LB Finance secures $ 35 m in long-term funding from Norfund and Swedfund

LB Finance PLC has secured long-term funding of $ 20 million and $ 15 million from Norfund and Swedfund, respectively. 

This marks the first time LB Finance is entering into a partnership with these reputable European Development Finance Institutions (DFIs). As the second-largest Non-Bank Financial Institution (NBFI) in Sri Lanka, LB Finance commands total assets exceeding Rs. 400 billion. The company holds an A-(lka) credit rating with a Stable outlook from Fitch Ratings, and an A+ rating with a Stable outlook from Lanka Rating Agency (LRA).

LB Finance has a strong presence in the Micro, Small, and Medium Enterprises (MSMEs) sector and is keen to utilise the expertise of these DFIs to improve its ESG compliance and reporting framework. The funding will be utilised to support MSMEs, promote the adoption of modern and climate-smart agricultural technologies, and finance electric vehicles as well as fuel-efficient hybrid vehicles, contributing to sustainable economic development and environmental stewardship 

Commenting on these partnerships, Executive Director Ravi Tissera said: “It is a privilege for us to work with Norfund and Swedfund, two globally respected development finance institutions. We are currently in an exponential growth stage, and securing these funding facilities enables us to focus on our growth strategies with greater vigor. It also allows LB Finance to align its ESG policy framework with global best practices while aiming to utilising the technical assistance and guidance offered by these two DFIs.”

Norfund is Norway’s state-owned development finance institution established in 1997. Norfund’s role is to assist in building sustainable businesses and industries in developing countries by providing equity capital and other risk capital. In 2025, Norfund invested a record NOK 8.4 billion, reaching a total portfolio of NOK 45.5 billion. Its portfolio supported 788,000 jobs and reached 12.7 million new financial services clients.

“LB Finance has demonstrated strong growth, prudent capital management, and a clear commitment to expanding access to financial services across Sri Lanka. Our investment supports a leading institution that contributes meaningfully to financial inclusion and economic resilience in the country,” says Norfund Regional Director - Asia Fay Chetnakarnkul.

Swedfund is Sweden’s state-owned development finance institution. Established in 1979 and operating under the Swedish Ministry of Finance, it promotes sustainable economic growth and poverty reduction through investments in developing countries. In 2025, Swedfund invested approximately SEK 3.7 billion, bringing its total portfolio value to SEK 14 billion. Its portfolio supported 488,000 jobs and contributed to women’s economic empowerment through 58% of its investments.

“Access to finance is critical for MSMEs to invest, grow and create jobs. At a time when long-term funding remains constrained in Sri Lanka, this investment will help increase funding for smaller businesses while also supporting the transition to more sustainable transport. LB Finance’s focus on MSMEs and extensive presence outside Colombo will help reach businesses that are often overlooked by traditional lenders,” says Swedfund  Investment Director Björn Areskog.

With these latest facilities, LB Finance continues to build on its legacy, leveraging strategic international partnerships to drive financial inclusion, focus on developing SMEs and MSMEs, strengthen its balance sheet, and support sustainable economic development across the country.