By: Staff Writer
February 03, Colombo (LNW): LB Finance PLC has strengthened its growth momentum after securing $45 million in long-term strategic funding from two prominent Switzerland-based impact investors, responsAbility Investments AG and BlueOrchard Finance Ltd. The funding marks a major milestone for the company as it deepens its role in expanding financial inclusion and supporting Sri Lanka’s micro, small and medium-sized enterprises (MSMEs).
The financing package consists of senior debt facilities amounting to $20 million from responsAbility Investments AG and $25 million from funds managed by BlueOrchard Finance Ltd. The transaction reflects a shared commitment between LB Finance and the investors to promote responsible lending and widen access to finance in emerging economies.
Commenting on the development, LB Finance Managing Director Niroshan Udage said the partnership represents a significant step forward in the company’s long-term strategy. He noted that the additional capital will enhance LB Finance’s ability to channel funding to MSMEs, a segment that plays a crucial role in job creation, income generation, and overall economic resilience.
“Support from globally recognised impact investors such as responsAbility and BlueOrchard reinforces confidence in our strategy and governance framework,” Udage said. “It also enables us to scale our efforts in providing sustainable and inclusive financial solutions to entrepreneurs across the country.”
Access to stable foreign currency funding remains a key requirement for financial institutions seeking to expand lending to under-served sectors. The new facilities strengthen LB Finance’s funding base and liquidity position, enabling it to accelerate portfolio growth while maintaining prudent risk management standards.
The company said the additional resources will be primarily directed towards expanding MSME financing, particularly businesses that contribute to employment, value addition, and regional economic development. By improving access to affordable credit, LB Finance aims to empower local entrepreneurs and support Sri Lanka’s broader economic recovery.
LB Finance Executive Director Ravi Yatawara said securing foreign currency funding of this scale amid challenging global conditions highlights the institution’s strong fundamentals and disciplined financial management. He added that the partnership will allow LB Finance to reach a wider base of under-served enterprises and support sectors linked to export growth and employment generation.
The funding agreement was formalised at AFIFORUM 2026 held in Bangkok, bringing together global development finance institutions and impact investors.
BlueOrchard Finance Ltd., part of the Schroders Group, is recognised as the world’s first commercial manager dedicated to microfinance debt investments, having deployed over $10 billion across more than 100 emerging markets. Respons Ability Investments AG is a leading Swiss impact asset manager with a focus on financial inclusion, climate finance, and sustainable food systems, aligned with the UN Sustainable Development Goals.
The latest investment further strengthens LB Finance’s position as one of Sri Lanka’s leading non-bank financial institutions, backed by over 50 years of operational experience and a national long-term rating of A-(lka) with a Stable Outlook from Fitch Ratings
