Early days …
Somewhere in the 1980s, the World Bank began to notice a financial renaissance in Sri Lanka. However, economic expertise identified the need for some catalyzing force to put the fiscal potential on the fast track and thus reap the benefits in the shortest possible time. Growth lacked capital and that impediment had to be overcome – quickly. The World Bank, which was reviewing the capital market in Sri Lanka at the time, advocated many measures. Leasing, a totally new concept to Sri Lankan entrepreneurs, was one of these.

The IFC, the World Bank private sector window requested the Bank of Ceylon to set up a leasing company. Mr. C. P. de Silva, Chairman of Aitken Spence, a leading private sector conglomerate, was chosen to head the fledgling enterprise. Orient Leasing Company of Japan, the largest independent leasing company in the world, already the driving force behind pioneer leasing companies in other regions of South-East Asia, was brought in to spearhead the project. This combination of formidable financial forces galvanized the confidence of capital markets, which in turn resulted in a successful Public Share Issue and LANKA ORIENT LEASING COMPANY LIMITED was launched.

A word about Orient Leasing Company,  Japan. Some years back, this global financial giant underwent a change of name and became ORIX Corporation. It is currently the world’s largest leasing company and Japan’s second-largest financial services provider. In fact, their portfolio of financial services and products cover the entire gamut; leasing, loans, real estate, securities, venture capital, life Insurance, trust banking, commodities funds and more. The outreach covers Asia, the Americas and the Pacific Rim - more often than not with more than one office in every country.

In the beginning, leasing was a totally new concept and as usual, people were sceptical. The initial resistance was prompted by the fact, that under a lease agreement, the leasing company continued to own the article. A campaign of closer communication and effective marketing did not take too long to convince would be lessees that profits accrue through usage – not ownership.

Soon, many areas of enterprise turned to leasing to modernize, expand and grow. Even the rural sector shed its traditional cautious view of anything new and soon LOLC began to play a vital role in industry and agriculture – one which continues to grow in scope.

The steady growth of the demands for LOLC’s services was consequential to the setting up of branch offices. The first branch was ceremoniously opened in Kandy in 1995 and today, the network, which has offices in all major towns, continues to grow.

Innovation continues to hold sway at LOLC which led to the Company chalking up many – ‘firsts’: the first Factoring venture, Lanka ORIX FACTORS Limited, the first Bond Issue, the first Interest Rate Swap, the first Asset Backed Debenture, the first Zero Coupon Bond and many more. This, together with the value additions to many services, emphasis on clearer focus on customer needs, speed in service and dedication to ‘creating lasting value’ all ensure that LOLC stays in the forefront of the field as a true blue-chip company, manned as it is by dynamic yet prudent management, a highly-trained, professional staff and overall, an unswerving commitment to service.

Initially, LOLC set up its subsidiary, Lanka ORIX FACTORS Limited, another pioneering venture by LOLC. This was followed by the incorporation of Lanka ORIX Insurance Brokers, the Insurance arm of the Group. Then realising the potential of the LOLC brand name in attracting investors, Lanka ORIX FINANCE Company was launched. This Company enjoys the distinction of being the first finance company to be approved by the Central Bank of Sri Lanka, under Section 2 of the Finance Companies Act No 78 of 1988 and has the advantage of being the only Sri Lankan finance company with links to a global financial force. Fast moving towards the vision of being a total financial solution provider Lanka ORIX SECURITIES (Pvt) Limited, formerly First Capital DSA Securities (Pvt) Limited, was made a part of LOLC Group. This Company subsequently became the first to launch Live Share Trading bringing both the Stock Traders’ terminal and Back Office System on to the investor’s desk. The newest addition to the group, Lanka ORIX INFORMATION TECHNOLOGY Ltd., was incorporated in March 2004 to provide sophisticated application systems for the financial sector.

The LOLC Group is clearly focused towards realizing its Vision of being the premier financial solutions provider.