Lanka ORIX Finance & IFAD Help Manage Foreign Currency Remittances of Migrant Worker Families

25th February 2012, www.island.lk

Lanka ORIX Finance (LOFC), a financial institution with one of the largest deposit bases in the Registered Finance Company sector, entered into a landmark partnership with the International Fund for Agricultural Development (IFAD) headquartered in Rome, Italy to implement a special program to uplift the living standards of rural poor in Sri Lanka by conducting a series of educational programs.

The aim of the initiative is to raise awareness among migrant worker families on meaningful financial management and investment, they hope to economically empower rural Sri Lankans who seek foreign employment through financial inclusion. Migrant workers are given assistance in setting financial goals through special training programs and thereafter guidance and support to achieve same.

"The aim of doing this project is Economic Prosperity for Rural Poor through Remittances Disbursed via Lanka ORIX Finance" says, Mr. Brindley de Zylva, Managing Director/CEO.

Explaining the benefits behind this program Mr. de Zylva added, "This program will offer them a free life insurance cover though the Insurance arm of the Group, LOLC Insurance Company Ltd which will cover any unexpected visits back home in case of a bereavement of an immediate family member or on loss of employment of the Migrant Worker. "

Similarly, the company has linked with LOLC Micro Credit Company Ltd to offer micro loans for income generating activities to reduce the dependence on remittances and ensure a source of sustainable income hastening the return journey of the migrant worker.

In order to ensure that their remittances reach their loved ones safely back home, LOFC has partnered exchange houses such as Xpress Money, Valutrans and Money Exchange – Spain. Lanka ORIX Finance is the only non-banking institution in Sri Lanka to have joined the SWIFT network and be listed in the Bankers Almanac.

Adding further Mr. de Zylva said, "Since launching our Fixed Deposit schemes and our new value additions for Foreign Currency Business, we have attracted many Sri Lankans with investments in Foreign Banks to place these deposits with us. This is a testimony to the strength and stability of LOFC. We also offer better returns for their investments and value added benefits in Sri Lanka."

Senior Citizens are given special treatment with higher interest rates and an emergency medical scheme covered by a strategic alliance with Medicalls.

Nearing a decade of experience as a RFC, Lanka ORIX Finance is the only Finance Company backed by a global financial giant, the ORIX Corporation of Japan and the first/only RFC authorized by the Central Bank of Sri Lanka to engage in foreign currency business. At present, the Company has an island wide presence through its footprint of over 50 branches strategically located at various parts of the island.

Related Info :• Asia Microfinance Forum 2010 in Colombo, Sri Lanka from 12-15 October Sponsored by LOLC

LOLC Seeks Rs 4bn to Refurbish Sri Lanka’s Biggest Coastal Resort Complex

10th January 2012, www.bloomberg.com

Lanka Orix Leasing Co. (LOLC), backed by Japan’s Orix (8591) Corp., is seeking 4 billion rupees ($35 million) to refurbish a coastal resort complex that will become Sri Lanka’s biggest, said Chief Executive Officer Kapila Jayawardena.

The 350-room resort that comprises three of Lanka Orix’s hotels on the island’s southern coast will open by mid-2013, said Jayawardena. The Colombo-based company is seeking “long- term project” funding from both domestic and foreign banks, and is in the process of finalizing a 10-year agreement with “one of the largest hotel operators in the world” to run the complex, he said, declining to elaborate.

Sri Lanka’s $50 billion economy has rebounded, as peace prompts companies including Shangri-La Asia Ltd. and Sheraton Group to build resorts. Arrivals in the South Asian island, one of Conde Nast Traveler’s top five destinations to watch in year 2012, rose 31 percent to a record 855,975 last year. Thailand estimates tourist arrivals to have reached as many as 19 million in 2011.

“We see huge potential in leisure, similar to Thailand,” Jayawardena said in an interview yesterday. “There is now a different economic landscape in Sri Lanka after peace.”

The end of the island’s 26-year civil war in May 2009 has also boosted infrastructure development, consumer demand and agriculture businesses, leading to an economic growth of 8.3 percent estimated for 2011 and 8 percent forecast for 2012, according to the Central Bank of Sri Lanka.

Record Profit

The LOLC group, as the company is locally known, is poised to report record profit in the year ending March 2012, as its core financial services units grow with the economy’s resurgence, Jayawardena said. LOLC, whose businesses include leasing, insurance, micro-credit, agriculture, trading and construction, posted an unprecedented net income of 7.02 billion rupees in the previous financial year.

Orix, a Japanese financial services provider based in Tokyo, is the Sri Lankan firm’s single-largest investor with a 30 percent stake, according to Jayawardena.

Jayawardena said the island’s north and east, which were once the main battle grounds in the war, would contribute to 20 percent of business volumes in the next 24 months, up from 4 percent before peace. LOLC also plans to increase its island- wide network of offices to 200 from 160 in the next 18 months, he added.

“At the moment we feel we have a very comprehensive set of investments in line with economic growth,” he said.

LOLC fell 1 percent to 77 rupees at 10:07 a.m. in Colombo. The shares are down 6.3 percent so far this year, compared with a 3.3 percent drop in the benchmark Colombo All-Share Index.

Hong Kong-based Shangri-La plans to invest $500 million to build a hotel in the island’s capital and $130 million in a second resort in Sri Lanka, Chief Financial Officer Madhu Rao said July 4. The Sheraton Group will invest $300 million in a leisure project in Sri Lanka, the nation’s information department said Dec. 1.

To contact the reporter on this story: Anusha Ondaatjie in Colombo at anushao@bloomberg.net

To contact the editor responsible for this story: Hari Govind at hgovind@bloomberg.net

Related Info :

• LOLC Buys Dickwella Resort for Rs 1bn Making it One of the Largest Resort Owning Companies in Sri Lanka

LOLC Buys Dickwella Resort for Rs 1bn Making it One of the Largest Resort Owning Companies in Sri Lanka

04th January 2012, www.dailynews.lk

Expanding its presence in the booming tourism sector, the LOLC group through its leisure arm, LOLC Leisure Limited has acquired a 99.9% stake of Dickwella Resort for a consideration of Rs 1,014 million.

This unique resort hotel with 76 chalet type luxury rooms is built on around 6 acres of land which is one of the most picturesque localities in the southern coastal belt of the country.

The hotel which is much sought after by an exclusive clientele of European tourists has potential for even further expansion and offers a unique and unparalleled beach holiday experience to its guests who can enjoy the serene beauty with its surrounding view of the Indian ocean.

With this acquisition, LOLC Leisure will hold 600 plus room keys in five beach resorts making it one of the largest resort owning companies in the country.

LOLC Leisure is a 70% owned subsidiary of LOLC with the balance 30% being held by Browns Investments PLC.

LOLC Group Deputy Chairman Ishara Nanayakkara,, the holding company of LOLC Leisure, commented: “We are proud to have acquired this beachside property situated at such a prized location. This acquisition marks another milestone in our

leisure holdings and propels us into the forefront of the hospitality industry.

Dickwella Resort will be another key offering in our bouquet of hotel properties along the western coast of Sri Lanka.

The resort has already carved out a distinctive niche for itself on the global tourist map and we intend to upgrade luxury facilities and enhance the room capacity in the months ahead to catapult it further into a multi-star category

hotel that offers a holiday experience of a lifetime.

The Southern Expressway, now operational, has succeeded in drastically reducing travel time to the resort.

In time to come, the completion of the Colombo-Katunayake Highway will reduce travel time to Dickwella Resort even more.

LOLC Leisure remains committed to consolidating its leisure business in the years ahead and we remain in pursuit of acquiring resorts in unique stunning locations, such as Dickwella Resort.

The resort boasts of a world class luxury spa managed by French wellness expert, Yves.

Located close to Dondra, the resort offers easy access to world famous tourist sites such as Yala, Kirinda, Mirissa beach, dolphin and whale-watching excursions.

LOLC Group, forayed into the leisure sector with LOLC Leisure acquiring Confifi Group hotels in 2010, namely, Hotel Riverina, Club Palm Bay and Eden Resort and Spa.

The two former hotels are closed for extensive renovation and will be reopened in 2013. Operating under LOLC Leisure management, Eden Resort & Spa has just completed the most successful year of operations since its inception in 2010/11.

LOLC Leisure has also acquired Tropical Villas, previously owned by Jetwings and Hayleys, located alongside the other three properties, and which is also under extensive refurbishment.

Related Info :

• Lanka Orix Leasing Company, LOLC, Gets Central Bank Approval to Operate as a Holding Company

6MW Dendro Plant from Sri Lanka's LOLC Group. Cultivate of Gliricidia in Barren Lands for Biomass Electricity Generation

09th July 2011, www.lankabusinessonline.com

United Dendro Energy, a unit of Sri Lanka's LOLC group is building a 6 MegaWatt dendro power plant to be fired by gliricidia with plans to eventually build 24MW of biomass generating capacity, the company said.

The firm was now building a 4MW plant in the southern Kalutara district, which can be expanded to 6MW. LOLC deputy chairman Ishara Nanayakkara told shareholders in the group annual report that the plant is expected to be commissioned in 2012.

LOLC said it was planning to cultivate gliricidia in barren lands in the large plantation sector. LOLC has interests in Maturata and Udupessallawa Plantations companies where it is also building mini-hydro plants in a joint venture with Sri Lanka's Free Lanka group.

Gliricidia leaves can be fed to cattle or used as fertilizer. The group has also invested in a fertilizer firm.

The firm was eventually planning to build a network of dendro plants with a capacity of 24MW.

LOLC and its partner Browns Investments has also formed a joint venture with the state through Gal Oya Plantations, to cultivate sugar cane.

The firm will grow cane in 4,400 hectares and use the baggasse (residue from crushed cane) to fire a 2MW dendro power plant.

Related Info :

• Sri Lanka LOLC Invests in Dendro and Mini Hydro Plants

• Sri Lanka's New Renewable Energy Tariffs Displace Wind as the Most Expensive

• Lanka Orix Realigns Five Associate Bands in Sri Lanka’s Fastest Growing Conglomerate

Sri Lanka LOLC Closes 3 Beach Hotels for Refurbishment. New Hotel Management Company to Transform them into the League of Best Beach Hotels in Asia

09th May 2011, www.lankabusinessonline.com

Sri Lanka's LOLC group has closed three beach hotels it acquired recently - Riverina, Club Palm Garden and Tropical Villas - for refurbishment and modernisation.

The three hotels will be closed for business for 18 months from May 01, 2011 "to complete an accelerated refurbishment programme," a stock exchange filing said.

"This comprehensive property improvement which will be supported by a substantial investment will transform the three hotels into the league of the best beach hotels in Asia," it said.

"After being upgraded the hotels will be managed by a globally reputed hotel management company. The final negotiation with the international operator is expected to be concluded shortly."

Tropical Villas, a beach resort with 50 luxury villas in Beruwela, on the south-west coast was the latest hotel acquired by the LOLC group through a subsidiary, LOLC Leisure.

In May 2010 LOLC group entered the hotel sector by buying three hotels from the Confifi group; Palm Garden, Riverina and Eden, also in Beruwela.

At the time the LOLC group said the acquisition of the fourth hotel means LOLC Leisure has over 25 acres of prime beach front land located on one of the best stretches of beach in the south of the country referred to as a 'Golden Mile'.

The company said it plans to develop all the four hotel properties as a complex of beach hotels under one umbrella.

LOLC said at the time it was holding talks with a "few world-renowned hotel chains" that have shown interest in establishing a partnership with the LOLC group to manage the hotels.

Related Info :

• LOLC Seeks Hotel Chains to Rebrand & Manage Confifi Hotels

• Sri Lanka's LOLC Leisure Buys Jetwings Tropical Villas in Beruwala Golden Mile Beach

• Lanka Orix Leasing Company, LOLC, Gets Central Bank Approval to Operate as a Holding Company

Lanka Orix Realigns Five Associate Bands in Sri Lanka’s Fastest Growing Conglomerate

18th April 2011, www.dailynews.lk By Ravi Ladduwahetty

Sri Lanka’s fastest growing conglomerate-Lanka Orix Leasing Co PLC (LOLC) will shortly realign the brands of five associate companies which will enable them to remain as stand-alone brands while remaining within the image and network of the holding company.

The companies which will realign their brands will be Lanka Orix Finance Co. Ltd, LOLC Insurance Co. Ltd, LOLC Motors Ltd. LOLC Micro-credit Ltd and the LOLC Leisure Group comprising Eden Hotel, Hotel Riverina, Club Palm Bay and Tropical Villas all of Beruwela.

LOLC possesses more territorial opportunities that enable them to easily penetrate through their new corporate branding strategies those are being adopted by the associate companies which will enable them to remain as stand alone brands under the Holding company, LOLC Group Managing Director and CEO Kapila Jayawardena told Daily News Business.

“This will make them stand out on their own, while associating the core values of LOLC. The importance of trust will run through its entirety adding value to the branding experience,” he said.

He said LOLC will be realigning all other associate brands in line with both macro and micro developments and will be introduced to the market on a planned time scale.

The Group Managing Director and CEO further explained that Lanka ORIX Finance Company will continue to function as a distinct financial entity supported by its own operational strength, whilst being a part of the LOLC Group.

Explaining this further he said, “With the recent developments in meeting regulatory requirements.

“We have been well ahead and have taken necessary steps to ensure compliance. We are making a conscious effort to establish Lanka ORIX Finance Company’s independent identity. Thus, we have distinguished it from the LOLC brand allowing it to grow as a stand alone brand. The launch of the new logo itself is a step towards it,” he said.

He reiterates that continuity is of paramount importance to the brands formation and longevity and that the company has evolved from leasing to a total finance solutions provider and then again to a diversified Group of Companies, which required it to inculcate strategic changes to the corporate brand. “This was possible through vertical and horizontal brand extensions,” he said.

He explained that the goal was to earn brand leadership for the LOLC Group and are making headway in developing a few strategic moves in branding, where they will be unveiled on a strategic time plan.

In this process, the initial step was the unveiling of Lanka Orix Finance Co Ltd which took place last week, celebrating its unprecedented success as the fastest growing Registered Finance Company (RFC) in Sri Lanka.

Jayawardena said: “The new logo of Lanka Orix Finance demonstrates the versatility and the independent strength of the Company. We are entering a new phase where this Finance Company is evolving, and where its stellar financial performance speaks volumes of its consistent progress throughout the years. The Company carved a niche position in the financial sector by becoming the fastest growing RFC in the country.

“As Member company of the LOLC Group, it offered lasting and trustworthy financial solutions to all sectors, with the SME sector being one of the primary sectors. As time progressed, Lanka Orix Finance Company evolved into a stoic, mature and responsible corporate citizen. Thus, we gave an already established finance company its own unique identity, in order to further raise the levels of customer confidence,” he said.

Related Info :

• Lanka Orix Leasing Company, LOLC, Gets Central Bank Approval to Operate as a Holding Company

• $15mn Biomass Energy Investment on Dendro Plant for Gliricidia Fuel Wood to Supply National Grid 10MW

• LOLC Seeks Hotel Chains to Rebrand & Manage Confifi Hotels

Lanka Orix Leasing Company, LOLC, Gets Central Bank Approval to Operate as a Holding Company

07th April 2011, www.lankabusinessonline.com

Sri Lanka's Lanka Orix Leasing Company said it has got central bank approval to operate as a holding company of the group.

The group will continue to offer finance leasing products through subsidiaries Lanka Orix Finance Company, Commercial Leasing Company and LOLC Micro Credit, a statement said.

The move will help the group benefit from economies of scale having adopted a shared services model among group firms.

The shared services model has enabled LOLC "harness and maximise the usage of available human resource skills and achieve greater cohesiveness and focus" in its goals, the statement said.

LOLC said it wanted to become a holding company after a several strategic acquisitions and investments made in the financial sector and other "high growth" sectors like leisure, construction, technology, agriculture and renewable energy.

Related Info :

• LOLC Seeks Hotel Chains to Rebrand & Manage Confifi Hotels

• Sri Lanka's LOLC Leisure Buys Jetwings Tropical Villas in Beruwala Golden Mile Beach

• $15mn Biomass Energy Investment on Dendro Plant for Gliricidia Fuel Wood to Supply National Grid 10MW

• Sri Lanka LOLC 48 kW Solar Power Array, the Largest Solar Power System in the Corporate Sector

LOLC Seeks Hotel Chains to Rebrand & Manage Confifi Hotels

24th October 2010, sundaytimes.lk, By Duruthu Edirimuni Chandrasekera

LOLC has zeroed in on three international hotel chain contenders to re-brand and manage Confifi hotels which they recently bought from the Furkhan family, sources close to the company said. They said chains such as Hilton and Accor are interested in managing these hotels.

“We plan to spend roughly US$ 30 million in refurbishing its properties,” a source told the Business Times. The Furkhans sold some of their stakes in related holding companies of the three Confifi hotels – Club Palm Garden (CPG), Riverina Hotel and Eden - to a consortium led by LOLC and Browns in June.

This consortium now own 52% in Confifi Hotel Holdings (owners and managers of CPG) and 25.5% in Riverina which they bought in late May while in June they bought 23.71% in Eden. Further firming its position in the country’s famed golden mile in southern Beruwela, the company bought a 60% stake in Tropical Villas, a beach resort with 50 luxury villas in Beruwela, through a subsidiary LOLC Leisure in August.

“With the Confifi hotels and this latest acquisition, LOLC has now increased its footprint to over 25 acres of prime beach front land,” the source said, adding that the total acquisition cost of all the hotels is more than Rs 800 million.

"Managing hotels is not our business. We bought these hotels as it was a good investment. We want to have a strategic alliance with a major international partner who will manage it for us,” he added.

He said the deal will be finalized soon-possibly by next month.

Sri Lanka LOLC Invests in Dendro and Mini Hydro Plants

03rd September 2010, www.lankabusinessonline.com

Sri Lanka's LOLC group has bought into a wood fired or dendro power plant which is expected to be commissioned and connected to the national power grid in late 2011 and was also investing in 14 mini-hydro plants.

LOLC said it had acquired a 75 percent state in United Dendro Energy (Pvt) Ltd, which is building a 4 MegaWatt wood fired plant.

"A project of this magnitude faces risk in sourcing adequate raw material, which we are mitigating by having our own plantation of gliricidia," deputy chairman Ishara Nanayakkara told shareholders in the annual report.

"Land has been indentified for this purpose and the project is in its design stage with the expectation of commissioning by end-2011."

LOLC said it was also investing in 14 mini-hydropower projects to be built in Maturata and Pussellawa plantations firms at a cost of 30 million US dollars. The group had invested in the two estate firms through its unit, Browns Investments Ltd.

The mini-hydro plants will have a capacity of 27MegaWatts.

Puseellawa Plantations already had two working hydro plants with a capacity of 3.2 MegaWatts.

The two plants were already earning carbon credits. LOLC has also commissioned a 58kiloWatt solar array at its head office building that will supply 15 percent of the building's energy.

Asia Microfinance Forum 2010 in Colombo, Sri Lanka from 12-15 October Sponsored by LOLC

03rd September 2010, www.dailynews.lk

AMF 2010 will be held from October 12-15 and will bring in the whole of Asia as well as from other parts of the world over 550 delegates, among them who would be leading practitioners, investors, policy makers and other capacity builders. The conference will showcase the future direction of the microfinance industry in Asia. Among the participating institutions are Central Banks, commercial banks, specialized banks and leading microfinance institutions.

LOLC was incorporated in 1980 as a joint venture between ORIX Corporation of Japan and the International Finance Corporation (IFC). The company pioneered the concept of leasing as well as factoring in Sri Lanka and has grown today into the LOLC Group with interests spanning sectors of finance, agriculture, trading, construction, fisheries, transport, manufacturing, leisure, tourism, education, information technology, renewable power and energy, project development, real estate, plantations and vehicle repair services. The financial stability and the aggressive operations in the SME, Micro, Agro and rural sectors have enabled LOLC to partner reputed international funding agencies in serving these sectors. The LOLC Group has 83 branches throughout Sri Lanka offering financial services to customers in all districts.

Since 2003 the LOLC Group has been carrying out microfinancing activities and LOLC Micro Credit Ltd (LOMC) was established in 2009 as the microfinancing arm of the LOLC Group to accelerate and expand the business. LOMC is a subsidiary of LOLC PLC with FMO (The Netherlands Development Finance Company) owning a 20 percent stake of LOMC as its shareholder. LOMC is among the largest microcredit providers in Sri Lanka, providing individual as well as group loans for micro entrepreneurs. Operating under the brand name LOLC Isuru Diriya, the company is currently the largest agriculture implements financier in the country.

LOMC is also the only microfinance provider with strategic partnership with SL Post to deliver microloans, operating through 47 Post Offices catering specially to rural micro entrepreneurs.

The LOLC Group has also taken its business expertise beyond the borders of Sri Lanka with a shareholding in PRASAC, a microfinance Institution in Cambodia and hopes to use the international experience for future development of the local Microfinance Industry.

Image: HNB Chairman - BWTP and Marketing and Retail Banking DGM Chandula Abeywickrema handing over the MOU to LOLC Group Managing Director Kapila Jayawardena. LOLC Microcredit Ltd Director/CEO Ravi Tissera looks on.

Sri Lanka LOLC 48 kW Solar Power Array, the Largest Solar Power System in the Corporate Sector

02nd September 2010, www.lankabusinessonline.com

Sri Lanka's LOLC financial group commissioned a 48 kiloWatt solar power array that will supply 15 percent of energy needs at its head office in Colombo, reducing its 'carbon footprint', officials said.

"This is the largest such solar power system set up by the corporate sector in Sri Lanka," LOLC group chief executive Kapila Jayawardena said.

"This would reduce our dependence on the national grid by 15 percent and reduce our carbon footprint."

A 'carbon footprint' is the amount of so-called greenhouse gases usually carbon dioxide, emitted in the course of generating power used by an entity over a period.

Power minister Patali Ranawaka said Sri Lanka's per capita carbon emissions was comparatively low at 600 kilograms a year, compared to 2,200 for India, 5,600 for China and 24,000 for the United States.

He said the government's future power policy was placing more emphasis on renewable sources of energy.

At the moment Sri Lanka's state-run power utility, the Ceylon Electricity Board, generated about 40 percent of its energy through renewable sources, Ranawaka said. CEB has substantial large hydro capacity and also private grid connected mini-hydros.

Jayawardena said LOLC also had a motor vehicle service centre which harvested rainwater for 70 percent of its needs and 90 percent of its water was cleaned to 'drinkable quality' water and recycled.

The LOLC head office uses about 50,000 units (kilowatt hours) of energy a month. The firm already had used solar panels in its possession. It had spent 19 million rupees to import inverters and other equipment to connect the solar panels to the building's power supply.

Officials say the 19 million rupees system has a 10-year pay-back period, based on current tariffs of about 13.50 a unit for active power.

Large commercial establishments are charged on units of active power, a fixed fee and another charge for peak demand, which incorporates a cost for reactive power.

Reactive power is needed to transmit power, though not actually 'used'. Solar panels do not generate reactive power and though reactive power can be inserted with the use of capacitors.

Large hydro plants are one of the cheapest sources of renewable energy. Most other sources of renewable energy, especially solar, are expensive and need tax rebates and other subsidies to make them viable.

Sri Lanka's LOLC Leisure Buys Jetwings Tropical Villas in Beruwala Golden Mile Beach

17th August 2010, www.island.lk

LOLC Leisure, controlled by Lanka Orix Leasing Company PLC has acquired a 60 percent stake, or 6.2 million shares, in Jetwings Tropical Villas beach resort for Rs. 310 million, the company said in a filing with the Colombo Stock Exchange last morning.

"In May this year the LOLC Group made its maiden entry in to the leisure sector by acquiring three hotels namely Palm Garden, Riverina and Eden hotels. With the acquisition of a fourth hotel adjacent to these three, LOLC Leisure limited has now increased its footprint to over 25 acres of prime beach-front land, located on one of the best stretches in the South of the country referred to as the ‘Golden Mile’," the company said.

Quoting Central Bank data, it said the hotels and resorts sector contributed a negative 16.7 percent to the economy during the first quarter of 2009. After the war, the sector made a spectacular recovery to post a 61 percent growth during the first quarter of this year.

"The group is in the process of examining the acquisition of suitable land and conducting studies to launch similar ventures in the East coast of the country," the company said.