LB Finance secures $ 45 m strategic Swiss funding for MSME lending

• Impact investors responsAbility and BlueOrchard Finance boost LB Finance’s capital base to expand MSME reach

LB Finance PLC has secured $ 45 million in strategic funding from two leading Switzerland-based impact investors, responsAbility Investments AG and BlueOrchard Finance Ltd., a significant milestone in its growth trajectory.

The company said the long-term senior debt facilities comprise a $ 20 million facility from responsAbility Investments AG and a $ 25 million facility from BlueOrchard managed funds. The funding reflects strong alignment between LB Finance’s strategic priorities and the investors’ shared commitment to advancing inclusive financial access in emerging markets.

LB Finance Managing Director Niroshan Udage said: “This partnership marks an important step forward in LB Finance’s journey. With the support of responsAbility and BlueOrchard, we are strengthening our capacity to channel much-needed growth capital to Sri Lanka’s micro, small and medium-sized enterprise (MSME) sector, which plays a vital role in driving employment and economic progress. The confidence placed in us by globally recognised impact investors reaffirms the strength of our strategy and our commitment to responsible, inclusive lending.”

Access to stable and affordable foreign currency funding remains essential for expanding credit to under-served segments of the economy. This partnership enhances LB Finance’s funding base and liquidity position, enabling the company to accelerate the expansion of its lending portfolio, with a strong focus on the MSME sector, a key engine of Sri Lanka’s economic development.

The $ 45 million facility strengthens LB Finance’s balance sheet and positions the company to scale its MSME financing operations more effectively. By increasing access to affordable credit for local enterprises, the company said it aims to empower entrepreneurs, stimulate job creation, and contribute to broad-based economic recovery.

LB Finance Executive Director Ravi Yatawara said: “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. These resources will allow us to deepen our reach among underserved businesses, particularly in sectors that support employment generation and export growth. We are grateful for the trust placed in LB Finance by responsAbility and BlueOrchard.”

The partnership was formalised at AFIFORUM 2026 in Bangkok.

BlueOrchard Finance Ltd., a member of the Schroders Group and the world’s first commercial manager of microfinance debt investments, has deployed over $ 10 billion across 100 emerging markets since its establishment in 2001. responsAbility Investments AG is a Swiss impact asset manager specialising in private market investments in financial inclusion, climate finance, and sustainable food, aligned with the UN Sustainable Development Goals (SDGs) and has deployed $ 17.6 billion in impact investments and manages $ 5.8 billion in assets across 330 portfolio companies in 70 countries. Since 2022, responsAbility has been part of M&G PLC, strengthening its global impact investing platform.

These investments build on LB Finance’s legacy as one of Sri Lanka’s leading non-bank financial institutions, with over five decades of operational excellence and a national long-term rating of A-(lka) with a Stable Outlook from Fitch Ratings.