LB Finance secures US$ 45mn from Swiss impact investors to expand MSME lending

LB Finance PLC yesterday said it had secured US$ 45 million in long-term foreign currency funding from two Switzerland-based impact investors, strengthening its balance sheet and liquidity at a time when access to stable external funding remains critical for Sri Lanka’s non-bank financial sector.

The facilities comprise a US$ 20 million senior debt line from responsAbility Investments AG and a US$25 million facility from funds managed by Blue Orchard Finance Ltd, marking one of LB Finance’s largest recent foreign funding transactions.

“This partnership marks an important step forward in LB Finance’s journey. With the support of responsAbility and Blue Orchard, we are strengthening our capacity to channel much-needed growth capital to Sri Lanka’s MSME sector, which plays a vital role in driving employment and economic progress,” Managing Director Niroshan Udage said. 

LB Finance said the funding would be directed primarily towards expanding credit to micro, small and medium-sized enterprises (MSMEs), a segment that continues to face constraints in accessing affordable financing despite the broader stabilisation of the macroeconomic environment.

The company said the inflows would enhance its funding mix and support the acceleration of its lending portfolio, particularly to under-served sectors linked to job creation and economic recovery.

“Securing this level of foreign currency funding in the current global environment underscores the strength of LB Finance’s fundamentals and our track record of prudent financial stewardship,” LB Finance Executive Director Ravi Yatawara said. 

“These resources will allow us to deepen our reach among underserved businesses, particularly in sectors that support employment generation and export growth.”

The agreement was formalised on the sidelines of AFIFORUM 2026 in Bangkok, underscoring continued international appetite for exposure to Sri Lanka’s financial inclusion and MSME segments through established local institutions.

Blue Orchard, part of the Schroders Group, has deployed more than US$1 0 billion across 100 emerging markets since 2001, while responsAbility focuses on impact investments in financial inclusion, climate finance and sustainable food, with US$ 17.6 billion deployed since inception.

LB Finance, one of Sri Lanka’s largest non-bank financial institutions with over five decades of operations, holds a national long-term rating of A-(lka) with a stable outlook from Fitch Ratings.