Lanka Credit and Business Finance to open newest branch in Karapitiya

Lanka Credit and Business Finance Ltd., the first finance company to spring from the soil of southern Sri Lanka opens the newest branch in Karapitiya – Galle on 24 January. It created history in the Southern Province by being the first finance company to be registered in the province under the Companies Act No. 7 of 2007 (Reg. No. PB 5329), and commenced operations through its first branch at Galle, the capital of the province, on 16 May 2016.

It was backed by an admirable and prestige group of founder investors and directors and dedicated key executives who guided the affairs of the company complying with the regulatory requirements of the Central Bank of Sri Lanka and statutory requirements of the Finance Business Act No. 42 of 2011, the Finance Leasing Act No. 56 of 2000 to build a strong base financially and a healthy reputation among its customers.

Recognising its financial strength, best management practice and the directions provided by our board, the Monitory Board of the Central Bank of Sri Lanka transferred the management and the control of the City Finance Corporation which was under their control and supervision until then. With this take over it restructured its financial institute under finance business Act No. 42 of 2011 under a new business name ‘Lanka Credit and Business Finance Ltd.’ (LCB Finance).

It plans to expand its services to cover business, industrial and private segments of the country by providing savings and lending products to meet life’s objective as follows:

To the saving community to secure their future from kids to the pensioners ‘Podiththa’, ‘Smart’, ‘Regina’, ‘Uththama’ and certificates of deposits for all.

To entrepreneurs it provides finance to meet working capital requirements, credit to individuals for viable self-employment activities, 

To salaried employees’ loans for housing and lease finance or hire purchase facilities to acquire vehicles consumer durables. 

To meet unexpected domestic cash needs it provides Gold Loans at a very attractive rate of advance in relation to market value of gold mortgaged. Its professional and knowledgeable Board of Directors consists of the following people:

Emeritus Professor W.M. Abeyrathna Bandara (Chairman of the Board of Directors), K.G. Leelananda (Executive Director, Chief Executive Officer and Founder Director), R.L. Masakorala, A.G. Maheen Priyantha, U.K.H.R. Ranasinghe, K.I. Weerasinghe, J.W. Nanayakkara, S.W. Subasinghe, V. Lokunarangoda, G.K. Nanayakkara and S.A.K. Alahakoon.

It is backed by a team of key executives who are experienced and professionals in their respective fields of activity. It has been granted the status of ‘Authorised Money Changer’ of the Central Bank of Sri Lanka and its branches are recording a considerable progress in this activity. Its customers will be able to pay their utility bills at its counters and effect fund transfers through SLIP system and receive remittances through Western Union especially from family members employed overseas shortly.

In the finance industry it created a record by turning around three financial institutions whose licenses were on the brink of being cancelled by the regulatory authorities. It is pleased to place on record its financial achievements as at 31 December 2018 as follows:

Turnover Rs. 264 m, Profit for the Period 280 m, Share Capital 3,091 m, Assets 2,185 m, Loan Portfolio 1,282 Capital Adequacy Ratio 42.37%, Core capital 1,080 m, No. of Employees 82 and No. of Branches 7 (with the new branch at Karapitiya).

Mapping for the future, it plans to strengthen its Capital base, reduce incidence of non-perfuming credit through perpetual monitoring the loan portfolios at branch level and adhering to proactive recover procedures. At present it reaches its customers through its branches located at Kohuwala (Head Office) Galle, Karandeniya, Mirissa, Pelawaththa, Rathgama, and its new branch at Karapitiya backed by its Southern Province Regional Office at the same premises

It is confident that with the due approval of the regulatory authorities it would be able to fulfil its aspiration to increase its branch network up to 25 branches by the year 2020. 

It also plans to employ more than 50 field staff to provide door to door services to its customers, which would involve among others deposit mobilisation and loan recovery. This would no doubt create employment opportunities to its qualified school leavers fulfilling an ominous need in our society. As it augments its financial standing it envisages becoming a listed company in the Colombo security exchange with due approvals from the regulatory and statutory authorities (CBSL).

To serve its clientele more efficiently it plans to provide Auto Mated Tellers (ATM) service shortly utilising its own system and by entering to sharing arrangements with selected Commercial Banks.

Its IT capacity is to be enhanced by procuring a core banking package and the required infrastructure is being developed, which would improve its digital capabilities towards providing efficient and speedy service to its customers and also meet the reporting requirements of the Central Bank of Sri Lanka and its Management Information Capabilities (MIS).

It wishes to place on record on the date of its opening of its seventh branch its appreciation of the trust placed by its valued customers so far, which it will treasure in its long journey to realise the aforesaid objectives, in the financing segment of the economy, of our motherland. It extends thanks to the regulatory authorities for the guidance extended in its endeavour to build the company to reach this point, in its brief history. It wishes its existing and future customers a bright future.