LOLC Group subsidiary LOLC Finance PLC (LOFC) has signed an agreement with Swedfund, the Swedish government’s development finance institution (DFI), to receive a total of US$10 million in a senior loan. LOFC is a leading financial institution in Sri Lanka that enables financial inclusion, an increased tax base and job creation. According to Swedfund, these are important tools to reduce poverty and support democratic development.
“Swedfund’s investment contributes to financial inclusion in Sri Lanka by empowering a growing number of local small and medium-sized companies. LOFC contributes to mobilisation of domestic resources, creating job opportunities and stimulates government tax revenues,” a Swedfund statement said.
Financial inclusion is a key contributor to Swedfund’s mission to eradicate poverty by contributing to improved standards of living through job creation. But also improved gender equality in workplaces and improved access to basic products, services and capital for women, says Maria Håkansson, Swedfund’s CEO.
LOLC Group has a long-standing partnership with several DFIs and has been acknowledged for the developmental and transformational role in its communities of operation, led by a business model where there is a particular emphasis placed on the empowerment of women as the driving force behind making this a reality.