Govt. committed to building robust financial system: Ravi K

Minister Ravi Karunanayake on Friday said the Government was committed to building a robust financial system in the country. 

“Financial and fiscal discipline is improving under the new Government and this positive atmosphere has made global investors look at Sri Lanka favourably,” the Finance Minister said at a ceremony where the LOLC Group inked a historic joint venture with Pak Oman Microfinance Bank Ltd. to introduce LOLC’s exceptional and globally accepted microfinance model to the people of Pakistan.

“We need more investors and the Government is ready, willing and able to assist and we are committed to developing a robust financial system in Sri Lanka,” Karunanayake added.

Having observed LOLC’s uniquely effective microfinance business model and its success stories in Sri Lanka, Myanmar and Cambodia, Pak Oman Microfinance Bank Ltd, which is a joint venture between Pakistan and Oman, invited LOLC to take a majority stake in their microfinance venture. 

The Finance Minister described the LOLC initiative as a “momentous and a salutary effort” and the move to build economic bridges between Sri Lanka, Pakistan and Oman was timely when Sri Lanka was repositioning itself globally. 

He expressed confidence that the partnership would open new vistas for the development of the microfinance industry in Sri Lanka. 

“Microfinance has gained momentum in Sri Lanka over the years and contributed to bringing down poverty and unemployment,” Karunanayake said. 

However, the Finance Minister noted that the Government was keen on the regulation of the microfinance industry and ensuring adequate safeguards to prevent lending agencies exploiting the beneficiaries. 

“The microfinance authority to be set up will require all microfinance companies to be licensed and operate under certain guidelines to create a level playing field and ensure equitable benefit for micro-level entrepreneurs who contribute to socioeconomic growth,” Minister Karunanayake added.

LOLC Group Managing Director Kapila Jayawardena said the historic and trailblazing partnership was the start of an exciting journey and arises from a shared strategic vision of alleviating poverty. 

Pak Oman Investment Company and Pak Oman Microfinance Bank Chairman Yahya Al Jabri also said the partnership was the first step towards a more mutually beneficial long-term relationship. He said there was greater potential for more cooperation between Sri Lanka, Pakistan and Oman at the government and private sector level. 

He said that Pak Oman Investment Company would seek more opportunities with LOLC in the areas of healthcare, information technology and trading as well as infrastructure financing.