Norfund is investing USD 20 million in LB Finance PLC, Sri Lanka’s second-largest non-bank financial institution.
Swedfund is joining with a further USD 15 million. The funding will support LB Finance’s growth in MSME lending across the country, including vehicle financing and gold-backed loans, products that provide essential liquidity to small business owners and self-employed individuals. Part of the financing will also go toward electric and fuel-efficient hybrid vehicles.
MSMEs need better access to finance
Small and medium enterprises make up over 90% of all businesses in Sri Lanka, account for around 52% of GDP and 45% of employment. Access to finance remains one of their biggest obstacles to growth, and LB Finance has built a strong presence in this segment, particularly in rural areas.
Norfund’s first investment in LB Finance
“LB Finance has demonstrated strong growth, prudent capital management, and a clear commitment to expanding access to financial services across Sri Lanka,”
Fay Chetnakarnkul
Norfund's Regional Director for Asia
Beyond capital, Norfund will work closely with LB Finance to strengthen its client protection practices and ESG framework, drawing on technical input from both Norfund and Swedfund.