from children’s day event held at the D. S. Senanayake Model Primary School in Anuradhapura.

Highlights from the children’s day event held at the Fathima Muslim Ladies College in Colombo 12.

Highlights from the children’s day event held at the LOLC CARE Child Development Centre in Madiwela.

Eden Resort & Spa, the 5 star luxury resort in Beruwala Sri Lanka, proved its excellence in service standards yet again by bagging 2 prestigious accolades at the Ceylon National Chamber of Industries (CNCI) Achiever Awards 2013. Eden won the Bronze Award for Provincial Level (Service Sector) Extra Large category and the Merit Award for National Level (Service Sector) under the Extra Large category. The ceremony was graced by Prof. G. L. Peiris, Minister of External Affairs, as Chief Guest.

Mr. Eksath Wijeratne, General Manager of Eden Resort & Spa accepted the awards from Mr. Lakshman Hulugalle, Director General, Media Centre for National Security (MCNS) and Deputy Chairman/Director, National Livestock Development Board (NLDB).

Held for the 12th consecutive year, the CNCI awards recognizes and rewards the operational excellence of Sri Lanka’s Industry, Manufacturing and Service sectors, with the aim of encouraging local enterprises to achieve greater heights in par with internationally recognized standards. This coveted award has been notably hailed as the benchmark of industrial excellence in Sri Lanka.

Commenting, Eden Resort & Spa GM, Mr. Wijeratne said; “FY 2012/13 has been a remarkable year for us and these awards are a true testament to the service excellence established and maintained by the Eden Team throughout the years. I am indeed proud that we have yet again cemented our hotel’s brand as one that is truly focused on providing a high standard of service and comfort to our patrons.”

The resort, which comes under the umbrella of LOLC Leisure Ltd, recently underwent an extensive refurbishment phase during the months of May-July, bringing distinctive value additions and new dimensions to its existing portfolio of services.

The resort’s Main Restaurant, Swimming Pool, Pool Bar, Back of House operations underwent revamp including 109 rooms which were upgraded to the Superior category. These rooms completed with ambient interior décor are inclusive of new furnishing, 46” LED flat screen TV, Blue-Ray player, Wi-Fi, in-room dining options with menu and mini bar facilities, en-suite bathrooms with contemporary designs and fittings, and a host of other amenities and services. The signature roof top Cocktail Bar aptly named the “7th Heaven”, is a new addition to the resort’s array of services and is scheduled to be opened soon.

“Our technically-trained and highly qualified teams of service professionals together with perhaps, the best culinary team in the Beruwala region are eager to share their expertise with travellers as well as business communities in the coming months” Mr. Eksath Wijeratne concluded.

Mr. Eksath Wijeratne, General Manager of Eden Resort & Spa accepting the Bronze Award for Provincial Level (Service Sector) Extra Large category from Mr. Lakshman Hulugalle, Director General, Media Centre for National Security (MCNS) and Deputy Chairman/Director, National Livestock Development Board (NLDB), and Mr. Preethi Jayawardena, Chairman of the Ceylon National Chamber of Industries.

Mr. Eksath Wijeratne (FCHSGA), General Manager of Eden Resort & Spa of LOLC Leisure Ltd fame, was appointed as the President of Ceylon Hotel School Graduate Association (CHSGA) at its annual AGM held at the Cinnamon Bey, Beruwela recently. He has over 21 years of illustrious experience in Sri Lanka’s tourism and leisure sector and he has previously served as Vice president of CHSGA for 3 years. He was preceded by the outgoing President for year 2012, Mr. B. H. R. Sariffodeen (FCHSGA), Asst. Vice President (Operations) Aitken Spence Hotel Management.

An official ceremony alongside the AGM was held at which Mr. Mahinda Rathnayake, a founder member and past President of CHSGA presided as Chief Guest, whilst Mr. Jayanthissa Kehelpannala, President of Tourist Hotel Association of Sri Lanka participated as Guest of Honor.

Incorporated by the Parliament Act No. 21 of 1984, CHSGA’s objective is to serve the hotel industry by way of rendering assistance to Sri Lanka Institute of Tourism & Hotel Management. The association also acts as the driving force that facilitates inter-linkages between the Ceylon Hotel School and the leisure industry. This year’s AGM was the 42nd session held since the Association’s formation in 1972.

The main functions of CHSGA is focused at increasing a sense of fellowship among graduates of the Ceylon Hotel School, rendering assistance for the benefit of Sri Lanka Institute of Tourism & Hotel Management, assisting in the development of the tourism sector and rendering assistance to the welfare of Ceylon Hotel School of Graduates.

From left; Mr. Priyal Perera - General Secretary; Mr. Sanjeeva Perera - Vice President ; Mr. Eksath Wijeratne – President, CHSGA; Mr. Niroshan De Silva – Vice President ; Mr. Dhaithya Krawage – Treasurer.

Mr. Eksath Wijeratne, President of Ceylon Hotel School Graduate Association addressing the gathering.

Highlights from the CHSGA 42nd AGM 2013/14

Lanka ORIX Finance PLC (LOFC) relocated its branch in Ratnapura to modern and spacious premises at No. 240, Colombo Road, Ratnapura. This new branch was upgraded and relocated for greater customer convenience and its modern interior was designed to offer a superior service.

A region renowned for gem mining and precious natural resources, Ratnapura and its surrounding areas have been a strategic location in LOFC’s island wide footprint.

An official ceremony was held to commemorate this significant event at which, Mr. Brindley de Zylva, Managing Director/CEO of LOFC attended as Chief Guest and declared the new office open for business. Mr. Ashan Nissanka, General Manager/ Chief Officer - Branch Network; Mr. Rohana Kumara, DGM – Microfinance, LOLC Micro Credit Ltd together with distinguished guests and officials of the new branch were in attendance.

Speaking, Mr. Brindley de Zylva said, “Ratnapura has been a significant region for us due to its burgeoning Micro and SME sectors. We will be offering an enhanced service and greater customer accessibility at our new branch. A diverse product mix such as Fixed Deposits and Savings, Leasing and Hire Purchase, Microfinance, NRFC & RFC, Working Capital and Factoring will be on offer to fulfill customer requirements.”

Mr. Brindley de Zylva, Managing Director/CEO of LOFC and Mr. Ashan Nissanka, General Manager / Chief Officer - Branch Network accepting customer transactions at the new LOFC Branch in Ratnapura.

Spacious new interior of LOFC Ratnapura Branch.

LOLC Micro Credit Ltd (LOMC), the microfinance arm of the LOLC Group together with SANASA Development Bank (SDB), jointly sponsored a three-day workshop on Crafts, Textile and Livelihoods from the 20th - 23rd of August at the Centre for Banking Studies of the Central Bank of Sri Lanka in Rajagiriya, ahead of the 5th Annual South Asia Women’s Network (SWAN) Conference which concluded in Colombo last week.

SWAN was established to address specific concerns relating to women and gender through the disciplines of Arts and Literature, Crafts and Textile, Education, Environment, Health, Media, Microcredit and Peacemaking by way of a collaborative regional network established between nine South Asian countries - Sri Lanka, India, Bhutan, Nepal, Bangladesh, Maldives, Pakistan, Myanmar and Afghanistan. “Gender Equity for Peace and Sustainable Development for the Women of South Asia” was this year’s theme for the 5th Annual Conference in Colombo.

The pre-conference workshop was aimed at sustainably developing craft production and marketing, through a “Train the Trainers” session, with the participation of the Crafts and Textile group and the Livelihood component of SWAN. 18 foreign delegates representing member countries together with 20 Sri Lankan delegates including a panel of eminent resource persons and experts attended the Workshop.

Mr. Buddhi Keerthisena, Chairman of National Craft Council inaugurated the Workshop; Professor Veena Sikri, Convener of the SWAN Conference and Workshop; Mrs. Samadani Kiriwandeniya, Chairperson of Sanasa Development Bank; Ms. Jaya Jaitly, Coordinator, Crafts and Textile for SWAN; Ms. Bhavna Gadre of Development Alternatives, New Delhi; Mrs. Achala Savyasaachi, Vice President, Sa-Dhan; Mrs. Suraiya Choudhary, Director of Design, Prokritee; Dr. Samudrika Wijayapala, Senior Lecturer at the Department of Textile and Clothing Technology, University of Moratuwa; Mrs. Charmerie Maelge, Resource Person, NCC; Mr. Dominic Sansoni, renowned Photographer and Managing Director of Barefoot Pvt Ltd ; Ms. Bibi Russell, internationally renowned fashion designer and former international model from Bangladesh were some of the distinguished guest-speakers who shared their expertise and best practices with the participants. In addition, the delegates presented country reports on the status of Crafts and Livelihoods relating to their countries.

The main objective of the workshop was to seek long term solutions aimed at developing craft and textile sector of South Asia, by promoting it as a sustainable livelihood option. Discussions also attempted to articulate concerns, identifying and assessing risks and opportunities, understanding value chain mechanisms, changes in global markets and economies, understanding marketing and branding strategies amongst other broad range of topics concerning the production and marketing of crafts.

“Preservation and sustainable development of indigenous arts and crafts for modern markets and promoting them as viable business enterprises were a key focus at this workshop. In the backdrop of the main regional SWAN conference which also focused on developing the crafts and textile industry of the South Asian region, we took this opportunity to create a common platform to bring together various stakeholders to share and discuss their unique concerns, experiences and best practices to develop the overall industry further.” explained, Mrs. Rohini Nanayakkara, Chairperson of LOLC and member of WCIC. Mrs. Nanayakkara was a key driving force behind organizing the pre-conference workshop together with key multi-stakeholders.   

She further went on to explain; “As a form of art, craft and textile has been a medium through which artisans’ skills, cultural identities and expressions, indigenous craft methods and practices have been articulated and preserved for posterity. On the other hand and more importantly, as a trade, it has been a means for poverty alleviation for families and communities involved. It is also a space in which women’s participation in economic generating activities was tremendously encouraged.”

“Over the years, local partners - LOMC, SDB, NCC and WCIC - through their various initiatives and businesses have worked closely with a number of Sri Lankan entrepreneurs, mostly women, whose livelihoods have been based on the production of indigenous handicrafts and textiles. Therefore, we understood the need of the time to bring their concerns to light and to seek long term solutions to address them effectively.” She said.

One of the main thematic areas discussed at the workshop was promotion of products as sustainable income-generating ventures to fulfill modern requirements.

“Empowering local entrepreneurs to enhance and sustainably develop their crafts through technical assistance, leadership training and capacity building, access to raw material, effective use of marketing and branding, modern tools and technology, access to local and foreign markets, sustainably generating income are vital for the preservation and promotion of this trade and the skills it involves. An important focus here was the holistic development of craft and textile as both an art and as enterprise, and to bring the concerns of this sector to an advocacy and policy engagement level and to encourage government and private sector participation further.” Mrs. Nanayakkara concluded.

Other discussion areas focused on; creating natural dyes using plants, waste materials and minerals; recycling waste management; developing literacy and education; policy engagement; sustainable livelihood development and economic empowerment of women.

Highlights from the Successful completion of Crafts, Textile and Livelihoods Workshop

Highlights from the Successful completion of Crafts, Textile and Livelihoods Workshop

Participants and Representatives of the Organizing Committee

Panel of Speakers

Participants

Participant Interaction and Display of Products

LOLC Micro Credit Ltd (LOMC) recently upgraded and relocated its service point in Hingurakgoda to a spacious new home at No. 22, Airport Road, Hingurakgoda. An official ceremony was held in this regard and Mr. Ashan Nissanka, Chief Officer, Branch Network attended as Chief Guest.

This new service facility will offer customers microfinance solutions among other specialized products and services geared towards uplifting the micro segments of the area.

Chief Guest, Mr. Ashan Nissanka said, “As a result of increase in demand for financial services among the communities of Hingurakgoda and its surrounding areas, we have upgraded our existing service center which was previously located at the main post office. Set in a convenient location with a modern and spacious interior and facilities included, a dedicated team of professionals will oversee customer requirements. We are well poised to utilize the maximum opportunities available to develop the Micro and SME sector of this region in the near future”.

Photo Caption: Mr. Ashan Nissanka, Chief Officer Branch Network engaging in customer transactions at the new LOMC service point in Hingurakgoda.

Launching its inaugural study “Best Companies to Work for 2013 - Sri Lanka”, the “Global Great Places to Work” initiative has bestowed elite status to three companies of the LOLC Group, in the first ever survey conducted in Sri Lanka during the year 2012. Among the top companies felicitated, Lanka ORIX Finance PLC (LOFC), LOLC Micro Credit Ltd (LOMC) and Commercial Leasing & Finance PLC (CLC) of the LOLC Group, emerged within the Top 1-5 rank of the Top 15.

The “Great Places to Work” is a global initiative which originated from the USA. This global study has been reaching more than 40 countries since 1980 to felicitate truly inspiring companies and thousands of employees worldwide. Their 2013 FORTUNE 100 Best Companies to Work for includes Google amongst many others.

For their inaugural case study in Sri Lanka, the GPW institute joined hands with over 5,000 employees from a number of organizations in the banking and financial services sector including multinationals, public listed companies and the like. The survey was conducted in collaboration with Lanka Monthly Digest (LMD) and in partnership with the Ceylon Chamber of Commerce, and was independently supervised by the office of Great Place to Work Institute – Sri Lanka. The evaluation and scoring process has been based on the responses given by employees for pre-defined criteria such as credibility, respect, fairness, pride and camaraderie.

Two of the winning LOLC companies surpassed the “Global Benchmark Rank” of 82 (the average score given for the best companies to work in the world), whilst the third nearly reached this rank. This was deemed an exceptional achievement for the LOLC Group, given that LOFC, LOMC & CLC were the only LOLC Group Companies to take part in, competing in par with other notable and leading brands in Sri Lanka.

An average percentage of over 95% employees have confirmed that LOFC, LOMC & CLC were undeniably Great Places to Work for, which according to the GPW officials was an impressive highlight and achievement for the entire Group.

Commenting, Mr. Kapila Jayawardena, Group Managing Director/CEO of LOLC said, “This is a moment of great pride for all of us at the LOLC Group. We attribute this accolade to the passion and commitment of our employees. It is their fervent efforts that have placed three of our best performing companies amongst the top rungs of Sri Lanka’s Best Companies to Work for. ”

Speaking further he said, “Our fundamental business philosophy is centered on enhancing the human resource potential of our people by providing them the right conditions and opportunities to excel at their best. They have been able to perform with single minded focus to place their companies on top as Great Places to Work, to say the least in their own words. I wish to extend my sincere appreciation to all our employees as this is a true testimony of their success.”

In her congratulatory note to the winning LOLC Group Companies, Ms. Kshanika Ratnayaka, Chief Executive Officer of Great Places to Work Institute of Sri Lanka said, “This is indeed an exceptional achievement, and one that truly epitomizes your group tag line Imagine the Possibilities. We, at "Great Place to Work", look forward to working with many more of the LOLC Group Companies in the course of our journey to make Sri Lanka - a great place to work.”

LOLC Motors Ltd (LOMO) together with subsidiary Speed Italia, the authorized distributers for FIAT branded motor vehicles in Sri Lanka, recently gifted the winners of “LOLC Vasana Super Draw” eight elegant, new FIAT Linea motor cars.

The winners were selected during an official draw held on the 5th of July at the LOLC Head Office under the close supervision of Mr. Yasiru Pradeep Thennakoon, Tax Officer of the Department of Revenue - Western Province. An official ceremony was subsequently held on the 23rd of July at LOLC Head Office premises.

Each of the FIAT Linea winners were selected from a regional draw representing Colombo, Kalutara, Gampaha, North Western, North and North Central, East and Uva, Southern and Kandy regions, whilst the consolation prize winners who won BG range of products - Three Wheeler, Motor Cycle and Refrigerator - were selected from an overall island-wide draw.

S.K.S.K Perera of Hikkaduwa, D.R. Gamage of Horana, Ms. Fatima Niroshini of Ragama, S.M.P Nissanka of Horombawa, R.P Thilakarathna of Anuradhapura, H.D.M.S.K.S.B Hapuruda of Meegahakiula, M. L. A. L Kumara of Akuressa and A.S.S. Kumara of Hantessa were the winners of FIAT Linea motor cars, whilst, M. Kamal Prasad of Weerapokuna, W.A.S Fernando of Kochchikade and R. W.U. I Rathnayake of Embilipitiya were the consolation prize winners.

LOLC Motors was established as a value addition to the financial services provided by the LOLC Group and as a support service to the Group’s Fleet Management Business Unit, Valuation Business Unit and LOLC Insurance Company Ltd. It owns a state-of-the-art automotive workshop with a floor area of 5, 600 sq. meters – one of the largest of its kind in Colombo - with the capacity to handle more than 100 vehicles at a given time. The company undertakes the servicing and repairs of fleets owned by external parties and individuals who wish to avail themselves of a premium vehicle care and maintenance – services which include mechanical repairs, preventive maintenance, lubrication service, quick lube service, collision repairs, paint refurnishing or touch ups, wheel alignment, wheel balancing unit repairs and many more.

In addition to these services, LOLC Motors also holds the dealership in Sri Lanka for FIAT range of motor vehicles via its wholly owned subsidiary Speed Italia. FIAT is one of the fastest moving automobile brands in the world, and LOLC Motors offers a customized service for FIAT motor repairs, maintenance and other related services in its service facility located at Gothatuwa, Rajagiriya.

LOLC’s Group Managing Director/CEO, Mr. Kapila Jayawardena and Executive Director, Mrs. Kalsha Amarasinghe handing over FIAT Linea motor cars to the proud winners of “LOLC Vasana Super Draw”. LOLC Motors’ Head of Operations, Mr. Ramesh Kariyawasam was also present.

Al-Falaah, the Islamic Business Unit (IBU) of Lanka ORIX Finance PLC (LOFC) has reached yet another milestone by creating a window to the niche market of Ladies Financial Services through the launch of its latest brand “Al-Falaah Ladies”. For this purpose, a dedicated Business Unit – an innovation in the Islamic Financial Services sector - was set up at the main Al-Falaah centre located at LOLC head office premises, with a team of highly skilled professionals to manage the product and services exclusively.

“Al-Falaah Ladies” will offer comprehensive financial products and services aimed at offering women an opportunity to invest soundly, and to reap maximum benefits. Aptly titled “Blossom of Success”, this unique product offers the highest profits on “Mudharabah Ladies” Savings and Fixed Deposits as well as tailor made credit facilities to suite the busy professional and also the self-employed. The services are accessible through a network of over 60 LOFC branches and 5 dedicated Al-Falaah service centres located island wide. Plans are underway to further develop this exclusive ladies brand to offer a diverse range of innovative financial products and services with maximum benefits that demand the exclusive requirements of women.

“Mudharabah Ladies Savings Account” offers a profit sharing ratio of 42:58 (42% to the investor), and added benefits include a fully integrated Savings Passbook enabling unlimited deposits and withdrawals, Maestro linked ATM card with accessibility to 500+ ATMs island wide, and a Debit card with international accessibility.

“Mudharabah Ladies Fixed Deposits” provide investment options between 1 month to 60 months with profit returns on a monthly basis or at maturity. Profit sharing ratio is 62:38 (62% to the investor) at 12 months maturity.

Commenting, Mrs. Rohini Nanayakkara, Chairperson of the LOLC Group said, “This is a historic moment for Al-Falaah, Lanka ORIX Finance and the overall LOLC Group. During the past three decades, we have partnered with people from Micro and SME segments across the country irrespective of gender, ethnic, religious or class differences. We are proud to say, that our overall customer base constitutes an impressive number of women and women-entrepreneurs, which has been increasing substantially over the years.”

“Investing in women’s financial needs is now more important than ever before. Women’s contribution to the overall economic development of Sri Lanka has risen significantly over the past few years with more and more women entering the work force as working professionals, heads of households and bread winners of families. Therefore, I believe as a financial powerhouse in the Sri Lankan financial services sector, it is our responsibility to invest in women of all faiths and social strata, ensuring that our products and services are customized to full fill their financial requirements. In achieving this, I am extremely pleased that Al-Falaah has taken this far-sighted step in that direction to extend its financial services to include women as well.” Mrs. Nanayakkara concluded.

“Al-Falaah Ladies” products are designed in accordance with Shari’ah principles of profit sharing and regulated by the Central Bank of Sri Lanka. Al-Falaah is the Islamic Business Unit of Lanka ORIX Finance, which is rated [SL] A- by ICRA Lanka Ltd and is licensed by the Monetary Board of the Central Bank of Sri Lanka under the Finance Business Act No. 42 of 2011.

Chief Guests Mrs. Rohini Nanayakkara – Chairperson of the LOLC Group and Mrs. Kalsha Amarasinghe – Executive Director of the LOLC Group together with Mr. Ishara Nanayakkara – Deputy Chairman of the LOLC Group, Mr. Krishan Thilakaratne – CEO of the Islamic Business Unit of LOFC and Mr. Brindley de Zylva – CEO/MD of Lanka ORIX Finance PLC.

Chief Guest, Mrs. Rohini Nanayakara handing over a complimentary gift to one of the first customers of “Al-Falaah Ladies”.

Lanka ORIX Finance PLC (LOFC) recently relocated its branch in Chillaw to a new location at No 16, Sherly Corea Mawatha, Chillaw. With a spacious interior, modern furnishing, ample parking and a host of financial services to cater to the Micro and SME clientele of the area, this new branch was upgraded and relocated with the intention of providing greater convenience to customers.

Mr. Kapila Jayawardena, Group Managing Director/CEO of LOLC and Chairman of LOFC attending the opening ceremony as Chief Guest said, “The new branch will provide greater accessibility and convenience for individuals and enterprises seeking a diverse and dynamic financial product mix. Due to the growing demand for our financial services in and around Chillaw, we upgraded and relocated our branch to this new spacious location within the city.”

Savings and Fixed Deposits, Finance Leasing and Hire Purchases, NRFC and RFC Savings, Working Capital and Shari’ah Compliant Islamic Financial Services are among the products and services that are on offer at the branch.

Mr. Kapila Jayawardena, Group Managing Director/CEO of LOLC and Chairman of LOFC engaging in initial transactions with some of the customers, during the opening ceremony of the newly relocated LOFC branch in Chillaw. Mr. Brindley de Zylva, Managing Director/CEO of Lanka ORIX Finance PLC and Mr. Ashan Nissanka, General Manager/Chief Officer – Branch Network were also present.

BRAC, one of the world’s largest micro financing providers entered into a ground breaking strategic alliance with LOLC one of the largest conglomerates whose core business is financial services, to acquire the controlling interest of Nanda Investments and Finance PLC (Nanda Investments). This transaction will transfer 90, 645, 057 shares with 56.6 % stake of Nanda Investments to BRAC with LOLC taking a stake of 33.4 %. LOLC is expected to make this equity investment through its fully owned subsidiary, LOLC Micro Investments Ltd. Nanda Investments is a registered finance company listed in the Colombo Stock Exchange with a lending portfolio of Rs. 290 Mn and a fixed deposit base of Rs 88 Mn. The total assets of the company as at 31st March 2013 were Rs 663 Mn.

BRAC is the largest development organization in the world in terms of the scale and breadth of its operations and was founded ten years ago in Bangladesh, by its Chairman, Sir Fazle Hasan Ahbed. He is one of the “Global Greats” in Social sector and for his outstanding contribution to social improvement, he has received the Ramon Magsaysay Award, the UNDP Mahbub Ul Haq Award, the inaugural Clinton Global Citizen Award and the inaugural WISE Prize for Education. BRAC reaches the less privileged communities across the globe through microfinance, education, healthcare, legal services, community empowerment and more catalyzing lasting change, creating an ecosystem in which the less privileged have the chance to seize control of their own lives. Through this initiative, BRAC has reached and touched the lives of an estimated 126 million people, spanning across 11 countries in Asia and Africa and the Caribbean. BRAC with its 100,000 employees dedicated to spread antipoverty in the world focuses on social and financial empowerment of women, healthcare and education, empowering farmers though inclusive financial solutions not only catering to financial needs but also improving livelihood and financial literacy among the less privileged.

LOLC Group is one of the largest non-banking financial institutions in Sri Lanka formed in 1980 and pioneered leasing in the country. Within the open economy the Company revolutionalized SME financing of income generating. This initiative changed millions of lives of the SME sector, many of them over the last three decades have graduated to the level of medium to large scale enterprises. With this objective achieved, LOLC moved on with its next objective of reaching the non-bankable micro sector to facilitate financing to empower the micro sector with financial solutions that not only provided the much needed seed capital but to be a partner with interests in sustainable improvement of the livelihood of this community. LOLC Micro Credit Ltd. (LOMC) was formed with this intention in 2009 along with FMO (The Netherlands Development Finance Company) who has a stake of 20% in the company. LOMC today is one of the largest micro financing institutions in the country serving more than 160,000 customers and is reaching the poorest of the rural community through its 128 service outlets.

In the medium term it is expected that BRAC and LOLC will invite Triodos Bank to invest in a stake of 10% and the new shareholder is expected to spearhead the provision of micro funding to fuel portfolio growth. Triodos Bank is one of the world’s leading sustainable banks formed 30 years ago with a mission of making money work for positive social, environmental and cultural change and transacts only with sustainable companies. The bank has transactions with more than 355,000 customers with Euro 6.8Bn under its management.The bank provides financial support for more than 6,000 sustainable enterprises in 40 countries worldwide.

Nanda Investments PLC was founded in 1961 by Mr. Sirisena Mallawarachchi and in 1990, Mr. Anura Mallawarachchi took over the management of the company as the Chairman. Later he stepped down and managed the company as Managing Director in line with Central Bank guidelines.

BRAC together with LOLC makes a formidable partnership in acquiring Nanda Investments which is expected to be positioned as a micro finance company to reach the rural community with whom both shareholders are familiar names for sustainable financial solutions. BRAC will extend its current business model together with the backing of its global business operations platform while LOLC will play a key role in providing the know-how on the local micro credit business. Together with Triodos Bank, this partnership will flourish as a strong micro finance company with a sustainable business model of providing financing to less privileged rural community.

Lanka ORIX Finance PLC (LOFC) moved its branch in Wellawatta to a new and spacious location at 124 A, Galle Road, Wellawatta recently.

The newly relocated branch was ceremonially declared opened by the Chairman of Lanka ORIX Finance and Group Managing Director/CEO of the LOLC Group Mr. Kapila Jayawardena. Managing Director/CEO of Lanka ORIX Finance, Mr. Brindley de Zylva; CEO of LOLC Factors Ltd and Chief Officer Metropolitan Branch Network, Mr. Graham Lawrence; General Manager/Chief Officer – Branch Network, Mr. Ashan Nissanka; AGM – Metro Region, Mr. Isaac Devshankar together with members of the senior management and staff were also present.

Speaking at the opening ceremony, Mr. Kapila Jayawardena said, “The burgeoning city of Wellawatta has been a strategic location for LOFC. Since establishing this branch in 2009, we have had the privilege of serving customers from various segments and building close relationships with them. Due to the increased demand for our services, we have relocated our branch to this new convenient location which is easily accessible and strategically situated. We are offering ample parking and a modern spacious setting with increased staff strength, all ready to serve our customers swiftly and efficiently. We are proud to note that today, LOFC has well over 134 service points to service its increasing customer base across the country.”

The branch will offer its customers Fixed Deposits & Savings, Leasing & Loans, Islamic Finance, Insurance, Working Capital & Factoring, Hire Purchase among others.

Chairman of LOFC and GMD/CEO of LOLC, Mr. Kapila Jayawardena opening the newly relocated LOFC branch in Wellawatta (left) and accepting the first transaction from a customer (right).

Matale, located at the historic centre of Sri Lanka, recently welcomed Lanka ORIX Finance PLC (LOFC) when the Company opened its latest branch at No. 73, Kings’ Street. Mrs. Rohini Nanayakkara, Chairperson of the LOLC Group graced the occasion as Chief Guest and declared the new branch open. Mr. Hilmy Careem, Mayor of Matale also attended the ceremony as the Guest of Honour, whilst Mr. Brindley de Zylva, Managing Director/CEO of Lanka ORIX Finance PLC, Mr. Ashan Nissanka, General Manager/Chief Officer Branch Network together with staff members were present.

Over the last two years LOFC serviced its customers in the Matale region through its cash collection centre located at the Matale Post Office which permitted customers to make payment of rentals of lease, loan and hire purchase facilities obtained. Due to the rapidly expanding clientele and increase in demand for financial services in the region, LOFC upgraded this cash collection centre to a fully-fledged branch to meet the demands of its existing and new customers.

Commenting, Mrs. Rohini Nanayakkara said, “Opening of LOFC’s latest branch in Matale is indeed a strategic one and speaks volumes of the rapidly expanding Micro and SME based economy in the central region. The central province has been a significant touch point for LOFC and for the LOLC Group as our first branch was established in Kandy. Since then we have seen positive developments taking place in this region and we took steps to upgrade our existing infrastructure facilities to provide a seamless service to customers.”

Through this new branch, the Company will be providing a comprehensive line up of products and services, ranging from savings to long term investments, loans, auto finance, Islamic financial services, insurance, microfinance and many more.

Highlights from the opening ceremony of the new Lanka ORIX Finance branch in Matale. Seen in the pictures are Chief Guest, Mrs. Rohini Nanayakkara, Chairperson of the LOLC Group; Guest of Honour, Mr. Hilmy Careem, Mayor of Matale; Mr. Brindley de Zylva, Managing Director/CEO of Lanka ORIX Finance PLC, Mr. Ashan Nissanka, General Manager/Chief Officer Branch Network (unseen), officials of the new branch and LOFC, customers and well-wishers.

This April, enjoy one of the most vibrant times of the Sri Lankan holiday calendar with two great hotels of the LOLC Group. We offer all our guests fun, frolic and festivities along with special seasonal discounts for your stay at Eden Resort & Spa and Dickwella Resort & Spa.

This is an ideal vacation for parents who just want to kick back and relax and for kids to have some fantastic holiday fun. What’s more, we offer all our guests sensational Avurudu celebrations on the 13th and 14th of April.

Activities such as traditional Avurudu games, ‘Raban’ music (traditional drums), delectable Sri Lankan food and beverages, Avurudu sweets & treats at the ‘Kopi Kade’ (the whimsical coffee house of yore), Avurudu cookery demonstrations, Avurudu Kumari (beauty queen) contests and many more will give local and foreign guests a load of fun.

In the days after Avurudu festivities, guests will also be offered the opportunity to enjoy, yoga, water aerobics, DJ parties, live band performance, BBQ dinner buffet, fire limbo shows, dance shows, magic shows and movies for kids.

Eden Resort & Spa, located on the ‘Golden Mile’ of Beruwela, is only an hour’s drive from Colombo on the Southern Expressway. This 5 star luxury hotel comprises of 158 elegantly furnished Luxury rooms, Suites, Penthouses and an exclusive Spa. It also has a separate play area for children allowing mums and dads to relax. For all those ‘traveloholics’, visits to places like Brief Garden, Kosgoda Turtle Hatchery, Hikkaduwa ‘Coral Garden’, Kandevihara Buddhist Temple is just an hour away.

Dickwella Resort & Spa is a haven tucked away in the Deep South of Sri Lanka. Guests can enjoy nature’s bounty at this Resort which is built on a peninsula surrounded by the sea on three sides. The hotel affords a spectacular view of the sunset and sunrise. 76 rooms at this hotel are comprised of Standard rooms, Suites and Family rooms with beautiful oceanic view. A swimming pool with Sea water and an adjoining Jacuzzi is simply ideal for that much needed R&R. Swimming, snorkeling, diving, Galle city tour, turtle watching, bird watching, visit to Hummanaya (blowhole), whale watching and dolphin watching at Mirissa are some of the popular recreational activities organized by the hotel.

Do not miss the world of entertainment awaiting you at these two great hotels. For all holiday-makers who want to make an early booking, inquiries can be made via 0342276075 (for Eden Resort & Spa) and 0412255271/2 (for Dickwella Resort & Spa).

A snapshot of last year’s Avurudu celebrations held at the two hotels

Championing Sri Lanka’s power of brand choice, SLIM-Nielsen Peoples Award conferred the Top Spot for the LOLC Brand in the “PEOPLES Financial Services Provider of the Year” category at this year’s ceremony held at Water’s Edge on the 19th of March. Mr. Kapila Jayawardena, Group Managing Director/CEO of LOLC accepted the award.

This celebrated event is spearheaded by Sri Lanka Institute of Marketing (SLIM) together with Nielsen Research Agency in Sri Lanka and is held for the 8th consecutive year. It provides a true reflection of peoples choices as the winners are selected by people themselves. The LOLC Brand in this regard has been selected by the people as the most preferred and trusted brand amongst Financial Services Providers of Sri Lanka.

Commenting, Mr. Kapila Jayawardena said, “This marks a remarkable milestone for the LOLC Brand. For over 3 decades, the LOLC Brand has been close to the hearts of ordinary Sri Lankans in their pursuit for financial success and spirit of entrepreneurship. We deliver what we promise and it has been our privilege to be the Peoples Preferred Financial Services Partner. This is a true testimony of the lasting impact that LOLC has made on the people of Sri Lanka and the honour goes to the entire team of LOLC for their perseverance in making it to the top.”

LOLC is the third joint venture of ORIX Corporation of Japan and the International Finance Corporation (IFC). A dynamic conglomerate with a wealth of experience in providing innovative and personalized total financial and non-financial solutions to Sri Lankans far and wide, LOLC was set up with the aim of developing the Small and Medium Enterprises (SME) and Micro sectors of Sri Lanka. Hailed as the largest non-banking financial institution in the country, LOLC comprises of 35 direct subsidiaries and approximately 3,000 employees and dispenses its business operations through a footprint of nearly 200 locations.

Speaking further about LOLC’s brand strength, Mr. Jayawardena says that sustainability of business, adopting good business practices and transparent communication are the ethos on which LOLC’s brand has been solidly founded. “As a financial entity, we are required to engage with various stakeholders on a daily basis. Be it customers, funding partners, shareholders, regulatory authorities or employees, it is their absolute trust and faith in the integrity of our brand that gives us the unique leverage over others. Undoubtedly, this has added years of value to our brand’s longevity and success, which has been our greatest achievement to date”.

In conclusion, Mr. Jayawardena said that LOLC, which has been in existence for over three decades signifying the financial inclusions and economic empowerment created for the people at large, is proud to be honoured with this prestigious award.

With its finger firmly on the national economy, LOLC’s business interests span across Financial Services, Leisure, Agriculture & Plantation, Renewable Energy, Manufacturing and Trading. Its ability to adapt to new environments and conditions, its core identity, values and service-first mindset and the synergies between the parent company and its subsidiaries have contributed immensely to strengthening the LOLC Group’s brand performance amongst Sri Lankan consumers.

LOLC Group Managing Director/CEO Mr. Kapila Jayawardena accepting the award for “PEOPLES Financial Services Provider of the Year."

Bangladesh Tour of Sri Lanka – March 2013

LOLC Leisure Group’s Dickwella Resort & Spa gave a warm welcome to the members and officials of the Bangladesh National Squad and Sri Lanka Development Emerging Team, who participated the 3 day cricket encounter held at the Uyanwatta Stadium in Matara, during 2013 Bangladesh Tour of Sri Lanka. The team members stayed at the hotel from 1^st to the 5^th March.

Manager of Dickwella Resort & Spa, Mr. Mirza Borham together with the hotel staff members and guests gave a warm, traditional Sri Lankan welcome to both teams and hosted them for a relaxing evening of cocktails and dinner at the hotel’s beach. “We were extremely delighted and privileged to extend our hospitality services to the members of the two teams and to their officials. We made all necessary arrangements to ensure that their stay with us was a comfortable and memorable one.” Mr. Borham said.

The young cricketers of the Sri Lanka Development Emerging Team were accompanied by their Coach and veteran cricketer, Romesh Kaluwitharana and Bowling Coach Anusha Samaranayake, whilst the visiting Bangladesh National Squad was accompanied by Manager, Mr. Tanjeeb Ahsan.

Sharing his views about their stay in the hotel’s guest commentary book, Romesh Kaluwitharana wrote, “We had a lovely time at the Dickwella Resort & Spa. The staff is very helpful and friendly. I thank the management for making our stay a comfortable one”.

Also commenting, the Bangladesh National Squad Manager, Mr. Tanjeeb Ahsan wrote, “Excellent food and service. All the members of Bangladesh team also enjoyed the beauty of the location. Thank you for entertaining us.”

Dickwella Resort & Spa is a tranquil little paradise nestled on a peninsula in Deep South of Sri Lanka. Surrounded by the ocean on three sides, the hotel has one of the most stunning beach vistas in the country, providing its rooms a breath-taking view of the clear, blue ocean. Guests are also treated to a rare glimpse of the sunset and sunrise in one sitting – a natural phenomenon brought on by the hotel’s centralized position in between the eastern and western shores.

Among the amenities provided by the hotel are its very own wood fired pizzeria, elegant beach side restaurant, rejuvenating spa facilities, swimming pool and Jacuzzi with ambient surrounding, magnificent snorkeling and diving spots with the help of PADI diving instructors and recreational tours to cultural and religious hot spots in the vicinity.  

United Dendro Private Limited (UDE) – a subsidiary of the LOLC Group, in collaboration with the Department of Wildlife Conservation (DWC), initiated a programme to eradicate invasive plant species Prosopis juliflora and Opuntia dillenii around the tidal plains in Malala and Embilikala of the Bundala National Park. These invasive plants have encroached the habitats of wading birds and endemic species, posing a threat to the park's bio diversity.

This programme will attempt to clear out 454 hectares of infected land within a projected period of 5 years. Remnants of the removed invasive plant species would be directed towards the production of electricity, the output of which would be synchronised to the country’s national grid.

http://www.ft.lk/2013/02/08/project-bundala/

http://www.dailynews.lk/2013/02/06/bus10.asp

http://www.sundayobserver.lk/2013/02/10/fin18.asp

http://www.thesundayleader.lk/2013/02/10/converting-invasive-plants-to-electrical-energy/

http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=72263

http://www.ceylontoday.lk/59-23839-news-detail-alien-species-threatening-bundala-wildlife.html

http://www.ceylontoday.lk/22-23710-news-detail-world-wetlands-day-2013.html

http://www.nation.lk/edition/fine/item/15544-ridding-bundala-of-aliens.html

Eden Resort & Spa, together with in-house guests and staff members, held a special program at the hotel premises to mark the 65th Independence Day of Sri Lanka. Prior to commencing celebrations, hotel guests were taken on a colourful parade to the venue of the function - the Garden by the Pool, and at the end of the ceremony, all participants were invited to a special treat consisting of traditional Sri Lankan sweets with tea and coffee.

TripAdvisor has announced the world’s best hotels for the year 2013 and has placed LOLC Leisure’s Eden Resort & Spa as one of the top hotels in Sri Lanka. This is the first time that Eden has been given this prestigious status by the world’s largest travel site.

On an official posting on their website www.tripadvisor.com, Travelers’ Choice 2013 has provided a comprehensive list of top 25 world winners as well as winners from each travel destination around the world. This elite listing is ranked by millions of travelers worldwide. Sri Lanka’s own top 25 includes some of the heavy weight brands of the Sri Lankan travel and leisure industry, and provides a glimpse at comments shared by travelers.

Guests of luxury 5 star Eden Resort & Spa have posted many upstanding reviews about the hotel’s services, location, staff and cuisine among many others. According to the feedback posted on the site, a traveler from Australia has ranked the hotel’s hospitality service as “above par-excellence”, while another has reviewed the service of the staff as “helpful and attentive” and “very high standard”. A guest from the United Kingdom has praised the delectable cuisine prepared by Eden’s chefs as “absolutely superb, especially on Christmas Eve and Day. The choice was enormous, every seafood imaginable.”

Commenting on Eden’s top ranking at Travelers’ Choice, General Manager, Mr. Eksath Wijerathne, said; “This is yet another first for Eden and a moment of great honour for us. I and my wonderful staff at Eden would like to say a big ‘thank you’ to all our patrons for their reviews and feedback and to TripAdvisor for providing the opportunity for travelers and leisure establishments to come together on a common forum. In future, I hope to see many more Sri Lankan hotels make it to the top of the list.”

With over 17 years of rich history behind its brand, Eden Resort & Spa was the first 5 star hotel in Sri Lanka to offer spa facilities. Growing from strength to strength since then, Eden today is a favourite leisure destination and a well-known hospitality brand among travelers visiting the golden mile of Southern Sri Lanka.  An ISO 9001:2008 and HACCP certified hotel, Eden has won many notable local and international accolades, including 2012 Certificate for Excellence from TripAdvisor.

ICRA Lanka Limited, a wholly owned subsidiary of ICRA Ltd., an associate of Moody’s Investors Service, has assigned [SL]A- (pronounced SL A minus)1 with a stable outlook to the Rs 1.25Bn Long Term Unsecured Redeemable Debenture Programmes of  Lanka ORIX Leasing Company PLC (LOLC or the HoldCo). The ratings continue to factor LOLC Group’s long track record of profitable operations, its leading position in the Sri Lankan Financial services business market, professional and experienced management team, adequate risk management systems with strong retail franchise. The rating also takes into account the committed support and oversight from its largest investor–ORIX Corporation of Japan (rated Baa2 with stable outlook by Moody’s) which has a 30% stake in the entity. ICRA Lanka has taken a consolidated rating view of the HoldCo and the key asset financing subsidiaries given the significant operational and financial linkages with the subsidiaries (especially pertaining to financial services). In the current fiscal, the Group’s asset quality has deteriorated with gross NPAs increasing to 2.73% in September 2012 from 2.03% in March 2012, partly owing to the moderation in the operating environment. The Net NPA Ratio for the group remains comfortable at 0.58% as on September 2012 though it has deteriorated from the March levels of 0.20%. Incrementally, maintaining control over asset quality and credit costs would remain a key rating sensitivity.

HoldCo’s gearing remains unchanged at 2x in September 2012, despite the run-down of its lending portfolio, though intra-group exposures recorded marginal decreases from March 2012 levels. Given that the HoldCo’s standalone operating income levels have dropped sharply, it would be important to reduce standalone leverage in the short term. The ability of the HoldCo and the LOLC group to improve on their operating margins given the volatile interest rate scenario and the group level asset quality indicators will remain the key rating sensitivities. The rating also factors in that the HoldCo currently does not intend to provide any material guarantees to any of its subsidiaries or undertake any major debt funded acquisition in the near term which could impact its credit profile.

The Group Lending Portfolio has recorded marginal negative growth of 1% for the six months ended Sep-12. The Holdco’s lending portfolio has reduced over the last 2 quarters in line with its strategy to offload lending operations to its financial services subsidiaries, however the Group Level Asset quality of the lending portfolio has been deteriorating over the last 2 quarters in the current financial year with Gross NPA Ratio increasing to 2.73% as on September 30, 2012 from 2.03% reported as on March 31, 2012. The Net NPA Ratio for the group remains comfortable at 0.58% as on September 2012 though it has deteriorated from the March levels of 0.20%. ICRA Lanka would be closely monitoring the Group level asset quality as further significant declines would lead to rating action.

No significant reduction in the Holdco’s investment securities portfolio was seen during the last 2 quarters with the portfolio remaining at Rs 3.3Bn as at Sep-12 compared to Rs 3.5Bn reported as at Mar-12 mainly because of adverse market conditions. ICRA notes that scaling down the trading portfolio would be important for the Holdco to reduce its short term debt levels. The Group has raised one round of long term foreign currency debt in LOMC (a subsidiary) however; the ALM Position is largely unchanged from Mar-12. The pipeline of overseas long term debt is robust and could support the ALM position going forward.
 
Profitability from core operations (operating profit net of provisions) improved to 2.87% in YTD Sep-12 from 2.46% in fiscal 2012 at the group level. However, net profitability was lower at 2.0% in YTD Sep-12 compared to 7% in fiscal 2012 as the same was supported by LKR 4 billion profit on sale of investments and Rs. 3.0 Bn in negative goodwill in fiscal 2012. Group level profitability as at Sep-12 has weakened in terms of Return on Net Worth (RONW) and Return on Average Assets (ROAA) compared to Mar-12. RONW recorded at 23.39% as at Mar-12 fell to 7.02% for YTD Sep 12 (5.74% as at Mar-12 excluding one-time gains); whilst ROAA recorded at 6.99% as at Mar-12 fell to 1.96% for YTD Sep-12 (1.67% as at Mar-12 excluding one-time gains). Financial services continues to be the key sector for the Groups recording 99% of the group profits, and  the Hold Co continues to be dependent on the financial services subsidiaries for its Income; generated from lending to subsidiaries and shared services fee income charged from subsidiaries. The HoldCo ensures a profitability margin of while pricing shared services of the group. 

The LOLC Group, through its strategic Corporate Social Responsibility initiative, LOLC CARE, successfully completed its inaugural CSR project aimed at child development and empowerment. Under LOLC CARE, the Group constructed a children’s home and provided assistance to an existing home managed by the National Council for Child and Youth Welfare (NCCYW).

Both homes, “Madiwela Special Education and Home for Boys” and “LOLC CARE Child Development Centre” are located at Madiwela, Nugegoda and are occupied by developmentally challenged males and orphaned boys.

“LOLC CARE Child Development Centre”, the newly constructed two storied home, was ceremonially opened on the 8th of January 2013, by LOLC Group Directors, Mrs. Rohini Nanayakkara - Chairperson, Mr. Ishara Nanayakkara - Deputy Chairman, Mr. Kapila Jayawardena – Group Managing Director/CEO, Mrs. Kalsha Amarasinghe – Executive Director and Mr. Sujith Perera, President of NCCYW. Senior Management members and staff members of both LOLC and NCCYW were present during the ceremonial activities. The home was subsequently donated to the NCCYW.

Speaking about this project, LOLC Group Managing Director/CEO, Mr. Kapila Jayawardena said, “During the first phase of our inaugural project under LOLC CARE, we partnered with the NCCYW to provide financial assistance to renovate and maintain one of their existing homes, namely, the ‘Madiwela Special Education School and Home for Boys’. This home is dedicated to looking after 34 developmentally challenged boys and adults, and we managed to increase the capacity of the home to accommodate six more occupants. During the second phase of the project, we constructed a fully-fledged home in the adjoining land to house and educate 50 young, orphaned boys. Staff members of the home will provide the children necessary care and education until they reach 18 years of age. The home will also provide them vocational skills to secure employment thereafter.”

The foundation stone for the new building was laid on the 08th of October 2010 with the participation of LOLC Directors and Senior Management members. Both children’s homes will be managed by the NCCYW, with LOLC providing necessary financial assistance and support.

Launched in 2009, LOLC CARE was designed to implement LOLC Group’s vision for sustainability and aims to undertake numerous initiatives for community development and environmental protection in line with its CSR policy. A committee representing Board of Directors, Management and staff members of LOLC was set up to streamline and oversee all LOLC CARE activities of the Group. 

The National Council for Child and Youth Welfare is a non-governmental organization set up to look after the wellbeing of underprivileged children. At present, they manage seven children’s homes island wide, and out of these homes, three homes are dedicated to developmentally challenged girls and boys belonging to various age groups.

Some of the activities planned for the children of LOLC CARE children’s homes include, continuous maintenance of the buildings, sponsorship of children from childhood to employment, educational support, extra-curricular activities conducted by staff members or by way of sponsorships, skill development of children, and alms to the homes.

“In addition, with the help of LOLC employees, we have organized various cultural and religious activities for the occupants of the special education school and home, and we hope to extend the same for the children of the new child development centre. We have also maintained close relations with the Board of NCCYW to assist them in meeting various requirements of the homes.” Mr. Jayawardena added further.

It is the aim of the LOLC Group to provide necessary infrastructural, financial and welfare support, to ensure that the occupants of both ‘LOLC CARE Child Development Centre’ and ‘Madiwela Special Education School and Home for Boys’ are looked after and given the necessary skills for their individual growth and integration into society. The Company hopes to extend career building opportunities to these children within and outside of the Group, ensuring them a secure future.

“Through LOLC CARE, we have striven to make a difference in children’s lives who, otherwise, will be pushed to the peripheries of the society. We have an individual plan for every child. We believe in providing them a safe and healthy environment, the necessary resources for their well-being and a new family of teachers and care givers to look after their overall development. It is our fervent wish to assist these children to empower themselves, so that upon becoming adults, they will be able to reintegrate into society as independent and able individuals” Mr. Jayawardena concluded.

Revolutionizing the Sri Lankan microfinance industry, LOLC Micro Credit Ltd, (LOMC) secured the largest syndicated loan of USD 55.5 Mn for the first time in Sri Lanka. This long term syndicated loan was facilitated by a reputed consortium of Development Financial Institutions (DFIs) from around the world.

LOMC, the microfinance arm of LOLC Group is the only leasing company that is exclusively dedicated for micro credit in the country.

Microfinance is not an uncharted territory for LOLC. With the initiation of the RERED project in 2003, LOLC has been relentlessly involved in microfinance providing ‘bespoke’ products to grass root level entrepreneurs. In 2009, LOLC carved out its micro portfolio to create a standalone microfinance institute together with FMO as an international stakeholder who has a 20% stake in LOMC.

FMO (Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V.), the AAA rated (S&P) Dutch Development Bank, was the lead arranger to this transaction. The other renowned participants include OFID (OPEC Fund for International Development), BIO (Belgian Investment Company for Developing Countries N.V.), PROPARCO (Société de Promotion et de Participation pour la Coopération Economique S. A. – the French Promotions Company for Economic Cooperation) and Cordiant Capital Inc. (a Canadian DFI engaged in investing in emerging markets). Cordiant made their maiden investment in Sri Lanka by participating in this syndicate loan. Most of these DFIs have a long standing relationship with LOLC. The Group has one of, if not the largest, range of external funding partners in the country, who work closely with the group in many endeavors. They consider LOLC Group not only as their preferred conduit but also as a catalyst to achieve their development and commercial goals, may it be in SME development, micro enrichment, North and East resurgence or renewable energy. Their valued contribution beyond funding has enabled the group companies to attain operational excellence, fine-tuned processes, environmental standards, early compliance, good governance and state-of-the-art IT systems.

As a case in point, FMO, plays a vital role in LOLC’s strategic thinking and has introduced many international standards over the last two and a half decades. The introduction of environmental impact assessment in credit appraisals, the mandatory emission testing for three wheelers, recycling waste water to name a few. The confidence FMO has on the group is further reflected by the fact that they are not only the equity partner of LOMC, but also an equity partner in group’s overseas investment – PRASAC – the largest micro finance institution in Cambodia and presently exploring similar opportunities in the region.

LOMC on the other hand, is one of the most preferred entities by these DFIs for many reasons. It is the largest micro financier in North and East, the largest agriculture equipment provider in the country, made a reputation for empowering women entrepreneurs, renowned for its distinctive business model and recruitment policy of fostering indigenous school leavers. Its unique Group loan model is another attractive feature. Designed exclusively for women with rapid step up loan scheme, 95% of the borrowers graduate to individual level, to become an SME entrepreneur in less than three years. The International funders are fascinated by the positive contribution made by this product and the industry best NPL ratio maintained in these group loans, reflect the commitment and ability of working women in Sri Lanka. Thus, LOMC has become the most sought-after microfinance institution in Sri Lanka to the extent that its portfolio is 100% funded by foreign funding lines.

As a result, LOMC can comfortably withstand the rapid growth momentum required by the microfinance industry in Sri Lanka. Today, LOMC stands out not only as the largest private sector provider of microfinance in the country with an outreach of 150,000 active borrowers, $ 110 Mn loan book and $ 6Mn – pre tax profit in the FY 2011/12, but also as a model microfinance house with high compliance and governance. LOMC’s unique business model is also due to the fact that it is empowered with a low cost channel network, a strategic partnership with Sri Lanka Post, resulting more than 137 branches well positioned across the island.

This syndicate loan is given in USD and the company as a policy secures all its foreign currency exposures 100% through a back to back hedging mechanism which is also a mandated by the Central Bank of Sri Lanka. The signing ceremony between LOMC and FMO together with the participating lenders took place on the 12^th of November 2012, at an official signing ceremony held at the FMO headquarters in Amsterdam, Netherland. Ishara Nanayakkara, Deputy Chairman of the LOLC Group represented LOMC while Ahdi Al-Hunaif (Investment Officer, OFID), Betrand Milliot (CIO, Cordiant), Carole Mamman (Manager Financial Sector, BIO), Claude Périou (CEO, Proparco), Nico Pijl, (Chief Risk & Finance Officer, FMO), Lucas Lustermans (Legal Counsel, FMO), Matthijs Egelie (Investment Officer, FMO), Bas Rekvelt (Senior Syndications Officer, FMO), Tony Bakels (Manager Financial Institutions Asia, FMO), Amelie July (Head of Banking, Proparco) and Arno de Vette (Senior Officer Equity, FMO) were also present.

The funds raised from this syndicated senior debt facility will be channeled towards the development of the micro population of Sri Lanka, which according to the GTZ study (2008) represents 50% of untapped households in the country.

LOMC is poised to serve the micro clientele in the country to alleviate poverty and uplift the living standards of a community that once considered as “unbankable” by most of the formal lending channels. This is a realistic dream for the LOLC Group, considering the revolution it made three decades ago in pioneering leasing and factoring to the SME sector, the most important segment to the national economy.

Seated from left to right: Ahdi Al-Hunaif (Investment Officer, OFID), Betrand Milliot (CIO, Cordiant), Ishara Nannayakara (Deputy Chairman, LOLC Group), Carole Mamman (Manager Financial Sector, BIO), Claude Périou (CEO, Proparco) and Nico Pijl, (Chief Risk & Finance Officer, FMO). Standing from left to right Lucas Lustermans (Legal Counsel, FMO), Matthijs Egelie (Investment Officer, FMO), Bas Rekvelt (Senior Syndications Officer, FMO), Tony Bakels (Manager Financial Institutions Asia, FMO), Amelie July (Head of Banking, Proparco) and Arno de Vette (Senior Officer Equity, FMO)

Eden Resort & Spa, the 5 star resort located in  the golden mile of Beruwala and member hotel of LOLC Leisure Ltd, was once again feted for its excellence in the hospitality and leisure sector, when it emerged Runners-up (Large Category) at the National Business Excellence Awards 2012. The awards ceremony which took place on the 4th of December at the Colombo Hilton saw many prestigious business entities celebrate their wins for the night.
 
Mr. Eksath Wijeratne, General Manager of Eden Resort & Spa accepted the award from Mr. Sunil G. Wijesinhe, Senior Deputy President of The National Chamber of Commerce of Sri Lanka and Mr. Christopher Joshua, Executive Director of Access Engineering PLC.  This is the 5th consecutive year that this luxury resort has been feted for its excellence in service and operations at the NBEA Awards.

Speaking about the win, the proud GM, Mr. Wijeratne said, “Winning this award is a humbling victory for us and adds another milestone to our great year of achievements. We have taken our hotel’s brand to soaring heights both internationally and at home, by winning many prestigious awards and accolades earlier this year. We hope to continue this winning streak into yet another exciting year of hospitality service in the year 2013. ” he concluded.

Some of the notable achievements of Eden Resort & Spa for this year includes; winning the Gold and Silver medals for pastillage and vegetable carving categories at the World Culinary Olympics in Germany, becoming the only leisure brand to receive a National Level Merit Award for service and operational excellence at the CNCI Achievement Awards in Sri Lanka, retaining the ISO 9001:2008 + HACCP certification for quality and standards of service for an additional period of 3 years, receiving Crescentrating 4 certification for Halal friendly hotels and receiving the Certificate of Excellence from the world’s largest travel website, Trip Advisor.com.

Mr. Eksath Wijeratne, General Manager of Eden Resort & Spa accepting the award from Mr. Sunil G. Wijesinhe, Senior Deputy President of The National Chamber of Commerce of Sri Lanka whilst Mr. Christopher Joshua, Executive Director of Access Engineering PLC look on.

Eden Resort & Spa, the five star luxury hotel along the Golden Mile of Beruwala, welcomed the festive season in glamour and style, when they hosted an evening of celebrations, culminating in the traditional Christmas Cake mixing ceremony.

The ceremony took place on the 9th of November 2012 at the hotel premises, where a beautiful ensemble of the ingredients in the shape of the Hotel’s logo was on display. Together with guests, well-wishers and employees of the hotel, General Manager, Mr. Eksath Wijeratne, Executive Chef Mr. Deepal De Alwis and Executive Pastry Chef Mr. Mahesh Ranganatha presided over the cake mixing activities, symbolically heralding in yet another exciting season filled with scrumptious cuisine and all-around good time.

Al-Falaah, the Islamic Business Unit of Lanka ORIX Finance PLC (LOFC), under its Shari’ah based children’s savings brand “Al- Falaah Junior”, opened the first Student Savings Centre at the Fathima Muslim Ladies College, Colombo 12. This is the first of its kind in the Islamic Financial Services industry launched by a Licensed Finance Company.

The aim of opening this new Student Savings Centre is to create awareness about Islamic Finance and the Shari’ah principles associated with it amongst children at an early stage.

A special ceremony was organized by the students of the school, where Mrs. Kalsha Amarasinghe, the Executive Director of the LOLC Group, attended as Chief Guest and participated in the first transaction of the Student Savings Centre.

LOLC’s Senior Management members and officials, including, Mr. Krishan Thilakaratne, CEO of Al Falaah, Mr. Brindley de Zylva, MD/CEO of LOFC, Mr. Ashan Nissanka, Chief Officer – Branch Network together with Mr. Shiraz Refai, Chief Manager - Al-Falaah were also present.

In addition, Mrs. H. N. Yousuf, the Principal of the school, Mrs. K. L. S. Rumaiza, Teacher in charge of the Al-Falaah Student Savings Centre together with the school’s OGA members, PTA members, SDS members, school staff members, well-wishers and students were also present during the ceremonial activities. The initiative to open a Student Savings Centre was well received by parents, teachers as well as students.

Addressing the gathering, Mrs. Kalsha Amarasinghe said, “In order to nurture the savings habit amongst future leaders of the country, Al-Falaah Junior opened the industry’s first Shari’ah Compliant Student Savings Centre at the Fathima Muslim Ladies College. Al-Falaah together with its parent company LOFC will take steps to bring this unique concept to strategic locations around the country, enabling children of the Islamic faith, to save and invest for their future, in compliance with their religious obligations.”

“Al-Falaah Junior” is a Shari’ah Compliant Children’s Savings facility, first introduced by Al-Falaah, back in August 2009. At the time, it was the first of its kind to be offered in the Sri Lankan Islamic Financial Services sector. This unique and innovative Children’s Savings product aims to inculcate the habit of saving and financial discipline amongst children from a younger age.

Later, identifying a dearth in the existing industry for Shari’ah Compliant Children’s Savings products, Al-Falaah improved “Al-Falaah Junior” with a renewed identity together with added benefits and returns, under the core theme “A Righteous Start.”

Mrs. Kalsha Amarasinghe, the Executive Director of the LOLC Group, officially declaring open, Al-Falaah’s first Student Savings Centre at the Fathima Muslim Ladies College, Col. 12 (left) and handing over the first savings pass book to a student (right). Also seen in the picture; Mr. Krishan Thilakaratne - CEO of Al Falaah, Mrs. H. N. Yousuf - Principal, Mrs. K. L. S. Rumaiza - teacher-in-charge and officials from LOFC and Al-Falaah.

The LOLC Group together with Brown & Company PLC will be offering customers of LOLC Micro Credit Ltd (LOMC) and Lanka ORIX Finance PLC (LOFC), a unique 0% interest scheme to purchase an array of Browns branded lifestyle items during the upcoming festive season. The LOLC Group continuously strives to add more value to its customers and this is yet another significant step in that direction.

This scheme provides customers a purchase-choice of over 50 items of household, electronic, auto and agri equipment, which are of reputed, global brands, from Browns showrooms and authorized agents located island wide. These items can be purchased at a 0% interest rate, which are payable in monthly installments from 6 to 15 months, without the hassle of incurring an initial payment or requiring any guarantors.

This offer is exclusively available for existing Leasing and Fixed Deposit customers of both LOMC and LOFC, where they are given the opportunity to purchase any item. With a monthly payback installment starting as low as Rs. 1,000.00, this attractive opportunity offers customers greater benefits in appreciation of their loyalty to the LOLC Group.

Commenting, Mr. Kapila Jayawardena, Group Managing Director/CEO of LOLC Group said, “This is a momentous occasion for us. We entered into this novel partnership with the Browns Group to offer LOMC and LOFC customers greater benefits, by offering them the unique opportunity to purchase consumer durables of their choice, simply for being customers of our Group. Browns’ branded products are known and respected the world over and our customers are now given the privilege of owning these branded items at a hassle free, interest free and guarantor free, pay back scheme.”

Also commenting, Mr. Murali Prakash, Group Managing Director/CEO of Brown & Company PLC said, “The Browns Group has over a 132 year history offering a range of consumer durables to Sri Lankans in all corners of the country. Drawing on the synergies of the LOLC Group, we entered into this partnership to offer LOLC Group customers the unique opportunity of owning a range of products from brands such as BG, Olympus, Vivitek, Sharp, Oce, Exide, Mitashi and Belkin.”

To signify this occasion, an official signing ceremony was held at the LOLC auditorium where customers, Directors and Senior Management of both the Companies were present.

Highlights from the official signing ceremony held between LOLC and Browns. In the picture are, Mrs. Rohini Nanayakkara – Chairperson, LOLC Group, Mr. Kapila Jayawardena – GMD/CEO, LOLC Group, Mrs. Kalsha Amarasinghe – Executive Director, LOLC Group and Mr. Murali Prakash – GMD/CEO of Brown & Company PLC together with customers who were awarded with the new facility.

LOLC Micro Credit Ltd (LOMC), the microfinance company of the LOLC Group, successfully concluded the “Isuru Diriya Sisu Upahara Scholarship Awards 2012” last Friday, with Mr. Ajith Nivard Cabraal, Governor of the Central Bank of Sri Lanka gracing the ceremony as Chief Guest.

Mr. H. M. Ekanayake, Director - Department of Supervision of Non-Bank Financial Institutions of the Central Bank of Sri Lanka also attended as a special invitee, together with LOLC Group Directors - Mrs. Rohini Nanayakkara, Chairperson, Mr. Kapila Jayawardena, Group Managing Director/CEO - and Mr. Ravi Tissera, Director/Chief Executive Officer of LOMC.

This year’s event was held for the third consecutive year, where a total of 340 academically gifted students, from diverse locations around the country, were recognized for their exceptional achievements at the Grade 5 scholarship examination held earlier this year. Out of this, 244 top performing students were felicitated at a colourful awards ceremony held at the Bishop’s College Auditorium, Colombo, where they received scholarships and educational equipment.

Hirushima Nethmi Pathiraja from Nikaweratiya, Rashmika Pasindu Malshan from Mathugama, Vishmi Adithya from Elpitiya were the top three students who received best results, each scoring over 183 marks at the scholarship exam.

Students who are felicitated at the Isuru Diriya Scholarship Award program are children of LOMC’s group loan client segment, who lack formal access to financial services. In previous years too, LOMC has come forward to assist the educational needs of children of the communities they serve, by way of providing them scholarship exam preparatory seminars. This program has a three pronged approach, wherein LOMC provides scholarships, gifts and skills development by way of educational programs and seminars, all aimed at developing the primary educational needs of children from grass root communities.

Speaking about the program, Mr. Kapila Jayawardena, GMD/CEO of the LOLC Group said, “The opportunity to help our future leaders of tomorrow, to empower them with knowledge and skills to further their educational aspirations, is more than a philanthropic act for us. These are the children of our clients. We are with them every step of the way, in their struggle to fulfill financial empowerment and better living standards. Our duty, apart from being their financial catalyst is to ensure that their children, too, are given the opportunity to own a future with immense possibilities.”

Also commenting, Mr. Ravi Tissera, Director/CEO of LOMC said, “Our scholarship program has been a remarkable success throughout the years. We are humbled by the response we have received from parents, children as well as educators. Over the years, we have made positive changes in people’s lives and we have made a difference in their children’s future as well.”

In the three years since Isuru Diriya Sisu Upahara Scholarship Awards scheme began, nearly 10,000 children of group loan clients received exam preparatory seminars with the help of renowned educators, and over 1,000 of those who passed the exam with exceptional results, were felicitated and rewarded by LOMC.

(Left) Chief Guest of the event, Mr. Ajith Nivard Cabraal, Governor of the Central Bank of Sri Lanka being welcomed by Mrs. Rohini Nanayakkara, Chairperson of the LOLC Group and Mr. Kapila Jayawardena, Group Managing Director/CEO. (Right) One of the students who excelled at the Grade 5 scholarship examination receiving a scholarship and gift pack from the Governor.

LOLC Factors Ltd (LOFAC), an associate company of the LOLC Group recently shifted its operations to a new location at No. 504, Nawala Road, Rajagiriya. At a formal ceremony held at the new premises, Chief Guests, LOLC Group’s Chairperson, Mrs. Rohini Nanayakkara; Deputy Chairman, Mr. Ishara Nanayakkara; Group Managing Director/CEO, Mr. Kapila Jayawardena and Executive Director, Mrs. Kalsha Amarasinghe declared the new office, open for business. Senior Management members and staff members, together with customers were present during the ceremonial activities.

Commenting, Mr. Kapila Jayawardena, Group Managing Director/CEO said, “To continue our services seamlessly amidst expanding business opportunities, we have brought our Factors operations to this location with the aim of offering an exclusive and personalized service to our valued patrons. Our factoring business has experienced a strong upward growth over the years and we are confident it will continue into the next coming years. With a pioneering history of over 20 years behind LOLC Factors, we are now fully geared to dispense our services with a more efficient and enhanced customer care.”

LOLC Factors Ltd commenced its operations back in 1992, by becoming Sri Lanka’s first factoring company, which at the time was registered under the name Lanka ORIX Factors Ltd (LOFAC). Following the immediate success of factoring solutions among Sri Lankan businesses, the then LOFAC (which to date has retained its former brand name LOFAC), dispensed its solutions to a growing market of customers interested in Factoring and Invoice Discounting services. Over the years, LOFAC diversified to offer total working capital solutions and expanded to offer innovative and personalized products and services specializing in Structured Working Capital Loans, Purchase Order Financing and Cheque Discounting.

(Image on the left) Group Managing Director/CEO of the LOLC Group, Mr. Kapila Jayawardena speaking at the opening ceremony of the new LOLC Factors office at Nawala. (Image on the right) LOLC Group’s Chairperson, Mrs. Rohini Nanayakkara; Deputy Chairman, Mr. Ishara Nanayakkara; Group Managing Director/CEO, Mr. Kapila Jayawardena and Executive Director, Mrs. Kalsha Amarasinghe (not seen in the picture) officially declaring the new LOLC Factors office, open for business.

Staff members of Eden Resort & Spa organized a special, fun-filled Halloween party for its guests on the 31st of October 2012. Fun costumes, wickedly spooky entertainment and Halloween themed cuisine were the highlights of the event, which left hotel guests and staff members alike, enjoying the night away.

Dickwella Resort & Spa, a little piece of heaven, located on the southernmost tip of the country, recently brought together its staff members and resident guests for a special Christmas cake mixing ceremony held at the hotel premises. The cake mixing ceremony was held on the 11th of October in anticipation of the festive season drawing closer in the coming months.  

Mr. Mirza Borham, General Manager of the hotel, commented, saying, “As Christmas draws closer, Dickwella Resort & Spa has begun to buzz with activity. Our culinary master chefs together with team members have been busy preparing to feast our guests with mouth-watering cuisine and dazzling entertainment. Christmas is a special season for us as it unites families, friends and relatives. We would like to extend that same warmth of unity to our guests as well.”

Resident guests together with General Manager, Mr. Mirza Borham and team of chefs from Dickwella Resort & Spa are seen here participating in the Christmas cake mixing ceremony.

Lanka ORIX Finance PLC (LOFC) recently relocated its Badulla branch to new premises at No. 19A, Bank Road, Badulla. This branch has the distinguished history of being one of the oldest and largest branches within the LOFC branch network.  With a modern, spacious interior and ample parking, the new branch was upgraded and relocated for greater convenience to customers.

Mr. Kapila Jayawardena, Group Managing Director/CEO of the LOLC Group and Chairman of LOFC attended the opening ceremony as Chief Guest and declared the new branch open, to business.
Commenting, Chief Guest, Mr. Kapila Jayawardena said, “Due to the growing demand for our financial services in Badulla and its surrounding communities, we upgraded and relocated our branch to a new location within the city, where a number of financial establishments are housed. This provides greater accessibility and convenience for customers who seek diverse and dynamic financial product mix.”

At the newly relocated LOFC branch in Badulla, financial services such as Savings and Fixed Deposits, Microfinance, Finance Leasing and Hire Purchases, NRFC and RFC, Working Capital, Insurance and Shari’ah Compliant Islamic Financial Services among others are offered.

Mr. Kapila Jayawardena, Group Managing Director/CEO of the LOLC Group and Chairman of LOFC engaging in initial transactions with some of the customers, during the opening ceremony of the newly relocated LOFC branch in Badulla. Mr. Ashan Nissanka, Chief Officer – Branch Network was also present at the occasion.

LOLC today issued a media release informing that its parent company LOLC as well as subsidiaries, Lanka ORIX Finance PLC and Commercial Leasing & Finance Ltd, has been independently rated by ICRA Lanka Ltd since July this year. ICRA Lanka Ltd is a wholly owned subsidiary of ICRA Ltd, which is an associate of Moody’s Investors Service.

LOLC PLC, Lanka ORIX Finance PLC and Commercial Leasing & Finance Ltd were assigned an Issuer Rating of ‘[SL] A-‘with stable outlook by ICRA Lanka Ltd from July to September this year.

Issuing a statement, LOLC’s Group Managing Director/CEO, Mr. Kapila Jayawardena said, “Since July this year, we have been rated independently by ICRA Lanka Ltd, and therefore have not consulted any other rating agency for issuer ratings”.


Extracts from ICRA Media Statements:

LOLC

ICRA Lanka Limited, a wholly owned subsidiary of ICRA Ltd., an associate of Moody’s Investors Service, has assigned an Issuer rating of ‘[SL] A-’ with stable outlook to Lanka Orix Leasing Company PLC. The rating indicates adequate-credit-quality and the rated entity carries average credit risk. The rating in Sri Lanka is assigned on an eight-point scale developed specifically for the country, and ranges from ‘[SL] AAA’ to ‘[SL] D’. This rating scale ranks the relative default risk associated with issuers in Sri Lanka.
The rating factors the LOLC Group’s long track record of profitable operations, its position as the market leader in the Sri Lankan leasing business market, professional and experienced management team, adequate risk management systems with strong retail franchise. The rating also takes into account the committed support and oversight from its largest investor–ORIX Corporation of Japan (rated Baa2 with stable outlook by Moody’s) which has a 30% stake in the entity. ICRA has taken note of the ongoing restructuring exercise wherein it will transition into a holding company and the finance businesses will be carried out in its subsidiaries, leading to moderation of the standalone earnings profile of the HoldCo as the existing lending portfolio runs down.

However, given the significant operational and financial linkages with the subsidiaries (especially pertaining to financial services), ICRA Lanka has taken a consolidated rating view of the HoldCo and the key asset financing subsidiaries. The view is corroborated by the service level agreements between LOLC and its subsidiaries to upstream cash flows. LOLC’s standalone earnings would mainly comprise of shared services fees and dividends from subsidiaries and investment gains. ICRA has also taken note of the management’s commitment to de-leverage the HoldCo from the current gearing of 2x as on March 2012 to 1.2x by March 2013 by reducing intra-group exposures and the run-down of its lending book. Maintaining stable cash flows and a deleveraging of the HoldCo would remain key sensitivities.

Download full statement here


Lanka ORIX Finance PLC

ICRA Lanka Limited, a wholly owned subsidiary of ICRA Ltd., an associate of Moody’s Investors Service, has assigned an Issuer rating of ‘[SL] A-’ (pronounced SL A minus) with stable outlook to Lanka Orix Finance PLC. The rating indicates adequate-credit-quality and the rated entity carries average credit risk. The rating in Sri Lanka is assigned on an eight-point scale developed specifically for the country, and ranges from ‘[SL] AAA’ to ‘[SL] D’. This rating scale ranks the relative default risk associated with issuers in Sri Lanka.

The rating factors LOFC’s close operational and financial linkages with the LOLC Group in its position as the flagship subsidiary of Lanka ORIX Leasing Company PLC (HoldCo), which is rated [SL]A-/stable by ICRA Lanka. Given this, ICRA Lanka has taken a consolidated rating view of the HoldCo and its key asset financing subsidiaries. The rating also factors LOFC’s robust franchise, healthy competitive position given its superior market share and a professional and experienced management team. ICRA has taken note of the significant gaps in LOFC’s asset-liability maturity profile, particularly in the short term buckets, arising from the short term nature of funding, both retail deposits and institutional funds. While LOFC’s refinancing ability remains good through retail and institutional franchise, ICRA Lanka expects the company to raise longer-tenure funds to progressively address this gap. LOFC’s financial leverage has increased as a result of rapid portfolio growth despite capital infusion from the Parent. However, lower incremental portfolio growth, stable internal accruals are expected to support capitalization levels. The core profitability has been improving in the past few years backed by higher interest spreads, while operating costs have reduced because of economies of scale. Incrementally, interest spreads could shrink marginally in light of the prevailing interest rate environment; nonetheless ICRA Lanka expects profitability to remain steady provided the level of credit costs are kept under control.

Download full statement here


Commercial Leasing & Finance Ltd.

ICRA Lanka Limited, a wholly owned subsidiary of ICRA Ltd., an associate of Moody’s Investors Service, has assigned an Issuer rating of ‘[SL] A-’ (pronounced SL A minus) with stable outlook to Commercial Leasing and Finance Limited (CLC or the Company). The rating indicates adequate-credit-quality and the rated entity carries average credit risk. The rating in Sri Lanka is assigned on an eight-point scale developed specifically for the country, and ranges from ‘[SL] AAA’ to ‘[SL] D’. This rating scale ranks the relative default risk associated with issuers in Sri Lanka.

The rating factors the operational and financial linkages with the LOLC Group in its position as a strategic finance company of Lanka ORIX Leasing Company PLC (HoldCo), which is rated [SL]A-/stable by ICRA Lanka. Given this, ICRA Lanka has taken a consolidated rating view of the HoldCo and its key asset financing subsidiaries considering the HoldCo or the Group could rely on the key financial services subsidiaries for support. The rating takes into account the demonstrated track record of operating profitably in the retail finance segment, well established franchise combined with a professional and experienced management team and comfortable capitalization levels. The rating draws comfort from the good overall asset quality maintained despite the recent increase in slippages in its factoring book and the current adequate liquidity position supported by limited asset liability mismatch.

Download full statement here

The IKA World Culinary Olympics 2012 – the Culinary World’s equivalence of the Olympics Games - was recently concluded in Erfurt, Germany. Sri Lanka’s own culinary excellence was highlighted when Chef Prageeth Kumara de Silva of Eden Resort & Spa, a participant under LOLC Leisure, won the Gold Medal for pastillage showpiece titled “Inspiring Affection”. He also won a Silver medal for the ‘Vegetable Display’ category and a Merit accolade for the ‘Live Vegetable Carving’ category.

This is the first time that the LOLC Leisure Group has taken part in an international apex culinary competition of this kind and won the top-class medals – Gold and Silver – at the maiden entry itself.

Chef Prageeth Kumara hailing from Kaluwamodara, Aluthgama has been a part of Eden’s culinary team since 2010 and has showcased tremendous versatility in Pastry, Carving, Cake Structures and Showpieces. His entry into the professional culinary world began with the Riverina Hotel – an LOLC Leisure Group Hotel - as a Kitchen Trainee at the age of 19. With over 17 years of experience in Sri Lanka’s tourism and leisure sector, Chef Prageeth’s creative culinary skills have been previously recognized and rewarded with a total of 29 Gold, Silver and Bronze medals at various competitions held in Sri Lanka and abroad. Some of those noteworthy wins include, winning the Best Artist award three times at the Hotel Asia competition held in the Maldives and winning the Best Artist award at the Culinary Art 2011 held in Sri Lanka.

The World Culinary Olympics is known as the oldest competition of its kind in the world with a tradition that dates back to the year 1900 in Germany. Held every four years since then, Chefs from around the world vie to display their most spectacular culinary skills to the world.
   
The 23rd IKA World Culinary Olympics held this year saw 1,800 chefs from 54 nations competing with one another for a period of five days. Sweden won the overall Gold Medal whilst Norway won Silver, with host nation Germany bagging the bronze position. Canada, Switzerland, USA, Finland, Netherlands, Australia and Japan shared the top ten positions.

Commenting, Mr. Eksath Wijeratne, General Manager of Eden Resort & Spa, said, “I am extremely proud that our very own Chef Prageeth Kumara has brought such prestigious accolades to Eden and to Sri Lanka. He has been resilient and disciplined in his preparations prior to departure, showing tremendous focus, assuring us that he would bring home the gold – and he did just that. He has paved the way for aspiring Sri Lankan chefs to put their culinary skills to the ultimate test, to win a top medal at a global platform. I wish him all the best.”

Eden Resort & Spa is a member hotel of the LOLC Leisure Group, with a rich history of over 16 years in the hospitality business in Sri Lanka. This ISO 9001:2008 and HACCP certified 5 star resort has 158 elegantly furnished luxury rooms, suites and penthouses and an exclusive spa, which has earned the hotel the prestige of being the first 5 star hotel in Sri Lanka to offer spa facilities. Other facilities provided by Eden Resort & Spa include, the availability of local and international cuisine at a choice of indoor and outdoor dining venues, fresh Sea Food, 24 hour Coffee Shop which caters to both Sri Lankan and foreign tourists, Sunday Buffet, Wedding and Conference facilities and a range of Water Sports, including diving facilities with PADI certified diving instructors.

Gold Medalist Chef Prageeth Kumara of Eden Resort & Spa

Chef Prageeth Kumara’s pastillage showpiece titled “Inspiring Affection” which won the Gold Medal at the 23rd IKA World Culinary Olympics 2012.

Vegetable Carving and Display pieces which earned Chef Prageeth Kumara Silver and Merit accolades at the 23rd IKA World Culinary Olympics 2012.

Commemorating World Children’s Day on the 1st of October 2012, Lanka ORIX Finance PLC (LOFC) rewarded its “ORIX Champ” minor savings account holders, an attractive rate of 12.5%.

LOFC organized a special Children’s Day event at the Royal College, Polonnaruwa, which also housed its first student savings centre, established two years ago.

Considering the significance of this milestone for LOFC, as well as the close relations maintained with the school since then, at the invitation of its Principal Mr. Yapa Chandraratne, the Company extended its fullest support to the school to organize the event.

At the ceremony, LOFC rewarded many of the top achievers of the Grade 5 scholarship exam, and other academically gifted students, with “ORIX Champ” savings accounts, branded savings tills, along with other exciting gift packs.

Mr. Gamini Jayaweera, Assistant General Manager – Northern and North Central Regions and Mr. Sumedha Kulathilaka, Branch Head - Polonnaruwa Branch, together with the school’s Principal, handed over the gift items to the children.

Commenting on the significance of this event, Mrs. Roshani Weerasekara, Deputy General Manager – Marketing (Savings and Deposits), said, “To encourage the habit of saving from a young age, our “ORIX Champ” minor savings accounts offer a lucrative savings rate of 12.5% for children up to the age of 18 years. In addition, we have also offered parents a valuable opportunity to plan their children’s future well into their adult years, where they stand to obtain a higher return for their investments.”

Snap shots from the World Children’s Day event held at the Royal College, Polonnaruwa in collaboration with Lanka ORIX Finance PLC. Image on the Left: A student receiving a gift pack from Mr. Gamini Jayaweera, Assistant General Manager – Northern and North Central Regions, whilst Mr. Sumedha Kulathilaka, Branch Head - Polonnaruwa Branch and Mr. Yapa Chandraratne, the school Principal look on. Image on the Right: Students performing Eastern and Western dance items.

Lanka ORIX Finance PLC (LOFC) expanded its footprint in the Northern and Eastern region of the country, when it opened its latest branches in Mannar and Mullaitivu recently.LOFC opened these new branches in light of the increasing demand for financial products and services arising from this region. Earlier this year, LOFC opened several branches in Nelliady, Chunnakkam, Chavakachcheri and a dedicated Al- Falaah Islamic Business Unit in Akkaraipattu.

The new branches in Mannar and Mulaitivuwere ceremonially opened by Mr. Ashan Nissanka, Chief Officer – Branch Network. Members of the senior management team, staff members as well as customers took part in the ceremonial activities of this event. 

Speaking about LOFC’s growing footprint in the N&E, Mr. Ashan Nissanka said, “Our diverse financial products, such as Savings and Deposits, Finance Leasing and Hire Purchases, NRFC and RFC, Working Capital and Shari’ah Compliant Islamic Financial Services,are allaimed at helpingMicro and SME entrepreneurs of this region to rebuild and achieve their economic aspirations.In their efforts towards achieving economic empowerment, LOFC has become theirmost sought-after financial partner,who reaches out to them in their hour of need, by providing affordable and convenient financial services tailored to their specific needs.” He concluded.

The new branches are located at No. 116, Ward No. 04, Mannar and PWD Road, Main Road, Mullaitivu.

Mr. Ashan Nissanka, Chief Officer – Branch Network at the opening ceremony of the new Lanka ORIX Finance branch opened in Mullaitivu

5 star luxury hotel brand, Eden Resort & Spa of the LOLC Leisure Group was recently honoured with a National Level Merit Award at the CNCI Achiever Award 2012, organized by The Ceylon National Chamber of Industries. Eden was presented with this award in the National Level Extra Large category (Services sector) and was the only Leisure Brand that received the award amongst reputed industry leaders from the government and private sectors. 

This year’s CNCI Achiever Award was held for the 11^th consecutive year. This unique awards concept recognizes Sri Lankan Industrial and Service Excellence, whilst rewarding them for achieving the best operational results. The awards also encourage local industries to achieve the highest quality and production standards in order to compete in international markets.

“Winning this award is a stepping stone for many more great things to come for the Eden Resort & Spa brand.” said Mr. Eksath Wijeratne, General Manager. “We have continuously striven to offer excellence in service by offering our patrons the highest quality of standards in every sphere of our operations. The continued support of our Management and staff members has given us the required impetus to keep the Eden name in the upper echelons of the leisure industry.” He concluded.

Mr. Eksath Wijeratne, General Manager of Eden Resort & Spa receiving the Merit Award from Mr. G.H. Wickramasinghe, AGM Marketing – Bank of Ceylon. Also in the picture; Mr. Preethi Jayawardena, Chairman – CNCI (far left) and Mr. A.K. Ratnarajah, Past Chairman - CNCI (3rd from left)

Two great leisure hotels of the LOLC Group beckon you and your entire family to be a part of the fun and frolic, along with a wide range of activities planned just for you, at the Eden Resort & Spa and Dickwella Resort & Spa – Down South.

A 20 – 30% discount is all yours this vacation for all Sri Lankan and Resident Expatriates.

Eden Resort & Spa, is a prestigious 5 Star Resort located on the beautiful ‘Golden Mile’ beach in Beruwela – an hour’s drive away from the capital on the Southern Expressway. Eden Resort & Spa offers you a variety of activities and surprises which include, Saturday Garden BBQ, A Fire Limbo Show, Beach party with DJ music on Thursdays for 2 hrs (at an all-inclusive supplement of Rs. 1,000/- per person), Live Bands, Solo Artists, Animation activities for kids and adults, theme dinner buffets, water sport activities, boat rides etc.

Sight-seeing for ‘traveloholics’ to places like Brief Garden, Kosgoda Turtle Hatchery, Hikkaduwa ‘Coral Garden’, Kandevihara Buddhist Temple which is just an hour away from the Resort, are some of the many attractions on board.
The ‘Golden Mile’ offers you swimming, snorkeling and diving, whilst the Hotel’s Spa will offer you an exceptional experience with new depth of luxury, encompassing a wide range of aroma therapy spa treatments, Ayurveda relaxation and rejuvenation treatments.
This halal friendly Hotel recently received the prestigious Certificate of Excellence 2012 from Trip Advisor, which is recognized as the world’s largest travel site. This traveler-rated accolade testifies the world class hospitality offered by Eden Resort & Spa.
Comprising 158 elegantly furnished Luxury rooms, Suites, Penthouses and an exclusive Spa, it also has a separate play area for Children. Availability of local and international cuisine and a choice of indoor and outdoor dining venues, fresh sea food, a 24hr coffee shop and a large swimming pool, are only a few of the facilities available.
In addition, one child up to 12 years will be entitled to a free stay in the parents room during this season.
Dickwella Resort & Spa is another haven tucked away in the Deep South of Sri Lanka. Enjoy nature’s bounty at this Resort which is built on a peninsula surrounded by the sea on three sides. It also has the distinction of being the first tourist Hotel to be built in the area which was earlier a sleepy fishing village.
76 rooms at Dickwella Resort comprise of 56 Deluxe rooms, 8 Suite rooms and 12 Family rooms. The majority of rooms offer a breath-taking Sea view, which gives you the opportunity of witnessing sensational Sunrises and Sunsets – perhaps one of the few, if not the only, place in Sri Lanka offering this splendorous phenomena in just one location.
Our ‘Coco Spa’ with Indonesian therapists, is renowned for its exceptionally rejuvenating treatments, and offers a peaceful haven to renew your spirits. Our treatments combine the highest quality of aromatic products, coupled with professional care of trained therapists, to provide all our guests complete relaxation.

The Resort has a swimming pool with Sea water and a Jacuzzi just next to it. The ‘Bay Watch’ is a beach side restaurant with an un-spoilt ocean view, where you can enjoy your favorite dishes. Guests could walk in to our Pizzeria and enjoy a variety of mouthwatering Pizzas prepared by our Italian trained Executive – Chef, on a wood fired stone oven carved from natural rock.

There are many recreational options to choose from, and many places to visit around Dickwella Resort and Spa which will be enjoyable and educational for children this Holiday season. Relax and rest at Dickwella Resort whilst on your way to Kataragama.

Galle city tour, Turtle watching, Bird watching Safaris to Kalametiya, Hummanaya (blowhole) are all time favorites whilst there are new activities and places added to the list, such as a visit to Hambantota ‘new harbor’, Whale watching and Dolphin watching at Mirissa, just 1 hr away from the Resort.

Hire a bicycle and go on a tour around the village or be a part of the Animation activities organized by the Hotel which are specifically designed for the whole family to enjoy.

Do not miss the experience of a world of entertainment this Holiday season. You owe it to your kids and yourself, to savor true hospitality in LOLC Leisure style, which we assure you will create indelible memories for one and all.

LOLC Group’s Enterprise Risk Management operations brought home a prestigious, global accolade, when they won an Achievement Award for Governance, Risk Management and Compliance (GRC) for 2012. This award was presented by the Open Compliance and Ethics Group (OCEG) at the 7^th Annual Compliance Week Conference for Corporate, Financial, Legal, Risk, Audit and Compliance Officers, at the Mayflower Hotel in Washington DC U.S.A. Mr. Brian Barnier, the Chairman of the Judging panel, an OCEG Fellow and Principal Analyst of ValueBridge Advisors presented the award to the LOLC Group.

LOLC was adjudged a winner along with three other top US companies and government agencies, namely; The Bureau of Public Debt-Office of Financing of the U.S. Department of Treasury; The Federal Home Loan Bank of Chicago; and Sybase, an SAP Company.

The specialty of this award is that LOLC was the only Asian Company who bagged the Achievement Award. At the ceremony, LOLC Group’s Enterprise Risk Management system was acclaimed by the judging panel, with notable praise bestowed on the Group’s centralized Integrated Risk Management Structure.

In her congratulatory note to LOLC, Ms. Carole Switzer, President of the OCEG said, “I am writing to extend my personal congratulations to LOLC, as a recipient of 2012 GRC Achievement Award from OCEG. The awards recognize the great strides that companies, government agencies and other organizations have made in improving and integrating their approaches to governance, risk management and compliance, to achieve Principled Performance.”

LOLC was praised for managing the complexity in regulatory and risk issues in their risk profiles, whilst facing a range of corporate cultures throughout its multitude of subsidiaries, and the challenge of governing a growing conglomerate.

The task of ensuring that LOLC’s risk management processes are effective and robust falls under the purview of the Group’s Enterprise Risk Management Division. LOLC’s recognition at the OCEG Awards is attributed to the Group’s success in establishing and implementing an organizational structure and framework for risk management drawing on the synergies of Internal Audit, Risk Management, Information Systems Audit and Compliance.

LOLC, in a media statement said that receiving the GRC Achievement Award, in recognition of its efforts on a global platform, is a tremendous achievement for the entire LOLC Group of Companies and for the country. LOLC praised the efforts taken by organizations such as the OCEG, to establish a more ethical and accountable GRC framework whilst helping organizations achieve their objectives, as both welcoming and praiseworthy, especially during a time when global economies are recovering from the adverse effects of lack of compliance and risk management.

From left to right; Mr. Bruce Carpenter, Senior Director, Internal Audit, Sybase; Mrs. Sharmini Wickremasekera, Chief Risk Officer of the LOLC Group; Mr. Brian Barnier, OCEG Fellow, OCEG; Mr. Tom Harper, Executive Vice President/General Auditor, Internal Audit Department, Federal Home Loan Bank of Chicago; Ms. Christina, US Department of Treasury; Mr. Howard Osborne, Director, DC Financing Operations, U.S. Department of the Treasury.

The Association of Professional Bankers – Sri Lanka honoured Mrs. Rohini Nanayakkara for her invaluable contribution to the Banking Industry at the 24th Anniversary Convention of the Association, held this week at the Cinnamon Grand Hotel.

Mrs. Nanayakkara’s distinguished service to the Banking and Financial sector is over 50 years and she has held eminent positions throughout her career, starting from Bank of Ceylon, where she was the first Woman Executive to join a Commercial Bank with the rare distinction of being the first woman General Manager/CEO of a bank in Sri Lanka and the Asian Region.

She also served as a member of the Financial Sector Reform program setup by the Ministry of Finance to revive and improve the performance of the Banking sector and its contribution to the National community by the then President. She was also a nominee of a body consisting of several financial institutions where she had been able to participate and contribute towards its development. She was also the Chairperson of the Sri Lanka Bankers Association on two occasions, Chairperson and Council member of the Association of Professional Bankers - Sri Lanka.

After her retirement from Bank of Ceylon, she was appointed as the General Manager/CEO to setup the Private Sector Infrastructure Development Company Ltd., a company under the Ministry of Finance. In 2005, she was appointed as a member of the Task Force to rebuild the Nation (TAFRAN), as a representative of the Banking sector. Today, she is the Chairperson of the LOLC Group.

Mrs. Rohini Nanayakkara receiving the award for her outstanding contribution to the banking industry from Mr. Ajith Nivard Cabraal, the Governor of the Central Bank of Sri Lanka and Mr. H. M. Hennayake Bandara, President of the Association of Professional Bankers – Sri Lanka.

Al-Falaah wins 2 bronze awards for ‘Written Text and Printing & Production" and 2 further Honors awards for ‘Cover / Photo Design and Interior Design’ at the ARC awards 2012 for the 2010/11 Annual review ‘Values Generate Value’.

Al-Falaah won the Gold award for ‘Financial services – General’ Summary Annual Review Category at the 2012 International “ARC International Annual Report Awards” for the 2010/11 Annual Review themed ‘Values Generate Value’.

Al-Falaah, the Islamic Business Unit (IBU) of Lanka ORIX Finance PLC (LOFC), bagged the prestigious Silver Award in the “Financials – Diversified Services” category at the 2011 League of American Communications Professionals (LACP), Vision Awards. Al-Falaah won this award for their 2010/2011 Annual Review titled “Values Generate Value”. This winning report was also placed among the Top 25 Sri Lankan Annual Reports for the year in review.

At a gala, felicitation ceremony organized by Smart Media Pvt Ltd– the Annual Report Company, Mr. Krishan Thilakaratne, Chief Executive Officer of Al-Falaah, received this prestigious award from Chief Guest, Mr. Ajith Nivard Cabraal, Governor of the Central Bank of Sri Lanka.

Speaking about this significant win, Mr. Thilakaratne said, “Al-Falaah’s win at the 2011 LACP Vision Awards is not only a tremendous achievement for this young business unit, but a tremendous honour for the LOLC Group as well. Al-Falaah has become a notable trend setter in the Sri Lankan Islamic Financial sector, capturing the hearts of its customers through its innovative, personalised and most importantly, Shari’ah compliant financial product offering. Through our island wide, strategic foot print, we have made available our broad based Islamic Financial Services to individuals and businesses of all segments.”

During the previous years, Al-Falaah bagged consecutive Bronze Awards for their annual reviews for 2008/09 & 2009/10, and this year’s award has proven that Al-Falaah is on steady rise to fame.

Al-Falaah has obtained special approval to function within the regulatory framework of LOFC - a Registered Finance Company under the Monetary Board of the Central Bank of Sri Lanka. All Islamic financial activities of Al-Falaah are supervised by a dedicated Shari’ah Supervisory Board (SSB) chaired by industry leading local and international eminent Shari’ah scholars.

Mr. Krishan Thilakaratne, CEO of Al-Falaah accepting the Silver Award from Mr. Ajith Nivard Cabraal, Governor of the Central Bank of Sri Lanka. Also in the picture is Dr. Vijith Kannangara, Chairman of Smart Media Pvt Ltd along with other officials from Smart Media; Mr. Ananda Jagoda, Chief Creative Officer and Mr. Jayantha Nagendran, Chief Officer – Quality Assurance.

Lanka ORIX Finance PLC (LOFC) recently upgraded its customer service points in Dehiattakandiya, Medawachchiya, Aralaganwila and Nikaweratiya to fully fledged branches and expanded the Branch in Mahiyanganaya. With this upgrade LOFC is now in a position to offer its entire product range which includes Savings and Deposits, Finance Leasing and Hire Purchases, NRFC and RFC, Working Capital and Shari’ah Compliant Islamic Financial Services and thereby catering to the Micro and SME requirements of these communities.
 
Mr. Ashan Nissanka, Chief Officer Branch Network of the LOLC Group was amongst those from the Management of the LOLC Group present at the openings.

Speaking about LOFC’s rapidly expanding footprint, Mr. Brindley de Zylva, Managing Director/Chief Executive Officer said, “As a leading financial institution in the non-bank financial services sector, LOFC has become a catalyst to the growing Micro and SME entrepreneur that makes up the regional landscape. With its range of financial products and services, LOFC is continuing to provide an inclusive financial service to communities in every corner of our island through its rapidly expanding branch network, enabling financial empowerment and social mobility to masses.”

Mr. Ashan Nissanka, Chief Officer Branch Network and Mr. Brindley de Zylva, Managing Director/CEO of Lanka ORIX Finance PLC at the opening ceremonies of the new LOFC.

ICRA Lanka Limited, a wholly owned subsidiary of ICRA Ltd., an associate of Moody’s Investors Service, has assigned an Issuer rating of ‘[SL] A-’ (pronounced SL A minus) with stable outlook to Lanka Orix Finance PLC. The rating indicates adequate-credit-quality and the rated entity carries average credit risk. The rating in Sri Lanka is assigned on an eight-point scale developed specifically for the country, and ranges from ‘[SL] AAA’ to ‘[SL] D’. This rating scale ranks the relative default risk associated with issuers in Sri Lanka.

The rating factors LOFC’s close operational and financial linkages with the LOLC Group in its position as the flagship subsidiary of Lanka ORIX Leasing Company PLC (HoldCo), which is rated [SL]A-/stable by ICRA Lanka. Given this, ICRA Lanka has taken a consolidated rating view of the HoldCo and its key asset financing subsidiaries. The rating also factors LOFC’s robust franchise, healthy competitive position given its superior market share and a professional and experienced management team. ICRA has taken note of the significant gaps in LOFC’s asset-liability maturity profile, particularly in the short term buckets, arising from the short term nature of funding, both retail deposits and institutional funds. While LOFC’s refinancing ability remains good through retail and institutional franchise, ICRA Lanka expects the company to raise longer-tenure funds to progressively address this gap. LOFC’s financial leverage has increased as a result of rapid portfolio growth despite capital infusion from the Parent. However, lower incremental portfolio growth, stable internal accruals are expected to support capitalization levels. The core profitability has been improving in the past few years backed by higher interest spreads, while operating costs have reduced because of economies of scale. Incrementally, interest spreads could shrink marginally in light of the prevailing interest rate environment; nonetheless ICRA Lanka expects profitability to remain steady provided the level of credit costs are kept under control.

LOFC focuses on lending against Commercial vehicles (63% of portfolio as on March 2012), Working Capital (21%), Equipment Finance (8%), Tractors and others (8%). The company registered a compounded annual growth rate (CAGR) of 56% over the past 5 years, but has been substantially supported by the transfer of incremental business from the HoldCo to LOFC as part of the group reorganization process. The portfolio growth for the LOLC Group remains moderate at a 4-year CAGR of 16%. Given the volatility in systemic interest rates, LOFC has been focusing increasingly on loans, rather than fixed-rate hire purchases and leases, which gives the company flexibility to adjust interest rates according to its cost of funds. Asset quality, as measured through Gross NPAs, improved from 2.24% in FY11 to 1.02% in FY12 through focused recoveries and structured collections process. However, it would be important to continue to maintain strict control over asset quality through economic downturns and hardening interest rate cycles.

LOFC’s Capital Adequacy Ratio stood at 14.4% as on March 31, 2012 compared to 17.0% as on March 31, 2011, broadly in line with the sector average. While there are no equity infusion plans in the near term, portfolio growth is expected to slow down progressively and the capital requirements would be met through internal accruals. ICRA Lanka, nonetheless, expects LOFC’s capitalization to moderate in the near term with expected portfolio growth.

LOFC’s Return on Average Assets (excluding one-time gains) have registered steady improvement to 4.0% in fiscal 2012 from 1.1% in fiscal 2009 supported by a corresponding improvement in interest spreads. The operating cost levels also remain competitive in relation to industry levels. Incrementally, LOFC could face pressure on cost of domestically mobilized funds given the hardening interest rate scenario, but the long term overseas funding lines being pursued by the management could help control the overall cost levels. ICRA Lanka expects profitability levels to remain stable, provided the company manages to keep credit costs under tight control.

Company Profile

Lanka ORIX Finance PLC (LOFC), (set up in 2001) established initially as a wholly owned subsidiary of LOLC, has a strong Retail Franchise among Licensed Finance Companies (LFCs) in Sri Lanka. The LOLC Group as a whole is one of the Largest Financial Services conglomerate in the country, with the parent being the first leasing company to be established in Sri Lanka. LOFC being the largest operational financial services subsidiary (22% of Group Assets as at Mar-12) of the LOLC Group offers Savings and Deposits in Local and Foreign Currency, Leasing and Hire Purchase Loans mainly for financing Auto Vehicles for commercial use. In July 2011, as per the Central Bank of Sri Lanka (CBSL) directions, LOLC divested 10% of its stake in LOFC and obtained a listing on the Colombo Stock Exchange (CSE).

During the year ended March 2012, LOFC reported a net profit of Rs. 1.25 billion on a total income of Rs. 6.35 billion compared to net profit of Rs. 1.25 billion on a total income of Rs. 4.01 billion in the previous fiscal.

ICRA Lanka Limited, a wholly owned subsidiary of ICRA Ltd., an associate of Moody’s Investors Service, has assigned an Issuer rating of ‘[SL] A-’ with stable outlook to Lanka Orix Leasing Company PLC. The rating indicates adequate-credit- quality and the rated entity carries average credit risk. The rating in Sri Lanka is assigned on an eight-point scale developed specifically for the country, and ranges from ‘[SL] AAA’ to ‘[SL] D’. This rating scale ranks the relative default risk associated with issuers in Sri Lanka.

The rating factors the LOLC Group’s long track record of profitable operations, its position as the market leader in the Sri Lankan leasing business market, professional and experienced management team, adequate risk management systems with strong retail franchise. The rating also takes into account the committed support and oversight from its largest investor–ORIX Corporation of Japan (rated Baa2 with stable outlook by Moody’s) which has a 30% stake in the entity. ICRA has taken note of the ongoing restructuring exercise wherein it will transition into a holding company and the finance businesses will be carried out in its subsidiaries, leading to moderation of the standalone earnings profile of the HoldCo as the existing lending portfolio runs down.

However, given the significant operational and financial linkages with the subsidiaries (especially pertaining to financial services), ICRA Lanka has taken a consolidated rating view of the HoldCo and the key asset financing subsidiaries. The view is corroborated by the service level agreements between LOLC and its subsidiaries to upstream cash flows. LOLC’s standalone earnings would mainly comprise of shared services fees and dividends from subsidiaries and investment gains. ICRA has also taken note of the management’s commitment to de-leverage the HoldCo from the current gearing of 2x as on March 2012 to 1.2x by March 2013 by reducing intra-group exposures and the run-down of its lending book. Maintaining stable cash flows and a deleveraging of the HoldCo would remain key sensitivities.

The refinancing risk of the Group is low given the strong franchise, good relationship with lenders with adequate back-up lines, its liquid investment portfolio and the key subsidiaries’ access to retail deposits despite LOLC’s short term asset- liability maturity mismatch remaining high as short term borrowings have been used to fund long term investments. Further, the Group is planning to raise long term funds from overseas lenders which would correct maturity gaps to an extent. ICRA also expects no major equity investments/ acquisitions by the HoldCo in the near term and expects the entity to focus on improving its ALM position going forward. LOLC Group mainly operates in the area of leasing and hire purchase of automobiles (with over 80% share in total portfolio) and its largest customer segment comprises of small and medium business enterprises for working capital finance. The asset quality of the group’s lending portfolio has been better than that of its peers though marginally affected in the current financial year reducing to 1.8% as on March 31, 2012 from 1.6% as on March 31, 2011. Over the past 2 years, the Group has diversified its presence across leisure and energy ventures, but the financial services are likely to remain the group’s mainstay over the medium term.

The HoldCo’s earnings profile would moderate from the past as the shared services fee income from subsidiaries would be the mainstay of the company going forward. Dividends from subsidiaries would remain volatile given that the financial service subsidiaries are likely to plough back earnings into the business, while the earnings profile of the leisure ventures are vulnerable to economic volatilities. During fiscal 2012, LOLC’s profitability was supported by investment gains of Rs. 5.2 billion but suffered an operational loss of Rs. 777 million.

At the end of March 2012, financial services contributed 72% of the operating profits of the group, Leisure contributed 23%, while interests in trading, plantations and insurance contributed the rest.

Please refer www.icralanka.com for the complete rationale.

LOLC Group posted yet another year of healthy growth in profitability recording Rs.10.3Bn Profit Before Tax (PBT), a 24% year on year growth. The Profit After Tax for the year was Rs.8.9Bn, a 27% increase over last year which was Rs.7Bn. LOLC Group's superior performance comes amidst a challenging environment where its core business of financial services faced interest rate volatility, increased taxes on motor vehicles, lower liquidity in the market and a general credit squeeze. Despite these challenges, financial services remained dominant in profit contribution, with 72% of the profits amounting to Rs 7.4Bn, coming from this sector further reducing the dependency on other sectors in the Group.

The total net receivables of the financial services sector increased to Rs. 80 Bn, a solid growth in the book of advances (portfolio growth) a 38% growth compared with the previous year's book of Rs 58 Bn.

This is a result of the Group's lending strategy to reach the SME and the Micro sectors via a strong presence in all regions of the country. Lanka ORIX Finance PLC (LOFC) closed the year with a deposit base of Rs 25 Bn consisting of both savings and fixed deposits. The net inflow for the year was Rs. 8Bn, a 44% growth over last year's deposit base. LOFC is one of the largest registered finance companies in the country, and the inflow recorded during the year is a clear demonstration of the continued public confidence in the Company.

The Group's remarkable performance is achieved despite the marked to market losses of Rs 1.5Bn on the trading equity portfolio due to the downturn of the Stock market.

The Group's total assets as at the year-end was a strong Rs.146Bn compared with previous year's Rs.112Bn, 30% growth, while total borrowings of the group including deposits and savings stood at Rs 92Bn. Equity of the group was Rs 43Bn at the end of the financial year, an increase of 24% from Rs 35Bn last year.

During the year under review, the parent company LOLC obtained the consent of the Central Bank of Sri Lanka (CBSL) to relinquish its leasing license from April 2011. Consequently, the existing book of LOLC was transferred to its flagship finance company- LOFC and LOLC consolidated its position as a Holding Company.

LOLC further extended its strong channel network of its financial services entities throughout the island. These companies benefit from the 185 financial services outlets with more than 39 in the North and the East.

The parent Company posted strong PBT for the year of Rs. 4.4 Bn compared with Rs. 1.9Bn last year through its operations and other income. Overall operating expenses of LOLC witnessed a dip due to the business being channeled through the subsidiaries.

Of the subsidiaries, all financial services companies are duly registered with and regulated either by Central Bank of Sri Lanka, Insurance Board of Sri Lanka or the Securities and Exchange Commission. Of these, the CBSL regulated finance companies, LOFC and Commercial Leasing and Finance PLC (CLC) posted remarkable results during the year, with LOFC a PBT of Rs 1.8 Bn and CLC with a PBT of Rs 3.2 Bn. LOLC Micro Credit Ltd (LOMC), the only regulated micro finance institution in the private sector recorded an impressive PBT of Rs 858Mn.

LOLC Securities Pvt Ltd. (LOSEC) reported a PBT of Rs 21 Mn in less than a year of its operations. The insurance arm, LOLC Insurance Company Ltd (LOIC) in its maiden year, recorded Rs 65 Mn as losses due to start-up costs however, made excellent progress capturing the captive market of the Group's motor business, one of the largest motor books in the insurance industry.

Despite the momentous growth, the quality of the lending portfolio was not compromised. The NPL ratios of the companies at LOFC 1.4%, LOMC negative 3.1% and CLC negative 0.4%. Both LOMC's and CLC's provision cover is more than 100% of their respective NPLs, which result in negative NPL ratios. These ratios are clearly among the best in the industry. Nevertheless, these companies maintain a very conservative provisioning policy and made additional specific provisions on account of the bad and doubtful debts amounting to Rs 487 Mn, which is well above the regulatory requirements stipulated by the CBSL.

LOLC's associate, PRASAC Micro Finance Company is the largest micro finance institution in Cambodia, and contributed Rs 174 Mn as profits to LOLC. This investment has given LOLC not only financial returns but also offered synergies to LOMC in effective management of rural micro financing.

A key competitive advantage of LOLC is its strong pipeline of foreign funds. The group has one of, if not the largest, range of external funding partners in the country, who work closely with the Group in many endeavors. They consider LOLC not only as their preferred conduit but also as a catalyst to achieve their development and commercial goals, may it be in SME development, micro enrichment, North and East resurgence or renewable energy. Their valued contribution beyond funding has enabled LOLC to attain operational excellence, fine-tuned processes, environmental standards, early compliance good governance and state-of-the-art IT systems. The quantum of new borrowings LOLC has sourced from foreign funding agencies for on lending to the SME and Micro sectors during the year amounts to US$ 40Mn.

LOLC Group's policy of zero exposure to foreign exchange risks paid well where the Group was not exposed to the devaluation effects of the rupee and this policy was also mandated by the CBSL on all foreign borrowing of LOLC Group.

ORIX Corporation – Japan, the single largest shareholder of LOLC, has always been a pillar of strength with their continued support, especially in compliance and governance as a result LOLC is the only financial services company in Sri Lanka to report on Sarbanes Oxley. The steadfast performance of LOLC was recognized by their award for Excellent Performance 2012 out of all of ORIX's overseas subsidiaries, for the 2nd consecutive year.

During the year LOLC consolidated its presence in the leisure sector with the acquisition of the unique Dickwella Resort & Spa, a stunning property at the tip of the southern coast, and also closed three of its hotels situated in the south coast for refurbishment. Plans are finalized for a new complex, the largest in the southern coastal belt with 500 keys within the three properties of Riverina, Palm Garden and Tropical Villas.

The remaining two hotels, Eden Resort & Spa PLC and Dickwella Resort & Spa performed well with Eden posting best ever results of Rs 196 Mn PBT and Dickwella following suit with Rs 51 Mn PBT. Dickwella was under LOLC management for only three months of the year but has a promising year ahead.

LOLC's exposure in plantation, renewable energy, construction, manufacturing and trading sectors have offered the group a conglomerate position in Sri Lanka's corporate landscape. Contribution of these companies to the group profit is Rs 2.9 Bn. The Green portfolio of the company showed tremendous progress in plantation and power generation.

Mr. Kapila Jayawardena, Group Managing Director/ CEO of LOLC said, "LOLC will continue to align its focus on the growth sectors of the economy. I commend the efforts taken by our strong and dynamic management team to establish LOLC's capacity to surpass expected goals and outperform set targets. LOLC is on track to sustain its steady growth in the years ahead. With the recent financial results reflecting a landmark achievement in the Company's history, LOLC is fully geared to strengthen its performance and explore more opportunities, in particular, in the financial services sector."

Trip Advisor, the world’s largest travel site, has awarded the prestigious Certificate of Excellence 2012 to Eden Resort & Spa. This award honors hospitality excellence and is given only to establishments that consistently achieve outstanding traveler reviews on their website. By winning this accolade, Eden Resort & Spa has entered into the prestigious category in the world tourism map.

To qualify for this certification, businesses are required to maintain an overall rating of four or five or higher, out of a possible of five, as reviewed by travelers on Trip Advisor. Additional criteria include the volume of reviews received within the last 12 months. These travel ratings and comments are displayed on theirinteractive web forum where travelers worldwide share their views and opinions about each travel establishmentthey have visited.

According to this travel site, traveler ratings are considered a measure of how travelers have liked each travel establishment.It also provides would-be travelers a great opportunity to discover diverse aspects of each travel establishment and destinations prior to making a booking. Among the viewer ratings received, Eden Resort & Spa have received an overall traveler rating of four out of five.

In their congratulatory note to Eden Resort & Spa, the team at Trip Advisor has said, “Trip advisor is proud to congratulate Eden Resort & Spa on earning the prestigious 2012 Certificate of Excellence Award. Our travelers consistently commend your property with the highest praise, and we recognize your 4 rating as an exceptional achievement”.

Also speaking about this significant achievement, Mr.Eksath Wijeratne, General Manager of Eden Resort & Spa said, “Receiving this top accolade from Trip Advisor, one of the most sought after travel websites in the world, is a testimony to the world class hospitality services offered at our 5 star resort. With a service-first mind set, we go the extra mile to make our global and our local visitors feel at home, with ample luxury at their behest, making their stay with us a truly memorable 5 star experience. I am extremely proud to share this accolade with my team at Eden Resort & Spa”.

Eden Resort & Spa is a member hotel of the LOLC Leisure Group and owns a rich history of over 16 years in the hospitality and leisure industry in Sri Lanka. An ISO 9001:2008 and HACCP certified hotel, Eden’s notable accolades include, receivingCrescentrating 4 certificationfor Halal friendly hotels earlier this year and winner of the award for business excellence for the hospitality trade from the National Chamber of Commerce, Sri Lanka, for 2004, 2008, 2009, 2010 and 2011.

This 5 star resort has 158 elegantly furnished luxury rooms, suites and penthouses and an exclusive spa which has earned the hotel the prestige of being the first 5 star hotel in Sri Lanka to offer spa facilities.Other facilities provided by Eden Resort & Spa includes, the availability of local and international cuisineat a choice of indoor and outdoor dining venues, fresh sea food, 24 hour coffee shop which caters to both Sri Lankan and foreign tourists, Sunday Buffet, Wedding and Conference facilities and a range of water sports, including diving facilities with PADI certified diving instructors.

Continuing the growth momentum set in the previous year, Lanka ORIX Finance PLC (LOFC) concluded an impressive financial year showing significant growth in its core business of savings, fixed deposits and lending. The lending portfolio increased by Rs.12Bn, a 60% increase from the previous year, a direct result of the Company’s island wide presence through fully fledged branches and service centers numbering 129, further consolidating its presence in the regions. During the year, the Company opened 13 new branches in strategic locations, especially in the North and East.

The interest income of the Company reaped the benefits of the growth in the portfolio recording a 93% increase year on year to end at Rs.6Bn compared with the Rs.3.1Bn in the previous year.

Though the advances granted showed significant increase, the growth did not trade off credit quality of the portfolio. Impressive collections were the result of the robust recovery mechanism established by the Company which ensured that the net Non Performing Advances ratio was contained at 1.5%. The cost to income ratio of the Company stood at 42%, confirming the efficiency of the conduct of operations despite cost escalations resulting from the strategic expansion of the distribution network and the higher level of deposit mobilization and the growth in the lending book.

The overall PBT of the Company showed an increase of 20% closing the year at Rs.1.8Bn. Current year’s profits correspond directly to the organic growth in the portfolio and the resulting interest income which doubled during the period under review. This is considered a significant achievement when compared with the capital gains on Treasury Bonds and profit from the sale of the pawning portfolio recorded in the previous year, which are non-recurring income. Company’s carefully mapped strategies for aggressive top line growth, deposit mobilization, collection efficiency and expense management initiatives led to impressive core business profit growth. The PAT for the reporting period was Rs. 1.25Bn.

The accelerated growth in the lending business was well supported by the growth in the deposit base which stood at Rs.25Bn at the year-end recording 44% growth over the previous year, making LOFC one of the largest non-banking financial institutions in terms of customer deposits. The Foreign currency deposit base showed impressive growth recording a 173% increase. The growth experienced in the foreign currency deposit base is expected to continue as a result of the ties established with several foreign exchange houses making LOFC a convenient and cost effective channel for foreign currency remittances. In line with the LOLC Group policy of 100% hedging of all open foreign exchange positions, the Company fully hedged its foreign currency deposits against exchange rate fluctuations by engaging in FX swaps in the interbank market. The Company’s policy of zero exposure is very much in line with the mandate given by the Central Bank of Sri Lanka (CBSL) to the LOLC Group to have no exposure on all its foreign exchange borrowings. LOFC is the only non-banking financial institution in the country to have received the blessings of the CBSL to transact in SWAP transactions.

LOFC acquired the remaining leasing book of the Parent Company, as LOLC PLC no longer operates as a Specialized Leasing Company subsequent to its change of status to a diversified Conglomerate. The Company also benefits from the strong franchise of the branch network established by LOLC, strategically located branches island wide which includes twelve in the North and the East. The Company continued expanding businesses in the newly opened up provinces, and offers the SME and Micro sectors funding for income generating assets and savings and fixed deposits products.

The Company had liquid assets to the quantum of Rs.3.3Bn while the required minimum amount was only Rs.2.6Bn, demonstrating the strong liquidity position of the Company. The core capital of the Company at year end stood at Rs. 4.8Bn which was 19% of the deposit base (minimum requirement 10%), and the capital adequacy ratio was well above the required minimum of 10% and stood at 14.4% at the year end.

The Islamic Business Unit (IBU) of LOFC, Al Falaah, also recorded growth in the current year and its portfolio stood at Rs.4.7Bn, an increase of 34%. This resulted in the business unit increasing its gross income by 74% to close the year at Rs. 862Mn. The Mudharabah deposits at the year-end stood at Rs.3.5Bn, an increase of 22% from the previous year. The IBU business is present at all locations of LOFC, while having 4 dedicated Al Falaah branches. LOFC’s Islamic lending portfolio is one of the largest books in the country. Al Falaah is supervised by the in house Shariah Board, ensuring compliance with Shariah law.

In conclusion, Mr. Kapila Jayawardena, Chairman of Lanka ORIX Finance PLC/Group Managing Director & CEO of LOLC, said that the performance of the Company exceeded the expected targets set out at the beginning of the year. Adding further he said, “We will continue to stay ahead in the fast developing competitive environment and make Lanka ORIX Finance the catalyst that will support the SME sector in the Country’s economic development process. In reaching this segment, we will continue to expand our operations systematically and develop new financial instruments”.

Kapila Jayawardena Chairman Lanka ORIX Finance PLC and Group Managing Director & CEO, LOLC

Celebrating yet another successful financial year, the LOLC Group was bestowed with the prestigious Prize for “Excellent Performance in the Overseas Operations Category for FY 2012 ended March 31st“ by the ORIX Corporation of Japan. This annual award scheme recognizes exceptional sections and group companies of the ORIX global network at home and overseas for their outstanding financial performance and achievements. During the last financial year, the LOLC Group was bestowed with the coveted “Most Outstanding Financial Performer 2010/11” award.

In his Congratulatory note to the LOLC Group, Mr. Makoto Inoue, the President and COO of the ORIX Corporation of Japan, has lauded LOLC’s strong leadership. “This prize speaks of your success in achieving missions and goals as well as the sales results of your financial products… the Company has registered strong performance throughout the fiscal year, and everyone at LOLC is to be applauded for a team effort. We are very proud of your accomplishments and look forward to seeing LOLC build on its momentum.” He said.

Commenting on this significant achievement Mr. Kapila Jayawardena, Group Managing Director/CEO of LOLC said, “We are extremely proud to have been recognized by the ORIX Corporation of Japan. This award itself speaks of the consistent strength and stability that LOLC has showcased over the years. It is a significant accomplishment for the LOLC Group and more importantly for the LOLC family, comprising of a strong Management Team and committed Members of Staff. As an integral institution within the ORIX network, we are thankful for the support given by ORIX Corporation of Japan for their continued faith and recognition of our efforts.”

The ORIX Corporation of Japan was established in 1964 in Osaka, Japan. Since its inception, ORIX has shown its strength in financial innovation, agility and growth strategy, and has business interests in operating and financing leases, low margin businesses, auto and equipment leasing, insurance, corporate rehabilitation, loan servicing, real-estate and other specialized finance, investments, retail banking and value-added services. The ORIX Corporation of Japan is currently the largest shareholder of LOLC and was instrumental in forming LOLC over 30 years ago.

Steeped in rich history of 32 years, LOLC’s strategic vision and agility has enabled its Companies to leverage growth opportunities evolving in the national landscape. With primary business interests in the Financial Services sector, the LOLC Group – one of the leading Blue Chip Companies of Sri Lanka – has increasingly shown strong balance sheet and profit growth over the past few years.

With over 60% of its revenues coming from financial services alone, LOLC Group is poised to successfully ride the development wave sweeping across the nation. Its strategic business sense has enabled the Company to move forward in its vision to uplift the country’s Micro & SME sectors, with special focus in developing the regional economies.

In this context, the LOLC Group has actively focused its attention on developing the post war, Northern and Eastern landscapes. Speaking, Mr. Kapila Jayawardena, Group Managing Director/CEO of the LOLC Group said, “In the present post war context, one of the priority efforts at national level was the development of Northern and Eastern provinces. Many praiseworthy efforts to develop domestic banking and non-banking activities, transport and communication, tourism, livestock and agri business, fisheries, infrastructural upgrade, have taken place in these regions, which in previous years took much of the brunt of the ravaging war. Now, the North and East are on a fast tracked developmental phase towards inclusive growth.”

Explaining the importance of private sector involvement in the national development process, Mr. Jayawardena was of the view that the Central Bank of Sri Lanka has provided far sighted and favorable policy direction, enabling them to increase their organic business growth in the regions, thereby, increasingly promoting private sector participation in national development initiatives.

“The country’s road map for development is clear. Especially in the North and East context, we have seen accelerated infrastructural and business development initiatives carried out by both the Banking and the non-banking sectors. Extensive efforts had been made to provide diverse financial solutions to the people of these provinces. Moreover, by providing financial accessibility to micro segments of this region, we have been able to uplift the entrepreneurial activities of the North and East. We have seen greater integrated efforts by both the private and public sectors, working in unison, to see the country’s regional landscape developed. This has provided much needed boost to fast track the country’s development plan as a whole. ”

Creating linkages between national level development initiatives and the core businesses of the LOLC Group, Mr. Jayawardena expressed the following; “In this backdrop of rapid national development, we at LOLC, with our group synergies within and amongst our Companies – namely, Lanka ORIX Finance PLC, LOLC Micro Credit Ltd., LOLC Factors Ltd, Commercial and Finance Ltd., Commercial Factors Ltd., Al-Falaah Islamic Financial Services Unit, and LOLC Insurance Company Ltd., - have paid close attention to partnering with local and foreign agencies to develop regional economies.

To serve the rural markets we have fast expanded our footprint, which has now reached a total of 185 locations as at 31st of March 2012. Out of this, we have established 39 main branches, post office service centres, Islamic financial services units, factoring outlets in the North and East, which amounts to over 20% of our total reach. In addition, we have opened 3 more Lanka ORIX Finance branches last week in Nelliady, Chunnakam and Chavakachcheri.”

“Through our expanding branch network we have provided innovative financial products and services best suited to customers of these newly emerged economies. For instance, earlier this year, we introduced an innovative working capital product named Gold Cheque Financing, where we looked at providing working capital loans against gold items, providing a feasible option for entrepreneurs who lack property or vehicles as collateral. Similarly, Lanka ORIX Finance has entered into a partnership with International Fund for Agricultural Development (IFAD) for poverty alleviation and to improve the economic status of rural communities. In addition, focusing on our customers from the Islamic communities in the Eastern Province, we have reintroduced our Shari’ah compliant children’s savings account – Al-Falaah Junior – with many attractive benefits especially for children of Islamic families.” He explained.

Adding further, Mr. Jayawardena said “In expanding our products and services portfolio, we have made necessary arrangements to provide the best of our services for our customers; going that extra mile to understand their specific financial requirements and catering to it.”

The LOLC Group recorded Rs. 9.3Bn PBT for the nine months ended December last year with excellent growth of 30% compared with the previous year. The resultant PAT recorded a 31% growth over the last year at Rs. 7.9Bn. “Future trends are promising, where we will continue to maintain sustainable business growth for the long term. We expect to see similar results in the fourth quarter in the FY ending March 31st 2012.” The Group Managing Director reiterated.

In conclusion, Mr. Jayawardena expressed his confidence that Sri Lanka, in its heightened development phase, is poised to reap long term prospects for developing the regional economies, especially those in the war torn areas. “Economic development efforts together with social and community development are two vital factors which will take this development discourse further. By providing the required infrastructural and technical knowledge and support for the people of the regions to find solutions for their specific requirements, we are building greater partnerships and dialogues between people of the communities and private/public agencies to help take the country forward.” He concluded.

Lanka ORIX Finance PLC recently welcomed a new addition to its network of regional branches, when its newest branch was opened in Balangoda last week. Mrs. Rohini Nanayakkara, the Chairperson of the LOLC Group graced this momentous occasion as Chief Guest. Senior Management members and customers from the Balangoda area also attended the opening ceremony.

Lanka ORIX Finance carried out limited operations through the Balangoda Post Office Service Centre set up by its sister company LOLC Micro Credit Ltd. As a result of growing demands arising from this region for inclusive financial services, the new fully-fledged branch was established.

The Balangoda branch will offer comprehensive financial products such as Savings and Deposits, NRFC/RFC accounts facilities, Leasing and Loan Schemes, Factoring, Insurance services, Agro and Micro Finance to name a few.

Commenting, Mrs. Rohini Nanayakkara said, “After a successful Micro Credit operation through a mini branch we have identified much potential in the town of Balangoda and in the surrounding areas. As a business establishment that has worked closely with people, helping them to realize their entrepreneurial talents, Lanka ORIX Finance is committed to provide innovative financial solutions catering to a diverse range of customer requirements. I am indeed proud to be part of this moment when Lanka ORIX Finance has expanded its island-wide presence with yet another significant footprint.” She concluded.

Mrs. Rohini Nanayakkara, Chairperson of the LOLC Group speaking at the opening ceremony of the new Lanka ORIX Finance branch opened in Balangoda last week.

Mrs. Rohini Nanayakkara, Chairperson of the LOLC Group engaging in a leasing transaction with a customer whilst Mr. Brindley de Zylva, Managing Director/CEO of Lanka ORIX Finance PLC and Mr. Ashan Nissanka, Chief Officer Branch Network looks on.

Fast expanding financial services provider, Lanka ORIX Finance PLC, opened its latest branch in Ja-Ela recently. The new branch is located at No. 04, Colombo Road, Ja-Ela.

Chief Guests, Managing Director/CEO of Lanka ORIX Finance PLC., Mr. Brindley de Zylva and Chief Officer Branch Network, Mr. Ashan Nissanka were present along with Senior Management members of the LOLC Group.

The new branch was established to meet the demands for diverse financial solutions arising from the vibrant business community of the area. Speaking at the ceremony Mr. Brindley de Zylva said; “Ja-Ela has been a celebrated business hub along the Colombo-Katunayaka roadway. With the setting up of our branches in Negombo and Wattala, the demand for our financial services in Ja-Ela and the vicinity too arose. We foresee massive development opportunities opening up for this region. Therefore, in order to bring greater convenience and accessibility to the SME communities of this area, we have added this new branch to our expanding foot print in the Island”.

A diverse range of financial solutions such as Leasing and Asset Finance, Fixed Deposits, Savings, Islamic Finance, Development Finance, Foreign Currency Business and Insurance among others can be obtained from this branch.

Managing Director/CEO of Lanka ORIX Finance PLC., Mr. Brindley de Zylva accepts a deposit from Mr. Gerad Fernandopulle during the opening ceremony of the Company’s new branch in Ja-Ela.

Chief Officer Branch Network, Mr. Ashan Nissanka engaging in a transaction with Mr. Namal Mahagedara, whilst Managing Director/CEO of Lanka ORIX Finance PLC.,Mr. Brindley de Zylva looks on.

Al-Falaah, the Islamic Business Unit (IBU) of Lanka ORIX Finance PLC., opened its latest, fully fledged Islamic Financial Services center in Akkaraipattu earlier this week. CEO of Al-Falaah Islamic Business Unit Mr. Krishan Thilakaratne; Managing Director/CEO of Lanka ORIX Finance PLC., Mr. Brindley de Zylva; Chief Officer Branch Network Mr. Ashan Nissanka; Chief Manager of Al-Falaah Islamic Business Unit Mr. Shiraz Refai and senior management members of the LOLC Group were amongst the distinguished guests gathered at the opening ceremony.

Located at No. 4B, Kalmunai Road, Akkarapattu, this new branch is the 5th fully fledged service point of the IBU branch network, which also includes dedicated IBU branches in Kalmunai, Akurana, Oddamavadi and Kaththankudi.

Al-Falaah provides Shari’ah compliant financial services such as Mudharabah (Profit – Sharing Investments and Savings), Ijarah (Leasing), Murabaha (Trade Financing) and Diminishing Musharakah (Property/Project Financing), and has a special approval from the Central Bank of Sri Lanka to function within the framework of Lanka ORIX Finance PLC.

Speaking at this significant event, CEO, Mr. Krishan Thilakaratne said; “Financial services offered by Al-Falaah are geared towards providing our customers better returns on their investments, in compliance with Shari’ah principles. Our new branch in Akkaraipattu will offer the rising SMEs in the vicinity, an opportunity, to invest and further their business aspirations, which will provide an added boost to the burgeoning economy of the East.”

All financial activities of Al-Falaah are supervised by a dedicated, Independent Shari’ah Supervisory Board chaired by industry leading local and international Shari’ah scholars.

CEO of Al-Falaah Islamic Business Unit, Mr. Krishan Thilakaratne speaking at the opening ceremony of the new Al-Falaah service center in Akkaraipattu.

Lanka ORIX Finance PLC has introduced a special Avurudu rewards scheme for its Fixed Deposit clients during the upcoming Sinhala and Tamil New Year season. This special campaign will offer valuable gifts such as gas cookers, rice cookers, steam irons, toasters among others. At present, Lanka ORIX Finance offers an attractive rate of 15% for their one year Fixed Deposits and 16% for one year Senior Citizens’ Fixed Deposits.

Commenting on this special Avurudu promotion, Mr. Brindley de Zylva, Managing Director/CEO of Lanka ORIX Finance PLC said; “In the past, we have awarded special branded gift items for customers during the auspicious time of ‘Avurudu Ganu Denu’. But this year, with the expansion of our branch network, we have seen a massive increase in our island wide customer base. Hence, from the 9th to the 20th of April 2012, we will be offering a gift scheme which is more attractive in value for all customers opening fixed deposits of one year and above. These rewards can be obtained from any of our branches located island wide”.

Customers who invest Rs. 50,000 and above are eligible for this special promotion, and will stand the chance to receive gift items at each level of the deposit tier. With the increase of the deposit value, the value of the gift item will also increase. Accordingly, a fabulous travelling bag for deposits of over Rs. 50,000, toasters for deposits of over Rs. 100,000, electric irons for deposits of over Rs. 250,000, rice cookers for deposits of over Rs. 500,000 and gas cookers for deposits of over Rs. 1,000,000 will be given.

Adding further, Mr. de Zylva said; “This gift scheme will have a special appeal to customers from the regions, especially to those from the newly emerged economies in the North and East.”

Bringing total financial solutions to the people of Kekirawa, Lanka ORIX Finance PLC opened its latest branch last week. Mrs. Rohini Nanayakkara, Chairperson of LOLC graced the opening ceremony of the new branch as Chief Guest. Mr. Brindley de Zylva, Managing Director/CEO of Lanka ORIX Finance PLC., Mr. Ashan Nissanka, General Manager/ Chief Officer, Branch Network and other distinguished invitees were also present.

Situated amidst an agriculturally rich region, enriched by history and culture, Kekirawa is fast developing as an entrepreneurially active city.

Commenting on this significant event, Mrs. Nanayakkara said. “Providing ease of accessibility to our regional customers is of great importance to us. To achieve this, it was crucial for us to formulate a branch expansion plan which was both aggressive and strategic. During the recent past, we have witnessed a surge in economic activity in this region, especially with regard to the agro sector. Hence, we have opened a new branch for the people of Kekirawa and the surrounding areas, to avail themselves of total financial solutions on offer.”

Among the products and services offered by the new branch are Micro and Agro Finance, Leasing and Loans, Savings and Deposits, Islamic Finance among others.

The new branch is located at No. 40, Main Street, Kekirawa.

Chairperson of LOLC, Mrs. Rohini Nanayakkara engaging in a leasing transaction with a customer at the new Lanka ORIX Finance branch in Kekirawa. Also in the picture is Mr. Ashan Nissanka, General Manager/Chief Officer, Branch Network.

Lanka ORIX Finance PLC., recently welcomed a new addition to its network of regional branches, when it expanded its operations to the historic city of Tissamaharama.

Chief Guest, Mr. Kapila Jayawardena, Group Managing Director of LOLC and Chairman of Lanka ORIX Finance declared the new branch open and accepted the initial deposit from a customer.

The new branch will offer the people of Tissamaharama and the surrounding areas products such as, Savings and Deposits, NRFC/RFC accounts, Leasing and Loan Schemes, Factoring, Insurance services, Agro and Micro Finance to name a few.

Speaking at the branch’s opening ceremony, Mr. Kapila Jayawardena said; “Lanka ORIX Finance has come to the forefront of the country’s business landscape by adding a new dimension to the non-bank financial services sector. By offering finance facilities tailor-made for customers’ requirements, the Company is playing a vital role in developing the country’s SME sector. We see much potential in the Tissamaharama region and are looking at playing a vital role in further developing the business community of this area.” He concluded.

Al-Falaah – the Islamic Business Unit of Lanka ORIX Finance PLC., recently renewed the identity of its Shari’ah compliant minor savings scheme, under the name, “Al-Falaah Junior”. This minor savings scheme was introduced way back in August 2009, and was the first of its kind to be offered in the Sri Lankan Islamic Financial Services sector.

Identifying a dearth in the existing Islamic Finance industry for children’s savings products, Al-Falaah improved “Al-Falaah Junior” with added benefits and returns, under the core theme “A Righteous Start…”

“Al-Falaah Junior” aims to inculcate the savings habit and financial discipline amongst children from a younger age. It also offers a comprehensive savings plan based on the Shari’ah principle of profit sharing, where the child will receive a high return on investments.

Speaking about this unique offering, Mr. Shiraz Refai, Chief Manager, Islamic Business Unit of Lanka ORIX Finance PLC said, “By introducing a Shari’ah compliant approach to minor savings, we have identified a long term value in harnessing a righteous approach to finance amongst children and parents.

“Al-Falaah Junior” offers a variety of exciting gifts and attractive value added benefits. This would provide parents the opportunity to build a solid financial foundation for their children, so that on reaching 18 years of age, the child would have a substantial fund to pursue higher studies and other future goals.”

In order to open an account, a parent or the guardian is required to produce their NICs and the Birth Certificate of the child. Al-Falaah services can now be obtained from over 50 Lanka ORIX Finance PLC., branches island wide, including 4 dedicated Al-Falaah centres located in Kalmunai, Kaththankudi, Oddamawadi and Akurana. Further plans are underway to set up student saving centers in key schools around the country, offering greater convenience and accessibility to children and parents to operate the savings account from the school premises itself.
 
Adding further Mr. Refai said, “We have always strived to achieve value creation through our diverse range of products and services, where we have gone beyond the norm of selling a product, to inculcate values, whilst giving better returns on investments. Similarly, “Al-Falaah Junior” is an investment plan which is in keeping with religious obligations. This provides children and parents a righteous and a secure pathway to save and plan their financial future well in advance. Hence, we are pleased that we have taken the right step forward, in this direction, by introducing “Al-Falaah Junior”.”
 
Concluding his statement, the Chief Manager, Islamic Business Unit said that this unique long term investment plan for children has been backed by the strength, stability and the solid reputation of both Lanka ORIX Finance PLC and its parent company, LOLC. “‘Al-Falaah Junior’ has obtained the relevant regulatory approvals from the Central Bank of Sri Lanka and is closely supervised by an Independent Shari’ah Supervisory Board (SSB), which monitors all Islamic Financial transactions of the Company.  

The SSB comprises of leading and eminent Islamic finance scholars representing the local and international Islamic Finance communities. In addition, our Al-Falaah business unit is comprised of an in-house Shari’ah advisor together with a dedicated, professional and well-experienced team of staff members who are fully qualified to offer advice on various savings options.” He concluded.

Lanka ORIX Finance (LOFC) a trusted financial institution has one of the largest deposit bases in the Registered Finance Company sector. A member company of the LOLC Group, LOFC commenced commercial operations in June 2003 and was listed in the Colombo Stock Exchange last July.

As a Registered Finance Company (RFC) engaged in Finance Business its product range includes mobilizing Savings and Fixed Deposits in both local and Foreign Currency by way of NRFC, RFC & SFIDA accounts, offering credit facilities such as Loans, Hire Purchase and Finance Leases. In addition, LOFC operates as a trustworthy channel for Worker Remittance – one of the fastest developing businesses of the Company today.

Recently, the Company entered into a landmark partnership with the International Fund for Agricultural Development (IFAD) headquartered in Rome, Italy to implement a special program to uplift the living standards of rural poor in Sri Lanka by conducting a series of educational programs aimed at raising awareness among migrant worker families on meaningful financial management and investment, they hope to economically empower rural Sri Lankans who seek foreign employment through financial inclusion. Migrant workers are given assistance in setting financial goals through special training programs and thereafter guidance and support to achieve same.

“The aim of doing this project is Economic Prosperity for Rural Poor through Remittances Disbursed via Lanka ORIX Finance” says, Mr. Brindley de Zylva, Managing Director/CEO.

Explaining the benefits behind this program Mr. de Zylva added, “This program will offer them a free life insurance cover though the Insurance arm of the Group, LOLC Insurance Company Ltd which will cover any unexpected visits back home in case of a bereavement of an immediate family member or on loss of employment of the Migrant Worker. “

Similarly, the company has linked with LOLC Micro Credit Company Ltd to offer micro loans for income generating activities to reduce the dependence on remittances and ensure a source of sustainable income hastening the return journey of the migrant worker.

In order to ensure that their remittances reach their loved ones safely back home, LOFC has partnered exchange houses such as Xpress Money, Valutrans and Money Exchange – Spain. Lanka ORIX Finance is the only non-banking institution in Sri Lanka to have joined the SWIFT network and be listed in the Bankers Almanac.

Adding further Mr. de Zylva said, “Since launching our Fixed Deposit schemes and our new value additions for Foreign Currency Business, we have attracted many Sri Lankans with investments in Foreign Banks to place these deposits with us. This is a testimony to the strength and stability of LOFC. We also offer better returns for their investments and value added benefits in Sri Lanka.”

Senior Citizens are given special treatment with higher interest rates and an emergency medical scheme covered by a strategic alliance with Medicalls.

Nearing a decade of experience as a RFC, Lanka ORIX Finance is the only Finance Company backed by a global financial giant, the ORIX Corporation of Japan and the first/only RFC authorized by the Central Bank of Sri Lanka to engage in foreign currency business. At present, the Company has an island wide presence through its footprint of over 50 branches strategically located at various parts of the island.

The LOLC Group continues to record steady growth in profitability, with its core business in the financial services sector maintaining its progressive growth in profits. The Group recorded Rs. 9.3Bn PBT for the nine months ended December which is an excellent growth of 30% compared with the previous year. The resultant PAT recorded a 31% growth over the last year at Rs. 7.9Bn.

The financial services sector strengthened its position and remained the main contributor to operating profits, and this had a positive impact on the Group’s performance despite lower other income recorded for the period due to the prevailing equity market conditions. Attractive interest rates commanded by the Group for its lending portfolio together with effective portfolio management steered the companies to improve their income earned from the financial services business by 49% to Rs. 13Bn for the nine months. Strong collections by the marketing and recoveries teams strengthened the Group’s collections ratios which are the best in the industry and this, significantly improved the quality of the loan portfolio. The corresponding income for the same period in 2010 was Rs. 8.8 Bn.

The income growth corresponds with the focused business strategies of Lanka ORIX Finance PLC (LOFC), LOLC Micro Credit Ltd (LOMC) and Commercial Leasing and Finance Ltd (CLC), which is to strengthen its presence in the North and East and to support financing activities of the agriculture centric client segment. The target customer segment of the Group represents the SME and the Micro clients and LOLC Group commands leadership as the largest agriculture financier in the country. This strategy increased the advance portfolio by 65% which is a growth of Rs.15Bn for the last twelve months. The branch expansion strategy of LOLC helped this growth and currently the Group is operating through almost 200 locations throughout the country with significant presence in the North and East, 35 locations accounting for nearly 20% of the Group’s total reach.

The Islamic business of the Group, “Al Falaah” made progress during the reporting period with significant growth in the portfolio. Dedicated branches set up to service this segment enables the business to service its clientele at desired levels while making positive contribution to the Group’s operating profits.

The borrowing costs grew by 26% corresponding with the higher quantum of borrowing. The additional borrowing came from several multilateral and bilateral foreign funding partners who use the LOLC Group as their catalysts to realize developmental roles. These funding institutions also provide technical services assistance and global best practice knowledge transfer. However, the cost of funding for the Group remained competitive relative to the interest cost volatility. Total assets of the Group grew by 36% mainly due to the growth in advances from the financial services sector and the fair value gain of assets acquired during the period below the market value.

LOFC’s deposit base grew by 62% compared with the previous year to reach Rs. 23Bn. LOLC’s strategic business model with financial services as the core, complemented by the diversification into Leisure, Trading/Manufacturing, Agriculture, Plantation, Renewable Energy and Construction positioned the Group as one of the largest Conglomerates in the country, poised to reap the benefits of a growing economy since the end of the ethnic conflict, two years ago.

Subsequent to the approval received from the Central Bank, CLC converted itself to a Registered Finance Company and commenced its savings and fixed deposits operations. The Company is well geared to mobilize savings and FDs through its extensive branch network.

The newly setup LOLC Insurance Co. Ltd. as a composite insurer offers both General and Life products to LOLC Group customers and other customers. LOLC Insurance is well aligned to deliver a distinctive value proposition to its customers through the use of the Group’s extensive branch network, which puts the company on a very strong position compared with the competitors. The state-of-the-art motor vehicle facility of LOLC, LOLC Motors Ltd. and Speed Italia complements the financial services sector and the fleet management business and this is vital considering the Group’s exposure into motor vehicle financing and insurance. There is a significant shift in growth for Fiat vehicles where the demand has increased since LOLC becoming distributors for Fiat.

The factoring businesses of the Group, LOLC Factors Ltd. and Commercial Factors holds the leadership position in the factoring business in the country and these two companies are in the process of expanding its operations to the regions where the market is greatly untapped. LOLC Securities Ltd. commenced its operations during the last quarter and is well geared to generate steady income for the Group in the medium to long term. The Group’s strategic investments into the banking sector through its stakes in Seylan and HDFC demonstrates LOLC’s commitment to the financial services sector as a whole.

LOLC’s expansion into the Leisure sector two years ago, with the acquisition of four hotels in the golden mile on the southern coast was further strengthened by the new addition of Dickwella Resort Ltd. which is a 77 roomed resort hotel with a stunning location deep south of the island. The Group now holds 623 plus keys making LOLC Leisure one of the largest leisure operators in the country. The ongoing refurbishment project for the upgrading of Palm Garden, Riverina and Tropical Villas will enhance the value proposition of the leisure sector in the medium term. This sector’s position will be further strengthened with the Group’s decision to work with an internationally reputed hotel management Company to manage these hotels once the refurbishment is completed.

With the investment made in the Construction sector through the Sierra Group, Trading and Manufacturing through the Browns Group and Asia Siyaka, Agriculture and Plantation through Mathurata, Pussellawa, Gal-Oya and Agstar Fertilizers and the overall investment strategies in the renewable energy sector through United Dendro and Hydro Power Free Lanka, LOLC is well poised as a Conglomerate that capitalizes the opportunities presented by the positive economic outlook.

Commenting on the outstanding performance of the Group, Mr. Kapila Jayawardena, the Group Managing Director/CEO of LOLC said; “The future trends are promising where we will continue to maintain sustainable business growth for the long term. We expect to see similar results in the fourth quarter where we would see the Group’s diversified portfolio perform increasingly in tandem with the Group’s core business, financial services.”

Ishara Nanayakkara Deputy Chairman, LOLC Group

Kapila Jayawardena Group Managing Director & CEO, LOLC

Lanka ORIX Finance PLC – the leading total financial solutions provider in Sri Lanka – recently opened its latest branch in Pelmadulla last week. Located at No. 81 C, Ratnapura Road, Pelmadulla, the new branch was opened by Mr. Ashan Nissanka, General Manager/Chief Officer - Branch Network, LOLC, who graced the occasion as Chief Guest along with several other senior management members.

The new branch will offer Savings and Deposits, Leasing and Hire Purchases, NRFC and RFC, Working Capital and Factoring, Shari’ah Compliant Islamic Financial Services, along with a range of products and services geared towards providing total financial solutions to a growing customer base in Pelmadulla and its surrounding areas.

Mr. Ashan Nissanka, General Manager/ Chief Officer – Branch Network, LOLC, accepting the first transaction from Mr. Saman Upasena, Chairman, K.D.U Group, during the opening ceremony of the new Lanka ORIX Finance branch in Pelmadulla.

Mr. Ashan Nissanka, General Manager/ Chief Officer – Branch Network, LOLC, accepting the first transaction from Mr. Saman Upasena, Chairman, K.D.U Group, during the opening ceremony of the new Lanka ORIX Finance branch in Pelmadulla.

Eden Resort & Spa, the luxury beach resort situated on the Golden Mile of Beruwela, reassures its quality standards to all visitors and guests who patronize their 5-star property. In this regard, the Hotel succeeded in gaining the ISO 9001:2008 + HACCP certificate for another period of 3 years, effective from January 2012.

ISO 9001:2008 + HACCP is a globally accepted quality management standard which helps both product and service organizations to achieve standards of quality that are recognized and respected through-out the world. Whilst ensuring food safety in compliance with internationally accepted food laws, this recertification also guarantees that meeting customer satisfaction at all aspects of its services is a top priority for the Hotel.

Eden Resort & Spa, an LOLC Leisure Hotel, is currently associated with many prestigious tour operators both local and world-wide. In order to run its extensive business to meet the stringent quality expectations of its patrons, the hotel sought to renew its compliancy with applicable statutory and regulatory laws in standardization. Thus, the recently acclaimed ISO status garnered by the Hotel speaks of Eden’s commitment to quality management.

Commenting on receiving the quality certificate, the Group Managing Director and Chairman of Eden Hotel, Mr. Kapila Jayawardena of LOLC said; “We at LOLC firmly believe in our vision to enhance commitment and achieve a positive growth for the future, and in this endeavor, compliance with all forms of regulatory requirements is strictly adhered to at all Group Company level. In this backdrop, the accreditation achieved by Eden Resort & Spa guarantees the reassurance of its quality deliverance to its patrons.”

Pictured here is Mr. Eksath Wijeratne, General Manager, Mr. Sisira Senarathne, Resident Manager and the operations management team of Eden Resort & Spa, Beruwela.

A recent Energy Governance Case Study published by the Lee Kuan Yew School of Public Policy National University of Singapore has highlighted the vast potential of renewable energy initiatives succeeding in Sri Lanka, going so far as to say that if proper mechanisms for its development is in place then Sri Lanka could be identified "… as a trailblazer for renewable energy development for the rest of the developing world" (P 24).

The report titled, "Harvesting the Elements: The Achievements of Sri Lanka's Energy Services Delivery Projects" is a case study and research conducted by Ira Martina Drupady and Benjamin K. Sovacool. Energy Services Delivery (ESD) is a project funded by the World Bank and is primarily aimed at encouraging investments in Sri Lanka's electricity and energy sector by promoting private sector and community based participation for renewable energy development in the country. In this study, LOLC was one of 56 stakeholders from 28 institutions around the country who are listed as engaging in renewable energy initiatives in Sri Lanka.

LOLC is the first commercial building in Colombo to have installed a mega installation of 48KW solar system containing solar cells made up of eight arrays of panels and eight inverters containing an individual capacity of 6KW. This grid connected solar power plant is located at LOLC's Head Office in Colombo and it fulfills 15% of daily energy requirements of the Company. A renewable energy initiative that is both efficient and sustainable, this installation has significantly reduced the Company's dependency on power from the national grid. LOLC's first entry to promoting solar generated energy commenced back in 2003 when it financed 4,000 solar panels in rural homes that were not connected to the main grid.

In addition, in Maturata and Pussellawa plantations, the company has invested in 02 hydro power plants which are also registered for carbon trading. Similarly, the Hingurana sugar plantation commenced in collaboration with the Government of Sri Lanka uses bagasse as bio fuel to generate 2MW of energy with plans to increase it to 6MW in the future. In addition, the Company's investments in a Bio Mass Company in Kalutara is currently producing 6MW of energy using Gliricidia as bio fuel with plans to increase it to 10MW in the future.

Commenting, Mr. Ishara Nanayakkara, Deputy Chairman of the LOLC Group said, "Through our Maturata, Pussellawa, Gal Oya plantations together with United Dendro Energy Pvt Ltd, we have committed ourselves towards environmental sustainability by way of integrating renewable energy initiatives into our business model. Our country is blessed with abundant natural resources which are needed to implement such initiatives– sunlight, wind, rain and tides; and together with our strong agroforestry background and our accessibility to biomass and biofuel, the country is better positioned to reap the lifelong benefits of establishing renewable energy initiatives at national level" He concluded.

The existing Galle branch of Lanka ORIX Finance PLC was recently transformed into a modern, state-of-the-art customer service facility. The new office, occupying the first two floors of the Galle District Chamber of Commerce and Industries building, was ceremonially opened by Chief Guest Mr. Kapila Jayawardena, Group Managing Director & CEO of LOLC. The aim of upgrading this branch was to offer an enhanced service to a growing customer base from the deep southern region. In addition, Lanka ORIX Finance's product and service portfolio has seen a rapid expansion during the recent past, requiring a further upgrade in the branch's operational activities.

Equipped with modern service facilities and an efficient, experienced team of staff members, the new Lanka ORIX Finance branch is fully geared to cater to the rising demand for financial services emerging, especially from the SME communities of this region. Furthermore, the new branch has been designed in line with the standard design concept carried across the entire branch network to provide customers with simple and elegant set up.

Speaking at the ceremony, Mr. Kapila Jayawardena said; "The historic city of Galle is a vibrant, fast developing commercial hub for the entire southern region. With the construction of the new highway, we are expecting this region to experience an exponential economic growth. In order to cater to the rising demand for financial requirements, we have further developed our branch's operational and infrastructure facilities in order to expand its capacity to serve customers better. In addition, the new office is strategically located at a well-respected commercial building in Galle, providing our customers the added advantage of accessibility" he concluded.

A diverse range of financial solutions such as Leasing and Asset Finance, Fixed Deposits, Savings, Islamic Finance, Development Finance, Foreign Currency Business and Insurance among others can be obtained from this branch.

Chief Guest of the event, Mr. Kapila Jayawardena, Group Managing Director & CEO of LOLC delivering a speech at the opening ceremony of the new Lanka ORIX Finance branch in Galle. Mr. Ashan Nissanka, Chief Officer, Branch Network and Mr. Nalaka Mohotti, Regional Head are also seen in the picture. The new office of Lanka ORIX Finance Galle Branch is located at No.71/21, Sri Gnanobasha Mawatha, Oroppuwatta, Galle.

Premier Conglomerate LOLC became the triumphant Silver Award winner in the "Overall Winner" category at the recently concluded National Business Excellence Awards 2011, organized by the National Chamber of Commerce of Sri Lanka (NCCSL). Other accolades won by LOLC includes winner in the "Best Capacity Builder", First runner up in the "Extra Large Category", Runner up in the "Diversified Group of Companies Sector", Runner up in the "Excellence in Business and Financial Performance" and Runner up in the "Hospitality Sector" for Eden Hotel Lanka PLC. This is the first time that LOLC, in its 3rd year of participation, has bagged an overall performer accolade.

LOLC's past wins in the National Business Excellence Awards include winner in the "Diversified Group of Companies Sector" (2010), runner up in the Best "Capacity Builder" (2010), 2nd runner up in the "Extra Large Sector" (2010) and winner in the "Specialized Banking Sector" (2009). In addition, LOLC's associate company LOLC Leisure Ltd was awarded runner up at the "Hospitality" category for its hotel, Eden Resort and Spa, at the 2010 awards ceremony.

Commenting, the exuberant and proud Group Managing Director/CEO of LOLC, Mr. Kapila Jayawardena said; "As a highly diversified newly emerged Conglomerate, these prestigious achievements exemplify our group's rapid progress in the financial and non-financial services sector in the recent years. I am extremely proud that in a short span of just 3 years since taking part in the National Business Excellence Awards, LOLC has climbed to the top levels of the awards categories itself. I commend the untiring efforts taken by the National Chamber of Commerce of Sri Lanka during these past 8 years to felicitate National Enterprises who contribute towards the upliftment of both Country and economy."

The National Business Excellence Awards evaluates and recognizes business organizations that contribute towards the economic development of the country under a strict evaluation criteria. These are; Business and Financial performance, Global Reach, Knowledge Integration, Technological Investment, Capacity Building, Performance Management, Corporate Governance, Corporate Social Responsibility.

In conclusion, Mr. Jayawardena said, "I would especially like to extend my thanks to our Board of Directors for their visionary guidance and the staff members of the LOLC group for their untiring efforts which enabled us to win these awards."

Mr. Kapila Jayawardena, Group Managing Director/CEO of LOLC receiving the 'Overall Winner' Silver Award. Chief Guest of the event, Ms. Rita O'Sullivan, Country Director of the Asian Development Bank is also seen in the picture.

LOLC Leisure proudly announces the strategic acquisition of Dickwella Resort in the deep south of Sri Lanka, thereby expanding its formidable presence in the country's hospitality industry. Located at the southern-most tip of Sri Lanka, Dickwella Resort is universally acknowledged as having the most stunning location of all beach properties in the island. LOLC Leisure emerged triumphant to purchase 100% for Rs. 1,014 million for the much coveted beach resort, set in such a valued location. LOLC Leisure is owned by LOLC and Browns Investments with a holding of 70% and 30% respectively.

Ishara Nanayakkara, Deputy Chairman, LOLC Group, the holding company of LOLC Leisure, commented: "We are proud to have acquired this beachside property situated at such a prized location. This acquisition marks another milestone in our leisure holdings and propels us into the forefront of the hospitality industry. Dickwella Resort will be another key offering in our bouquet of hotel properties along the western coast of Sri Lanka. The resort has already carved out a distinctive niche for itself on the global tourist map and we intend to upgrade the luxury facilities and enhance the room capacity in the months ahead to catapult it further into a multi-star category hotel that offers a holiday experience of a lifetime. The Southern Expressway, now operational, has succeeded in drastically reducing travel time to the resort. In time to come, the completion of the Colombo-Katunayake Highway will reduce travel time to Dickwella Resort even more. LOLC Leisure remains committed to consolidating its leisure business in the years ahead and we remain in pursuit of acquiring resorts in unique stunning locations, such as Dickwella Resort, that instantly set them apart for their sheer natural beauty. We are extremely bullish about prospects for tourism in the country and our substantial holding of uniquely located properties will ensure they become the preferred choice in the local and global tourists' itinerary."

Situated on a promontory that projects outwards into the ocean, the resort is surrounding by the sea on all three sides and has a rich pioneering history behind its origins. In 1975, Italian entrepreneur Enzo Azzola ventured out into the untouched south coast of Sri Lanka. Unable to believe his luck on discovering a beautiful location so reminiscent of the Italian riviera, he built Dickwella Resort on this spot and introduced the 'club' concept for the first time in Sri Lanka, in vogue in Milan at the time. The Italian collaborated with local artists and blended traditional Sri Lankan architectural styles with contemporary design, imparting a unique character to the resort. Today, Dickwella is a dream getaway for tourists seeking peace and relaxation. Celebrated sci-fi author, Sir Arthur C. Clarke has famously called Dickwella Beach "the best beach in Sri Lanka". Significantly, its equidistant location from the eastern and western shores of Sri Lanka enables tourists there to get a sensational view of sunrises and sunsets with a timeless appeal!

And yet, the resort also offers guests recreational options such as water sports, diving instruction, shipwreck sites, canoeing, etc., to choose from. The resort boasts of a world class luxury spa managed by French wellness expert, Yves. Located close to Dondra, the resort offers easy access to world famous tourist sites such as Yala, Kirinda, Mirissa beach, dolphin and whale-watching excursions and so on. However, many tourists might find it impossible to tear themselves away from the poetic beauty of the location of the 76 beautifully designed villas of Dickwella Resort, preferring perhaps to soak in the majestic splendour of the sweeping vistas of ocean, beach, blue skies and feeling of peace and serenity. LOLC Leisure intends to leverage on the vast property to expand the room capacity to 100 plus in the immediate future.

The highly diversified conglomerate, LOLC Group, forayed into the leisure sector with LOLC Leisure acquiring Confifi Group hotels in 2010, namely, Hotel Riverina, Club Palm Bay and Eden Resort & Spa. The two former hotels are closed for extensive renovation and will be reopened in 2013. Operating under LOLC Leisure management, Eden Resort & Spa has just completed the most successful year of operations since its inception in 2010/11. LOLC Leisure has also acquired Tropical Villas, previously owned by Jetwings and Hayleys, located alongside the other three properties, and which is also under extensive refurbishment.

Once reopened in 2013, these hotels will be managed by a reputed hotel management brand and reflect 4-star plus luxury at its best. Demonstrating its commitment to acquiring land or property situated in valuable locations, LOLC Leisure has bought another beautifully located 30-acre swathe of land in Passikudah, which is surrounded by the sea, river and lagoon, offering tremendous potential as an exotic resort in the near future. All in all, LOLC Leisure now holds 626 rooms in the country's 'Golden Mile' on the western coast and in Dickwella in the deep south. The extent of room capacity makes LOLC Leisure one of the largest resort-owning companies in Sri Lanka.

Focusing on the welfare of the people of Kandy and the surrounding areas, LOLC donated much needed medical items to the Nawalapitiya General Hospital recently. Fulfilling a request made by the hospital, LOLC came forward to donate aluminum partitions and aluminum cupboards to store medicine and other medical equipment.

Mr. Shantha Rodrigo, AGM – Central region (LOLC) handing over the equipment to Dr. Mahendra Senevirathna, Medical Superintendent of the Nawalapitiya General Hospital. Dr. Kosala Ranathunga (far right) and Mr. Malinda Jayawardena, Marketing Executive (LOLC) (far left) were also present.

LOLC Micro Credit Ltd. (LOMC), the microfinance company of the LOLC Group, successfully concluded its "Isuru Diriya Sisu Upahara Scholarship Awards Ceremony" at a gala event yesterday. Mr. Ajith Nivard Cabraal, the Governor of the Central Bank of Sri Lanka attended the ceremony as Chief Guest.

Held for the second consecutive year, "LOLC Isuru Diriya Sisu Upahara" recognizes the remarkable educational achievements of students who have excelled at the Grade 5 scholarship examination held this year. The specialty of this ceremony was that the students felicitated were children of LOMC's group borrower clientele from rural grassroots.

Last year's inaugural ceremony saw the participation of 40 children from various communities across the country. This year's ceremony witnessed the participation of 230 children including those from the Northern region.

During this year's ceremony, top 03 achievers, namely, H. Ruklanthi Tharushika from Nikaweratiya, G.A.H.K. Lankarathna from Horana and Satheskumar Dinosa from Vavuniya along with other notable performers were recognized and presented with special gifts. In addition, all children received special savings accounts with an initial deposit from Lanka ORIX Finance PLC as a reward for their notable educational performance.

In his welcome speech, Mr. Kapila Jayawardena, Group Managing Director/CEO said "Over the years, LOMC has experienced an exponential growth serving an ever expanding group lending portfolio of over 100,000 customers. LOLC Isuru Diriya Sisu Upahara goes beyond the traditional realm of a CSR project. By awarding scholarships, we have made it our priority to give these students the required impetus to further their future educational requirements. Therefore, this event is a special one, given that we are felicitating the sons and daughters of our own clients belonging to the group borrower segment."

Adding further he said; "While providing total financial solutions for our customers to move up the value chain, we have also contributed to the development of our country's educational sector. During the years 2010 and 2011, LOMC has conducted a series of scholarship exam preparatory seminars for over 3000 students from Divulapitiya, Trincomalee, Batticaloa and Gampaha areas, with the participation of a renowned panel of tutors from different educational establishments across the island. Through similar initiatives, we have sponsored the construction of computer labs and donated computer items to Tharmapuram Maha Vidyalaya in Kilinochchi and Attawilluwa Vidyalaya in Palaviya"

Commenced in 2009, LOLC Micro Credit Ltd has become the leading microfinance institution in the country. Its unique business model comprises of a triple bottom line approach backed by the financial strength and technical support of bilateral and multilateral funding agencies together with the support of its parent company, LOLC. Over the years, LOMC has become a catalyst for development to many entrepreneurially active men and women from the grass root level, low income communities across the country.

Mr. Ravi Tisera, Director/Chief Executive Officer of LOLC Micro Credit Ltd; Mr. Ishara Nanayakkara, Deputy Chairman of the LOLC Group; Mr. Kapila Jayawardena, Group Managing Director/Chief Executive Officer of LOLC; Mr. Ajit Nivard Cabraal, Governor of the Central Bank of Sri Lanka; Mrs. Rohini Nanayakkara, Chairperson of the LOLC Group; Mrs. Kalsha Amarasinghe, Executive Director of the LOLC Group with a group of students who were rewarded at the 'LOLC Isuru Diriya Sisu Upahara Scholarship Awards Ceremony 2011' organized by LOLC Micro Credit Ltd.

H. Ruklanthi Tharushika from Nikaweratiya, a top achiever at this year's Grade 5 scholarship examination receiving a special award from Mr. Ajith Nivard Cabraal, the Governor of the Central Bank of Sri Lanka while Mrs. Rohini Nanayakkara, the Chairperson of the LOLC Group looks on. Mr. Ishara Nanayakkara, Deputy Chairman of the LOLC Group, Mr. Kapila Jayawardena, Group Managing Director/CEO of LOLC and Mrs. Kalsha Amarasinghe, Executive Director of the LOLC Group were also present during the awards give-away.

Premier financial services provider Lanka ORIX Finance PLC opened its latest branch in the buzzing city of Dehiwala recently. The new branch is located at No. 85, Galle road, Dehiwala North.

Offering a range of products and services such as Leasing, Savings and Fixed Deposits, Hire Purchase, Islamic financial services among others, Lanka ORIX Finance will help to boost the economic development of this region by catering to the fast expanding financial requirements of a vibrant business community.

Mr. Kapila Jayawardena, Group Managing Director/CEO of LOLC in a statement said "In keeping with the strategy of increasing customer touch points to enhance accessibility and convenience, the customer service points of Lanka ORIX Finance expanded to 132 by the end of November 2011. We will continue to expand our efforts to provide financial services to the SME sector where growth opportunities are significant." He concluded.

Mr. Kapila Jayawardena, Group Managing Director/CEO of LOLC speaking at the opening ceremony of the new Lanka ORIX Finance branch in Dehiwala.

Lanka ORIX Finance PLC recently opened its second branch in Negombo recently. The rising demand for financial services offered by the Company prompted officials to upgrade an existing Ran Savi pawning service centre in the city of Negombo and transform it to a fully-fledged branch. The new branch is located at No. 15, Station Road, Negombo.

Having realized the vast potential of this region and along with the aim of providing more accessibility to customers, Lanka ORIX Finance opened its second branch in Negombo offering a variety of financial products and services such as Leasing and Hire Purchase, Savings and Deposits, NRFC & RFC accounts, Speed Draft, Development Finance and Islamic Financial Services.

Mr. Kapila Jayawardena, Group Managing Director/CEO of LOLC engaging in an initial transaction with a customer at the new Lanka ORIX Finance branch in Negombo.

Lanka ORIX Finance PLC opened yet another branch last week with a range of financial solutions such as Leasing, Savings and Deposits, Foreign Currency Business, Hire Purchase and others on offer. The new branch is located at Dellawa Road, Neluwa.

To serve a widening Micro/SME customer base in Neluwa, the new branch was ceremonially opened by Brindley de Zylva, Managing Director/CEO of LOFC who attended as Chief Guest.

Famed star class hotel located on the Golden Mile of Beruwela, Eden Resort & Spa (LOLC Leisure Group Hotel), made history when it created the Signature Cocktail for Sri Lanka Tourism for the Year 2012 at a ceremony held in Mount Lavinia Hotel earlier this month.This event was held during the launch of the "World Spice Food Festival 2011" organized and promoted by Sri Lanka Tourism -the apex body for Travel and Tourism promotion in Sri Lanka.

The victorious Signature Cocktail, presented by Mr Roshan Chaminda of Eden Resort & Spa, was formally presented at the event graced by a large and distinguished gathering which included well-known hoteliers, celebrity chefs, local sponsors as well as prominent officials representing Sri Lanka Tourism.

The competing event for Signature Cocktails saw a wide participation of members from 07 regions Island wide representing various establishments of the Sri Lankan leisure industry. Amidst tough competition, Eden Resort & Spa emerged winners.

Commenting on this significant achievement, Mr. Eksath Wijeratne, General Manager of Eden Resort & Spa said, "Eden Resort & Spa created yet another milestone when it earned the privilege of presenting the Signature Cocktail for Sri Lanka Tourism for the Year 2012. It was indeed a proud moment to witness the talents of the Eden team unveiled at a prestigious event aimed at promoting Sri Lanka as a hub for leisure and travel in South Asia. We commend the efforts taken by various establishments across the length and breadth of the industry to achieve this objective and develop the tourism sector of our country to its former glory". He concluded.

Roshan Chaminda of Eden Resort & Spa presenting the winning Signature Cocktail for Sri Lanka Tourism.

LOLC continued its positive stride in profit growth recording strong bottom line results as at September 2011 with Rs. 7.5Bn as PBT and Rs. 6.7Bn as PAT. The Profits before tax records a growth of 66% and the resultant profits after tax records a gain of 75% over the previous year.

In 2009, the LOLC Group repositioned its business model in line with the potential growth areas of the economy on the back drop of the new found peace. Alongside, LOLC continued expanding its core business of financial services comprising of Leasing, Hire Purchases, Loans, Factoring and Working Capital, Micro Financing, Islamic Financing, Savings, Deposits in Local and Foreign currency, Insurance in both General and Life, Stock Broking and selected strategic investments in the banking sector including Seylan and HDFC. The Group successfully established a fully-fledged motor vehicle restoration center - LOLC Motors, as a value addition to its fleet management and insurance businesses. LOLC Motors recently acquired the dealership for Fiat in Sri Lanka.

In line with the Group's diversification strategy, LOLC ventured into the Leisure sector with the acquisition of four hotels of which three are under refurbishment and when fully operational, will be the single largest hotel complex in the country. LOLC is in the process of finalizing the management agreement with one of the largest hotel operators in the world to manage this complex. With the investments made in the construction sector through the Sierra Group, Trading and Manufacturing through the Browns Group and Asia Siyaka, Agriculture and Plantation through Maturata, Pussellawa, Gal-Oya and Agstar Fertilizers and the overall investment strategies in the renewable energy sector through United Dendro and Hydro Power Free Lanka, LOLC is well poised as a Conglomerate that capitalizes the opportunities presented by the positive economic outlook.

The financial services sector remained the main contributor to the operating profits of the Group. Despite the reduction in other income compared with the previous year, the higher level of business growth at attractive interest rates led to an aggressive top line growth in the financial services sector.

LOLC's financial services subsidiaries, Lanka ORIX Finance PLC (LOFC), LOLC Micro Credit Ltd (LOMC) and Commercial Leasing Co. Ltd. (CLC), drove the business to record a 39% growth in income over the previous year. Income earned on the lending and other related businesses was 8Bn for the 6 months. Lower capital gains and reduction in marked to market gains led the company to realize relatively lower other income in the current six months. The average borrowing costs of the Group continued to slide down with several lines of foreign borrowings being received in the six months at attractive long term rates. The borrowing costs saw a 21% growth mainly due to additional funding raised to meet the aggressive business volume growth.

The trading sector recorded steady growth with a profit contribution of Rs. 481Mn, a 29% growth over the previous year. The plantations sector recorded losses for the six months as a result of the higher operating costs due to the wage hike having a negative impact on the profits derived from the diversified activities of the Group. The leisure sector recorded a negative goodwill of Rs. 3.5Bn as a result of the bargain purchase made by the Browns Investments Co. in Excel Global Holding Ltd, the parent company which fully owns Millennium Development Ltd. This strategic investment was made in line with the Group's expansion and portfolio strategy, where medium to long term investments are made in selected growth sectors. The management is currently in the process of drawing up development plans for the property. Profit contribution from the other leisure investments was a negative with three of the hotels being closed for refurbishment.

The increased levels of disbursements in the financial services sector and the increase in intangible assets led to strong growth in assets of the Group which increased by 25Bn since March 2011. The net contribution from the increased loans and advances to the assets was Rs. 17Bn. The strong bottom line results of the Group was reflected in the increase level of basic earnings per share of 7.81 an increase of 40% over the previous year and an even stronger NAV per share of Rs. 35.21 compared with Rs. 22.61 in the previous year.

LOLC's core business was well positioned to derive benefits from the positive economic sentiments seen in the first six months with the increase in demand for lending, realizing strong top line growth through the higher level of disbursements made through its country wide distribution network. LOLC, the company made Rs. 2.4Bn as profits after tax for the six months compared with Rs 865Mn in the previous year. During the quarter, the company further consolidated its position as a holding company, transferring its existing leasing portfolio to LOFC in line with the Central Bank guidelines for the transition. The company's operating expenses reduced by 16% compared with the previous year, consequent to the new businesses being booked under its financial services subsidiaries.

LOFC, LOMC and CLC recorded steady growth in profitability in line with the higher level of activity experienced in all three companies. LOFC's deposit base increased to Rs 23Bn, a 40% growth in deposits for the six months confirming the company's strong financial position and the resultant steady stream of deposit inflows. With this performance, LOFC holds the largest deposit base among the registered finance companies. LOFC recorded a 617Mn PAT for the first six months compared with Rs. 495Mn achieved in the previous year. LOMC and CLC contributed positively to the core business profitability competing well in their respective market segments of the lower SME and the Micro lending businesses. The PAT of these companies was Rs.368Mn compared with Rs. 194Mn for the previous year and Rs. 2.8Bn compared with Rs. 461Mn last year respectively.

The Group's efficient collection efforts contributed positively to reduce the provisions made on bad and doubtful debts despite the increase in business volumes, a reduction of Rs. 48Mn compared with the previous year.

CLC received Central Bank approval to convert itself to a registered finance company and this will enable the company to reach out to the public with deposit mobilization and the company is confident of commencing its finance company operations in the near future through its island-wide branch network. With the conversion of the leasing company to a registered finance company, the company will be listed as required by the Central Bank of Sri Lanka and will be called Commercial Leasing and Finance Limited.

In his review Mr. Kapila Jayawardena, Group Managing Director/ CEO of LOLC stated that, "LOLC is mindful of continuously expanding its core business while managing returns from its strategic investment portfolio. The portfolio strategy focuses on ensuring profitability and liquidity in the near term while ensuring sustainable growth in the medium to long term".

With the untapped landmass and population in North and East and the conscious efforts of the government to develop the identified growth sectors, LOLC Group is fully geared as a 'New Conglomerate' to facilitate the resurgence of the nation" Mr. Jayawardena concluded.

Ishara Nanayakkara Deputy Chairman, LOLC Group

Kapila Jayawardena Group Managing Director & CEO, LOLC

Reiterating its innovative spirit, LOLC Factors Ltd (LOFAC) introduced yet another new facility called Gold Cheque Financing focusing mainly on supporting the rising Micro and SME sector in the Northern region. This is an efficient means of providing working capital against gold items, providing a feasible option for entrepreneurs who lack property or vehicles as collateral.

The high demand for Client Cheque facilities provided by the Company on previous occasions saw the birth of this new facility which is intended on creating greater accessibility to rising SMEs of this region.

Commenting, Mr. Kapila Jayawardena, Group Managing Director & CEO of LOLC Said, "The Northern region is highly sought after for business development initiatives and much is expected from this region to contribute towards the overall economic development of the country. Also, more and more people from this region are gradually but surely finding their own foothold in the Micro/SME sector. Therefore, much needs to be done from the financial services sector to assist them to achieve their dreams."

LOLC Factors on previous occasions introduced working capital and factoring solutions to people of Jaffna which received an enormous response.

Speaking further Mr. Jayawardena added, "By offering new financial solutions to an expanding business community in the North, we were able to attract a strong client base. With the opening up of the economy in this region, the demand for our flexible and tailor made financial solutions saw an exponential growth. Northern clients who have been utilizing our products since late last year have shown strong credit and repayment values. We were able to understand their financial requirements and provide solutions that best address them. Introducing the Gold Cheque Financing was fulfilling one such requirement."

The ever widening footprint of the Group has added further fillip to the Company in reaching the regional Micro and SME clientele.

Mr. Kapila Jayawardena, Group Managing Director/CEO of LOLC handing over the initial Gold Cheque Finance transaction to Mr. and Mrs. T. Thivakaran from Jaffna. Also at the handing over ceremony were Mr. Graham Lawrence, Chief Executive Officer of LOLC Factors Ltd, Ms. Shama Selvaratnam, Chief Manager – Strategic Accounts, LOLC Factors Ltd. and Mr. Rukshan Edward, Officer – Client Management, LOLC Factors Ltd.

Home to traditional fishing and shrimp farming, the historic city of Udappuwa recently welcomed Lanka ORIX Finance's newest branch. Offering a wide variety of financial services in the likes of Savings and Deposits, NRFC & RFC savings, Leasing, Hire Purchases, among other services, the new branch is located at Division No. 05, Udappuwa.

The new branch opening in Udappuwa signifies the expanding Lanka ORIX Finance footprint across the country. Udappuwa is home to rising SME entrepreneurs in the region. With thriving fisher community there's much potential for this region to flourish.

Mr. Ashan Nissanka, Chief Officer Branch Network of LOLC lighting the traditional oil lamp at the Udappuwa branch opening ceremony.

The Central Bank of Sri Lanka (CBSL) has approved the granting of a license to Commercial Leasing Company Limited (CLC) to operate as a Finance Company. This approval will require the holding company Lanka ORIX Leasing Company (LOLC) to divest 10% of its shareholding in compliance with CBSL's mandatory listing rules for Finance Companies. As a result, the company name is expected to be changed to 'Commercial Leasing & Finance Limited' in the near future while retaining the brand as 'CLC'.

Kapila Jayawardena, Group Managing Director/CEO, LOLC Group commented: "CBSL's new guidelines for Finance Companies require CLC to be listed as a finance company, and we are confident that the shareholders of CLC will immensely benefit from LOLC Group's commitment to steer CLC towards rapid expansion with volume growth with a strong foundation to build a deposit base through the well positioned and established branch network. Since LOLC took over ownership of CLC three years ago in May 2008, the Company's performance has seen consistent and strong growth in profitability. The lending book of CLC which includes leases, hire purchases, loans, factoring and micro financing, rapidly grew from Rs. 8.9 Bn as at March 2009 to Rs. 24.9 Bn by Sep 2011, recording a growth of 180%, which reaffirms our commitment."

A wholly-owned subsidiary of the LOLC Group since 2008, CLC was delisted in 2009 by the parent company, which took over the entire shareholding at the time. The Company possesses a strong foundation of 24 years, backed by the might of its founders – Commercial Bank, Singer Sri Lanka and Chemanex, before its takeover by the LOLC Group. LOLC has been able to build on the strong foundation with shareholders' funds seeing an impressive growth of 280% to reach its current value of Rs. 6.4Bn. The total assets of CLC grew by 176% to reach its current value of Rs. 26Bn. Profit before tax for the year ended 31.03.11 reached Rs. 741 Mn, and the Company has already reached a PBT of Rs 2.9 Bn for the six months ended September 2011.

Furthermore, Fitch Ratings Lanka has affirmed CLC's National Long-Term rating at 'A-(lka)' with Stable Outlook. CLC's sound asset quality, profitability and the strong capital base will position the Company as a strong finance company in the future. Despite the rapid growth of its lending portfolio, the company has been able to maintain its asset quality at superior levels to the industry average, where the company's gross NPL ratio as at March 2011 was at 0.8% and the net NPL ratio was at a negative 1.9%.

Despite CLC's core business being in vehicle/equipment leasing, the Company also has a strong presence in the hire purchase, hiring and factoring businesses. CLC is one of the key factoring players in the country and has strong synergies with its sister Company LOLC Factors, and these two companies together make the largest factoring entity in the country. LOLC's subsidiary, Lanka ORIX Finance Company's strong position in the country as a finance company, will provide powerful synergy to CLC to take its business to the next level. CLC has earned a reputation for its competitive rates, flexibility and superior customer service. The company operates through 45 branches across the country and is in the possession of one of the strongest broker networks in the country.

Commenting on the post-war macro opportunities benefiting the company, Mr. Jayawardena added: "Opening up of the Northern and Eastern provinces provide unprecedented opportunities for this region to see economic activities which in turn will have benefits that will spill over to the entire country. In this back drop, we have made plans to propel CLC to the forefront of the industry as a finance company and are in the process of expanding its footprint across the island with significant number of branches being opened in this region."

"Looking to the future, we have given special attention to developing both the Micro and SME sectors of the country through innovative financial solutions. The economic growth of 2010 was broad-based with all the major sectors continuing to perform well. Changing market opportunities while keeping abreast of the national economic policies of the government have steered CLC's long term objectives in the SME and Micro segment. The Company is well positioned to take advantage of the exponential growth prospects of these sectors which we believe will contribute immensely to the country's overall economic growth. We have made notable progress in the agriculture sector, and we have implemented region-specific micro loans schemes with a view of uplifting the living conditions of the rual community by way of promoting income generating activities. We are already seeing progressive results from the execution of our long term strategy of developing these sectors with steady and strong business expansion together with steady profitability growth." He added further.

CLC is poised to receive the full support and backing from the parent company LOLC, whose strong ties with bilateral and multilateral funding institutions will consolidate the company's operations, added Mr. Jayawardena. The LOLC Group is one of the largest diversified groups in the country and CLC is sure to reap the full benefits of being part of this diversified conglomerate and will grow from strength to strength with the new addition of savings and deposits products in the selected market of SME and Micro.

"CLC's future is bright and we are at the beginning of an interesting phase as we embark on implementing our ambitious plans for the company. LOLC Group's strong backing and reputation will create tremendous value for CLC shareholders and customers alike. The customers of CLC can expect innovative savings and deposits products from CLC in the near future." He concluded.

Kapila Jayawardena, Group Managing Director & CEO

Eden Resort & Spa, the 5-star Beach Resort located on the Golden Mile of Beruwela, successfully hosted its 50th foreign wedding ceremony for the year 2011. This being the highest number of foreign weddings held at a hotel located in the area, the 50th foreign wedding ceremony was held in grand style on the 15th of September 2011.

The lucky couple, Mr. Ian Walker and Ms. Stacey Heycock hailing from England, chose Eden as their dream wedding destination in Sri Lanka. The couple accompanied by their relatives and friends, enjoyed a traditional wedding ceremony at the resort's beach front with its pristine, golden sandy beach and the clear blue ocean completing a romantic setting.

During the recent past, Eden has conducted many foreign weddings and has gained a high reputation for its elegant wedding arrangements. One of the most attractive features popular among foreigners have been the Elephant Ride and the traditional dance rituals conducted by a highly trained, professional team of dancers and drummers from the area.

Apart from many services and facilities available for weddings at Eden, other facilities include Registration, Photography and Videography services, Cake, Food and Drinks, Special Dinners, Boat Rides, etc.

Commenting, Mr. Kapila Jayawardena, Chairman of the LOLC Leisure Group said, "At a time when Sri Lanka is experiencing high numbers of tourist arrivals, making their stay in the island a life-long memorable experience is of extreme importance. Most foreign couples have chosen Sri Lanka as an exotic, dream destination to celebrate their weddings because of its scenic beauty and rich history infused with age-old traditions and cultures. Eden Resort & Spa have always been at the forefront often going beyond measures to provide its guests a truly memorable 5 star experience."

In June last year, Eden also had the opportunity to host the wedding ceremony of Ms. Katrina Hodge -who was crowned Miss England at their Beauty Pageant held in UK last year- to Mr. Neil Simpson.

Newlyweds Ian Walker and Stacey Heycock with the Sri Lankan traditional dance troupe during their wedding ceremony at Eden Resort & Spa. This is Eden's 50th foreign wedding ceremony held this year.

Lanka ORIX Finance Company PLC (LOFC) – the leading total financial solutions provider in Sri Lanka – recently welcomed a new addition to its network of regional branches, when its latest branch was ceremonially opened in Morawaka last week. Mr. Brindley de Zylva, Managing Director/Chief Executive Officer of LOFC and Mr. Ashan Nissanka, Chief Officer Branch Network, graced the occasion as Chief Guests along with several other senior management members. The new branch is located at Arachchigewatta, Weliwa, Morawaka.

The fast expanding branch network of the Company will offer Savings and Deposits, Leasing and Hire Purchases, NRFC and RFC, Working Capital and Factoring, Shari'ah Compliant Islamic Financial Services, among a range of products and services geared towards providing total financial solutions to a growing customer base.

Commenting, Mr. Brindley de Zylva said, "LOFC sees much potential in the town of Morawaka and is looking at playing a vital role in developing the business community of this area further. The new branch at Morawaka is fully furnished and staffed with a team of highly skilled professionals to cater to a diverse range of financial requirements, which we have perceived to be growing in this area." He concluded.

A customer receiving a leasing facility from Mr. Brindley de Zylva, Managing Director/CEO of Lanka ORIX Finance Company PLC at the new LOFC branch opened in Morawaka last week.

Linking cultures of the world through travel, this year's World Tourism Day was observed and celebrated on 27th of September 2011 by various tourism sector establishments throughout the world.

Initiated by the United Nations World Tourism Organization to foster awareness among local communities and to highlight values of tourism and its cultural impact, a number of events have been scheduled to take place this year under the theme "Tourism – Linking Cultures".

Eden Resort & Spa, a member of the LOLC Leisure Group commemorating World Tourism Day held a special educational program for students of the Moragalla Junior School. This program was aimed at educating the students on the benefits of choosing their careers in the tourism and hospitality industry. In addition, the hotel took the opportunity to donate Library Books and Computer Accessories fulfilling a much needed requirement of the school. General Manager of Eden Resort & Spa, Mr. Eksath Wijeratne along with other senior managers and members of staff took part in this worthy cause.

The recent post war development efforts have witnessed a colossal increase in the arrival of tourists to the country during the recent years. As a result, Sri Lanka has aimed towards 800,000 tourist arrivals during this year, and revenue of over US$ 1 billion before the end of year 2012. Furthermore, with a target of 2.5 Million tourist arrivals anticipated by the end of year 2016, the industry has focused on developing the required support systems and resources in order to meet this target.

As a result, various institutions of this sector, in partnership with government agencies, have launched several programs commemorating the World Tourism Day with a special focus at developing the tourism and hospitality industry of the country. One such program focuses on empowering Sri Lankan youth by encouraging them to consider the hospitality industry as an option for career development. The current workforce in the industry is estimated to be around 125,000 – and by 2016 it is estimated that 500,000 employees are required to serve the future tourist inflow.

At a welcoming ceremony held at the Moragalla Junior School, Mr. Eksath Wijeratne General Manager of Eden Resort & Spa together with Mrs. Kumarasiri, Principle of the School were seen lighting the traditional oil lamp.

Speed Italia - the authorized distributor of Fiat automobiles re-introduced the Fiat brand to the Sri Lankan automobile market recently. At a ceremony held in Colombo, Speed Italia showcased its latest, fast selling automobiles which have taken the European car market by storm. Commander of the Sri Lanka Air Force, Air Marshal Harsha Abeywickrama attended the event as the honoured Chief Guest whilst Director General Engineering, Air Vice Marshal B. L. W. Balasuriya; Director General Logistics, Air Vice Marshal K. V. B Jayampathi; Ricky Walter, Head of Overseas Operations, Fiat India; Mrs. Rohini Nanayakkara, Chairperson of the LOLC Group; Ishara Nanayakkara, Deputy Chairman of the LOLC Group; Kapila Jayawardena, Chairman of LOLC Motors Ltd and Group Managing Director/CEO of LOLC and Mrs. Kalsha Amarasinghe, Executive Director of the LOLC Group were among the distinguished guests who attended this landmark ceremony.

Stylishly elegant, incredible in performance, Fiat automobiles are highly renowned for its versatility, speed and maneuverability. This has earned wide respect for all Fiat brands often scoring high customer satisfaction ratings from users around the world. Its unblemished reputation and sleek designs have elevated the Fiat brand to the top echelons of the motor world with it being honoured as the 7th largest car manufacturer in the world.

With a strong commitment to reducing its carbon footprint, Fiat's own innovative 'Air technologies' brand has enabled its automobiles to record the lowest level of CO2 emissions out of top motor vehicles sold in Europe for the fourth time in a row last year. This is indicative of Fiat's conscious efforts to provide value added services to its global automobile users.

With a range of motor vehicles manufactured in Italy and India, popular Fiat models such as Linea, Punto, Fiat 500, Fiat Bravo and a number of others will soon be readily available for Sri Lankan automobile enthusiasts. The first fleet of Fiat Linea is now on display at Speed Italia's main showroom located at No 447A, Union Place, Colombo 02.

Commenting on the significance of Fiat's re-launch, Mr. Kapila Jayawardena, Chairman of LOLC Motors Ltd said, "The Fiat brand was born more than a century ago, in 1899, and even to this day, Fiat is regarded as one of the fastest moving automobile brands in the world. The Brand's first entry to the Sri Lankan car market took place back in 1909 and earned respect from its users almost instantly. We have brought back this popular brand back to our home ground this year with the objective of providing Sri Lankans the unique opportunity to own its newest and latest models which are more often accessible overseas."

Adding further he said, "As an initial step, we have set up the main Speed Italia showroom in Colombo which will showcase Fiat's latest brands. Moving forward, we will be setting up a number of showrooms in strategic locations around the country making the brand widely available to the public."

Noting that after sales service is a top priority, Mr. Jayawardena said that the required after sales services and maintenance can be easily obtained via the LOLC Group's automobile services company, LOLC Motors Ltd. "LOLC Motors Ltd. is a state-of-the-art, ecofriendly automotive workshop located in Gothatuwa, Rajagiriya, with a floor area of 5,600 sq. meters which has a capacity to handle 100 vehicles at a given time. This makes us one of the largest workshops in Colombo uniquely designed to implement ecofriendly vehicle repairing and maintenance services."

The workshop is well equipped to handle mechanical repairs, preventive maintenance, lubrication service, quick lube service, collision repairs, paint re-finishing or touch-ups, wheel alignment, wheel-balancing unit repairs etc. In addition, this facility has a micro biological media system on waste water and rain water recycling, eco-friendly paint booths, and air-condition recovery machines as adjuncts to its air-conditioning to prevent release of refrigerant to the atmosphere. The unique design of the facility is structured to utilize maximum natural light, with plans to install solar panels in the near future.

"We have established facilities especially on after-sales services to ensure that maximum care is given to all our customers. We are well equipped to address the individual requirements of our customers quickly and efficiently. We are confident that the introduction of the new brands will offer new and exciting opportunities to Sri Lankan customers". added Mr. Kapila Jayawardena further.

The latest model of Fiat Linea along with a 1959 model vintage Fiat car on display at the classic corner of the new Fiat showroom located at No 447A, Union Place, Colombo 02. Speed Italia - the authorized distributor of Fiat automobiles re-introduced Fiat to the Sri Lankan automobile market last week.

The latest model of Fiat Linea along with a 1959 model vintage Fiat car on display at the classic corner of the new Fiat showroom located at No 447A, Union Place, Colombo 02. Speed Italia - the authorized distributor of Fiat automobiles re-introduced Fiat to the Sri Lankan automobile market last week.

Al-Falaah, the Islamic Business Unit (IBU) of Lanka ORIX Finance Company PLC (LOFC) was honoured with a bronze award for their 2009/10 Annual Report at the League of American Communications Professionals (LACP) Vision Awards 2010. The winning Annual Report titled, "Spreading the Wings of Islamic Finance" was honoured with this award in the Diversified Financial Services category for the second consecutive year.

At a felicitation ceremony organized by Smart Media - the Annual Report Company - Mr. Krishan Thilakaratne, Chief Executive Officer of Al-Falaah accepted the bronze award from the honourable Chief Guest, Mr. Ajith Nivard Cabraal, Governor of the Central Bank of Sri Lanka (CBSL).

Al-Falaah Annual Report depicts the exemplary growth of Islamic Finance in the country through the Company's highly successful portfolio of Shari'ah compliant financial services.

Commenting on this significant achievement, Mr. Krishan Thilakaratne, CEO of Al-Falaah said, "This win is a further validation of the growing faith that our customers have in Shari'ah compliant Islamic Financial products and services. There is significant growth potential for Shari'ah compliant financing in the country and LOFC's Al-Falaah will be at the forefront of this expansion process."

Al-Falaah is a dedicated Islamic Business Unit providing Shari'ah compliant financial services, with a special approval to function within the framework of LOFC - a Registered Finance Company under the Monetary Board of the Central Bank of Sri Lanka (CBSL). All Islamic financial activities of Al-Falaah are supervised by a dedicated Shari'ah Supervisory Board (SSB) chaired by industry leading local and international Shari'ah scholars.

At present, Al-Falaah offers product concepts such as Mudharabah (Profit –Sharing Investments and Savings), Ijarah (Leasing), Murabaha (Trade Financing), Diminishing Musharakah (Property/Project Financing). The Mudharabah savings account is Sri Lanka's first fully integrated Shari'ah compliant and regulated savings account accessible through more than 45 service centers and over 400 local ATM machines island wide, and has enabled global accessibility to the accounts through the Maestro network.

Mr. Krishan Thilakaratne, CEO of Al-Falaah accepting the Bronze Award from Mr. Ajith Nivard Cabraal, Governor of the Central Bank of Sri Lanka (CBSL). Also in the picture are Dr. Vijith Kannangara, Chairman of Smart Media Pvt Ltd and Mr. Ananda Jagoda, Chief Creative Officer of Smart Media Pvt Ltd.

Lanka ORIX Finance Company PLC. (LOFC) added yet another value addition to its services when it entered into the eZ pay network. A promotional campaign introducing this service to staff members of the LOLC Group was held recently. Subsequently, the winners of the promotion were felicitated at a ceremony held at its Head Office earlier this week, where the eZ pay network was officially introduced to its clientele.

The eZ pay network is a mobile phone payment network which is easily accessible through Dialog enabled mobile phone connections. By following the instructions given, it enables trouble-free utility bill settlements – water and electricity payments among others. In addition, account-to-account transfers within the LOFC account network can be made free of charge. The eZ pay network is increasingly expanding its services to offer more value added services to its growing network of customers. Among the benefits offered are, convenience by way of settling bill payments without direct cash payment; easy access to a growing merchant network across Sri Lanka; low transaction costs which enable customers of any social strata to settle their bills anytime, anywhere; a transaction speed of less than 25 seconds; an SMS update of all transactions made; and PIN protected transaction logos to ensure that one's hard earned money is well secured within the payment network.

Commenting on this latest value added service, LOLC Group's Managing Director/CEO, Mr. Kapila Jayawardena noted, "I am proud to announce that we are a member service provider of the eZ pay network. The development of technology has revolutionized the way people relate to their financial needs. We want to be concurrent with these technological advances that bring convenience to our customers. We hope that they will reap the maximum benefits that are on offer. New customers too can enjoy the benefits offered by our eZ pay service simply by opening a savings account with LOFC."

Adding further Mr. Jayawardena explained why this service was first introduced to LOLC staff members. "The reason why we held this special campaign among our members of staff was to encourage them to learn the eZ pay service and its features better, so that they are in a position to encourage it among customers." He concluded.

LOFC, which is a member company of the LOLC group, has made significant strides since becoming the fastest growing RFC in the country. It is the only non-bank financial institution to have been granted a license from the Central Bank of Sri Lanka to engage in foreign currency business. LOFC has a strategically positioned branch network covering all regions of the country and is closely following in its parent company's footsteps.

Seated from L-R – Mr. Ishara Nanayakkara, Deputy Chairman of the LOLC Group, Mr. Rohini Nanayakkara, Chairperson of the LOLC Group and Mr. Kapila Jayawardena , Managing Director/CEO of the LOLC Group.

Staff members of LOLC who attended the ceremony which felicitated the winners of the eZ pay staff promo.

The Kurunegala branch of Lanka ORIX Finance Company PLC (LOFC) was relocated to No. 22, Mihindu Mawatha, Kurunegala last week. A ceremony was held in this regard with Mrs. Kalsha Amarasinghe, Executive Director of LOFC gracing the occasion as Chief Guest.

Increased demands for LOFC's financial solutions arising from this region encouraged the Company to relocate to a more spacious and convenient location which has increased the branch's capacity to serve customers better.

Rich in history and culture, Kurunegala is a vibrant, fast developing commercial hub for the North Western region. "In order to cater to the financial requirements which are increasingly arising from this great city, we have developed our infrastructure and services by moving our LOFC branch to a more spacious and convenient location." said Mr. Ashan Nissanka, Chief Officer - Branch Network (LOLC).

The new branch is a state-of-the-art office which offers a diverse range of financial solutions such as Leasing, Savings and Deposits, Foreign Currency Business, Islamic Finance, Hire Purchase among others.

Executive Director of LOFC, Mrs. Kalsha Amarasinghe lighting the traditional oil lamp at the opening ceremony of the newly relocated LOFC branch in Kurunegala.

Mrs. Kalsha Amarasinghe, Executive Director of LOFC accepting an initial transaction from Mr. N. M. Jayathilake, with Mr. Brindley de Zylva, MD/CEO of LOFC and Mr. Ashan Nissanka, Chief Officer - Branch Network (LOLC) in attendance.

LOLC Securities Ltd., the stock broking company of the LOLC Group, was formally launched at a ceremony held in Colombo last week. The new state-of-the-art office is located at Level 18, West Tower, World Trade Center, Colombo 01.

With the aim of encouraging the masses to take up the practice of investing for future development, LOLC Securities is ready to revolutionize the way people perceive and invest in the stock market.

"Whilst providing an equal opportunity for all to invest, we are also looking at financially empowering our urban, suburban and rural youth. By making them realize and understand the opportunities available for them, youth from a very young age will learn to become their own fund managers and will move onto become seasoned, key players." said Mr. Kapila Jayawardena, Chairman of LOLC Securities Ltd. and the Group Managing Director/CEO of LOLC

Capturing a highly lucrative, niche market, LOLC Securities possesses the required expertise, infrastructure and the Group network to assist potential investors to become successful stock market investors.

The increased prevalence among people to skill themselves in information technology and financial management have encouraged many to invest in the long term. In addition, accessibility to computers, internet, and other IT related services has become a reality among the masses. Understanding these changes and the way people relate to them, LOLC Securities Ltd. has ventured into this sector by introducing a facility which provides customers the convenience of managing their own portfolios at any given time whilst learning the ways in which the local and global markets perform. The new company also launched its official website, www.lolcsecurities.com which adds further convenience to customers who seek information regarding their services.

Speaking about the Company Mr. Kapila Jayawardena, Chairman of LOLC Securities Ltd and the Group Managing Director/CEO of LOLC noted, "We are not new comers to this sector. We have provided stock brokering services previously until we received our own license during our last financial year. LOLC Securities Ltd is now a fully owned subsidiary of the LOLC Group. Strategies were drawn up and we began laying down the foundation for this new business. We are now in the process of executing our services through our vast Group network. As a long term initiative, we expect to carry out educational programs in the regions to create awareness and provide investment guidance to the masses."

Deputy Chairperson of the LOLC Group, Mr. Ishara Nanayakkara lighting the traditional oil lamp at the launch of LOLC Securities Ltd. Many of LOLC's senior management officials and clients of the new stock broking company were also present.

Lanka ORIX Finance Company Ltd. (LOFC) recently opened its latest branch in the historic city of Panadura. Located at No. 447, Galle Road, Panadura, the new branch will offer a myriad of financial services such as Leasing, Fixed Deposits, Development Finance and Foreign Currency Savings among many others.

"Home to the 'Panadura Vaadaya' or the 'Great Panadura Debate', this city is a symbol of revival and resurgence. In this backdrop, LOFC has etched its footprint with the hopes of reviving the spirit of entrepreneurship in the hearts and minds of its people." said Mr. Kapila Jayawardena, Managing Director/CEO of LOLC.

Adding further, he was of the view that in the coming few years, the regional economies will play a key contributory role in directing the country's economy to reach exponential growth. "We have the required infrastructure development taking place; we have the markets; we have ample growth opportunities within our reach; what we need now is to help the rising SMEs and the regional entrepreneurs to take hold of these opportunities and turn them into success stories. In this regard, I am proud that LOFC has become a preferred financial catalyst to many of these entrepreneurs. Our wide branch network is strategically positioned in the regions to provide them with accessibility to tailor-made financial solutions." Mr. Jayawardena concluded.

LOFC is a Registered Finance Company (RFC) rated A-(lka) by Fitch Ratings Lanka Ltd., and is a member of the LOLC Group. LOFC is also the only non-bank financial institution permitted by the Central Bank of Sri Lanka (CBSL) to engage in foreign currency business.

Mr. Kapila Jayawardena, Managing Director/CEO of LOLC at the opening ceremony of the new LOFC branch located at No. 447, Galle Road, Panadura.

At the recently concluded 14th Culinary Art competition organized by the Chefs Guild of Sri Lanka, Eden Resort and Spa won an impressive total of 36 medals, including 07 Gold, 12 Silver and 17 Bronze. In addition, Eden was also placed 7th in the overall ranking amongst 211 hotels and other catering establishments from island wide.

Culinary Art is Sri Lanka's biggest annual food and hotel show which showcases the unique talents and creative skills of Sri Lankan chefs. It is highly regarded as the single most prestigious event aimed at developing culinary art in Sri Lanka.

In this year's competition, Eden Resort and Spa was awarded gold medals in the following categories; Ice carving (1 gold medal), Pastry show pieces (2 gold medals), Butter carving (1 gold medal), Apprentice hot cooking (live) [1 gold medal], and Arrack cocktail (2 gold medals).

Commenting on this significant achievement, Mr. Kapila Jayawardena, Chairman of the LOLC Leisure Group said, "This has been a great achievement for the 5-star resort property since participating in a number of such competitions over the years. The credit and honour for securing a significantly high place at this year's competition should go to the entire culinary brigade of Eden led by Executive Chef, Deepal de Alwis. Their extraordinary dedication and tireless efforts, not excluding the endeavouring contribution by the Food & Beverage team of the hotel, have indeed helped the team to grab some of the class medals at this year's show which had a record number of entries taking part."

Eden Resort and Spa which commenced business in June 1995 is currently owned and managed by the LOLC Leisure Group. It has a total of 158 Rooms in operation (consisting of 113 Standard, 16 Deluxe, 23 Supeior, 2 Penthouses and 4 Suites) and is strategically located in the Golden mile of world famous Beruwela beach.

Seen in the picture, are, Eksath Wijeratne, General Manager, Sisira Senaratne, Resident Manager and Deepal de Alwis, Executive Chef with the award winning culinary team of Eden Resort & Spa, Beruwela.

The LOLC Group's Annual Report for 2010/11 titled "The First Full Year Since Peace Broke… A Conglomerate in the Making" bagged the coveted Gold award in the Conglomerates & Holding Companies category at the League of American Communications Professionals (LACP) Vision Awards 2010. In addition, the LOLC annual report was ranked 47th in the top 50 annual reports in the Asia Pacific Region. The Group's Islamic Financial Services Unit, Al-Falaah's annual report titled "Spreading the wings of Islamic Finance" too was awarded the bronze award in the Diversified Financial Services category. This is the second consecutive win for Al-Falaah whose 2009 Annual Report won the bronze award during last year's LACP awards.

At a ceremony held in Colombo last week the renowned annual report company, Smart Media, honoured the Sri Lankan award winners by giving away the respective awards for each category. The Governor of the Central Bank of Sri Lanka (CBSL), Mr. Ajith Nivard Cabraal attended as the honoured Chief Guest of the event.

Many of the winners of the night were the crème de la crème of the Sri Lankan banking, financial, trading, plantation and non-profit sector, who through their exemplary annual financial reports have brought glory to the country at a global platform.

The LOLC Annual Report with a unique 3D cover has received commendable reviews for its innovative and stunning creative direction, the overall thematic execution and extensive disclosures on strategy and financials which highlights the opening up of exciting new vistas of growth for both the Country and the Group.

Commenting on this significant achievement, Mrs. Rohini Nanayakkara, the Chairperson of the LOLC Group said, "Winning the Gold Award in the Conglomerates & Holding Companies category is a very significant and a proud achievement for us. This year, we have won the Gold award for the first time in the Group's maiden debut as a Diversified Conglomerate."

The Group's exceptional financial and operational performances in the recent years have prompted many in the industry to hail LOLC as the Youngest Diversified Conglomerate of recent times. LOLC recently scaled down its Leasing business and did not renew the leasing license to move onto a Holding Company structure subsequent to receiving approval from the CBSL.

The LACP Vision Awards is one of the top two, highly respected, global award schemes for annual reports. This Awards scheme recognizes the most outstanding annual reports of the year which showcases exemplary communications capabilities, whilst providing a platform for global organizations to demonstrate their achievements for the year in review. During this year's competition, a record number of over 5,000 entries from around the world including the work of Top 500 fortune companies have been adjudged.

Mrs. Rohini Nanayakkara, Chairperson of the LOLC Group accepting the Gold Award from Mr. Ajith Nivard Cabral, the Governor of the Central Bank of Sri Lanka. Also in the picture is Mrs. Sunjeevani Kotakadeniya, the Chief Financial Officer of the LOLC Group, Dr. Vijith Kannangara, Chairman of Smart Media Pvt Ltd. and Mr. Ananda Jagoda. the Chief Creative Officer of Smart Media Pvt Ltd.

Lanka ORIX Information Technology Services Ltd. (LOITS), a subsidiary of the LOLC Group, recertified against the ISO/IEC 27001:2005 certification for its Enterprise Data Centre. LOITS first achieved the ISO/IEC 27001:2005 certification in 2009, and became the first in the banking and financial service sector to have an ISO/IEC 27001:2005 certification. LOITS functions as the primary ICT solutions and services provider of the LOLC group of companies.

ISO/IEC 27001:2005 is a management system which provides the highest level of management control for information security. This standard has been set by the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC). The United Kingdom Accreditation Services (UKAS) certification was also awarded to LOITS following a stringent audit by Bureau Veritas.

LOITS provides information technology, IT enabled services and develops software for various customers especially from the banking and financial services sector. LOITS is also a Microsoft Certified Partner who offers Microsoft based solutions and is currently a gold partner of Oracle Corporation of USA. LOITS obtained its specialisation status enabling the Company to distribute and implement Oracle applications to its customers.

"LOITS Fusion Suite of Solutions", which is successfully deployed across the LOLC Group and other financial institutes, was the only award winning software at the ISACA Security Awards 2010 in the category of Application Security. In addition to its core products, LOITS also engages in providing services relating to ICT Strategy Consulting, Project Management, Information Security Consultancy and ERP Implementation.

"We have achieved this certification for our superior IT infrastructure and services. We have maintained the highest quality standards in all our services, and this certification gives a further validation to our efforts in adopting best practices in the IT industry. This achievement shows our commitment to standardization, assurance to quality, due diligence and risk mitigation whilst benchmarking against the world's best", said Conrad Dias, MD/CEO of Lanka ORIX Information Technology Services Ltd.

LOITS' Head of Information Security & Compliance, Parakum Pathirana said: "Protection of data and digital assets is critical to any company. However, it continues to be more and more difficult with the proliferation of new and more complex technologies such as mobile computing, virtual machines, cloud computing and complex multi-tiered architectures, etc. Furthermore, there is an escalating pattern of threats to IT infrastructure, and these threats are expected to intensify and evolve. With all these uncertainties ISO/ IEC 27001:2005 accreditation gives assurance to all our stakeholders that we have taken reasonable steps to protect our critical information assets."

LOFC records a PAT of Rs. 1.25 Bn

Lanka ORIX Finance Co. Ltd. (LOFC) listed on the Colombo Stock Exchange on the Diri Savi Board will commence trading today (7th July). In April this year, Lanka ORIX Leasing Company PLC (LOLC) sold 10% of its 100% holding of LOFC to investors in order to comply with the minimum requirements of the Colombo Stock Exchange to be listed as required by the Central Bank of Sri Lanka (CBSL).

LOFC is one of the largest Registered Finance Companies (RFC) in the country with a lending book of Rs. 20.76 Bn, and a deposit base of Rs. 17.39 billion as at 31st March 2011. In June this year the deposit base reached Rs. 20 billion with the Company being able to source over Rs. 3 billion worth of fixed deposits and savings accounts in both rupees and foreign currency during this quarter. LOFC is the only RFC in the country with CBSL approval to offer foreign currency savings and fixed deposit products and engage in Inward Worker Remittances.

LOLC changed its strategic direction and moved towards a diversified conglomerate. Its request from CBSL not to renew its leasing license early this year was approved which assisted in completing this transition. This was in line with LOLC's strategy of diversification of its strategic investments into sectors other than the traditional financial services business it was known to be involved in. With this strategic move, LOFC benefits from the large book of SME business carried out by LOLC and also the extensive footprint developed by LOLC over a period of time. LOFC operates from more than 50 service points reaching all parts of the country including a significant presence in the North and the East. LOFC branch network is fully equipped to handle all financial needs of the high net worth customer to the Micro customer with a wide range of financial products covering leasing, hire purchases, loans, working capital loans, savings, fixed deposits, insurance, margin trading and worker remittance etc.

LOFC has performed extremely well since it commenced business in June 2003 and has expanded its deposit base rapidly, over 70% growth seen in the last financial year. Disbursement of lending too saw exponential growth over the year, with 134% growth seen during the year ended 31st March 2011. The Company recorded PBT of Rs. 1.49Bn, a 649% growth over last year. The corresponding PAT was Rs. 1.25Bn with 1229% growth over the previous financial year.

LOFC is led by an emminent Board of Directors, with Mrs. Rohini Nanayakkara as the Chairperson, Mr. Ishara Nanayakkara as Deputy Chairman, Mr. Brindley De Zylva as Managing Director together with Mr. Kapila Jayawardena, Mrs. Kalsha Amarasinghe, Mr. Rajan Asirwatham, and Dr. Harsha Cabral functioning as directors.

Lanka ORIX Leasing Company PLC (LOLC) will be issuing unsecured listed debentures upto a value of Rs. 1.0 Bn and a further unlisted debenture of Rs. 500 Mn. The managers to the issue will be First Capital Limited, while the trustee will be Bank of Ceylon.

These Senior, Unsecured, Redeemable, Rated Debentures will be for tenures of 4 years and 5 years and will carry semi annual interest coupons of 11.70% and 11.90% respectively.

These debentures have been assigned a national long term rating of A- (lka) by Fitch Ratings (Lanka) Ltd. The rating of A- indicates LOLC's high credit quality and strong payment capacity of financial commitments.

The funds raised through the debenture will be utilized to retire part of the company's short-term debt, thereby better aligning the maturity profile of LOLC's assets and liabilities and further strengthening the balance sheet structure of the company.

In addition to the current issue, LOLC as an innovative group of companies is also planning to issue listed debentures, open for international investors as well. This will enable LOLC to access a wider pool of funds, taking into consideration the strong relationship that LOLC maintains with its foreign funding partners and investment funds. LOLC has had track record investment relationships with several multilateral and bilateral funding partners who have partnered LOLC on its journey with long term funding, supporting the SME & micro lending of the group. LOLC's strong financial performance, sound risk management practices as well diversification to key growth areas of the national economy enables LOLC to attract investors to the issue. The debenture will provide investors with a sound investment, and the opportunity to share the successes of LOLC.

The LOLC Group intends to issue further listed debentures through its financial services subsidiaries in the near future to enhance growth of the Group's lending portfolio. The Group's total lending portfolio, consisting of leases, loans, hire purchases, factoring and pawning, grew by 67%, from Rs. 35.1 Bn to Rs. 58.4 Bn during the financial year ended March 2011.

The LOLC Group reported a Profit Before Tax of Rs. 8.3 Bn for the year ended 31st march 2011, with a 60% contribution to the groups profits coming from the financial services sector.

The LOLC Group has pioneered many financial products and services in Sri Lanka, providing timely and convenient access to finance for its clients, ranging from micro entrepreneurs and farmers to SME's and corporate clients.

LOLC Micro Credit Co. Ltd, the specialised agro and micro credit company of the Group increased its lending portfolio to Rs. 8.2 Bn for the year ended 31st march 2011, a growth of 106% when compared to the previous year.

The lending book of Lanka ORIX Finance Company Ltd. reported a growth of 133% during the year ended March 2011. The deposit base of the company, consisting of fixed and savings deposits, foreign currency deposits and Islamic deposits, increased by 72% over the previous year.

A Trustee Deed for the issuing of listed debentures was signed between the LOLC Group and Bank of Ceylon recently. From L-R (back row): Ms. Thanuja Jayawardene, Senior Associate, Nithya Partners; Ms. Chrishanthi Emmanuel, Company Secretary, LOLC; Ms. Darshini de Silva, Senior Manager, Corporate Finance, First Capital Ltd; Mr. Chandima Desinghe, Head of Capital Markets and Fund Management, First Capital Ltd; Mr. W. Y. Bandula, Chief Manager – Investments, Bank of Ceylon. From L – R (Front Row): Mr. P. A. Lionel, DGM – Investment Banking, Bank of Ceylon; Mr. Kapila Jayawardena, Group Managing Director/CEO, LOLC; Mr. Rohan Perera, Group Treasurer, LOLC; Mr. Sanjaya Kalidasa, Manager – Treasury, LOLC.

The Trustee Deed for the issuing of listed debentures is signed between Mr. P. A. Lionel, DGM – Investment Banking, Bank of Ceylon and Mr. Kapila Jayawardena, Group Managing Director/CEO, LOLC whilst Mr. Rohan Perera, Group Treasurer, LOLC (seated far right); Ms. Chrishanthi Emmanuel, Company Secretary, LOLC (Seated far left); Mr. Sanjaya Kalidasa, Manager – Treasury (standing far right), LOLC; Mr. W. Y. Bandula, Chief Manager – Investments, Bank of Ceylon (Standing 2nd from right); Mr. Chandima Desinghe, Head of Capital Markets and Find Management, First Capital Ltd (Standing 2nd from left); Ms. Darshini de Silva, Senior Manager, Corporate Finance, First Capital Ltd. (Standing far left); Ms. Thanuja Jayawardene, Senior Associate Nithya Partners (Standing left) look on.

Lanka ORIX Finance Company (LOFC), a member company of the LOLC Group, opened its latest branch in Kilinochchi earlier this week, offering total financial solutions in abundance to the people of this region. The new branch is located at Karadipokku, A9 Kandy Road, Kilinochchi.

With an ever expanding portfolio of financial products and services aimed at fulfilling the aspirations of the people from the fast developing regions of the country, LOFC's new branch will offer financial services including savings, fixed deposits, loans, foreign currency business and leasing among many others. The new branch was declared open by the honoured Chief Guest, Mrs. Rohini Nanayakkara who is the Chairperson of the LOLC Group.

Commenting on this significant event, Mrs. Nanayakkara praised the Company's ability to recognize the growth regions of the country and the means to best address the financial requirements arising from them. In her view, the rapid developments in the area, particularly in Agriculture, Trading and Transport were sufficient evidence to fulfill the decision to open a branch in Kilinochchi.

Speaking further she said, "Taking on board the values of the parent company, LOFC has become a catalyst to many a struggling entrepreneur to fulfill his/her dreams. We have identified vast opportunities arising from a fast developing Sri Lanka. In this transitional phase where many of the country's basic infrastructure is fast expanding and developing, where economic opportunities are gradually but surely reaching the masses in the remote regions, LOFC is ready to partner with them to fulfill their aspirations further."

With an island wide footprint of over 50 branches and service points, LOFC is fast on its way to becoming Country's leading financier to the SME sector with a high concentration expected in developing existing and new markets.

Subsequent to opening the new branch, Mrs. Nanyakkara and the LOLC team also participated in the opening ceremony of a new computer lab for the students of Tharmapuram Maha Vidyalaya in Kilinochchi. In a move which solidifies LOLC Group's commitment to give back to the community it serves, officials of the member company LOLC Micro Credit Ltd. (LOMC) renovated an existing building in the school premises and transformed it into a fully equipped computer lab. By this way, an opportunity is provided for the students to study Information Technology as a part of their school curriculum.

In her address to the teachers and students of the school, she emphasized the importance of IT education reaching the students of the regions. Mrs. Nanayakkara said, "Having access to Information Technology is of paramount importance in this highly advanced tech savvy world. Providing an opportunity to these school children to further their IT education will only help them in their future endeavors. The value of looking into the wellbeing of our community is deeply imbedded in LOLC's business philosophy. Donating a computer lab to the students of Tharmapuram Maha Vidyalaya is a testimony to the Group's commitment to these values."

Chairperson of the LOLC Group, Mrs. Rohini Nanayakkara engaging in a customer transaction at the new branch located at Karadipokku, A9 Kandy Road, Kilinochchi. Chief Officer Branch Network, Mr. Ashan Nissanka and Branch Head, Kilinochchi Mr. Mahadevan Sastha are also seen here.

Mrs. Rohini Nanayakkara, Chairperson of the LOLC Group, visiting the newly opened computer lab which was donated to the students of Tharmapuram Maha Vidyalaya in Kilinochchi. Director/CEO of LOMC Mr. Ravi Tissera and Chief Officer Branch Network, Mr. Ashan Nissanka also participated.

Al Falaah, the Islamic Business Unit (IBU) of Lanka ORIX Finance Company Ltd. (LOFC) opened its 4th fully fledged Islamic Financial Services center in Akurana earlier this week. Group Managing Director and CEO of LOLC Mr. Kapila Jayawardena; Managing Director and CEO of LOFC, Mr. Brindley de Zylva; CEO of Al-Falaah Islamic Business Unit Mr. Krishan Thilakaratne; Chief Officer Branch Network Mr. Ashan Nissanka were amongst the distinguished guests gathered at the opening ceremony of this new branch. Customers from this region too participated and engaged in initial transactions.

Located at No 153/C, Matale Road, Kudugala, Akurana, the new branch will serve customers with Shari'ah compliant financial services in the likes of Mudharabah (Profit – Sharing Investments and Savings), Ijarah (Leasing), Murabaha (Trade Financing) and Diminishing Musharakah (Property/Project Financing).

Al-Falaah is a business unit of LOFC dedicated towards providing Shari'ah compliant financial services, with a special approval to function within the framework of LOFC - a Registered Finance Company under the Monetary Board of the Central Bank of Sri Lanka (CBSL). LOFC is also a member company of the LOLC Group.

"Services offered by our new Islamic Financial Services centre will undoubtedly assist the local SME community to aspire to greater heights whilst adhering to religious requirements. LOFC will offer compliant Islamic Financial services through its special IBU network. We possess the experience, and a professional team of staff who understand the principles of Shari'ah compliance, thereby providing people of this community with better solutions for their day to day financial requirements." said, the Group Managing Director and CEO of LOLC Mr. Kapila Jayawardena.

Adding further, he stated that greater steps have also been taken to ensure that all financial activities of Al-Falaah are supervised by a dedicated Shari'ah supervisory board chaired by industry leading local and international Shari'ah scholars.

Group Managing Director and CEO of LOLC Mr. Kapila Jayawardena engaging in a customer transaction at the new Al Falaah Islamic Financial Services center in Akurana. Managing Director and CEO of LOFC, Mr. Brindley de Zylva; CEO of Al-Falaah Islamic Business Unit Mr. Krishan Thilakaratne and Chief Officer Branch Network Mr. Ashan Nissanka are also present.

Group Managing Director and CEO of LOLC Mr. Kapila Jayawardena speaking at the opening ceremony of the new Al Falaah Islamic Financial Services center in Akurana.

LOLC Group recorded an impressive pre-tax profit of Rs. 8.3Bn and Rs. 7Bn as post-tax profits for the twelve months up to 31st March 2011. The comparatives for the last financial year were pre-tax profits of Rs. 2.8Bn and Rs. 2.4Bn post tax profits. The growth in the pre-tax profits was a staggering 192% over last year with post-tax profits recording a growth of 194%.

LOLC's core business, Financial Services concluded an exceptional year with more than 60% profit contribution to that of the group. The profits from the financial service sector grew three times over when compared with the previous year and ended at Rs. 5.3 Bn.

The financial services sector is reaping the benefits of the well thought proactive strategies executed by the company capitalizing on the resurgence of the economy subsequent to the end of the three decade long war. LOLC's strategy of rapidly expanding its footprint throughout Sri Lanka and the wide range of products on offer complemented the growth of the group along with the favorable macro economic conditions. The group's focused efforts in extending its service offerings in the North and East resulted in significant business volumes being generated from these regions. The lending businesses more than doubled the disbursement of new loans when compared with the previous year, with the increased demand for credit and prevalent lower interest rates.

The total lending portfolio of the group grew by 68% over the previous year to Rs. 58.4 Bn with the increased quantum of disbursements. The lending portfolio consists of finance lease, hire purchase, loans, Islamic financing, debt factoring, working capital solutions, micro finance and fleet management.

LOLC's finance company, Lanka ORIX Finance Company Ltd. (LOFC)'s deposits mobilization gathered momentum throughout the year with a strong year end with a deposits base of Rs. 17.4Bn, an impressive growth of 72% over the last year's deposit base of Rs 10.1Bn.

Total revenue from the financial services sector of the group, increased by 45% over F/Y 2009/10 and was Rs. 18.3 Bn, despite the lower interest rates and resultant lower interest income during 2010/11 when compared with the previous year. The intra group revenue was Rs. 2.2Bn.

The net interest cost of the financial services sector was Rs. 5.9 Bn for the year, lower than the previous year's net interest cost of Rs. 6.0 Bn even though the quantum of interest bearing borrowing were much higher during the current year. The lower interest rate environment prevalent in the country during the current financial year, and the USD and Euro denominated long term financing that LOLC and its subsidiaries secured through bilateral and multilateral funding partners contributed towards the reduction in cost of funds.

During this financial year LOLC sought Central Bank of Sri Lanka's approval to not to renew its leasing license to facilitate the Company's intention to move to a holding company structure. In line with this, all leasing business done under the LOLC Company previously is now booked under Lanka ORIX Finance Co. Ltd. (LOFC) LOLC Micro Credit Co. Ltd., (LOMC) and Commercial Leasing Co. Ltd. (CLC), the three financial services companies who are engaged in the lending business.

LOLC's move towards a diversified holding company commenced with many diversified investments being made into carefully picked growth sectors which are very much aligned with the economic growth prospects for Sri Lanka. These sectors consist of Leisure, Plantation and Agriculture, Renewable Energy, Trading and Construction.

LOLC Group's long term strategy is to grow the financial services sector from strength to strength capitalizing on the already established companies which has clear strategies targeting several segments of the SME and Micro sectors.

Whilst the financial services sector provides the steady growth in profitability, the investments made in the diversified businesses too has given much advantage to the Group's bottom line which is a 40% of the Group's total profitability. This sector has contributed Rs. 3.3Bn pre-tax profits to the Group. LOLC has made these investments in line with their long term growth strategy coupled with growth trends seen in the Sri Lankan economy which are expected to perform well in the medium to long term.

In line with this strategy, LOLC increased its investments in the leisure sector with the acquisition of 4 hotels on the southern coast of the country, consisting Confifi Hotel Holdings PLC, Riverina Hotels PLC, Eden Hotels PLC and Tropical Villas (Pvt) Ltd. Three of the hotels were closed for business from 1st May in order to complete an accelerated refurbishment program. After being upgraded, the hotels will be managed by a globally reputed hotel management company.

During the year, further investments were made by the LOLC Group into the Sierra Holdings (Pvt) Ltd., Sierra Construction (Pvt) Ltd., and Agstar Fertilizers (Pvt) Ltd.

The year ended was an exceptional one for the LOLC Group with significant changes in the strategic direction leading to a long term sustainable business model of diversified business enterprises contributing well to the core business of financial services.

A member company of the LOLC group, Lanka ORIX Finance Company Ltd. (LOFC) opened its newest branch in Kohuwala last week at No. 184, Dutugemunu Street, Kohuwala. The new facility is uniquely designed and is opened 7 days a week from 9.15 am to 7.00 pm in order to cater to the financial requirements of the vibrant business community of this region. The new LOFC branch was ceremonially declared opened by the Group Managing Director of the LOLC group, Mr. Kapila Jayawardena who participated as Chief Guest.

Commenting on this significant event, Mr. Jayawardena stated, "Since commencing commercial operations in 2003, the company gradually spread its wings to establish itself as the fastest developing registered finance company in the country, whose footprint covers a wide network of strategic locations throughout the island."

Adding further he said, "The new branch in Kohuwala is unique, in that we have allocated a special time frame for our business operations. We have identified a requirement for extended business hours in this region and have made arrangements to offer our services beyond the conventional working hours. This is in order to bring more convenience to the people and the business community of this region."

LOFC is expected to open more branches in the ensuing months with plans to upgrade the existing branches to accommodate an expanding business portfolio and a growing number of customers.

Group Managing Director of LOLC Mr. Kapila Jayawardena lighting the traditional oil lamp at the opening ceremony of the new LOFC branch in Kohuwala. LOLC’s Chief Officer Branch Network, Mr. Ashan Nissanka is also in the picture.

Group Managing Director of LOLC Mr. Kapila Jayawardena accepting an initial transaction from Mr. M. F. Subair at the new LOFC branch located at No. 184, Dutugemunu Street, Kohuwala

The Industry’s trendsetting financial entity, Lanka ORIX Leasing Company PLC., has brought working capital financial solutions to the people of Jaffna. At a ceremony held at the LOLC Jaffna branch, Mr. Graham Lawrence, CEO of LOLC Factors Ltd, participated as Chief Guest and handed initial transactions to customers.

Commenting on this significant event, Mr. Lawrence said, "At LOLC we get closer to the hearts of the people through our wide spread branch network. We have been able to understand the minds of the people we serve. Hence, we have been able to successfully formulate products and services which meet their working capital financial requirements."

Adding further he observed that by providing new financial solutions to businesses in this area the Company has attracted a strong client base from the Northern region. "Clients in the North were not able to access any source of working capital funding over the last few decades. With the cessation of the war and the opening up of this market, the demand for such flexible products has seen an exponential growth. Northern clients who have been utilizing these products since late last year have shown strong credit and repayment values. We were able to understand their financial requirements and provide solutions that best address their requirements."

"Since our formal launch of working capital financial solutions in the North, we have received an enormous response from its fast developing business community." said Mr. Lawrence. He further expressed his confidence that with LOLC’s presence in the North, the SME sector of this region is set to experience an upward development.

LOLC officials with customers at the launch of working capital financial solutions to the customers of North. In the picture, Mr. Graham Lawrence, CEO of LOLC Factors Ltd. (far right second) along with Mr. Nadarajah Ramanathan, Manager, LOLC Jaffna branch (far left) and Mr. Rasiah Suthaharan, Marketing Executive, LOLC Jaffna branch (far left second).

Member Company of LOLC re-launched with new logo

Celebrating its unprecedented success as the fastest growing Registered Finance Company (RFC) in Sri Lanka, Lanka ORIX Finance Company Ltd. embarked on a new journey today by renewing its identity. The Company’s new logo was unveiled by Mr. Ishara Nanayakkara, Deputy Chairman of the LOLC Group and Mr. Kapila Jayawardena, Group Managing Director/CEO of LOLC at an internal brief held at LOLC Head Office recently.

"The new logo demonstrates the versatility and the independent strength of the Company." said the Group Managing Director/CEO of LOLC, Mr. Kapila Jayawardena. "We are entering a new phase where Lanka ORIX Finance Company is evolving, and where its stellar financial performance speaks volumes of its consistent progress throughout the years. The Company carved a niche position in the financial sector by becoming the fastest growing RFC in the country. As Member Company of the LOLC Group, it offered lasting and trustworthy financial solutions to all sectors, with the SME sector being one of the primary sectors. Many of its customers are rising entrepreneurs from the regions who had immense confidence in the Company. As time progressed, Lanka ORIX Finance Company evolved into a stoic, mature and responsible corporate citizen. Thus, we gave an already established finance company its own unique identity, in order to further raise the levels of customer confidence."

The new identity will continue to reflect values of trust and strength that Lanka ORIX Finance Company upholds whilst offering an opportunity for it to grow and diversify. The new tag line "Imagine the Opportunities" envisage enormous opportunities for customers to make use of as the Company forges ahead.

Staying true to the identity of its parent company - the LOLC Group - the new logo of Lanka ORIX Finance Company boasts of the trademark colours Blue and Red. These colours symbolize strength, vitality, trust and solid stability – values which are synonymous with the stoic reputation of the mother brand. "The new logo launch demonstrates Lanka ORIX Finance Company blossoming out of the LOLC brand. It reflects a new beginning for the Company. Lanka ORIX Finance Company has always maintained values of the highest order, ensuring good governance and ethical business practices at all times. This is the culture and environment within which Lanka ORIX Finance Company was nurtured by the parent company. That is why our customers have faith in us. We have captured these values in our new identity." Mr. Jayawardena reiterated.

The Group Managing Director/CEO further explained that Lanka ORIX Finance Company will continue to function as a distinct financial entity supported by its own operational strength, whilst being a part of the LOLC Group. Explaining this further he said, "With the recent developments in meeting regulatory requirements, we have been well ahead and have taken necessary steps to ensure compliance. We are making a conscious effort to establish Lanka ORIX Finance Company's independent identity. Thus, we have distinguished it from the LOLC brand allowing it to grow as a standalone brand. The launch of the new logo itself is a step towards it."

Commenting further Mr. Jayawardena said that the Company possesses the capability and the required strength in financial, corporate and human resources.

Lanka ORIX Finance Company Ltd., a member company of the LOLC Group, commenced its commercial operations in June 2003. Fixed Deposits, leasing, hire purchases, loan products, savings and foreign currency business are Company’s core business activities. In addition, Lanka ORIX Finance Company operates as a trustworthy channel for foreign currency remittance – one of the fast developing businesses of the Company today. Moreover, as a result of a recent partnership established with Commercial Bank, Lanka ORIX Finance Company offers its savings account holders the opportunity of accessing their savings accounts through 400+ Commercial Bank ATM network located island wide. In addition, all savings account holders of Lanka ORIX Finance Company have access to the Maestro network. Nearing a decade of experience in the non-bank financial sector, Lanka ORIX Finance Company is the only RFC backed by a global financial giant, the ORIX Corporation of Japan - the single largest leasing company in the world and the second largest in Japan. Furthermore, Lanka ORIX Finance Company is the only non-bank financial institution authorized by the Central Bank of Sri Lanka to engage in foreign currency business.

In conclusion, Mr. Jayawardena said. "We want to give all the financial services with least inconveniences to all Sri Lankans. Our facilities are for all individuals. We are catering to the common man. They can fulfill all their financial requirements conveniently under one roof. While the Company is forging ahead with the new identity and setting trends of the highest standards, giving value to its stakeholders is of paramount importance in meeting all regulatory requirements. It is our hope that with this new identity, Lanka ORIX Finance Company will progress further to become the leader in Sri Lanka’s financial sector"

In a press release, the Group Managing Director/CEO of LOLC, Mr. Kapila Jayawardena revealed that the Group has scheduled six of its subsidiary companies to be realigned shortly in line with both Macro and Micro developments and will be introduced to the market on a planned time scale.

"Lanka ORIX Finance Company Ltd. was the first to be launched with a new identity. Following in its footsteps, LOLC Insurance Co. Ltd, LOLC Motors Ltd, LOLC Micro-Credit Ltd, and the LOLC Leisure Group with four hotels - namely Eden Resort and Spa, Hotel Riverina, Club Palm Bay and Tropical Villas - will be rebranded." He said.

Recently, LOLC announced that it was in the process of transitioning into a Holding Company structure, where it is poised for quantum leap growth through branding. Mr. Jayawardena added that LOLC possesses more territorial opportunities that enable them to easily penetrate through their new Corporate Branding strategy that is being adopted by the subsidiaries.

"This will make them stand out on their own, while associating the core values of LOLC. The importance of TRUST will run through its entirety adding value to the branding experience," he stated.

He reiterates, that continuity is of paramount importance to the brands formation and longevity, and that the Company has evolved from leasing to a Total Finance Solutions Provider and then again to a diversified Group of Companies, which required it to inculcate strategic changes to the Corporate Brand. "This was possible through vertical and horizontal brand extensions", says Kapila Jayawardena.

As a result of this new branding strategy, Lanka ORIX Finance Co., now stands to function independently with renewed vigor. The Company which was widely acclaimed as the fastest growing Registered Finance Company (RFC) in Sri Lanka will continue to reflect values of trust and strength whilst offering an opportunity for growth and diversification.

In the recent years the LOLC Group made a series of strategic acquisitions/investments in both the financial and other high growth sectors with its total assets valued at Rs. 107.95 billion against some of the leading, old league conglomerates.

Its business portfolio now covers services such as total financial solutions, leisure, construction, technology, agriculture, plantations and renewable energy. It also owns a strong brand presence in the formal financial sector with hopes of more brand extensions in the near future.

As a result of its high density growth, the Company has fast paced its efforts to position LOLC as the holding company of the Group.

TBringing a visual delight to passersby, the Volkswagen Beetle owner’s club presented its annual Volkswagen beetle rally commemorating the 15th Anniversary Celebrations of the “Pride of Ownership” Drive. This year’s event was held in its 12th year since the Club’s initiation in 1999.

The motor company of the LOLC Group, LOLC Motors Ltd. were the proud sponsors at the event which saw a procession of multi-coloured beetle cars driven along Galle Road. The procession commenced from Colombo Hilton and ended at the Riverinia Hotel in Beruwala, which is a member hotel of LOLC Leisure Ltd.

"LOLC Motors Ltd. was launched in March 2010, as sole provider of hassle free automotive related works for LOLC Group’s vehicles. We have now widened it to provide automotive services to the masses. Hence, from this year onwards LOLC Motors Ltd. is fully geared to extend its services to the general public and the corporate sector. We were very pleased to have partnered with the VW Beetle owner’s club to sponsor this unique event." explained Mr. Kapila Jayawardena, Group Managing Director/CEO of LOLC.

The new motor facility of the LOLC Group is equipped with state-of-the-art, modern auto tools and machinery, and is headed by a group of highly qualified technical staff led by a Service Engineer and a team of qualified foremen. All technical staff at the new facility is German Tech, Japan Tech, City and Guilds and NAITA qualified personnel, and includes three highly respected Motor Industry Qualified Service advisers.

Sharing his thoughts, Mr. Jayawardena said, "In keeping with our Group’s core vision, LOLC Motors Ltd. will cater to all customer requirements. We have set our sights firmly on becoming the most preferred automotive solutions provider in the country."

"To achieve this, firstly we have equipped our new motor facility with the required infrastructure and have located it at Gothatuwa, Rajagiriya in close proximity to our Head Office. Secondly we have developed our new motor services portfolio to provide a range of services such as general servicing, mechanical repairs, body repairs, re-sprays, restorations and modifications for all types of Cars, Motor Cycles, Vans, Buses, and Lorries etc. In addition, we have liaised with our partner company LOLC Insurance Company Ltd. to offer motor insurance at an attractive rate. By this way, we have enabled our customers the ease of accessibility to get all their motor needs done under one roof." Mr. Jayawardena explained further.

One of the specialties of LOLC Motors Ltd. is that its operations are in keeping with LOLC Group’s ‘green’ ventures. The new facility is designed to operate as an eco friendly motor garage and vehicle service centre. It implements vehicle repairing and maintenance mechanisms which significantly impact the environment positively.

Explaining further Mr. Jayawardena commented, "The new facility has a micro biological media system on waste water and rain water recycling; eco-friendly paint booths; and air-condition recovery machines to prevent release of refrigerant to the atmosphere. In addition, the unique design of the facility is structured to utilize maximum natural light. We plan to install solar panels in the near future to fulfill our energy requirements."

The new LOLC Motors Ltd. facility is equipped to handle 100 vehicles per day and is an invaluable complement to LOLC Group’s fleet management services.

The Factoring/Working Capital Business Unit (WCBU) of Lanka ORIX Leasing Company PLC. (LOLC) has introduced a structured working capital product named “Privilege Cheque Financing”. The new product which provides a flexible, hassle free working capital solution for Corporate clients was launched at LOLC Head Office earlier this week.

Privilege Cheque Financing offers the added benefit of financing a client’s working capital needs either against the cheques received from their customers or against their own cheque. It targets businesses with a minimum monthly turnover of Rs 5Mn extending up to Corporate clients. It will also offer an opportunity for SME’s with a strong asset base, to get their working capital financial requirements addressed through this flexible product.

Observing its potential for high business growth, Mr. Kapila Jayawardena, Group Managing Director/CEO of LOLC said, “Privilege Cheque Financing is a corporate focused product, which has been tailor-made to offer our clients the ease of meeting their working capital requirements, swiftly and efficiently. This flexible, new product has proven to be popular among many of WCBU clients during its introductory stage. Retaining our reputation for being a trendsetting financial entity, we have formulated this product to offer clients the best of our total working capital solutions”.

LOLC launched its new working capital product, “Privilege Cheque Financing”. Here, Mr. Kapila Jayawardena, Group Managing Director/CEO of LOLC is seen accepting the first “Privilege Cheque Financing” transaction from Mr. Chandima Rodrigo, the Group Director of Capital Maharaja Organization Ltd. Also in the picture is Mr. Rameez Abdullah, Finance Manager of MTV (far right), Mr. Graham Lawrence, CEO of WCBU (second from left) and Ms. Shama Selvaratnam, Chief Manager – Strategic Accounts of WCBU (far left).

According to recent reviews on the Islamic Finance Industry of Sri Lanka, LOLC Al-Falaah, the Islamic Business Unit of Lanka ORIX Finance Company Ltd., has made significant progress in terms of taking Shari’ah compliant Islamic financial services to the masses.

At a recent gathering of the members of its Shari’ah Supervisory Board (SSB), business activities and processes of LOLC Al-Falaah were reviewed. At this review meeting, LOLC Al–Falaah was lauded for its commitment to Shari’ah compliance, and the progress it had made as an industry’s trend setting Islamic financial entity.

The review committee was comprised of Chairman of the SSB, Ash-Shaikh Fazil .M. Farook, and members of the SSB, Ash-Shaikh Murshid .M. Mulaffar and Mufti Shafique Ahmed Jakhura, Group Deputy Chairman Mr. Ishara Nanayakkara, Group Managing Director Mr. Kapila Jayawardena, Managing Director and CEO of Lanka ORIX Finance Company Ltd. Mr. Brindley de Zylva, CEO of the LOLC Al-Falaah Islamic Business UnitMr. Krishan Thilakaratne, Manager of LOLC Al-Falaah Mr. Shiraz Refai and the staff members of LOLC Al-Falaah were also present for this review. 

Emphasizing on the functions of the Shari’ah Supervisory Board, the members said, “The Shari’ah Supervisory Board is an independent body which supervises and guides a financial institution in terms of Shari’ah compliance. The SSB of any Islamic Financial Institution or an Islamic Finance window operation of a conventional financial institution is a body that is absolutely independent of that institution. Their role is very much similar to the role of an external regulator or an auditor.” The Shari’ah supervisory board is chaired by industry leading Shari’ah scholars, who supervise, carry out periodic Shari’ah audits and lend advice on business matters related to Islamic Financing.

Implementation of Shari’ah compliant financing requires the practice of Shari’ah principles, which is the total and absolute adherence to guidelines stipulated by the Holy Quran. The SSB members also emphasized that the responsibility of adhering to Shari’ah principles lies with the Management and members of staff. The progress therein is periodically reviewed by the SSB where advice and guidance are offered so that transactions considered to be haraam (prohibited) are not conducted.

In 2010, LOLC Al-Falaah recorded a phenomenal growth in business volumes where it recorded an impressive 180% growth in the Ijarah portfolio, over 250% growth in the Murabaha and Diminishing Musharakah portfolios and a near 400% growth in Mudharabah investments. The catalysts which prompted this impressive growth is the Company’s stability together with island wide reach and brand image which has contributed much towards strengthening customer confidence and reliance.

When inquired about this progress, the members added further, “Indeed there has been progress and a fair amount of development. Based on the audits that have been conducted so far, together with the interactions we have had with the Management and staff of LOLC Al-Falaah, we find that by and large the progress of LOLC Al-Falaah is due to their competency in taking Islamic Finance to the masses and consistent adherence to Islamic Finance principles. Therefore, we find that even in our ordinance, the Islamic Business Unit of Lanka ORIX Finance Company Ltd., LOLC Al-Falaah, by and large have complied with Shari’ah principles.”

In 2007, LOLC Al-Falaah commenced its commercial operations offering an alternative financial system which was in harmony with Shari’ah principles. In keeping with the financial regulations established in the financial industry, LOLC Al-Falaah obtained a special approval to function within the framework of Lanka ORIX Finance Company Ltd., which is a registered finance company under the Monetary Board of the Central Bank of Sri Lanka (CBSL).
At present, LOLC Al-Falaah offers product concepts such as Mudharabah (Profit –Sharing Investments and Savings), Ijarah (Leasing), Murabaha (Trade Financing), Diminishing Musharakah (Property/Project Financing).The Mudharabah savings account is Sri Lanka’s first fully integrated Shari’ah compliant and regulated savings account accessible through more than 45 service centers and over 400 local ATM machines island wide and has enabled global accessibility to the accounts through the Maestro network.

Members of the SSB have local as well as global expertise on Shari’ah compliant financing and have been on the review board of LOLC Al-Falaah during the past 2-3 years. Chairman of the SSB and Scholar, Ash-Shaikh Fazil .M. Farook is a member of the Banking Advisory Committee of All Ceylon Jamiyyathul Ulama (ACJU) and is a leading Islamic Banking and Finance consultant in Sri Lanka. Fellow member and Scholar, Ash-Shaikh Murshid .M. Mulaffar is the Assistant General Secretary to the All Ceylon Jamiyyathul Ulama (ACJU) and a member of its Banking Advisory Committee and also a leading consultant in Islamic Finance in Sri Lanka. Fellow member of SSB and scholar, Mufti Shafique Ahmed Jakhura currently serves in the Fatwa Department preparing and issuing Islamic Juristic Rulings at the Darul Ihsan Centre in Durban, South Africa. He is a leading International consultant in Islamic Finance with many years of expertise on Shari’ah compliant financing.

 Providing a perspective to the progress of Shari’ah compliant financing in the global sphere and Sri Lanka’s performance in line with these developments, Mufti Shafique Ahmed Jakhura made the following observations; “The overall global Islamic financial industry is progressing at a fast paced rate. Perhaps from the financial sector, Shari’ah compliant financing was the least affected during the global financial crisis, when compared with conventional financial counterparts. Therefore, Islamic financing is something that is performing quite positively in the global context. As far as Sri Lanka is concerned, we find that Islamic financing in the country is very progressive. In terms of new product development, the number of institutions that are opening up etc., it is very encouraging to see progress being made towards its development in Sri Lanka.”

Seated from L-R Member of the SSB Ash-Shaikh Murshid .M. Mulaffar, Chairman of the SSB Ash-Shaikh Fazil .M. Farook, Member of the SSB Mufti Shafique Ahmed Jakhura, LOLC Group Deputy Chairman Mr. Ishara Nanayakkara, LOLC Group Managing Director Mr. Kapila Jayawardena (not seen in the picture), CEO of the LOLC Al-Falaah Islamic Business UnitMr. Krishan Thilakaratne and Managing Director and CEO of Lanka ORIX Finance Company Ltd. Mr. Brindley de Zylva.

LOLC has continued to show exceptional performance recording outstanding pre-tax profits of Rs. 7.1Bn for the nine months to December. This was a 485% growth over last year, with the financial services sector, trading sector and the other sectors contributing exceptionally well. The financial services sector showed excellent performance with pre-tax profits of Rs. 5.5Bn a growth of 354% over last year. The rest of the group contributed Rs. 1.6Bn to the bottom line. With a contribution of taxes of Rs. 1.1Bn, the Group recorded post-tax profits of Rs. 6Bn, a growth of 647% over last year.  

The increase in total revenue kept its momentum in line with the aggressive growth in the financial services sector and the trading sector. The revenue grew by 172% over last year to reach an all time high of Rs. 26Bn for the nine months. The revenue from the financial services sector saw a growth of 41% to reach Rs. 13Bn while the contribution from the rest of the sectors was Rs. 12.4Bn. The borrowing costs continued to come down in line with the sliding interest rates with the Group raising funds at attractive rates. LOLC’s ability to source long-term funding from foreign multilateral and bilateral agencies at attractive rates contributed well to the reduction in borrowing costs. The total borrowing costs reached Rs. 4.9Bn by December reflecting the lower interest margins demanded by the Group.

LOLC Group’s core business, the lending operations and its strategic investments contributed well to the bottom line positioning the Group on a strong footing to reap steady growth in profitability in the medium to long term. The Group’s expansion strategies augers well with the economic growth forecasted in the near future.

The balance sheet grew along with the business growth of the Group, with total assets crossing the Rs. 100Bn mark reaching Rs. 108Bn by December. This is almost a 100% growth over last year. The corresponding liabilities grew by 60% represented by the borrowings of the Group mainly coming from the financial services cluster and the holding company. The total assets of the financial services cluster reached Rs. 68Bn, a growth of 20% over last year. The corresponding liability grew by 20%.

The advances grew by 49% to reach Rs. 49Bn; this is an indication of the strong portfolio growth as a result of the growth in executions.  The newly set up branches in the North and the East contributed significantly to this growth.
The strong growth of the lending business, propelled by the rapid expansion of the customer base, was facilitated through a strong growth in the Group’s footprint, especially in the rural sectors. The footprint continued to grow, with several key branches and “Isuru Diriya” centers being opened during the quarter. On a monthly basis, four “Isuru Diriya” centers are being opened, strengthening the presence in the rural areas. The total count of the financial services sector outlets now exceeds 140, of which, Lanka Indian Oil Company outlets and “Isuru Diriya” centers account for 65.  The company’s entry into the North and East is already reaping benefits with significant business volumes coming from these largely untapped markets.

Reflecting this aggressive growth, Lanka ORIX Finance Company, Commercial Leasing Ltd., and LOLC Micro Credit Ltd. contributed exceptional results to the bottom line of the Group.   Economies of scale from operations, and multiplying synergies from shared distribution channels and shared services are deriving benefits to these companies. The collections efforts of the Group continue to be of utmost importance to the sustainable profit growth, and strategies are continuously evaluated and improved to maintain the desired level of collections.

LOLC’s 100% owned subsidiary, Lanka ORIX Finance Company continues to grow from strength to strength, with its deposits base increasing to Rs. 14Bn, a significant growth of 61% over the same period last year. The company is well positioned in all regions to reap the benefits of the common distribution channels of the Group. Commercial Leasing Company and LOLC Micro Credit Ltd. too grew its lending business in the SME/Micro sectors especially in the rural sectors of the country, contributing well to the bottom line of the Group.

The trading and plantation sectors too contributed well to the performance of the Group with steady profits flowing to the Group, a Rs. 1.6Bn as at December.    

The leisure sector saw significant activity during the peak season and is also gearing up for the upcoming refurbishment. LOLC is finalizing its management agreements with renowned international hoteliers to manage these hotels once the refurbishments are concluded.

LOLC Insurance Co., and LOLC Securities Ltd., - the latest additions to the group are drawing up their plans and are expected to commence operations within the next few months.

Mr. Kapila Jayawardena, Group Managing Director and CEO of LOLC said that ‘Sri Lanka is on the threshold of Economic Prosperity with new opportunities beckoning from North and East of the country as well.  LOLC has been able to break new ground in profit diversity with vigorous implementation of initiatives taken in developing its Core business, as well as embracing the quest for new opportunities.  This performance, which reflect a quantum leap when compared to the previous year, was due to the implementation of the Group’s road map which enabled us to capture opportunities well ahead of time’, he concluded.

Mr. Kapila Jayawardena, Group Managing Director and CEO of LOLC

Mr. Ishara Nanayakkara, Group Deputy Chairman of LOLC

LOLC’s 112th location in Hatton

In order to assist those driven by the spirit of enterprises to reach greater heights, Lanka ORIX Leasing Company PLC. (LOLC) opened its Hatton branch recently. The new branch will offer a wide range of innovative and personalized financial solutions best suited to fulfill the requirements of customers from this area.  

Group Managing Director, Mr. Kapila Jayawardena attended as Guest of Honour and partook in the auspicious activities at the opening ceremony. A number of customers from in and around Hatton keenly took part in initiating their first transactions at the new branch.

“LOLC is a financial conglomerate with a service-first mind set. We understand the financial requirements of our customers well and we offer them a diverse range of solutions. This means we will go beyond our ways to serve our customer efficiently, to provide them with the financial solutions they require whilst ensuring stability, strength and vitality of service. With the opening in Hatton, we are expanding our footprint to strengthen a people’s network”, Mr. Jayawardena said.

Group Managing Director of LOLC, Mr. Kapila Jayawardena accepting a transaction from Mr. Ganeshan of Upcott,Maskeliya.

Group Managing Director of LOLC, Mr. Kapila Jayawardena handing over a leasing facility to Mr. Jeewana de Silva of Hatton

Group Managing Director of LOLC, Mr. Kapila Jayawardena accepting a transaction from Mr. A. J. M Fazeer of Hatton

Two new branches opened in Homagama and Pettah bringing the total reach to impressive 111 branches

Highly diversified conglomerate, Lanka ORIX Leasing Company PLC. (LOLC), added two more branches to its fast expanding foot print. The two new branches – 110th and 111th - were opened in Homagama and Pettah on the 27th and 31st of January 2011. LOLC’s Group Managing Director, Mr. Kapila Jayawardena attended the opening ceremonies of the new branches as Chief Guest.

Commenting on these significant events, Mr. Jayawardena said. “Providing ease of accessibility to customers is of great importance to LOLC. To achieve this, it was crucial for us to formulate a branch expansion plan which was both aggressive and strategic. Homagama and Pettah are well-known and densely populated major business hubs. We are not a new financial entity for its people. Some of our long standing customers are from these areas. With the 110th and 111th branches opened, we will serve all customers in closer proximity offering them the ease of accessibility.”

LOLC through its country wide branch network will offer a diverse range of total financial solutions best suited to fulfill customer requirements. The new branches are located at No. 47, High Level Road, Homagama and No. 333, Main Street, Pettah.

Pettah: Group Managing Director of LOLC, Mr. Kapila Jayawardena is seen accepting the initial transaction from Mr. Bertram Perera, Managing Director of Union Trading Company (Pvt) Ltd. who is one of the pioneering customers of LOLC. Mr. Perera is a successful businessman in Pettah, who has been engaging in business transactions with LOLC for the past 03 decades now.

Homagama: LOLC’s Group Managing Director, Mr. Kapila Jayawardena ceremonially opened the Homagama branch which is located at No. 47, High Level Road, Homagama. Also in the picture are LOLC’s Chief Officer Branch Network Mr. Ashan Nissanka and Chief Credit Officer for the LOLC Group, Mr. Jayantha Kelegama.

Adding yet another jewel to its crown, Lanka ORIX Leasing Company PLC (LOLC) opened its 109th branch in Monaragala earlier this week. Chairperson of the Group Mrs. Rohini Nanayakkara graced the new branch opening ceremony as Chief Guest.  The new branch is located at No. 100, New Bus Stand, Monaragala. 

The fast expanding branch network of the LOLC Group will offer Micro and Agro Financial Services, Savings and Deposits, Leasing and Hire Purchases, Pawning Services, NRFC and RFC, Working Capital and Factoring, Shari’ah Compliant Islamic Financial Services, Insurance, Stock Brokering, and Fleet Management among a range of products and services geared towards providing total financial solutions to a growing customer base.

Speaking at the ceremony Mrs. Nanayakkara said, “LOLC’s strategic footprint has served our Company immensely to reach a vast network of customer base throughout the country. LOLC is well established in the hearts of the people; we go to where they are, to provide them with ease of accessibility and a whole range of solutions best suited to fit their financial needs”.

Mrs. Rohini Nanayakkara, Chairperson of the LOLC Group is seen initiating the first transaction of a leasing facility to a customer at the newly opened LOLC branch in Monaragala. Senior officials from LOLC were also present at the ceremony.

IN order to offer customers the best of its value added services, Lanka ORIX Finance Ltd. opened its own foreign currency exchange facility. At a ceremony attended by Mr. Ajith Nivard Cabraal, the Governor of Central Bank of Sri Lanka (CBSL), Lanka ORIX Finance Company Ltd. opened its inaugural money changer facility at its Matara branch on the 25th of January 2011.

The event was attended by many distinguished guests representing both Central Bank of Sri Lanka and Lanka ORIX Finance Company Ltd. This included Assistant Governor of CBSL Mr. C.J.P Siriwardena   and Controller of Exchange Mr. Osman Chandrawansa accompanying the Governor of CBSL, whilst Deputy Chairman of the LOLC Group Mr. Ishara Nanayakkara and the Group Managing Director and CEO of LOLC Mr. Kapila Jayawardena attended along with other senior officials representing Lanka ORIX Finance Company Ltd.

The new service will be available at the Matara, Kalutara, Kandy, Jaffna, Dambulla, Trincomalee, Vavuniya, Chilaw, Nuwara Eliya, and Ampara branches of Lanka ORIX Finance Company Ltd.,  with many more branches scheduled to offer foreign currency exchange services throughout the country.  A wide spectrum of customers including Sri Lankans as well as foreigners will be able to make use of the new value addition by way of exchanging foreign currency from dedicated foreign exchange facilities of the Company located island wide. Skilled staff at these branches will offer specialized services to all customers in this regard.

Commenting on the landmark opening of the new service, the Group Managing Director and CEO of LOLC, Mr. Kapila Jayawardena said, “It is with great pride that we announce the opening of Lanka ORIX Finance Company’s very own foreign currency exchange facility. We have enhanced our product offering to a greater extent which is intend on providing total financial solutions best suited to meet a diverse and growing range of customer requirements. With the new money exchanger facility, we have provided an opportunity not just for local customers but for a vast number of tourists visiting the country to use a hassle free foreign currency exchange service from our dedicated branches. ”

Adding further Mr. Jayawardena said, “The country has begun its mammoth task of resuscitating economic development, and we have been experiencing a surge in tourists arrival during the recent past.  As a private sector initiative we will extend our products and services to help boost the tourism sector of the country more proactively. Positive developments such as this will have an optimistic impact on the way foreign currency changes hands within Sri Lanka.”

Governor of the Central Bank of Sri Lanka, Mr. Ajith Nivard Cabraal handing over the first foreign exchange transaction to a foreign customer at the first money changer facility opened at the LOLC Matara Branch. Also in the picture are Managing Director and CEO of LOLC Group, Mr. Kapila Jayawardena and Deputy Chairman of the LOLC Group Mr Ishara Nanayakkara.

Governor of the Central Bank of Sri Lanka, Mr. Ajith Nivard Cabraal speaking at the opening ceremony of the first foreign currency exchange facility opened at the LOLC Matara Branch on the 25th of January 2011.

Lanka ORIX Finance Company Ltd. - a member of the LOLC Group- and Commercial Bank signed a trailblazer agreement to install Commercial Bank’s ATM at identified branches of the LOLC Group.

This agreement was finalized at the Commercial Bank Head Office on the 5th of January 2010, with the Deputy Chairman of the LOLC Group Mr. Ishara Nananyakkara, LOLC Group’s Managing Director/CEO Mr. Kapila Jayawardena, and Managing Director/CEO of Lanka ORIX Finance Company Ltd. Mr. Brindely de Zylva representing Lanka ORIX Finance Company Ltd.  Commercial Bank was represented by Mr. Amitha Gooneratna, its Managing Director, Mr. Sanath Bandaranayake, Deputy General Manager – Operations and Mr. Rohan Muttiah, Chief Information Officer among others.
Commercial Bank has an ATM network of over 400 spread throughout the country. The new partnership, whilst giving the opportunity for all Savings Accounts holders of Lanka ORIX Finance Company to utilize the Commercial Bank ATM network for cash withdrawals, also helps to expand the Commercial Bank ATM network for greater ease of its card holders.

Thereby, customers of both Lanka ORIX Finance Company and Commercial Bank will have the added benefit of accessing the ATM network from any location island wide.

Since commencing commercial operations in June 2003, Lanka ORIX Finance Company has created a niche for itself by becoming the fastest growing Registered Finance Company in the country which offers a range of financial services including foreign currency business such as worker remittances, and maintaining NRFC, RFC and SFIDA accounts. Lanka ORIX Finance Company is the only non-bank financial institution authorized to engage in foreign currency business. Over the years, the Company ’s product portfolio has grown tremendously to include savings accounts and fixed deposits, NRFC and RFC accounts, Islamic Financial Services, Pawning services etc. The Company has gained a firm reputation for stability, strength and efficiency of service. 

Speaking about this significant partnership, Commercial Bank Managing Director, Mr. Amitha Gooneratne said, “With this new partnership, Commercial Bank will expand its ATM network further to provide its customers greater benefits. This will be of added convenience to our customers as the new ATMs will be installed in strategic locations throughout the country.”

Also, commenting on this partnership, LOLC Group Managing Director Mr. Kapila Jayawardena said, “Savings Account holders of Lanka ORIX Finance Company will now have greater convenience through the new ATM network. We are looking at expanding our services further to offer our customers greater benefits.”

Top officials from Lanka ORIX Finance Company Ltd. and Commercial Bank signed a trailblazer agreement to install Commercial Bank ATMs at identified branches of the LOLC Group. Standing from left to right: Managing Director/CEO of Lanka ORIX Finance Company Ltd. Mr. Brindely de Zylva; Deputy Chairman of the LOLC Group Mr. Ishara Nananyakkara; LOLC Group’s Managing Director/CEO Mr. Kapila Jayawardena; Managing Director of Commercial Bank Mr. Amitha Gooneratna; Deputy General Manager (Operations) of Commercial Bank Mr. Sanath Bandaranayake and Chief Information Officer of Commercial Bank Mr. Rohan Muttiah.

Two cities – one famed for the continuity of the age-old art of rubber tapping and the other nourished by the rich heritage of the Seethawaka kingdom – welcomed a highly diversified conglomerate recently.

The fast expanding branch network of the LOLC Group recently extended its foot print to offer a range of financial services to the people of Mathugama and Avissawella. With the two new branch openings, the total reach of the Group has now topped the 108th mark, signifying a major achievement for the Group this year.

The new branches are fully furnished and staffed with a team of highly skilled professionals to cater to a diverse range of financial requirements. These include Micro and Agro Financial Services, Savings and Deposits, Leasing and Hire Purchases, Pawning Services, NRFC and RFC, Working Capital and Factoring, Shari’ah Compliant Islamic Financial Services, Insurance, Stock Brokering, and Fleet Management among others.

Commenting on the journey thus far, LOLC’s Chief Officer Branch Network, Mr. Ashan Nissanka said, “107th and 108th new branches opened in Mathugama and Avissawella herald in a new era of fast-paced aggressive expansion phase for us. With more branches set to be opened in the coming months, we are looking at completing a target of 115 before the end of March 2011. Our customers are given the opportunity to engage in any type of financial transaction from any of our branches located throughout the country.”

Triumphant LOLC badminton team brought back with them the glory of becoming the Champions of the “D” Division Mercantile Inter-firm Badminton Championships 2010, organized by the Mercantile Badminton Association. This significant win for the LOLC group was achieved for the 3rd consecutive year. Making this an extra special celebratory occasion, LOLC’s extremely talented Madush Silva retained the Best Player of the Tournament award for the 3rd consecutive time.

At the finals, LOLC beat the John Keells team and won against teams from Commercial Bank, Nation’s Trust Bank, AVIVA NDB and MAS Holdings at the preliminary and semi final stages. During past tournaments, LOLC emerged champions in the Mercantile “F” and “E” Divisions in 2008 and 2009.

LOLC badminton team emerge Champions of the Mercantile Inter-firm Badminton Team Championships for the 3rd Consecutive Year.

In a move that reinforces LOLC’s commitment to the welfare and development of the country’s most vital sectors, the premier Conglomerate recently donated an Electric Convective Warmer with 10 Adult Full Body Warming Blankets to the Accident Service of the National Hospital of Sri Lanka, Colombo.

The equipment were handed over by Mr. Kapila Jayawardena, Group Managing Director of LOLC to Dr. Hector Weerasinghe, the Director of the National Hospital of Sri Lanka, at a handing over ceremony held on Monday, 29th of November 2010, at the Accident Service auditorium. Dr. Prasad Ariyawansa, Deputy Director of the Accident Services of the National Hospital of Sri Lanka and Mr. Tissa Jayaweera, representative of the ‘Friends of the Accident Services’ were also present at the ceremony.

The Accident Service in Colombo carries out around 60 operations a day, of which a majority of patients undergoing lengthy operations require the use of Electric Convective Warmers to keep their body temperatures to the required level during the operative stage. However, the non availability of the warmers at the Accident Service operating theatres has left many patients in grave situations resulting in patients going into Hypothermia, which can result in even loss of life.
Taking into consideration the severity of the situation, LOLC came forward to assist the Accident Service at their hour of need. These blankets will be used for the requirements of the Orthopedic Theater as well as the Casualty Theatre of the Accident Service. 

Commenting on this, Director of the National Hospital of Sri Lank, Dr. Hector Weerasinghe said, “We are extremely grateful of the corporation and generosity extended to us by LOLC. The equipment was donated at a time when we were experiencing an urgent need of it. LOLC voluntarily got involved in this worthy cause, without any hesitation, which is extremely praiseworthy. I would also like to thank Mr. Tissa Jayaweera for his involvement in making this happen. ”

LOLC Micro Credit Ltd. (LOMC) - the Micro Finance Company of the Lanka ORIX Leasing Company PLC. (LOLC), held its inaugural Isuru Diriya Sisu Upahara Scholarship Awards Ceremony at its Head Office today. The event was attended by the Hon. Minister of Education, Minister Bandula Gunawardhana as the Guest of Honour and distributed the gifts among the students.

Deputy Chairperson of the LOLC Group Mr. Ishara Nanayakkara; Executive Director of the LOLC Group, Mrs. Kalsha Amarasinghe; the Group Managing Director, Mr. Kapila Jayawardena and Director and CEO of LOLC Micro Credit Ltd., Mr. Ravi Tissera were amongst the distinguished guests gathered at the event.  

The exceptional exam results obtained by P.M Navanjana Pabasari from Chilaw, G.K.G.C Dilshan De Samarasinghe from Aralaganwila and R.D Supunsara Dissanayake from Nikaweratiya were among the 27 students recognized and rewarded at the ceremony.

Isuru Diriya Sisu Upahara is the chief CSR initiative of LOMC, where it felicitates and supports exceptional educational achievements of students showcased at the recently concluded Grade 5 Scholarship Examination. Children of LOMC customers - mainly comprising of rural based farming and entrepreneurial communities of the SME and Micro sectors - are felicitated making this an extra special event. Prior to the exam, Divulapitiya Isuru Diriya Centre organized a special scholarship exam preparatory seminar for the children of the community as its CSR initiative.

Director and Chief Executive Officer of LOMC, Mr. Ravi Tissera sharing his views on the scholarship awards ceremony said,“ Isuru Diriya Sisu Upahara is our first step towards developing the communities that we serve. By supporting the educational needs and skills of children at the grass root level, we hope to take our CSR initiative a step further. Although it is a first to LOMC, our parent company is not new to the education sector. LOLC is already involved in providing Business English and IT education to the rural masses.  Similarly, we want to invest in bringing the children of the communities we serve to the forefront of the country’s development process.”

The fruitful journey of LOMC began a year ago when it partnered with the internationally triple rated FMO  - The Netherlands Development Finance Company - supported by the Dutch Government. To support the entrepreneurial interests that were emerging from the grass root communities of Sri Lanka, LOMC was granted with an impressive US$ 10Mn financial assistance by FMO.  As LOMC’s micro credit portfolio demonstrated a successful growth in the ensuing months, other well respected multilateral agencies in the international development sector such as, the Triodos Bank-Netherlands, Symbiotics-Switzerland and Triple Jump-Netherlands also united with LOMC to strengthen its services further and to provide expertise on sustainability measures.

Commenting on LOLC’s foray into the micro finance services, the Group Managing Director Mr. Kapila Jayawardena said, “In 2003 we stepped into fill the void for micro credit by financing solar systems for rural Sri Lankan homes that were not connected to the main grid. From this initial start, LOLC reached into the very heart of the country penetrating into innermost rural communities. The company saw great potential in developing and sustaining the entrepreneurial interests that were emerging from this sector which were not initially supported by the formal financial sector at the time. As a result, LOMC came into being in 2009.”

As LOLC’s micro financing services displayed an immense growth, the relationships built with the communities also strengthened over the years. As a business expansion strategy LOMC Isuru Diriya Centres (IDC) were set up consequent to the strategic partnership established between LOLC and Sri Lanka Post, to offer micro credit services to rural communities situated at interior locations around the country.  With a vast network of over 600 Post Offices and over 3,000 Sub-Post Offices located across the island, Sri Lanka Post has given LOMC the opportunity to reach the rural masses around the country. Cementing its success, LOMC recently opened its 50th IDC outlet in Bingiriya with rapid expansion plans intended in the ensuing months.

Highly diversified financial conglomerate, Lanka ORIX Leasing Company PLC (LOLC), was lauded at the National Business Excellence Awards 2010 held on Friday 26th of November 2010. At the event, LOLC won the coveted Gold for the “Diversified Group of Companies Sector” whilst emerging runners up and 2nd runners up at the Best “Capacity Builder” and “Extra Large Sector” categories respectively. LOLC’s associate company LOLC Leisure Ltd. was awarded Silver at the “Hospitality” category for one of its hotels – Eden Resorts and Spa.

The National Business Excellence Awards is an annual award competition conducted by The National Chamber of Commerce of Sri Lanka (NCCSL) which recognizes and celebrates the spirit of excellence amongst the local business enterprises. Enterprises which have contributed to the socio-economic development of the country through its exemplary business practices are given the opportunity to display its business excellence at a national platform, whilst being further encouraged to climb the highest ladders of achievement. Institutions that have demonstrated excellence in progress in areas such as Business and Financial Performance, Global Reach, Knowledge Integration, Technological Investment, Capacity Building, Performance Management, Corporate Governance and Corporate Social Responsibility are evaluated and adjudged by an esteemed specialized panel of judges. At the previous year’s ceremony too, LOLC emerged winner at the “Specialized Banking Sector” category in its very first participation of this prestigious competition.

Starting with humble beginnings, over the years LOLC has rapidly evolved into a highly respected, extremely dynamic and diversified group of Companies in Sri Lanka. Progressing from being a pioneer Leasing and Factoring company, LOLC emerged a leader in providing innovative financial and non-financial solutions to people and sectors in different spheres of society. At present, LOLC’s interests ranges from Finance, Agriculture, Trading, Construction, Fisheries, Transport, Manufacturing, Leisure, Tourism, Education, Information Technology, Insurance, Power & Energy, Project Development, Real Estate, Plantations to Motor Repairs and Services.

Commenting on this significant achievement, the Group Managing Director and CEO Mr. Kapila Jayawardena said, “Being recognized at the National Business Excellence Awards amongst many other respected peer-business enterprises is an honour in itself.  It reaffirms LOLC’s success story, whilst honouring the journey commenced 30 years ago. It is with the staunch commitment and passion with which the LOLC family has always contributed towards the Company becoming a leader amongst the top Corporates of the industry. I am indeed proud of their efforts. I also take this opportunity to commend the efforts taken by NCCSL to keep the spirit of national enterprise alive in Sri Lanka.”

The highly sought-after blue chip bags 04 awards at the National Business Excellence Awards 2010

LOLC group pre-tax profits for the first half of 2010/11 soared to Rs. 4.5Bn with post tax profits of Rs. 3.9Bn. Compared with the previous year, pre-tax profits grew by 370%. The company’s acquisitions made in the previous financial year contributed well to the bottom line along with other income, which increased by 215% to reach Rs. 2.7 Bn at the end of the second quarter.

The revenue of the group grew by 500% over last year, mainly contributed by the trading companies in the Brown & Co PLC cluster. The trading profits complemented well to the group’s financial services related business income of Rs5.8Bn, a 22% growth over last year. The borrowing costs continued to come down in line with the sliding interest rates with the group raising funds at attractive rates. This is mainly due to LOLC’s ability to source long-term funding from foreign multilateral and bilateral agencies at attractive rates contributing to the reduction in borrowing costs. The borrowing cost for the six months was 3% lower than last year and was Rs. 3Bn. This decrease is despite the increase in the quantum of borrowings.

Balance sheet growth was substantial with total assets reaching Rs. 98Bn, a 31% growth over last six months. Aggressive growth in the lending business increased the total advances to Rs. 47Bn, a 48% growth over last year. To support this aggressive growth in lending especially in the North and East, and branch expansion, the Group raised additional funding at attractive interest rates increasing the total borrowing by 29% over the last six months.
LOLC’s exponential growth, expansion strategy and strategic investments has positioned the Group on a strong footing for a steady stream of medium to long term sustainable profitability and this is already evident from the record increase in profits when compared with last year same period.

Aggressive growth in executions in the lending business over the last 12 months especially in the rural areas are contributing well to the bottom line of LOLC, Lanka ORIX Finance Co. Ltd.(LOFC), Lanka ORIX Micro Credit Ltd. (LOMC) and Commercial Leasing Company Ltd. (CLC), the main lending companies of the Group. Economies of scale from operations and multiplying synergies from sharing the distribution channels are reaping the benefits to the companies with each company making significant profit contributions to the Group. Effective and improved collection strategy following the initial disbursement complements well to this success. Strategic expansion of the footprint of the lending operations continues with the expansion of branches and “Isuru Diriya” centers being opened at an average of four a month in the rural areas. The total count of the financial services sector outlets now exceeds 135, of which, Lanka Indian Oil Company outlets and “Isuru Diriya” centers increased to 63 with “Isuru Diriya” centers reaching 50 Last month. The company’s entry into the North and East with significant number of outlets being opened in the region is already reaping benefits to the lending businesses with significant business volumes coming from these untapped markets.

The Company’s fully owned subsidiary LOFC the registered finance company within the Group, is performing exceptionally well with tremendous growth in its deposit base to reach a Rs. 12.7Bn a 70% growth over last year. The deposit base increased by 26% within the last six months clearly establishing the financial stability and strong confidence the depositors have placed in the company.

CLC and LOMC, operates in the SME/Micro sectors and are well positioned ad geared to capitalize on the heightened activity due to the positive sentiments in economic growth. These two companies are already contributing significantly to the bottom line of the Group giving high returns on the investments.  

The Group’s investments in the leisure sector are going through a phase of close evaluation for positioning for the future with significant investments being committed during the next twelve to eighteen months. The capital investment envisaged for this sector is in excess of Rs. 3.5Bn and LOLC Leisure is currently negotiating with major international hoteliers to enter into strategic alliance for the management of these prime properties situated in the golden mile of the south coast of Sri Lanka.

The company is gearing up to start off the two new operations namely LOLC Insurance and LOLC Securities. LOLC obtained a composite license for insurance and is expected to commence business in both life and General insurance in early next year. LOLC Securities received the stock broking license recently and is expected to commence operations again in the early part of 2011.

The Group made a strategic investment into the construction sector, by acquiring 20% of Sierra Holdings Pvt. Ltd and 20% in Sierra Constructions Pvt. Ltd at a cost of RS. 1.6Bn.
“LOLC has firmly set its sights on creating an organization with outstanding strength through sustainable income, profitability, strategic expansion and good governance, building on the solid business base in financial services. The Post War situation is gradually metamorphersizing the country into a leading economic hub in Asia. LOLC too will take full advantage of the promising future laid before us and continually seek opportunities to diversify” said the Group’s Managing Director, Mr. Kapila Jayawardena reflecting on the half year financial performance.

LOLC – Lanka ORIX Leasing Company PLC – Sri Lanka’s total financial solutions conglomerate has partnered yet again with The Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL) as the Financial Solutions Partner in the forthcoming Sri Lankan Entrepreneur of the Year -15th Annual Awards. The Entrepreneur Awards celebrates and recognizes the rising entrepreneurial spirit of the country, and is scheduled to be held in December later this year.

The event is widely perceived as the single most significant national event that has contributed to the upliftment of the local SME sector. The annual awards ceremony provides a platform for the country’s small and medium scale enterprising business community to demonstrate its successful contribution to the country’s socio-economic development for the year in review. Many of its past winners were owners of small scale business ventures, who have moved onto becoming well reputed, leading business men and women of the country. Some of their outstanding business performances have put Sri Lanka’s name at the top most position in the global business map.

“In the backdrop of the boom in the country’s economy, the need to develop and sustain the local entrepreneurial hero is of paramount importance.” said Mr. Kapila Jayawardena, Group Managing Director of the LOLC Group. “The local SME sector has been the catalyst for initiating and upholding the country’s socio-economic growth, and strengthening this sector is a vital and necessary component of both the national and private sector agenda. The local business magnates that our country proudly boasts of today were yesterday’s SMEs striving to reach the highest levels of excellence through willful strength and commitment. Recognizing the significant contribution rendered by them at a national platform will continue to pave the way for many young entrepreneurs to follow in the footsteps of their mentors.

The efforts taken by FCCISL to honour and strengthen our local entrepreneurs will further enable them to reach the highest levels of achievement possible.”

Commenting on the LOLC Group’s contribution towards developing the SME sector, Mr. Jayawardena added, “Since LOLC’s inception back in 1980, assisting and developing the rising SMEs has always been at the forefront of the Group’s mandate. Over the years, many a struggling entrepreneur has sought LOLC as the financial strength, which took upon their financial requirements and transformed them into success stories. To partner with FCCISL yet again, on a common platform, to reward these outstanding local business men and women is our way of rewarding the local business community.”

THE pioneers of factoring in Sri Lanka – Lanka ORIX Leasing Company Ltd. (LOLC)’s Working Capital Business Unit (WCBU), demonstrated a striking portfolio growth of 53% over the first six months of the 2010/2011 financial year, which is indicative of the current trend in interest rates creating an impressive demand for credit.

The WCBU of LOLC, reflected on its journey that commenced back in 1992 by becoming Sri Lanka’s first factoring company registered under the name of Lanka ORIX Factors Ltd (LOFAC). The then LOFAC was committed to providing factoring solutions to a growing market of customers interested in Factoring and Invoice Discounting services. Over the years, LOFAC diversified to offer total working capital solutions and expanded to offer innovative and personalized products and services specializing in Structured Working Capital Loans, Purchase Order Financing and Cheque Discounting.

LOFAC was later rebranded as the Working Capital Business Unit of LOLC when it merged with the LOLC Group in 2009.
In simple terms, WCBU’s involvement in working capital is to assist enterprises to run their day to day businesses through advances against future receivables. Once a credit sale takes place, the client discounts his receivables with the factoring company and receives immediate cash. The factoring company will then follow-up with the debtor(s) and collect the dues on the applicable future date. If the client wishes confidentiality about his dealings, he may collect post dated cheques from his debtors and forward them to the WCBU in settlement of his borrowings, generally considered as Invoice Discounting.

Apart from Factoring and Invoice Discounting, the WCBU also provides structured loans to existing and new customers for business improvement, capital investment or import/purchase of raw materials. Similarly, Purchase Order Financing for existing factoring clients can be arranged to meet requirements of bulk purchases and seasonal orders.
One of the more popular and fast growing products offered by the WCBU is Cheque Discounting. Here the client’s borrowing is settled either via the deposit of post dated cheques collected/collectible from his individual debtors or from a cheque(s) drawn by the borrower totaling the full amount due, in lieu of the large number of debtor cheques.
Hence, when a cash block occurs or a seasonal requirement crops up, clients are no longer solely reliant on a conventional bank loan or overdraft, for which acceptable collateral and documentation is required. They can obtain tailor made working capital solutions from LOLC, including collection services.
The most distinguishing feature of the WCBU is that the financial solutions offered by them are not industry specific; but are dynamic and diverse to accommodate and cater to working capital requirements of any industry. Hence, obviating from the perception of being solely a factoring solutions provider, LOLC’s Working Capital portfolio has now evolved and gained momentum as a valuable financial entity comprising of alternative financial solutions that are adaptable to any industry’s requirements.

Moreover, what makes WCBU a preferred total working capital solutions provider is its variety of product segments that are readily available to anyone. Clients also have the opportunity to engage in multiple customer segments, allowing market expansion which would assist their businesses to develop whilst maximizing its profits.
On the other hand, with the LOLC Group’s branch network rapidly increasing island-wide, it is expected that the WCBU too will accelerate its services to cater to a dynamic business populous found across the country. With the much anticipated boom in the tourism sector and the overall economy consequently, WCBU sees many prospects it can exploit in the future.

Much of WCBU’s success is attributed to the strength of its resilience through time. The combination of strength of staff and the strategic alliances made over the years contributed immensely to the Company sailing steadily through its most turbulent times. Operating as an independent entity within the LOLC Group’s purview, WCBU’s journey has been both impressive and inspiring.

Commenting on this significant achievement, CEO of LOLC’s Working Capital Business Unit, Mr. Graham Lawrence said, “WCBU’s services are highly sought after because of its appeal as an alternative financial solution which is both dependable and efficient, and which ensures maximum profitability. Especially, when considering the availability of limited options one comes across when engaging in credit sales transactions, the ability to understand customers’ unique requirements and adapt to it through our array of products and services, is a unique feature that the WCBU is proud of. This reputation that we have built over the years was due to our long term presence in the country’s financial sector. Being the pioneers, we had to build the factoring concept from scratch. From acquiring the technical know-how to software development, improving on our initial alliances with DBS Bank in Singapore and then with the Factors Chain International, we have traveled a long, arduous and successful journey. None of our achievements would have been possible if not for the strength and commitment of the team at our WCBU, many of whom have been with us since the very inception. Over the years, they have developed an acute knowledge of all our business segments which has largely contributed to the success of our unit. In short, our success is our people.”

LANKA ORIX Leasing Company PLC. (LOLC), a premier blue chip company in the country, further strengthened its footprint in the Northern region when it invested in establishing its own office at 64/40, Stanley Road, Jaffna, on the 21st of October 2010. The Governor of the Central Bank of Sri Lanka, Mr. Ajith Nivard Cabraal graced the occasion as the Chief Guest, and laid the foundation stone for the new building. Mr. Ishara Nanayakkara, Deputy Chairman of the LOLC Group and Mr. Kapila Jayawardena, Group Managing Director of LOLC were amongst the distinguished gathering. The construction of the new LOLC office in Jaffna is scheduled to be completed within the ensuing months.

At present, LOLC has a total of 05 branches and service centres in the Northern Province, namely, Jaffna, Vavuniya, Chunnakkam, Manipai and Chawakachcheri. The Group expects to open new service points in Killinochchi, Mannar and Nillayadi within the next few months to take the Northern presence to a total of 08.

The Company opened its first service point in the historic hill capital of Kandy, back in 1995. Since then, the LOLC network across the country has grown remarkably. Presently, the total island wide reach is set to complete its 100th landmark at the end of the month, adding yet another milestone to the Company’s aggressive expansion.

The establishment of the new LOLC office in Jaffna will provide the Group with ample opportunities to expand its services further, and to attain its long term objectives, with a mission to assist those driven by the spirit of enterprise to reach greater heights. LOLC has evolved into a premier, diversified blue chip Group through its innovative, personalized and wide-ranging solutions. At present, LOLC is within the top 10 Companies of Sri Lanka in terms of market capitalization.

Sharing his views, the Group Managing Director of LOLC, Mr. Kapila Jayawardena said, “It is with great pride that we celebrate this significant occasion. We penetrated the Northern territory last year when we established a single branch in Jaffna. We have expanded the reach further by establishing a number of branches, Isuru Diriya Post Office Centres, Islamic Financial Services Centres, and LOLC Ran Savi Centres, covering the North and East. The Region has its own rich history – both cultural and political. And today, we have become a part of that rich history. With this new investment, we have come across an unlimited range of possibilities to explore and innovate – all in order to better our services. With our recent foray into the leisure sector, the Company is confident that the North-East region will provide ample opportunities for investment in a higher magnitude.”

The 4th workshop held under the Viyapara Shilpa program was successfully concluded in Kurunegala recently. LOLC, in partnership with SEEDS, UNDP, ILO, UNHCR and UNFPA, has scheduled an ongoing series of workshops to be carried out island-wide. This is held with the intention of disseminating business knowledge among family members of Sri Lankan migrant workers on the importance of saving and investing the foreign currency remittances sent by loved ones in income generating activities. The previous workshops were also attended by a large number of participants eager to increase their knowledge in business. The next workshop is scheduled to be held in November this year at the City Hotel in Chillaw.

Lanka ORIX Finance Company, a member of the LOLC Group, announced the opening of two of its new dedicated pawning services centres, LOLC Ran Savi, in Kotahena and Grandpass. The aggressive branch expansion plan of the Company boasts an initial start up campaign of 09 dedicated LOLC Ran Savi centres to be opened in strategic locations across the country, within the month.

With greater attention given to the convenience of the customer, all the LOLC Ran Savi centres will be opened throughout the week from 8.00am to 6.00pm and to 12.30pm on Sundays.

Known for its innovative and personalized care, the LOLC Group, realizing the prompt short – term cash requirements of the modern day customer, has launched the dedicated LOLC Ran Savi centres to meet these financial requirements efficiently. Whilst ensuring convenience and reliability at all times, customers with limited time to spare but with immediate cash requirements can now access LOLC Ran Savi services even after working hours, including the weekends.
LOLC Ran Savi offers a highly attractive cash advance rate of Rs. 36,000 per sovereign -the highest in the market at present -with a minimum interest rate starting from 1% per month. In measuring the Gold content, which is done by the use of densimeters, and in the case of items requiring the use of traditional methods of measurement, great care is taken to ensure that no damage will be caused to items pawned.

The Chief Officer Branch Network, Mr. Ashan Nissanka stated, “With the 09 LOLC Ran Savi centres, the total reach of the LOLC Group – which includes its main branches, the Isuru Diriya Post Office Centers, Islamic Financial Services Centers and the LOLC service outlets at LIOC fuel stations – will reach an impressive total of over 100. The LOLC Group’s reach has expanded widely within a relatively short period of time. We see great opportunities through our new pawning centres too. We have customized our products to ensure a maximum service and convenience to all our customers with immediate cash requirements”.

Colombo, Monday, 11th of October, 2010 -THE microfinance arm of the LOLC Group, Lanka ORIX Micro Credit PLC. (LOMC), celebrated the opening of its 50th Isuru Diriya Centre (IDC) located at the Bingiriya Post Office. CEO of LOMC Mr. Ravi Tissera and Head of Regional Branch Network Mr. Ashan Nissanka graced the ceremonial event as Guests of Honour. The operations of the Bingiriya IDC fall under the supervision of the Chilaw LOLC Branch.
With its 50th branch newly opened in Bingiriya this month, LOLC Isuru Diriya Centres have effectively covered most parts of the island, including the North and East, with the most recent centres opened in Chenkaladi, Kalmunai, Akkaraipattu, Pothuvil, Maho and Hatton.

LOMC’s Isuru Diriya Centres are set up consequent to the strategic partnership established between LOLC and Sri Lanka Post to offer micro credit services to rural communities situated at interior locations around the country where most financial institutions may be reluctant to enter due to inaccessibility, lack of infrastructure and isolation from the more preferred metropolis. With a vast network of over 600 Post Offices and over 3,000 Sub-Post Offices located across the island, Sri Lanka Post gives LOMC the opportunity to reach the rural communities around the country, and it has already opened its 50th IDC outlet within a relatively short period.

Still in its infancy of operations, LOMC was established a year ago, when it partnered with the internationally triple rated FMO -The Netherlands Development Finance Company -which is supported by the Dutch Government, in the hope of supporting the entrepreneurial interests that were emerging from the grass root communities of Sri Lanka. Commencing with a whopping US$ 10Mn financial assistance granted by FMO, LOMC began its fruitful mission to be the most preferred micro credit service provider in the country. As LOMC’s micro credit portfolio demonstrated a successful growth in the ensuing months, other well respected multilateral agencies in the international development sector such as, the Triodos Bank-Netherlands, Symbiotics-Switzerland and Triple Jump-Netherlands also united with LOMC to strengthen its services further and to provide expertise on sustainability measures.

Reflecting on the success of the LOMC ‘Isuru Diriya’ expansion program, CEO of LOLC Micro Credit Ltd. (LOMC), Mr. Ravi Tissera commented, “It was not too long ago that we commenced this journey with just 9 IDCs opened at the inception of LOMC in the year 2009. Through the strategic alliances built with our funding partners, technical assistance providers, and Sri Lanka Post, we have reached deep into the innermost corners of the country, providing Micro Credit services to a vast community of SMEs and Agri-based businesses. The milestones that we as the industry’s first non-banking Micro Credit institution have achieved were because of the valuable human connection we have cultivated over the years under the patronage of the LOLC Group. I commend all members of our LOMC team across the island for their unwavering commitment, and our loyal customers for their unyielding faith in us”.

LOLC in partnership with SEEDS, UNDP, ILO, UNHCR and UNFPA has scheduled a series of workshops under the theme “Viyapara Shilpa”,  to be carried out island-wide, with the intention of disseminating business knowledge among family members of Sri Lankan migrant workers. The workshops are primarily focused on creating awareness among the foreign currency recipients about the importance of saving and investing in income generating activities. Initiated as a CSR activity, the program is aimed at developing the economic status of Sri Lankan migrant worker families. The fourth workshop of the series is scheduled to be held in Kurunegala on the 17th of this month.

(IBU) of LOLC commenced its operations in Kalmunai last week by opening its 3rd fully fledged Islamic Financial Services center ( IBU Centre ) located at No: 986, Akkaraipattu Road, Kalmunai. The IBU’s Eastern expansion commenced in April early this year with the opening of its first IBU Centre in Kattankudi, and the second IBU Centre located at the Town centre Post Office in Oddamavadi.

Managing Director and CEO of Lanka ORIX Finance Company Ltd (LOFC), Mr. Brindley de Zylva; CEO of the LOLC Al-Falaah Islamic Business Unit Mr. Krishan Thilakaratna; Head of Regional Branch Network Mr. Ashan Nissanka and Manager of LOLC Al-Falaah Head Office Mr. Shiraz Refai graced the occasion as Chief Guests of the new IBU Centre opening ceremony. Many of their customers from the area also participated at this ceremonial opening by engaging in the initial transactions.

LOLC Al-Falaah is a business unit of LOFC providing Shari’ah compliant financial services, with a special approval to function within the framework of LOFC -a registered finance company under the Monetary Board of the Central Bank of Sri Lanka (CBSL). With a mission to assist the local entrepreneurs of the Islamic community, it was a fervent and conscious effort of LOLC Al-Falaah to adhere to a globally accepted Islamic financial system that prohibits financial practices such as Riba or Usury, which are considered to be Haraam.

Amidst the recent backdrop of large scale misuse of funds by various high profile globally renowned financial corporations, which led to the global economic meltdown, an emerging revelation highlighted the dire need for a more ethical and regulated financial system to be formulated. It was evident that the strength of the Islamic finance sector -which performed consistently while many of the conventional financial systems in the industry were breaking down at a rapid rate -was its Shari’ah regulated guidance.

The fundamental emphasis on Justice is the basis of Islamic Financing, wherein it propagates strict adherence to Sharia’ah compliant principles, which lends a moral and ethical guidance that ensures transparency, accountability and governance. For these reasons, Islamic Finance System gained a worldwide acceptance and popularity as a more reliable and trustworthy option of financing – an alternative to the conventional system -which is also in keeping with vital religious requirements. As Islamic Banking & Finance gained precedence in the global financial sector, its popularity found a rich soil to develop in Sri Lanka, and as a result, LOLC entered the Islamic Financial Services Sector in 2003, establishing its own fully fledged Islamic Business Unit branded Al-Falaah in 2007.

At present, all financial activities of LOLC Al-Falaah are based on globally recognized Shari’ah financing practices, and are supervised by an Internal Shari’ah supervisory board chaired by industry leading local and international Shari’ah scholars.

THE Divulapitiya Isuru Diriya Centre (IDC) of LOLC Micro Credit Ltd (LOMC) organized a special seminar for the students who sat for the recently concluded Grade 5 scholarship exam, from Divulapitiya and the surrounding areas. This program was conducted in order to give back to the community they closely work with.

More than 100 students from the surrounding areas were seen enthusiastically attending this scholarship examination preparatory seminar which was conducted by the renowned educator Mr. Wasantha de Silva, from Dharmashoka Vidyalaya in Ambalangoda. Mr. De Silva has over 12 years of experience as an examiner for Grade 5 scholarship exams and is also a leading provider of private tuition for scholarship students. In response to the need of the community, LOMC’s Divulapitiya IDC officials organized this half day educational seminar as its CSR initiative.

The Divulapitiya Isuru Diriya Centre primarily provides Micro loan facilities for the surrounding communities, and has been in operation for more than a year. Through community based societies, all Isuru Diriya transactions in the area are carried out to serve a strong network of over 4,000 loyal LOMC customers. Hence, during the short span of time in operation, the Centre has developed a close-knit relationship with the people of these communities. In appreciation of this close affiliation, Divulapitiya IDC officials came forward to help the community and were able to identify the lack of proper exam preparatory guidance available to assist these young scholarship hopefuls to sit the much anticipated exam. Children of non-LOMC customers also attended the seminar which was a special feature.

Mr Ravi Tissera, Director/Chief Executive Officer -LOMC, commenting on this initiative said, “For the LOMC family at Divulapitiya this was more than a CSR project. We gave something back to the community that has been so loyal to us over the past year in operation. We have built a tremendous rapport with the people of the community and so in their hour of need we wanted to do something very useful. For the children of these communities passing the Grade 5 scholarship exam is a major objective. We saw that they needed assistance to develop their examination preparatory skills. Hence, we organized this special education seminar especially for them, with Mr. Wasantha de Silva’s guidance. We hope to continue this as a long term initiative for the children of Divulapitiya”.

LOLC Al-Falaah -the Islamic Business Unit (IBU) of Lanka ORIX Finance Company Ltd. (LOFC) – recorded a milestone when its inaugural Annual Report, on the theme “Dressed for Success” won the Bronze award at the world renowned “2009 Vision Awards”, presented by the League of American Communications Professionals LLC (LACP).

There were more than 4,000 entries from 28 countries in this competition, of which some were from Top Fortune 500 firms, and only the top 15% entries received award level recognition. The LACP Vision Awards in their Annual Report Competition category recognizes the most outstanding annual reports of the year, whilst providing a platform for many reputed and well established global organizations to demonstrate their achievements for the year in review.

LOLC Al-Falaah’s inaugural annual report, aptly titled “Dressed for Success”, captured the special attention of the judges in the following categories: first impression, report cover, letter to shareholders, report narrative, report financials, creativity, message clarity and information accessibility. It should be duly noted that this significant achievement bears testimony to the perfect partnership established between LOLC and Smart Media (Pvt) Ltd., the agency responsible in the creative execution of this annual report.

LOLC Al-Falaah is a business unit of Lanka ORIX Finance Company Ltd. (LOFC) engaged in Shari’ah compliant financial operation, which has obtained special approval to function within the framework of LOFC. LOFC is a registered finance company under the Monetary Board of the Central Bank of Sri Lanka (CBSL). LOLC Al-Falaah’s journey commenced with LOLC’s entry to Islamic Finance in 2003, when a single product in the category of “Islamic Leasing” was offered to its expanding customer base. Existing customers belonging to the Islamic faith were increasingly moving away from the conventional financial system in search of an alternative financing system, which was in line with their religious beliefs.

This gave rise to a need for a financial system which was in harmony with Shari’ah principles and was significantly different to the conventional financial system. Hence, in 2007, LOLC Al-Falaah was born.

At present, LOLC Al-Falaah offers product concepts such as Mudharabah (Profit – Sharing Investments and Savings), Ijarah (Leasing), Murabaha (Trade Financing) and Diminishing Musharakah (Property/Project Financing), which are supervised by an Internal Shari’ah supervisory board chaired by industry leading Shari’ah scholars.

The latest product added to its portfolio is the Mudharabah savings account, and its most distinguishing feature is that it is Sri Lanka’s first fully integrated Shari’ah compliant and regulated savings account accessible through more than 45 service centres and 350+ local ATM machines island wide as well as enabling global accessibility to the accounts through the Maestro network.

The Shari’ah based principles lend moral and ethical guidance whilst ensuring transparency, accountability and a conscious contribution to the country’s economy, which makes it attractive to customers.
Commenting on the success of Al-Falaah, the CEO, Mr. Krishan Thilakaratne said, “LOLC Al-Falaah has the potential to champion and proliferate an authentic alternative to conventional financing in Sri Lanka. With its branch network intended to penetrate the newly liberated North and East, in the prevailing climate of post war reintegration and reconciliation, LOLC as a financial entity is an exemplary role model to many other financial institutions in the country, in that it recognizes and respects the diverse financial needs of our peers in accordance with their religious and faith-based requirements, and is also committed towards serving all people and sectors of our country as a whole.”

Lanka ORIX Leasing Company PLC (LOLC) – the leading total financial solutions provider in Sri Lanka – recently welcomed a new addition to its network of regional branches, when its newest branch was ceremonially opened in Ambalangoda.
Mrs. Kalsha Amarasinghe, Executive Director of the LOLC Group graced this momentous occasion as the Guest of Honour.

The existing limited operation carried out by LOLC through its Service Centre at the Lanka IOC filling station was upgraded to a branch thereby expanding the product offering to include its products such as Savings and Deposits, NRFC/RFC accounts facilities, Leasing and Loan Schemes, Factoring, Pawn brokering, Insurance services, Agro and Micro Finance to name a few.

LOLC, pioneered the concept of leasing and factoring in Sri Lanka, thereby adding a new dimension to the financial services sector at the time. It also played a vital role in developing the SME sector by providing them with finance facilities Tailor-made for their businesses. Today, LOLC has emerged a leader in providing innovative financial and non-financial solutions with multi-sectoral interests ranging from Finance, Agriculture, Trading, Construction, Fisheries, Transport, Manufacturing, Leisure, Tourism, Education, Information Technology, Power & Energy, Project Development, Real Estate, Plantations to Motor Repairs and Services.

Furthermore, LOLC entered the Microfinance sector a couple of years ago in order to uplift this sector and has made significant strides in terms of expanding its reach to all regions of the country, including the North and the East through its Isuru Diriya Centers which are set up at local post offices consequent to an agreement entered into with Sri Lanka Post. This operation has enabled LOLC’s microfinance operation to successfully reach the grass root level community and provide them with the financial support required to uplift their lives.

LOLC sees much potential in the town of Ambalangoda and is looking at playing a vital role in further developing the business community of this area.

Lanka ORIX Leasing Company (LOLC) – the country’s largest non-banking total financial solutions provider – has once again cemented its ‘Pioneering’ spirit by opting to go green with its Grid Connect Solar System, thereby bringing in the new dimension of environmental sustainability to the local financial services industry.

This solar system installation was officially commissioned by the Minister of Power and Energy, Hon. (Mr.) Patali Champika Ranawaka, at a ceremony held at the LOLC Head Office in Rajagiriya, on the 2nd of September 2010.

The mega 48KW Grid Connect Solar System successfully contributes to 15% of the Company’s daily energy requirement, thereby significantly reducing the dependency on power from the national grid. The system which was designed, installed and commissioned by Access Solar Pvt. Ltd., is the largest installation of its kind in a financial institution in Sri Lanka. This system contains solar cells which are made up of eight arrays with eight inverters, which contain an individual capacity of 6KW. The setting up of this Grid Connect Solar System will be of great use as a source of energy to meet with the Company’s daily electricity requirements.

By switching to renewable energy, LOLC has demonstrated its commitment towards environmental conservation in the wake of the recent global climate change that has made a vast impact in both local and global spheres. It is hoped that this newest undertaking will encourage many other Corporates to follow suit in integrating sustainable development, as an important requirement, in their organizations’ institutional operations.

Fitch Ratings-Colombo/Mumbai/Singapore-01 February 2008:Fitch Ratings Lanka has today assigned a National Short-term rating of 'F1(lka)'to Lanka Orix Leasing Company (LOLC) Plc's proposed commercial paper issuance of up to LKR500 million.
 
A National Short-term rating of 'F1(lka)' indicates the strongest capacity for timely payment of short term financial commitments relative to other issuers or issues in the same country. Where the credit risk is particularly strong, a "+" is added to the assigned rating within the 'F1' category.
 
The assigned rating reflects the absence of an adverse shift in the maturities of the company's interest bearing assets and liabilities, as well as its good access to borrowings from local banks. Fitch also takes comfort from the level of committed but undrawn funding lines that the company maintains, which as at 24 January 2008 amounted to LKR620m, or1.24x the principal of the proposed issuance. However, the Short-term rating on the notes is constrained by LOLC's inability, as a non-bank financial institution, to access the liquidity window of the Central Bank of Sri Lanka.The rating on the notes is also credit linked to LOLC's National Long-term rating of 'A(lka)'/Stable, andcould be affected by changes to the latter.
 
LOLC is Sri Lanka's pioneer specialised leasing company and was founded in 1980. Mr. Raja Nanayakkaraand his family acquired a controlling interest in LOLC in 2002 and currently hold over 54% of its equity, while ORIX and the general public hold 30% and 16%, respectively.

LOLC in their endeavour to effectively address the financial needs of the customers in all regions of the country has opened 5 Service centres at Lanka IOC Filling Stations. The agreement entered into between LOLC and LIOC allows LOLC the opportunity to set up service centres at the LIOC filling stations. This will enable LOLC to increase its reach to all regions of the country faster and serve the grass root level customers more efficiently.
 
Thus far LOLC has setup service centres in the LIOC filling stations in Morawaka, Trincomalee, Pilimatalawa, Aluthgama and Seeduwa. People in the rural areas will have access to LOLC's full range of financial services which include Agro and Micro Finance and Pawning, Savings and Fixed Deposits, Insurance, Stock Brokering, Factoring, Auto Finance, and Fleet Management through these service centres.
 
The company plans to rapidly expand its operations around the country through this arrangement in an effort to help the rural economies to grow.

Group MD/CEO of LOLC Mr. Kapila Jayawardena lightens the oil lamp at the opening of LOLC Trincomalee outlet. Deputy Chairman of LOLC Mr.Ishara Nanayakkara & Managing Director of LIOC Mr. Ramakrishnan are also present.

We are proud to announce that Lanka Orix Leasing Company Ltd. have,once again been adjudged the Sectoral winners of the Gold award in the Leasing category, at the Annual Reports Awards Competition 2007.People's Leasing Company Ltd.& Commercial Leasing Co. Ltd., collected the Silver & Merit awards respectively.
 
CFO - Sunjeevani Kotakadeniya received the award on behalf of the Management, from Hon. Dr.Sarath Amunugama, at the awards ceremony held recently.Congratulations to the team who worked many sleepless nights to make this a reality!
 
The Institute of Chartered Accountants of SL, recognizes and honours those organizations that have achieved excellence in reporting procedures through the Annual Report Awards Competition.By winning this accolade,companies are propelled onto a platform of excellence that is on par with international standards.

“LOLC Al-falaah”, the Islamic arm of the LOLC Group made a significant stride in the Islamic financing sector in Sri Lanka by marking two significant events simultaneously. While introducing the country’s first Mudharabah Savings account with a fully integrated savings pass book and an ATM Card, the Sharia’h Supervisory board of LOLC Al-falaah was further strengthened with Shaikh Shafique Jakhura joining.
 
Lanka ORIX Finance Company Ltd. the first and only finance company to be registered under the Central Bank of Sri Lanka to offer Sharia’h Financing, launched the Islamic Business Unit in late 2007. For the past almost three years LOLC Alfalaah offered Ijarah (Leasing), Murabaha (Trade Financing), Diminishing Musharakah (Property/Project Financing) and now Mudharabah (Profit Sharing Investments & Savings) to their clientele with strict compliance to the sharia’h principles. LOLC Alfalaah is facilitated with its own infrastructure such as IT, Documentation and Financial Accounting which are based on Shari’ah principles. While the dedicated Islamic Business Unit is currently operating under the supervision and expert guidance of the Sharia’h Supervisory Board comprising of the eminent Islamic Scholars Shaik M. Fazil Farook and Shaik M.Murshid Mulafar, the joining of Shaik Mufti Jakhura is of immense significance and will further strengthen it. Shaik Mufti Jakhura serves in the Fatwa Department preparing and issuing Islamic Juristic rulings at the Darul Ihsan Centre in Durban, South Africa. He completed, the Aalimiyah Course at Madrasah Taleemuddeen in 2002 in Durban, South Africa and completed a three year specialization course in Islamic Jurisprudence (Fiqh & Fatwa) from Jamia Darul Uloom, in Karachi, Pakistan in 2005, under the guidance of Mufti Taqi Usmani, which culminated in the submission of a thesis on the topic of Shirkat and Mudharabah. He also has an Advanced Diploma in Islamic banking and finance from the Centre for Islamic Economics based in Karachi, Pakistan.
 
The LOLC Group with their inherent spirit of innovation, professionalism and dynamism always caters to the needs of the different segments in the financial services market and focuss on expanding its scope. Due to rapid product innovations and the strategically placed branch network the company has been able to gain a significant market share and is keen to propagate Islamic Financing around the country.
 
The Mudharabah Savings account will be the most attractive solution available in Sri Lanka with its fully integrated savings pass book and ATM card which is accessible from more than 350 Locations country wide. Further-more the account offers the highest profit sharing returns in the county to the customers. The fact that LOLC Al-falaah is supervised and regulated by the Central Bank of Sri Lanka attests that this is the safest investment option available to the customers.

The IT arm of the LOLC Group, Lanka ORIX Information Technology Limited (LOIT) a company specialized in developing applications systems to the banking and financial services sector attained Gold Certified Partner status in the Microsoft Partner Programme. LOIT fulfilled the competencies in the areas of Information Worker, Networking Infrastructure and Advance Infrastructure Solutions. As a Microsoft Gold Certified Partner, LOIT has demonstrated expertise with Microsoft technology and proven its ability to meet customers' demands and requirements to the fullest. With this LOIT managed to build a very strong technical team with required capabilities.

“We are extremely pleased to have attained Gold Certified Partner status in the Microsoft Partner Program. This opens a totally new world for our business opportunities in Microsoft Platform based solutions. By virtue of us being able to carry logo, we are able to outwardly show our competencies and convince potential customers. I Wish to thank the Microsoft competency team at LOIT who made it happen and we are committed to build other competencies in the Microsoft Technologies which will further enable us to promote our relationship with Microsoft to our customers” Conrad Dias, Managing Director/CEO of LOIT.

Along with the Microsoft Gold Certified Partnership LOIT received several benefits that will help the company to serve the customers better and faster. These include advance access to the latest Microsoft platforms and development environments, new software and products licenses to test drive and carry research and development, training, exclusive web casts, direct access to Microsoft technical support and etc.

This award is another milestone in a series of initiatives LOIT has undertaken as a fast growing and focused ICT company. LOIT is a focused partner of Oracle Corporation of USA that offers Oracle Application Consultancy to the market. The company has obtained ISO 27001:2005 certification for the Enterprise Data Center managed by LOIT for Lanka ORIX Leasing Company PLC (LOLC Group) which makes at the first ISO 27001 certified data center in the banking and financial services sector of Sri Lanka.

LOLC’s product portfolio ranges from Leasing, Asset Financing, Hire purchase, Loans, Working Capital and Factoring, Fleet Management, Insurance Services, Agro and Micro Financing and also non-financial solutions such as IT, Project Development, Real Estate and Forestry, while its subsidiary Lanka ORIX Finance Company Ltd. offers Savings and Fixed Deposits, NRFC & RFC Accounts, Islamic Financing and Pawn Broking; to its customers.

In 2003 LOLC ventured into Microfinance and has now already established itself as a leading microfinance provider in the country. The company started operations by providing Solar Home systems to the rural households and then expanded their services into Agriculture related Financing, Dairy Financing and three wheeler, tractor and motor bike loans in order to cater to the increasing demands of this sector. Apart from the expertise gained and a good understanding of the segment’s needs LOLC had the advantage of having extensive reach into the rural areas and the necessary infrastructure.

Dr. Peter Kooi, is a Dutch national, joined the Board Of directors of FMO in October 2000. Peter Kooi studied corporate finance and sociology at the Erasmus University in Rotterdam, the Netherlands. From 1993, he advised ACLEDA in Cambodia as a microfinance consultant over a period of seven years in its course from a development program into a commercial bank. From 1999, Peter Kooi worked as a short-term microfinance consultant for microfinance institutions and projects located mainly in Africa and Asia. From September 2002 until December 2005, Peter was Director of the Microfinance Unit of UNCDF in New York. Since then Peter works as a Resident Director of the Board of ACLEDA Bank. In 2008 he also became a Board member of ACLEDA Bank Lao in Lao PDR. He is a Graduate of the Australian Institute of Company Directors.

Mrs. Rohini Nanayakkara chairperson of LOLC Group welcoming Peter to the LOLC Micro Credit Ltd. board said “joining of Dr. Kooi is strength for us. His experiences in the field of Microfinancing will enable us to learn many lessons and make use of them for the development of the microfinance sector in Sri Lanka.”

Mr. Ravi Tissera CEO LOMC added ” LOMC would immensely benefit from years of experience in microfinance especially in Cambodia which is considered a best practices market in the world for microfinance.

LOLC Micro Credit Ltd. the Microfinancing arm of the LOLC Group recently appointed Dr. Peter Kooi to the board of directors of the company. LOLC Micro Credit Ltd (LOMC) is a partnership between LOLC and FMO (The Netherlands Development Finance Company) which is the international development bank of the Netherlands With an investment portfolio of Euro 3.4Bn worldwide. FMO has a 20% equity stake in LOMC & has made a $10Mn investment in the company.

Lanka ORIX Leasing Company PLC (LOLC), an innovative Financial Solutions provider in Sri Lanka launched LOLC Micro Finance Company Ltd, the most recent venture of the LOLC Group in a media conference held in Colombo recently. The Company is a partnership between LOLC and FMO (The Netherlands Development Finance Company) which is the international development bank of the Netherlands. This is a land mark event in the history of the Sri Lankan finance industry as it is the first time that a private sector local micro finance entity is set up with foreign equity.
 
LOLC pioneered in introducing Leasing and Factoring solutions to the financial services sector of Sri Lanka which has significantly contributed towards uplifting the SME sector of the country. LOLC is one of Sri Lanka’s largest and fastest growing financial institutions. The Group has been constantly growing its profitability in the past and recorded a 50% growth in Revenue and a 21% increase in profit after tax in 2008.
 
In 2003 LOLC ventured into Micro Financing and has grown to become a leading Agriculture and Microfinance solutions provider today. The company started operations by providing Solar Home systems to the rural households and then expanded their services into Agriculture related Financing, Dairy Financing and three wheeler, tractor and motor bike loans in order to cater to the increasing demands of this sector. Apart from the expertise gained and a good understanding of the segment’s needs LOLC had the advantage of having extensive reach into the rural areas and the necessary infrastructure.
 
The Netherlands Development Finance Company (FMO) is the international development bank of the Netherlands and they invest risk capital in companies and financial institutions in developing countries. FMO's investment portfolio is about EUR 3.4 billion and it is one of the largest bilateral development banks worldwide. FMO is able to take risks which commercial financiers are not - or not yet prepared to take due to their strong relationship with the Dutch government. FMO's mission is to create flourishing enterprises world wide which can serve as engines of sustainable growth in their respective countries, which gels well with LOLC’s vision and commitment to make a significant contribution towards the Microfinance industry.
 
Addressing the media conference Group MD/CEO of the LOLC Group Mr. Kapila Jayawardena said “We firmly believe that the launch of this entity will mark the dawn of a new era for the microfinance industry of Sri Lanka and are confident that this partnership will greatly benefit the rural community.”

Fitch Ratings-Colombo/Mumbai/Singapore-04 November 2008: Fitch Ratings Lanka has today upgraded Lanka ORIX Finance Company Ltd's (LOFIN) National Long-term rating to 'A-(lka)' (A minus (lka)) from 'BBB+(lka)'. The Outlook is Stable.
 
The upgrade of LOFIN's rating reflects the increased level of integration with its parent, Lanka ORIX Leasing Company PLC. (LOLC, 'A(lka)'/Stable) and in the agency's view, its increased strategic importance to the latter. Over the last 12 months the operations of both entities have become closely integrated, functioning almost as if they are a single entity. Both now operate within the same premises and share personnel, product standards, operational procedures and processes, and pricing. Furthermore, LOFIN's contribution to net group funding rose to a strategically important 9.4% of total net funding and its contribution to pre-tax profits rose to 10.8% for Q109.
 
LOFIN continued its steady growth trend, driven almost entirely by LOLC's brand name and customer franchise, with total advances growing 47.3% yoy in FY08. Placement of assets within either portfolio is determined by a central treasury based on funding, liquidity and statutory guidelines. LOFIN's lending portfolio composition is closely aligned to its parent's; although unlike LOLC, LOFIN does not engage operating lease business and its microfinance activity has been confined to pawning. As seen across the LOLC group, there has been an increase in the proportion of Working Capital loans and Hire Purchase facilities (HPs) within LOFIN's portfolio, which has hitherto been dominated by lease products. Working capital loans and HPs accounted for 48.6% (FYE07: 34.8%) and 18.1% (FYE07: 14.4%) of total advances respectively at FYE08. The remainder of the portfolio comprises mainly finance leases, though the company also has a small margin trading portfolio.

The Netherlands Development Finance Company (FMO) is the international development bank of the Netherlands and they invest risk capital in companies and financial institutions in developing countries. FMO's investment portfolio is about EUR 3.4 billion and it is one of the largest bilateral development banks worldwide. FMO is able to take risks which commercial financiers are not - or not yet prepared to take due to their strong relationship with the Dutch government. FMO's mission is to create flourishing enterprises world wide which can serve as engines of sustainable growth in their respective countries, which gels well with LOLC’s vision and commitment to make a significant contribution towards the Microfinance industry.
 
Asset quality weakened in Q109 with three-month NPLs increasing to 10.3% of gross loans, on account of a single large delinquency on LOFIN's working capital loan book; without which the company's gross NPL ratio would be closer to its parent's of 8.2% at Q109. Given that credit evaluation and recovery operations for both entities have now been centralised, Fitch expects the asset quality of LOFIN to move in line with its parent in the medium term, with any difference arising only on account of variations in product mix. While rapid loan growth in the face of a weakening macroeconomy could be a further stress on asset quality, the agency notes that the company's strong capital base has placed it in a good position to absorb sudden shocks. Net NPLs to equity at 37.0% at Q109 compares well with the registered finance company (RFC) sector figure of 54.1%.
 
LOFIN's profitability has historically been below the sector on lower levels of non-interest income, combined with marginally lower net interest margins (NIM). This gap narrowed somewhat in FY08 with pre-tax ROA increasing to 3.0% (RFC sector: 3.4%) from 1.2% in FY07 (RFC Sector: 4.7%) driven mainly by improved NIMs. However, heavy increases in operating costs driven mainly by an increase in IT expenses and investment in deposit marketing, resulted in a lower annualised pre-tax ROA of 1.8% in Q109.
 
The company successfully leveraged the Lanka ORIX brand to grow deposits 91% yoy at FYE08 and a further 19% in Q109. Following approval from the regulatory authorities in June 2008, LOFIN commenced mobilising foreign currency deposits, allowing it to tap into the largely untouched pool of remittances. The company is well capitalised as evidenced by an equity/assets ratio of 16.3% at Q109 (18.7% at FYE08).
 
LOFIN is a RFC which commenced commercial operations in mid 2003. It operates through a 22- branch network and 10 Service Centres. LOFIN is a fully-owned subsidiary of LOLC and was established with the aim of broadening and diversifying the LOLC group's funding channels, as leasing companies are restricted from mobilising public deposits.
 
A detailed credit update report will be available shortly on Fitch Ratings websites: www.fitchratings.com and www.fitchratings.lk.

Lanka ORIX Leasing Company (LOLC), a leading Total Financial Solutions Provider in Sri Lanka signed an MOU with the German Technical Cooperation (GTZ) to facilitate and enhance the development of the Micro Finance Sector in the country under the 'Promotion of the Micro Finance Sector' programme recently.
 
"ProMis"(Promotion of the Micro Finance Sector) is a programme being implemented by the Ministry of Finance and Planning together with GTZ and funded by the German Federal Ministry of Economic Cooperation and Development (BMZ) to enhance and improve services offered by selected Micro finance institutions to the poorer sections of society.
 
Under this programme GTZ will collaborate with LOLC mainly to set up low cost branches in underdeveloped, underprivileged regions' extend support to introduce and develop the IT infrastructure of LOLC's Micro Finance Operations and also help in capacity building of LOLC Micro Finance staff.
 
LOLC, as a leading Total Financial Solutions Provider in the country has identified the importance of Micro finance in terms of social and economic development of the rural communities and the economic growth of the country. At present LOLC provides Micro Finance facilities to all communities, predominantly rural entrepreneurs and aggressively expanding to disadvantaged regions including the North & East. This agreement with GTZ will assist LOLC to more effectively serve the rural community.
 
"We have a widespread network of branches comprising of 23 branches and 10 service centres providing all our services and covering the entire country. With this agreement we will be able to strengthen our effort to assist the needy sectors in the rural areas of the country.
 
Having considered our track record, solid business direction, transparent governance and strong financial profile, many prominent multilateral agencies were keen to partner with us' said Mr Ravi Tissera, CEO of Micro Finance.

GTZ is an international cooperation enterprise for sustainable development with worldwide operations. For 30 years it has been providing viable, forward looking solutions for political, economic, ecological and social development in a globalized world. GTZ supports complex reform and change processes, often working under difficult conditions.Its corporate objective is to improve people's living conditions on sustainable basis. GTZ's main client is the German Federal Ministry of Economic Cooperation and Development.

LOLC Al-Falaah -the Islamic Business Unit (IBU) of Lanka ORIX Finance Company Ltd. (LOFC) – recorded a milestone when its inaugural Annual Report, on the theme “Dressed for Success” won the Bronze award at the world renowned “2009 Vision Awards”, presented by the League of American Communications Professionals LLC (LACP).

There were more than 4,000 entries from 28 countries in this competition, of which some were from Top Fortune 500 firms, and only the top 15% entries received award level recognition. The LACP Vision Awards in their Annual Report Competition category recognizes the most outstanding annual reports of the year, whilst providing a platform for many reputed and well established global organizations to demonstrate their achievements for the year in review.

LOLC Al-Falaah’s inaugural annual report, aptly titled “Dressed for Success”, captured the special attention of the judges in the following categories: first impression, report cover, letter to shareholders, report narrative, report financials, creativity, message clarity and information accessibility. It should be duly noted that this significant achievement bears testimony to the perfect partnership established between LOLC and Smart Media (Pvt) Ltd., the agency responsible in the creative execution of this annual report.

LOLC Al-Falaah is a business unit of Lanka ORIX Finance Company Ltd. (LOFC) engaged in Shari’ah compliant financial operation, which has obtained special approval to function within the framework of LOFC. LOFC is a registered finance company under the Monetary Board of the Central Bank of Sri Lanka (CBSL). LOLC Al-Falaah’s journey commenced with LOLC’s entry to Islamic Finance in 2003, when a single product in the category of “Islamic Leasing” was offered to its expanding customer base. Existing customers belonging to the Islamic faith were increasingly moving away from the conventional financial system in search of an alternative financing system, which was in line with their religious beliefs.

This gave rise to a need for a financial system which was in harmony with Shari’ah principles and was significantly different to the conventional financial system. Hence, in 2007, LOLC Al-Falaah was born.

At present, LOLC Al-Falaah offers product concepts such as Mudharabah (Profit – Sharing Investments and Savings), Ijarah (Leasing), Murabaha (Trade Financing) and Diminishing Musharakah (Property/Project Financing), which are supervised by an Internal Shari’ah supervisory board chaired by industry leading Shari’ah scholars.

The latest product added to its portfolio is the Mudharabah savings account, and its most distinguishing feature is that it is Sri Lanka’s first fully integrated Shari’ah compliant and regulated savings account accessible through more than 45 service centres and 350+ local ATM machines island wide as well as enabling global accessibility to the accounts through the Maestro network.

The Shari’ah based principles lend moral and ethical guidance whilst ensuring transparency, accountability and a conscious contribution to the country’s economy, which makes it attractive to customers.
Commenting on the success of Al-Falaah, the CEO, Mr. Krishan Thilakaratne said, “LOLC Al-Falaah has the potential to champion and proliferate an authentic alternative to conventional financing in Sri Lanka. With its branch network intended to penetrate the newly liberated North and East, in the prevailing climate of post war reintegration and reconciliation, LOLC as a financial entity is an exemplary role model to many other financial institutions in the country, in that it recognizes and respects the diverse financial needs of our peers in accordance with their religious and faith-based requirements, and is also committed towards serving all people and sectors of our country as a whole.”

The upgrade of Lanka ORIX Finance Company Ltd (LOFIN) in November 2008 reflects the increased level of integration with Lanka ORIX Leasing Company PLC (LOLC; ‘A(lka)’/Stable), of which it is a fully owned subsidiary, and in Fitch Ratings’ view, its increased strategic importance to LOLC. In addition to sharing the Lanka ORIX brand, the operations of the two entities are now highly integrated with both operating within the same premises and sharing personnel, product and pricing standards. LOFIN’s contribution to LOLC increased to 9.4% of LOLC net group funding and 10.8% of pre-tax profit at Q109.
 
Driven by LOLC’s brand name and customer franchise, LOFIN continued its steady growth trend with total advances growing 47.3% yoy in FY08 (80.3% in FY07), albeit from a low base. As seen across the group, there has been a shift in product mix with diversification into working capital loans and increases in hire purchase advances (HPs) from a portfolio hitherto dominated by lease products. Loans and HPs accounted for 48.6% (FYE07: 34.8%) and 18.1% (FYE07: 14.4%) of total advances respectively at FYE08. The remainder comprises mainly finance leases.
 
Asset quality weakened with the three”month gross NPL ratio increasing to 10.3% at end-Q109 (FYE08: 8.1%) on account of a single large delinquency on LOFIN’s working capital loan portfolio, which is largely managed by an LOLC group factoring company. Nevertheless, net NPLs to equity at 37% at end-Q109 compares well with the registered finance company (RFC) sector figure of 54%.
 
Pre-tax ROA increased to 3.0% in FY08 (FY07: 1.2%), driven mainly by improved net interest margins of 8.6% in FY08 (7.0% in FY07). However, heavy increases in operating costs, driven mainly by an increase in IT and marketing expenses, resulted in a lower annualised pre”tax ROA of 1.8% in Q109.
 
Deposits, accounting for 69% of LOFIN’s funding base at end-Q109, grew 91% yoy at FYE08 and 19% in Q109. Following approval from the regulatory authorities in June 2008, LOFIN commenced mobilising foreign currency deposits, allowing it to tap into the pool of inward remittances, largely untapped by RFCs. LOFIN had a high equity/assets ratio of 16.3% at end-Q109 (18.7% at FYE08) and a total capital adequacy ratio of 22% which is above the regulatory minimum of 10%.
 
Support
Fitch believes that support from LOLC would be forthcoming if required, given its 100% shareholding of LOFIN, and the strong operational and financial linkages between the two companies. However, this would be dependent on LOLC’s financial strength. State support is unlikely, given that LOFIN is of low systemic importance.
 
Key Rating Drivers
The Outlook on the rating is Stable. LOFIN’s rating is linked to that of its parent, LOLC. Any changes to the implied support from LOLC and level of integration and importance could apply downward pressure on the rating.
 
Profile
LOFIN was established in 2001 as an RFC and commenced operations in June 2003. It operates jointly with LOLC via a network of 22 branches and 10 service centres.

Lanka ORIX Leasing Company PLC (LOLC), a leading financial solutions provider in Sri Lanka entered into an agreement with LIOC whereby LOLC will be allowed to set up Service Centres in all LIOC filling stations around the country. This is the first time a financial services organization and an oil company have entered into an agreement of this nature LIOC commenced their operations in Sri Lanka in February 2003 bringing a new experience to the Sri Lankan consumers, which was more convenient and efficient, through their modernized fuel outlets made to international standards. Lanka IOC PLC is a subsidiary of IOC, a Fortune 500 company and the largest commercial enterprise in India and is one of the leading multinational organizations operating in Sri Lanka at present. Lanka IOC is the only private oil company, other than the state-owned Ceylon Petroleum Corporation (CPC), to operate retail fuel stations in Sri Lanka. LIOC is making phased investments to provide world-class quality petroleum products and services at competitive prices to the Sri Lankan customers.
 
LOLC, a premier Total Financial Solutions Provider in Sri Lanka is well known for its innovative spirit and dynamism. They pioneered the concept of Leasing and Factoring in the country. Similarly, they have now joined hands with LIOC to provide customers access to financial solutions at fuel stations. The new business strategy of LOLC requires it to increase its geographic reach significantly through cost-efficient distribution channels and make its product-offering comprising of Savings and Fixed Deposits, Insurance, Stock Brokering, Factoring, Auto Finance, Agriculture and Micro Finance, Pawning and Fleet Management more accessible to customers. This arrangement will create the opportunity for LOLC to address the financial needs of customers in the regions and play a more active role in rural development.

Furthermore, Agriculture and Micro Finance being the main areas of focus will greatly benefit from this arrangement with LIOC, as LIOC's 153 fuel outlets are dispersed around the country covering all regions and will enable LOLC to reach the grass-root-level customers more effectively.

""We are extremely proud to be a part of this momentous event which will undoubtedly be of mutual benefit to both our organizations. We look forward to working more closely with LIOC and providing more value added services to our customers. We hope this will metamorphose the financial services sector of Sri Lanka"" said the Group Managing Director and Chief Executive Officer of LOLC Mr. Kapila Jayawardane.

LOLC, an innovative Financial Solutions provider in Sri Lanka offers a range of fully Shari’ah compliant financial products (financing done in accordance with Islamic Principles) through its subsidiary Lanka ORIX Finance company Ltd, which is the only Finance Company in Sri Lanka registered under the Central Bank to be granted approval to mobilize Shari’ah compliant deposits. The company with their separate Islamic Business Unit (IBU) ‘LOLC Al-Falaah’ for Islamic Finance Solutions, which ensures that these products are managed in strict compliance with Shari’ah laws offers Ijarah (Leasing), Murabaha (Trade Financing), Mudharabah (Profit Sharing Investments) and Diminishing Musharakah (Property Financing) to the public.
 
In their effort to popularize these products amongst the general public in the regions, ‘LOLC Al-Falaah’ conducted a ‘Public Awareness Program on Islamic Financing’ in Mahaweli Reach Hotel, Kandy last Saturday. The awareness program was conducted by the Shari’ah Supervisory Board (SSB) of LOLC and some of the topics discussed at the program were what Islamic Financing is? The global overview Islamic finance, Islamic Financing at LOLC and the nature of the products offered by LOLC. The program was conducted by the president of SSB of LOLC Ash-Shaikh Fazil Farook and the vice president Ash- Shaikh Murshid Mulaffar who are eminent scholars are executive members of the ACJU (All Ceylon Jammiyyathul Ulama) Banking Advisory Committee.

Lanka Orix Leasing Company Ltd unveiled its new logo at a media conference recently. The company redesigned its logo and restructured its processes to align itself with its new vision of being 'The Most Preferred Financial Solutions Provider.'
 
The deputy chairman of LOLC Mr. Ishara Nanayakkara remarked that "In pursuit of the vision of becoming a Total Financial Solutions provider, LOLC has re-aligned the individual companies in the group to achieve greater synergy and also maintain common service standards across. We have redesigned our logo to reflect the dynamism and multi-dimensionality of LOLC."
 
The chairperson of LOLC Mrs. Rohini Nanayakkara and the Group MD / CEO Kapila Jayawardane also addressed the media while the other Executive Committee Members, Deshamanya M.D.D.Pieris and Mrs. Kalsha Amarasinghe were also present at the Head Table.

LOLC, the pioneer in leasing in Sri Lanka formed 28 years ago, commenced its journey, with an objective of developing the SME sector by introducing the concept of leasing as a way to acquire productive assets. The Company not only fulfilled this objective, but has been a frontrunner in this business, and been a catalyst in the sector creating and shifting paradigms in SME sector financing with innovating solutions and service options.

LOLC group reached new heights in performance when the group recorded excellent top line and bottom line growth for 2007/08. The aggressive growth strategy of the group generated revenue of Rs. 5.9 Bn, a 50% increase over last year. The Profits recorded increased by 21% to reach 1.3Bn. The growth in profits is considered noteworthy, given the negative environmental pressures that prevailed during the financial year with high interest rates and inflation causing an increase in borrowing costs.
All business units contributed well towards the growth with asset based lending still making the highest contribution to the profits. Also, Working Capital and Savings businesses did exceptionally well, with profits from the former making significant contribution to the group’s bottom line.  Deposits mobilized by the Savings business unit reached Rs. 3.3 Bn, a 91% growth over the last year.

Despite the increase in interest costs and the resultant negative impact on collection of dues from customers, the Company was able to contain non performing loans within acceptable levels due to effective collections and recovery strategies adopted. The risk mitigating strategies adopted by the company enabled the Company to perform well despite the external pressures of a negative economic scenario.
In his review, Mr. Kapila Jayawardena, Group Managing Director/ CEO, explained that the focus of the year and the successful performance was based on three fundamentals: enhanced accessibility to customers, the creation of a strong pipeline of funding for the future, and the promotion of innovation as a business differentiator.

LOLC, during the year entered into an innovative partnership with Lanka IOC (India Oil Company) to open LOLC Service Centres at the fuel stations. This is considered to be strategic in servicing the SME and the Micro Finance sectors and the company has already opened 11 such service points. Further strengthening the collections processes, the company entered into a strategic alliance with Citi Bank and Bank of Ceylon (BOC) to facilitate rental collections at BOC branches. This will give the customer the convenience of payment while enhancing the collection efficiency for the company.

The Company in its pursuit to strengthen the funding sources to support business expansion, secured attractive long term funding lines from both local  financial institutions as well as many foreign bilateral and multilateral funding institutions, including a strong pipeline for the coming year. LOLC continues to benefit from and further strengthen the unique relationship with foreign funding institutions with superior performance and facilitating the effective execution of their developmental goals in developing countries in the region.

LOLC, as a consistent value creator to its customers, introduced several products and service innovations during the year, including Shari’ah complaint (Islamic) financing options, Western Union Money Transfers, extended service hours including 24 hr savings operations at selected points, and many more. An ATM solution is about to be launched for the convenience of the savings customers.

Progressive IT solutions have enabled the company to provide the customers innovative products and service propositions, whilst giving the company significant benefits from effective resource management.

 Having achieved success in the SME sector, the Company has entered the next level of the Micro Finance sector and has already made significant progress in this sector during the past financial year. Today, LOLC positions itself not only as a financier in the SME and the Micro sector, but intends to realize the full potential of the group’s mission of “assisting those driven by enterprise to reach greater heights, through innovative, personalized and wide ranging financial solutions” by being a catalyst of sustainable development in the micro, rural, sectors with focused strategies aligned to develop the agriculture, farming, dairy community with technical assistance in addition to financing options.

The Company’s current and future strategy of developing these sectors especially in the East augurs well with the Nation’s long term vision for rural development. The Company’s focus in the Micro Finance sector also contributes well to the global trend in supporting the rural and micro sectors to build self sustenance to face the impending food crisis. 

The regional expansion strategy adopted by the Company in the previous year with the investment in PRASAC Micro Finance Institution in Cambodia contributed positively and significantly, facilitating the exchange of knowledge and expertise in Micro Finance business while opening new business avenues for the Company to grow in the region.
In line with the long term strategy for growth, the Company recently acquired the controlling interest of Commercial Leasing PLC, which will reinforce leadership in the leasing sector. The Company is of the view that this latest addition will facilitate synergistic benefits to the whole group and will strengthen its position.
The growth strategies adopted by the company with new investments made in CLC and in the region, will position the Company to serve the broader customer segments in the SME and Micro sectors while facing the ever changing challenges posed by the external environment and to deliver strong growth in both top line and bottom line in the coming years. 

Lanka ORIX Finance Company Limited, a member of the LOLC Group received approval from the Central Bank of Sri Lanka to mobilize foreign currency deposits, thereby becoming the first Finance Company in the history of financial services in Sri Lanka to be granted such an approval.
 
The LOLC group recorded an unprecedented growth in its performance during the immediately past financial year with a top-line growth of 50% and a bottom line growth of 21%, which is noteworthy, given the negative environmental pressures that prevailed during the financial year with high interest rates and inflation causing an increase in borrowing costs. The company also made a strategic investment in Commercial Leasing Company Limited with a view to increasing its scale of operations. Furthermore, the group is continuously increasing its reach to remote areas around the country through the Service Centers, which are being opened at the Lanka IOC Filling stations, consequent to the agreement signed with Lanka IOC.
 
The Group Managing Director/CEO of LOLC Mr. Kapila Jayawardena mentioned that LOLC is well placed to enter the foreign currency deposit mobilization 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. Furthermore, 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. Mr. Jayawardena further stated that they entered into an agreement with Western Union Money Transfer earlier on this year becoming an authorized agent, in order 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. The stability of the LOLC Group, the high standard of corporate governance and sophisticated risk management techniques adhered to by the group may have added some weight to our proposal to mobilize foreign currency deposits. Mr. Kapila Jayawardena said, “We will be able to offer extremely competitive interest rates, an exceptional service and more importantly a high level of stability to NRFC and RFC account holders. We are also looking at giving very attractive promotional offers to our clientele and are confident that we will be the preferred NRFC /RFC partner to many an investor.“
 
The LOLC Group is a financial services conglomerate in the country and offers a range of financial solutions such as Insurance, Fixed Deposits & Savings, Factoring & Working Capital, Leasing, Fleet Management, Agro & Micro Finance, Pawning, Stock Brokering, Islamic Finance, and also non-financial solutions such as IT, Project Development, Real Estate and Forestry. The strength of the LOLC group is its Principal, ORIX Corporation of Japan, which is the world’s largest leasing company and Japan’s second largest financial services provider, and the global ORIX network, which spans across 26 countries.

The Group Managing Director Mr. Kapila Jayawardena was extremely pleased with this achievement and excited about the prospects that lie ahead. “Our Main focus in entering this area of business is to significantly increase the volume of inward foreign currency remittances from the many 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.” stated Mr. Jayawardena.

The LOLC Group reported strong growth for the second quarter with income for the 3 months almost doubling when compared with the same period of the previous year. The Group income for the 3 months increased by 96% to Rs. 2,706 Mn from Rs. 1,381 Mn. The income for the 6 months increased by 76% as against the previous year to Rs. 4,666 Mn. and the profit after tax for the 6 months increased by 55% to Rs. 425 Mn.

Commenting on the performance for the 6 months to September, Group Managing Director Mr. Kapila Jayawardena said that LOLC was able achieve strong growth during these volatile times by way of careful management of the portfolio through sound credit practices and risk mitigation strategies, a healthy product mix and the continued confidence of customers in LOLC as a provider of financial solutions as well as the effort of its committed staff members.

The financial product portfolio offered by the LOLC Group includes finance and operating leases, hire purchases, loans, Islamic financing, debt factoring, invoice discounting, working capital loans and micro finance loans as well as insurance brokerage services, stock brokerage services, savings and fixed deposits, resident and non resident foreign currency accounts (RFC & NRFC). Further, the fleet management services offered by LOLC includes vehicles for short term as well as long term hire.

LOLC acquired Commercial leasing Company during the first quarter of the current financial year, positioning the LOLC Group as the market leader in the leasing industry in Sri Lanka. Commercial Leasing maintains a credit rating of A- (lka) from Fitch ratings and LOLC’s credit rating was affirmed at A (lka). One of the top achievements of the finance Company (Lanka ORIX Finance Company) in 2008 was the upgrade of its rating to A- (lka) by Fitch.

The Group’s operating profit before net interest cost for the quarter more than doubled to Rs. 1,954 Million from Rs. 896 Million last year, an increase of 118% and the profit after tax for the quarter increased to Rs. 279 Mn.
 
The Group’s net interest cost for the six months increased by 97% to Rs. 2,818 Mn due to increase in interest rates as well as increase in borrowings supporting the growth. However, the LOLC Group was able to contain its interest expense through borrowing from foreign financial institutions at a lower cost than borrowing locally. LOLC is one of the few institutions in Sri Lanka with direct access to such funding opportunities due to its financial stability and strength. The ability of LOLC to source funding from foreign institutions will continue to assist LOLC maintain its borrowing cost at a lower level than its peers, thereby gaining a competitive advantage.

The Group’s operating profit before net interest cost for the 6 months to September increased to Rs. 3,267 Mn from Rs. 1,749 Mn last year, an increase of 87%, while the profit after tax increased by 55% to Rs. 425 Mn.

The LOLC Group’s provisioning for doubtful debt for the 6 months increased by 24% to Rs. 150 Mn. However, the provision for the quarter was at the same level as last year, at Rs. 77 Mn with greater emphasis placed on collections and containing non performing loans.
 
Lanka ORIX Finace Company (LOFIN), the fully owned subsidiary of LOLC too reported a strong growth over the 6 months to September. LOFIN’s income increased by 73% from last year to to Rs. 549 Mn.

Further, LOFIN received approval from the Central Bank of Sri Lanka to mobilise foreign currency fixed and savings deposits, in addition to mobilising local currency deposits, a first for the nonbanking financial sector.

Deposits mobilised from customers nearly doubled when compared with the previous year to Rs. 4,642 Mn, displaying the sustained confidence of the public in the Company as a reliable and stable institution even in times of turbulence. The ATM card for savings deposit holders was launched in September, and depositors can withdraw cash from any Commercial Bank ATM, or from the company’s own ATM located at the LOLC head office in Rajagiriya.

Total assets of the Group increased to Rs. 48,654 Mn from Rs. 28,621 Mn a year ago. The rapid growth of the Group was fuelled through the wide reach of the LOLC Group providing easy access to its customers through the island wide branch network and LOLC service centres located at selected LIOC filling stations. Greater convenience to customers was achieved through the strategic alliance with Bank of Ceylon, where customers can now make payments to LOLC through any branch of Bank of Ceylon.
 
Lank ORIX Insurance Brokers, a fully owned subsidiary of LOLC, was the second largest insurance brokerage firm in the Country at the end of the previous year as per the insurance industry statistics published by the Insurance Board of Sri Lanka.

In October, LOLC launched its Micro Credit subsidiary with equity partnership from the Netherlands Development Finance Company, FMO. The Micro Credit subsidiary will enable a more focused service to a significant segment of the population of Sri Lanka with immense potential who would if not find it difficult to gain access to finance. The Central Bank too has granted approval to the Micro Credit Company to conduct leasing operations.
 
Enhanced access to customers has always been a priority to LOLC. This was demonstrated once again when LOLC entered in to an agreement with the postal department of Sri Lanka to service customers through the postal network. To begin with, LOLC commenced micro finance operations in 5 post offices, namely in Malsiripura, Balangoda, Alpitiya, Kuliyapitiya and Godakawela . Mr Jayawardena said that the focus of LOLC’s expansion would be on enhancing the ease of access to finance in the regions, thereby unleashing the true potential of our rural entrepreneurs.

We are pleased to give below description of our company, the role we play in the Insurance market as a professional intermediary and the services offered to our valued customers.
 
Lanka ORIX Insurance Brokers Ltd. (LOIB), is a wholly owned subsidiary of LOLC which has the backing of the world's largest leasing company - ORIX Group of Japan with operations in 24 countries worldwide. We ventured into Insurance brokering operations in 1999 and within a short span of nine years we have grown to be among the top three out of over fifty Insurance brokers registered in Sri Lanka.
 
We also act as the local Re-Insurance representative of Fuji, Fire & Marine Insurance Company of Japan - a Re-insurer rated 'BBB' by 'Standard & Poor'. We have also entered into a strategic alliance with BMS ReInsurance Brokers Ltd. - London, who is ranked among the top 10 in the world.
 
As a professional intermediary, we offer our services to the insuring public and corporate bodies by providing the following at no extra cost to them.
 
Negotiate the most competitive rates and terms with any one of the 16 insurers enabling our clients to enjoy the widest covers available in the market at lowest premium levels.
 
Most appropriate covers to match the specific needs of clients taking the various risk factors and exposure into account.
 
Efficient claim management on your behalf, following-up with the insurers and meeting all technical issues right up to the settlement, ensuring no hassle to our clients and saving their valuable time.
 
In addition, due to the recognition of our rapid growth as a professional intermediary and increased volumes of business, some of the leading insurers viz; 'Ceylinco', 'Sri Lanka Insurance', and 'Janashakthi', have their own manned desks at our office enabling the issuance of Insurance policies over the counter. Moreover, we have representatives in each of LOLC's branch offices, covering 15 districts in the island.
 
Through our own subsidiary of LOIB Financial Services Limited we can even provide services relating to offshore Insurance products, overseas life/travel Insurance and inter alia.
 
With the market place becoming more and more competitive, and the stringent practices adopted by the insurers, clients are in need of the services of a professional intermediary to handle the matters relating to Insurance. We are quite confident that with our expertise, professionalism, responsiveness and courteous service coupled with the corporate – strength of the brand image of prestigious 'LOLC'(Rated among the top ten brands in Sri Lanka), we can easily deliver the highest quality services expected from an Insurance Broker.
 
Today marks a new beginning for us. Our Insurance broking will be taken beyond the conventional norms. New dimensions and new products will be introduced into the market and most of all new thinking will come into focus.

LOLC signed a PCI agreement with the Government of Sri Lanka to take part in the Renewable Energy for Rural Economic Development (RERED) Project. Under this agreement LOLC is able to finance grid connected renewable energy projects, off-grid community based renewable energy projects and solar home systems. LOLC is the only non banking PCI selected for this Financing Scheme.

LOLC has been actively taking part in the projects to uplift the socio economic standards of the people in different sectors. The company ventured into the Development Finance sector in late 90’s and so far they have successfully completed the Tea Development Project (TDP), Plantation Development Project (PDP), Second Perennial Crop Development Project (TDP), Environmentally Friendly Solutions Fund Project II (E-Friends II), EIB Post Tsunami Credit Lines and Construction Sector Development Project (CSDP).

This attests the recognition and the stability of LOLC as a financial institution and its commitment to take part in the projects of this nature to assist the sustainable development.

LOLC, as a premier Total Financial Solutions Provider in Sri Lanka is well known for its innovative spirit and dynamism. LOLC’s product portfolio ranges from Leasing, Asset Financing, Hire purchase, Loans, Working Capital and Factoring, Fleet Management, Insurance Services, Agro and Micro Financing and also non-financial solutions such as IT, Project Development, Real Estate and Forestry, while its subsidiary Lanka ORIX Finance Company Ltd. offers Savings and Fixed Deposits, NRFC & RFC Accounts, Islamic Financing and Pawn Broking; to its customers.

Lanka ORIX Leasing Company PLC (LOLC), an innovative Financial Solutions provider in Sri Lanka launched a range of Shari’ah compliant financial products (financing done in accordance with Islamic Principles) in a media conference held in Colombo recently. The company pioneered Leasing and Factoring to the Sri Lankan financial services sector and continues to make a vital contribution towards the growth of this sector. Lanka ORIX Finance company Ltd, a fully owned subsidiary of LOLC is the only Finance Company in Sri Lanka registered under the Central Bank to be granted approval to mobilize Shari’ah compliant deposits. The entry of the LOLC Group into the arena of Islamic Financing will add momentum to the growth of the product due to rapid product innovations and country-wide distribution through its strategically placed branch network.

Islamic Finance is fast moving from being a niche market product to becoming a mainstream component of the global banking system and is recognized by international bankers and economists. The origins of the concept of Islamic Financing dates back over a 1000 years and it was structured as a form of banking in the 1960s. However the first fully-fledged Islamic bank was formed in 1975 and the surge in the industry came mainly during the last ten years or so. Today, it is a sizeable market internationally with an asset base of approximately $600 billion as at last year and is growing at an annual rate of 35%.This industry has approximately 470 players consisting of Islamic banks and financial institutions.

The newly set up Islamic Business unit of LOLC will offer Ijarah (Leasing), Murabaha (Trade Financing), Mudharabah (Profit Sharing Investments) and Diminishing Musharakah (Property Financing) initially and these services will be supervised by the Shari’ah supervisory board in order to assure that these services are strictly guided by the Shari’ah principles. The company has established a separate Islamic Business Unit (IBU) for Islamic Finance Solutions in order to ensure that this product is managed in strict compliance. The IBU has a dedicated team headed by reputed Islamic scholars of the Shari’ah Supervisory Board. This Unit has its own unique brand identity, namely ‘LOLC Al-Falaah’, which is derived from the Arabic Language and means “success”. The Unit is also supported with the necessary infrastructure such as IT, Documentation and Financial Accounting which are based on Shari’ah principles. All LOLC branches have a Shari’ah certified executive marketing these products.

Group Managing Director and CEO of LOLC Mr. Kapila Jayawardena addressing the media conference said “Apart from the potential for Islamic finance to succeed in the Sri Lankan market, the demand for these products was a compelling reason for us to launch these products. With the assistance of the eminent scholars Ash-Shaikh Fazil Farook and Ash- Shaikh Murshid Mulaffar in the Shari’ah board we will be able to provide fully Shari’ah compliant Islamic services to our clients. These two scholars are executive members of the ACJU (All Ceylon Jammiyyathul Ulama) Banking Advisory Committee, consultants on Islamic Finance and senior lecturers of several Islamic Theological Schools. LOLC’s branch network around the country will allow easy access to potential clients and be a boon to the growth of this sector.

The pioneering leasing company of Sri Lanka with a strong track record of business excellence recorded a cumulative net profit of Rs.370 Mn in the first half of the financial year 2005/2006 reflecting a 32% increase in net profits compared to the previous financial year. These results were supported by a 19% increase in net interest income and a well planned collection drive which enabled the reversal of provisions for loan losses previously made by the Company purely on a prudential basis. The group profits also increased by 37% to reach Rs.431 Mn.
 
Growth in business volumes achieved through LOLC's commitment to deliver a high level of customer satisfaction resulted in a 53% increase in operating profit compared to the 45% growth in operating profit recorded during the first half of the previous financial year. These results which were attained despite volatile market conditions confirm that LOLC is well positioned to achieve sustain growth in a highly competitive market environment. Two new branches were opened at Kegalle and Embilipitiya during the period under review and the branch network now comprise 15 branches.
 
Return on capital employed increased to 28% and astute asset and liability management enabled LOLC achieve a 7% return assets at the end of the first six months. Total assets of the Company grew by 25% to reach Rs.10.3 Bn as at 30th September 2005.
 
Shareholders funds amounted to Rs.2.6 Bn at the end of the second quarter compared to Rs. 2 Bn in previous years. The market capitalization of the group increased to 4.8 Bn from Rs.3.4 Bn in the previous year. The 41% growth in shareholder wealth during this period demonstrates LOLC's ability to provide high returns to all its stakeholders.
 
This year, LOLC is celebrating 25 years of successful performance in Sri Lanka. In view of the commitment to Corporate Social Responsibility (CSR) whilst pursuing profitable economic growth many CSR projects including a Tsunami housing project is included with the events to commemorate the silver jubilee. Large delegation from ORIX Japan is also expected to participate in these events.

The IT arm of the LOLC Group, Lanka ORIX Information Technology Limited (LOIT) a company specialized in developing applications systems to the banking and financial services sector attained Gold Certified Partner status in the Microsoft Partner Programme. LOIT fulfilled the competencies in the areas of Information Worker, Networking Infrastructure and Advance Infrastructure Solutions. As a Microsoft Gold Certified Partner, LOIT has demonstrated expertise with Microsoft technology and proven its ability to meet customers' demands and requirements to the fullest. With this LOIT managed to build a very strong technical team with required capabilities.

“We are extremely pleased to have attained Gold Certified Partner status in the Microsoft Partner Program. This opens a totally new world for our business opportunities in Microsoft Platform based solutions. By virtue of us being able to carry logo, we are able to outwardly show our competencies and convince potential customers. I Wish to thank the Microsoft competency team at LOIT who made it happen and we are committed to build other competencies in the Microsoft Technologies which will further enable us to promote our relationship with Microsoft to our customers” Conrad Dias, Managing Director/CEO of LOIT.
 
Along with the Microsoft Gold Certified Partnership LOIT received several benefits that will help the company to serve the customers better and faster. These include advance access to the latest Microsoft platforms and development environments, new software and products licenses to test drive and carry research and development, training, exclusive web casts, direct access to Microsoft technical support and etc.
 
This award is another milestone in a series of initiatives LOIT has undertaken as a fast growing and focused ICT company. LOIT is a focused partner of Oracle Corporation of USA that offers Oracle Application Consultancy to the market. The company has obtained ISO 27001:2005 certification for the Enterprise Data Center managed by LOIT for Lanka ORIX Leasing Company PLC (LOLC Group) which makes at the first ISO 27001 certified data center in the banking and financial services sector of Sri Lanka.
 
LOLC’s product portfolio ranges from Leasing, Asset Financing, Hire purchase, Loans, Working Capital and Factoring, Fleet Management, Insurance Services, Agro and Micro Financing and also non-financial solutions such as IT, Project Development, Real Estate and Forestry, while its subsidiary Lanka ORIX Finance Company Ltd. offers Savings and Fixed Deposits, NRFC & RFC Accounts, Islamic Financing and Pawn Broking; to its customers.

LOLC, a leading Total Financial Solutions Provider in Sri Lanka opened up a new branch in Dambulla recently. Dambulla being an active economic hub in the region contributes to the development of the entire region. The entrance of LOLC as a leading Total Financial Solutions Provider in the country will immensely benefit the needs of the SME, Agro and Rural sectors of the region. With an array of products ranging from Investments, Insurance, Agro and Micro Finance, Fleet Management, Auto Finance, Factoring, Islamic Finance Products and Pawning on offer, the company has a very strong customer base in Sri Lanka.

LOLC, the Pioneer of Leasing and factoring in Sri Lanka and a leading financial solutions provider in Sri Lanka has entered into an agreement with USAID, whereby USAID will provide a loan portfolio guarantee of US$ 3 million. It is the first Development Credit Authority (DCA) credit Guarantee granted by USAID to a non banking financial services organization in Sri Lanka. USAID has been in operation in Sri Lanka for 50 years now and has invested more than US$ 2 billion in many areas of development within the country. The credit guarantee will provide LOLC with an opportunity of lending more aggressively to the rural community at the grass root level and enable them to actively address the needs of the micro finance sector.
 
Since its inception in 1980 as a result of a joint venture between the ORIX Corporation of Japan and the IFC, LOLC has made a vital contribution to the capital markets of Sri Lanka and in 2003, the company actively ventured into the Micro and Agro finance sector. The company recently realigned its business strategies to provide customer centric solutions and increase synergy amongst the group companies, thereby transforming itself into a Total Financial Solutions Provider. Having considered the track record, solid business direction, transparent governance and strong financial profile of the company many prominent multilateral agencies were keen to partner LOLC in its initiatives in the Micro & Agro finance and SME sectors. The company has made a significant contribution to all these areas and hopes to increase its involvement and focus on these sectors during the ongoing year. LOLC has a geographically widespread branch network, which enables it to reach customers all around the country.
 
The US$ 3 million loan portfolio guarantee covers micro, small and medium sized businesses in agriculture, tourism, fisheries and alternative energy sectors. Initially this credit guarantee will cover the loans made in the Eastern, North Central and tsunami affected areas of the Southern province.
 
"The fact that we have received this Credit Guarantee from USAID bears ample evidence of the reputation LOLC has earned internationally as being a catalyst in the Micro & Agro Finance Sectors. Our contribution to these sectors has assured the multilateral agencies of the benefits the rural community will receive, and also the stability of the company in providing Total Financial Solutions to the people," said Mr.Ravi Tissera, CEO of Micro Finance.

Lanka ORIX LEASING Company opened their latest branch in Wattala amidst a large gathering, recently. In a press release LOLC said that this branch would assists the business community of the area by providing a comprehensive range of financial solutions with an excellent service, which would no doubt make a difference.
 
Seen in the picture is Mr. Ishara Nanayakkara lighting the unique lamp at the opening ceremony.

Lanka ORIX Finance Company Ltd, a fully owned subsidiary of LOLC launched the Foreign Currency Deposit products in a simple ceremony held in the Rajagiriya head office recently. The occasion was graced by the senior members in the management team of LOLC and customers. The customers can walk into any LOLC branch island wide and open NRFC, RFC and RNNFC accounts which will offer very competitive interest rates.

LOLC being a largest financial conglomerate in the country has an array of innovative financial solutions on offer for the customers. The company has been serving the customers for almost 28 years now and has 23 branches and 11 services Centers Island wide, including the Eastern Province.

We have completed installing two security huts at the Medawachchiya check-point with prominent LOLC branding in Tamil and Sinhala. This check-point is quite significant as it has a large amount of vehicular traffic passing through on any given day and all traffic to entering the Northern Province go past this point. Furthermore, all vehicles usually spend a few minutes here as they have to verify their identity. Hence, the visuals on the checkpoints will get more attention. We have put up advertisements for NRFC and Tractor Leasing, as we see these two products to have greater potential. We hope that this will be an excellent opportunity to build/increase awareness of the LOLC Brand amongst the people in the Northern Province who cross the check point every day. Especially with the rapid development expected to take place in these areas, it will be very useful to get the LOLC brand established as a Total Financial Solutions Provider in the minds of the people.

The pioneers in the leasing industry, LOLC opened its latest branch in Polonnaruwa amidst a large gathering. Mr. Ishara Nanayakkara, Deputy Chairman of LOLC, who was the Chief Guest, said in a press release that they were pleased to open a branch in Polonnaruwa as LOLC already has its customers spread around the eastern region, and this branch would further strengthen the relationship with them and will add more benefits to the business community in this bustling agricultural region.
 
Seen in the picture is Mr. Ishara Nanayakkara lighting the unique lamp of LOLC. Mr. Anura Dharmaprema, Head of Recoveries is seen in the background.

Lanka ORIX Leasing Company PLC (LOLC) recently entered into an agreement with ACTED (Agency for Technical Cooperation and Development) an independent international NGO based in France, to enhance the development of the Micro Finance sector in Sri Lanka. Under the agreement ACTED will facilitate capacity building and training support to Lanka ORIX Micro Finance Company Ltd., the group’s Micro Finance subsidiary to uplift the Micro Finance sector in Sri Lanka.

LOLC, as a leading Total Financial Solutions Provider in the country has identified the importance of Micro finance in terms of social and economic development of the rural communities and the company has been playing a significant role towards the development of the Micro Finance sector in the country.

With the widespread network of branches comprising of 23 branches and 10 service centers providing all our services and covering the entire country LOLC can provide Micro Finance facilities to all communities, predominantly rural entrepreneurs in the disadvantaged regions including the North & East.

LOLC relocated their Matara branch to 387/A, Anagarika Dharmapala Mawatha, Pamburana, Matara. The new premises are spacious and have ample parking facilities providing customers greater convenience. LOLC, the pioneer of leasing and factoring in Sri Lanka diversified its product offering to include Savings and Fixed Deposits, Insurance, Stock Brokering, Factoring, Auto Finance, Agriculture and Micro Finance, Pawning and Fleet Management thus transforming itself into a Total Financial Solutions Provider. The company expanded its branch network commencing 1995 taking their tailor - made financial solutions to the customers in the regions marking their presence island wide.
 
"To fulfil the economic needs of the regions we need to expand our branch network. Matara was identified as a town with much economic activity and we opened our second branch here in 1997. Since then, our operations have grown by manifold and it became necessary to move to a more spacious location to serve the needs of the growing customer base."says Mr. Kapila Jayawardane, Group Managing Director and CEO of LOLC.
 
The branch re-location was even more significant, as it is also the 10th anniversary of the LOLC Matara branch. We are looking at providing customers in and around Matara comprehensive Financial Solutions and also expanding our operations to the interior areas around Matara.

LOLC will be the sponsor of the Association of Chartered Certified Accountants (ACCA) first National Conference, titled " Open minds - Creating a Global Competitive Advantage for Sri Lanka".
 
In a press release the Deputy Chairman of LOLC Mr. Ishara Nanayakkara, said that they were extremely pleased to be associated with this programme as it has national value to our country. "The topics are invaluable for a developing country such as ours", he added. The topics taken for discussion are "Vision to succeed", "Add value for Growth", "Switching Course for the Better" and "Creating effective checks and balances". "We too revolve our businesses strategies around the topics listed for discussion", Mr. Nanayakkara went on to say. "herefore, we are extremely pleased to be associated with this event and are confident that it would be tremendously beneficial to the community at large", he mentioned.

Seen in the picture is Mr.Ishara Nanayakkara handing over the sponsorship cheque to the President of ACCA, Mr. Udith Palihakkara, just after the press conference. Also seen in the picture (from left to right) Mrs.Sanjeevani Kotakadeniya, Head of Finance of LOLC, Mr. Dilshan Rodrigo, Chairman - National Conference Committee and Mr. M Wiknesh, Chairman - National Conference Technical Committee of ACCA.

LOLC's Ratnapura branch was relocated recently at 240/A, Colombo Road, Ratnapura to a more spacious and convenient location. The Ratnapura branch was established in 1998 and it had helped many small businesses and individuals to be successful in their ventures in a short time frame said Mr.Ishara Nanayakkara, Deputy Chairman of LOLC, in a press release. We have a range of financial instruments from leasing, loans to fixed deposits, etc., which could be tailor-made to customers' requirements, giving them the best financial solutions, he added.
 
Seen in the picture is Mr. Ishara Nanayakkara handing over a cheque for a loan facility to one of the Ratnapura branch customers, Mr. R S Wijetunge, at the opening ceremony.
 
Seen in the picture is Mrs. Rohini Nanayakkara Chairman, Mr. Ishara Nanayakkara Deputy Chairman cutting the ribbon to declare open the new premises.

Mr. Kapila Jayawardane, recently assumed duties as the Group Managing Director/Chief Executive Officer of LOLC. He was the former Country Head and CEO of Citibank NA, Sri Lanka and Maldives.
 
He has varied experience in the fields of Banking Operations, Audit, Relationship Management, Corporate Finance, Consumer Banking and Treasury Management.
 
Mr. Jayawardane was appointed as the Chairman of the Sri Lanka Banks Association (SLBA) in 2003/04. He has also served as President of the American Chamber of Commerce in Sri Lanka and was appointed to the Financial Sector Reforms Committee (FSRC) by the Prime Minister and is a member of the Finance Sector and Capital markets cluster of the National Council of Economic Development (NCED).
 
Mr. Jayawardena was a key member of the Inaugural Sovereign Rating team for Sri Lanka appointed by the Governor of the Central Bank.Further to his appointment at LOLC, he has been appointed to the Board of Directors of Lanka ORIX Factors Ltd, Lanka ORIX Insurance Brokers Ltd, Lanka ORIX Finance Company Ltd, and Lanka ORIX Information Technology Ltd.

As the pioneers in leasing in Sri Lanka, Lanka Orix Leasing Company Ltd. (LOLC) today celebrates its silver jubilee and a 25 year history for leasing in the country. Today the company looks back at a proud history of having introduced and revolutionized the concept of leasing from corporates to the grassroots across the country, empowering its people with infrastructure, livelihood and employment opportunities.
 
"Having fathered leasing to the country, we have not rested on our laurels. Through the years, LOLC has scored many firsts and still maintains a standing of an innovative and dynamic provider of financial services to the country. This has been proved not merely from a customer perspective but also from a performance perspective, surpassing half a billion in group profits over the last year, recording thrice the growth in profits over the last 5 years"; said Rohini Nanayakkara, Chairperson on the reaching the milestone.
 
Starting out as a leader in leasing solutions, the company has expanded its financial instruments and services to include debt factoring, insurance, finance, share broking and IT services.
 
LOLC is associated with ORIX Corporation, Japan, the largest independent leasing company in the world and the second-largest financial services provider in Japan. Orix today boasts of a worldwide network that not only covers Asia but also the Americas, Europe and the Pacific Rim. Responsible for spearheading and driving leasing across South-East Asia, Orix's spectrum of services includes leasing, corporate finance, real-estate related finance and development, insurance, investment and retail banking.
 
LOLC has also demonstrated its might to withstand the economic ups and downs of the country. The company's sound financial planning and foresight of a diversified credit portfolio softened the impact to the company from the tsunami last year.
 
"We have made steady strides through the years and recently earned the honour of being ranked among the Top 10 Brands in a study conducted by Brand Finance, the world's leading independent brand evaluation company together with Sri Lanka based Sting Consultants and LMD Magazine. From a financial perspective, last year LOLC reached a Return on Capital Employed (ROCE) of 24%. Our superior performance on ROCE, coupled with a market capitalization of Rs. 4 billion, recording a 43% growth in shareholders' wealth, is noteworthy. The company's stability and strength is further demonstrated by the lower gearing ratio maintained at 2.5 and the significant growth in net assets to Rs. 2.3 billion," said I.C. Nanayakkara, Deputy Chairman/Chief Executive Officer on the company's silver jubilee.
 
Looking towards the future, Mr. Nanayakkara said that company possesses a unique financial and brand strength which would be used to 'move LOLC into every sphere of financial services in the country.
 
LOLC's growth has also been well balanced with its duty as a model corporate citizen. Its Corporate Social Responsibility (CSR) begins at home with disciplined and ethical conduct, which has been endorsed with the Best Annual Report Award in the Leasing Sector and the South Asian Federation of Accountants Award (SAFA). Product innovations include a focus on the social development angle seen in its participation in loan scheme 'Renewable Energy for Rural Development' which enables underprivileged communities to obtain Home Solar Systems.
 
Other CSR activities of the company include knowledge empowerment through its 'Viyapara Shilpa' programme, contribution to dengue eradication, IT education in schools, etc.
 
LOLC was set up in 1980 with the participation of Orix Corporation and the International Finance Corporation on the recommendation of the World Bank. Though leasing had a bout of scepticism and resistance initially, the company effectively played a catalyst role in campaigning and marketing the concept to empower people and the development of industry and agriculture in the country.
 
LOLC today operates a group of businesses engaged in leasing, factoring, insurance, financing, stock broking and IT services through five subsidiaries and delivers its services through a network of branches strategically located in major cities and towns in the country.

LOLC (Lanka ORIX Leasing Company) won the first prize at FMO’s (Netherlands Development Bank) Asset and Liability Management (ALM) Competition 2008. This is the second year that FMO organized this competition together with DEG and in cooperation with SIMARCH training. Banks from emerging markets of 25 countries around the World were challenged to participate in an online ALM simulation. After an intense final-round of competition, LOLC emerged as the winner.
 
Asset and Liability Management helps financial institutions to manage the Credit Risk, Interest Risk and Liquidity Risk which is ‘inherent’ to the services they provide. It is essentially a system of matching cash inflows and out flows and thus of liquidity management. It is of paramount importance for a financial institution to meet the required cash reserve ratio and statutory liquidity ratio stipulations regularly in order to have healthy liquidity levels and not to have to purchase funds regularly.
 
LOLC being one of the most innovative Financial Solutions Providers in Sri Lanka has a solid track record of being the winner of many other competitions both locally and internationally. Asset & Liability Management is one of the main areas of focus and a cross functional team possessing treasury, credit management and strategy planning expertise continuously monitor it. The expert knowledge and professionalism of the staff in all areas is considered to be an important resource of the organization and the management constantly invests in training and development and also encourages them to participate in competitions of this nature in order to keep their Knowledge up to date.
 
The ALM competition is part of FMO's continuous investment in capacity building of the Financial Services Sector in strategic regions. Building ALM capabilities is specifically important, as it enables local banks and financial institutions to meet the needs of budding local entrepreneurs effectively. The members of the LOLC Team were Rohan Perera - Group Chief – Treasury, Sanjaya Kalidasa, Dulip Samaraweera & Maheshika Bandara.
 
“It was indeed a great achievement by Our Team. Especially in the present scenario where Asset and Liability Management and Credit Risk Management play an important role for the success of an Organization this attests the sound Knowledge of our staff on credit practices and risk mitigation strategies which is vital for the success of our organization” Said Mr. Kapila Jayawardena Group MD/CEO of LOLC.

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.