Having reached its 50 year mark, LB Finance (LBF) has successfully raised $ 15 million over a 4 year period, from the Dutch Entrepreneurial Development Bank: FMO. (FMO is a Dutch development bank structured as a bilateral private-sector international financial institution based in the Hague, the Netherlands. FMO manages funds for the Ministries of Foreign Affairs and Economic Affairs of the Dutch government to maximise the development impact of private sector investments.)
The loan will be used to improve the SME sector in Sri Lanka, a sector that is lacking in funding. SME funding is usually regarded as “risky” by larger banks and thus many SMEs are easily denied funding. However, more funding, provided by LBF will increase their participation in national progress and development.
This initiative aligns with LBFs goal to create financial inclusion within the SME sector. The loan will contribute towards reducing inequalities. It will be made available, with special preference given to agri and youth clients.
FMO supports sustainable private sector growth in developing countries and emerging markets, through investments in projects and entrepreneurs. It believes that strengthening the private sector results in better social and economic development. It focuses on three sectors that have high impact with regards to development:energy and agribusiness, financial institutions, food and water.
LB Finance which was first established in 1997, has now expanded globally, setting up operations in Myanmar and contributing to financial inclusivity there as well.
LBF successfully received the “Best Financial Service provider” award at SLIM Nielsen – People’s Choice awards, for the 3rd consecutive year and won the Gold award in the NBFI Sector, at the 2019 CA – Sri Lanka Annual Report awards, for the 3rd consecutive year.