LB Finance PLC has strengthened its growth trajectory by securing $ 45 million in long-term foreign currency funding from two Switzerland-based impact investors response Ability Investments AG and Blue Orchard Finance Ltd in a move that reinforces international confidence in the company and Sri Lanka’s broader economic recovery.
The funding consists of a $ 20 million senior debt facility from response Ability Investments AG and a $ 25 million facility from Blue Orchard-managed funds. LB Finance said the partnership reflects a strong alignment between its strategic priorities and the investors’ shared commitment to promoting financial inclusion and sustainable growth in emerging markets.
The long-term facilities are expected to enhance LB Finance’s balance sheet and liquidity position, enabling the company to expand lending to under-served segments of the economy, with a particular focus on micro, small and medium-sized enterprises (MSMEs). The MSME sector remains a critical driver of employment, entrepreneurship, and economic activity in Sri Lanka, yet continues to face constraints in accessing affordable credit.
Commenting on the development, LB Finance Managing Director Niroshan Udage said the funding marks an important step in the company’s journey. He noted that the support from respons Ability and Blue Orchard will strengthen LB Finance’s ability to channel much-needed growth capital to MSMEs, helping to stimulate job creation and economic progress. Udage added that the confidence shown by globally recognised impact investors reaffirms the robustness of LB Finance’s strategy and its commitment to responsible and inclusive lending.
Access to stable foreign currency funding has become increasingly important as Sri Lanka navigates a gradual economic recovery and demand for credit rises across productive sectors. LB Finance said the new funding will allow it to accelerate the expansion of its lending portfolio while maintaining prudent risk management and financial discipline.
Executive Director Ravi Yatawara said securing significant foreign currency funding in the current global environment underscores the strength of LB Finance’s fundamentals and its track record of sound financial stewardship. He added that the resources will enable the company to deepen its reach among underserved businesses, particularly those supporting employment generation and export-oriented growth. Yatawara also expressed appreciation for the trust placed in LB Finance by both investors.
The partnership was formalised at AFIFORUM 2026 in Bangkok, a regional forum that brings together development finance institutions and impact investors. Both responsAbility and BlueOrchard bring extensive global experience in financing inclusive growth initiatives across emerging and frontier markets.
BlueOrchard Finance Ltd., a member of the Schroders Group, is the world’s first commercial manager of microfinance debt investments and has deployed more than $ 10 billion across over 100 emerging markets since its inception in 2001. responsAbility Investments AG is a leading Swiss impact asset manager specialising in financial inclusion, climate finance, and sustainable food systems. Aligned with the UN Sustainable Development Goals, responsAbility has deployed $ 17.6 billion in impact investments and manages $ 5.8 billion in assets across 330 portfolio companies in 70 countries. Since 2022, it has been part of M&G PLC.
The latest funding builds on LB Finance’s legacy as one of Sri Lanka’s leading non-bank financial institutions, supported by more than five decades of operations and a national long-term rating of A-(lka) with a Stable Outlook from Fitch Ratings.
