The LOLC Group entered into a joint venture with Pak Oman Microfinance Bank Limited to introduce LOLC’s microfinance model to the people of Pakistan.
Having observed LOLC’s effective microfinance business model and its success in Sri Lanka, Myanmar and Cambodia, Pak Oman Microfinance Bank Limited, a joint venture between the Islamic Republic of Pakistan and Sultanate of Oman, invited LOLC to take a majority stake in their microfinance venture.
The value creation process through new bonds will augur well for the country. We want to really have a robust financial sector in Sri Lanka. Renewed optimism has given new impetus to the development of the country, Minister of Finance Ravi Karunanayake said.
The theme of the partnership, ‘ building economic bridges’ is timely and continued efforts are needed to become successful in micro finance which will open new vistas for Sri Lanka. We are much concern of regularizing and safe guarding the field to ensure high level of entrepreneurship, he said.
“We ensure financial discipline and at a time when reducing the fiscal deficit is taking place it will encourage the investors. We look forward to the support of all stakeholders in developing the country and value partnerships of this nature in this regard,” he said.
“The LOLC’s distinctive microfinance model keeps on transforming and enabling micro business to become small and medium level enterprises through sustainable industrialization. Helping thousand of entities and opening of billion of business opportunities to the smallest businesses have shown a boost in growth of an economy.
By helping ‘start-up and small businesses’, we assist them to gain greater confidence through a simplified and unique financial model to progress in any industry of choice,” LOLC Group Managing Director and CEO Kapila Jayawardena said.
“The company is looking at holistic development and it enables and empowers micro entrepreneurs. The company has 400,000 in its client portfolio and is the largest microfinance company in the country. This trailer blazer partnership will share the strategic vision of alleviating poverty and transformative economic development,” he said. Pakistan has untapped potential with regard to micro finance sector and as LOLC is looking forward to new markets and opportunities for growth this partnership will fuel the growth of the company. It will help in capacity building and exposure to capital.
This transaction will continue to spread LOLC’s global foot print 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, he said. Pak Oman Microfinance Bank Limited Chairman Yahiya Al-Jabri said, “We have been proved to correct in dealing with LOLC. We have reinforced our belief and this transaction is the first step in building a strong relationship. We could work towards becoming a leader in economic power in the region.” There are opportunities in the fields of healthcare, technology and trading between the two countries. Our mandate is to provide financial assistance and we believe that this partnership to be a win -win situation. This partnership could support economic development and will be commercially viable. This is the first stepping stone in a long and successful relationship, he said.