Announcement of Equipment Leasing Firm Established in Sri Lanka on August 4, 1980

• International Finance Corporation' ,,Press Release No. 81/9 'Monday, August 4, 19 80 1818 H Street. N.W. Washington. D.C. 20433. US.A. 202-477-1234 Equipment Leasing Firm Established in Sri Lanka The first equipment leasing company in Sri Lanka is being established by local ,private and public institutions, by Orient Leasing Company of Japan and by the International Fina~ce Cor·poration (IFC) • The investments are"being made in Lanka Or.ient Leasing Company which will focus initially on lease financing for construction equipment later diversifying into leasing equipment for the manufacturing, trans- portation, agricultural and service sectors. Equity of approximately $1.9 million is being provided by Orient • Leasing Company of Japan, which is the technical sponsor, Bank of Ceylon, the National Development Bank, the Development Fina~ce Corporation of Ceylon, several private-sector industrial and commercial companies led by Aitken Spence and .Company Limited, and IFC, with an investment of $288,500. Bank of Ceylon, which took the lead in establishing the new venture, and the National Development Bank also will provide approximately $2.9 million in medium-term lines of credit. Orient Leasing, one of the, largest independent leasing companies in the world, will help manage the new company in the early years and will assist in establishing procedures and training staff. Lanka Orient Leasing Company is being established in response to growing demand for equipment finance arising from the Government's encouraging greater pri~~te sector participation in economic development programs. The Company will broaden the Sri Lankan financial system by introducing a complementary and more flexible form of telln finance and will help serve the needs of firms with insufficient collateral to qualify • for commercial and development bank credit • (Any inquiries strictly relating to IFC's participation in this project should be directed to the IFC Information Office, 1818 H Street, N.W., Washington, D.C. 20433, Telephone (202) 676-0394.)