LOLC Finance PLC is a

non-banking financial company A non-banking financial institution (NBFI) or non-bank financial company (NBFC) is a financial institution that is not legally a bank; it does not have a full banking license or is not supervised by a national or international banking regulator ...

based in

Sri Lanka Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka, also known historically as Ceylon, is an island country in South Asia. It lies in the Indian Ocean, southwest of the Bay of Bengal, separated from the Indian subcontinent, ...

. LOLC Holdings is the ultimate parent company of LOLC Finance. The company was founded as LOLC Finance Company Limited in 2001. In 2003, the company changed its name to Lanka ORIX Finance Company and commenced operations. Lanka ORIX Finance Company became a

public company A public company is a company whose ownership is organized via shares of share capital, stock which are intended to be freely traded on a stock exchange or in over-the-counter (finance), over-the-counter markets. A public (publicly traded) co ...

in 2011 with its listing on the Colombo Stock Exchange. The company adopted its current name in 2015. LOLC Finance is one of the ''LMD'' 100 companies in Sri Lanka. LOLC Finance has been a constituent of the S&P Sri Lanka 20 Index since the end of 2021. LOLC Finance merged with its sister company, Commercial Leasing & Finance PLC in 2022. The merger resulted in LOLC Finance becoming the largest non-banking financial company in the country.

History

The company was incorporated in 2001 as LOLC Finance Company Limited. LOLC Finance Company obtained a licence from the

Central Bank of Sri Lanka The Central Bank of Sri Lanka ( CBSL; ), known until 1985 as the Central Bank of Ceylon, is the central bank of Sri Lanka. It was established in 1950 under the Monetary Law Act No.58 of 1949 (MLA) and in terms of the Central Bank of Sri Lanka Ac ...

as a finance company in the following year. The company changed its name to Lanka Orix Finance Company Limited and commenced operations in 2003. The company launched its Shariah-compliant banking unit LOLC Al-Falaah in 2008. Lanka Orix Finance Company was listed on the

Colombo Stock Exchange The Colombo Stock Exchange (CSE) (; ) is the main stock exchange in Sri Lanka that utilizes an electronic trading platform. The CSE headquarters have been located at the World Trade Center (Colombo) Towers in Colombo since 1995, and it has regi ...

on 7 July 2011. Lanka ORIX Leasing Company sold 10% of its stake in the company and was listed on the Diri Savi Board of the stock exchange. The Central Bank of Sri Lanka introduced its consolidation "Master Plan" of the financial sector in 2014. Under the consolidation plan, the larger non-bank financial companies were encouraged to acquire smaller companies. The Central Bank informed the LOLC Group that the group could not continue with more than two 'A' category financial companies. The LOLC Group planned to merge Lanka ORIX Finance Company with the group's microfinance firm, LOLC Micro Credit Limited. The company joined the electronic fund transfer network LankaPay in 2015. Lanka ORIX Finance changed its name to LOLC Finance at the end of 2015. The proposed merger of LOLC Finance and LOLC Micro Credit realised in 2018.

Operations

LOLC Finance was ranked 49th in the ''LMD'' 100 list in 2023, a list of public companies in Sri Lanka by revenue annually. Brand Finance has estimated the brand value of LOLC Finance to be LKR7,031 million and ranked the company 20th in its 2022 annual rankings. LOLC Finance was included in the

S&P Sri Lanka 20 Index The S&P SL20, or the Standard & Poor's Sri Lanka 20, is a stock market index, based on market capitalization, that follows the performance of 20 leading publicly traded companies listed in the Colombo Stock Exchange. The 20 companies th ...

at the 2021 yearend index rebalance. In January 2022, LOLC Finance merged with its sister company, Commercial Leasing & Finance. Before the merger, Commercial Leasing acquired and merged with Sinhaputhra Finance PLC. The merger resulted in LOLC Finance becoming the largest non-banking financial company in the country. The shareholders of LOLC Development Finance, another fellow subsidiary of LOLC Finance, approved the resolution of the amalgamation of LOLC Development Finance with LOLC Finance.

Finances

Source: Annual Report, 2022/23 (pp. 190–191)

References

External links

* {{All Share Price Index 2001 establishments in Sri Lanka Companies listed on the Colombo Stock Exchange Companies in the S&P Sri Lanka 20 Index Financial services companies of Sri Lanka Financial services companies established in 2001

History

Operations

Finances

See also

References

External links