Laugfs marks...

Laugfs marks financial services sector entry

Laugfs Group has announced its official entrance into the financial services sector through its subsidiary, Laugfs Capital.

The company will initially be limited to leasing. However, over the course of the next 12 months Laugfs Capital is expected grow into a fully-fledged financial services company, according to the Group’s General ManagerSpecial Projects, Sarath De Silva.

“As a group Laugfs is always looking to invest in high-growth sectors in Sri Lanka’s economy. We have already invested significantly in tourism and the next area of interest for us was financial services.

Generally the development of a country’s economy is directly related to the prominence of its services sector and today, Sri Lanka’s services sector is growing very steadily. Apart from being an indicator of economic progress, it also means that there will be more demand in the financial services sector,” De Silva stated.

As part of its transition into a fully-fledged financial services company, De Silva stated that Laugfs Capital would be listed on the Colombo Stock Exchange by next year, in line with Central Bank of Sri Lanka (CBSL) regulations.

“Laugfs Capital commenced its first leasing operations in February this year and the response that we’ve received so far is very positive. In this sense, the Laugfs brand name will definitely add strength to the company,” he noted.It is believed that CBSL will no longer be issuing specialised leasing licences, having reportedly indicated that all specialised leasing companies should operate as full finance companies over the medium-term. Currently, no official directive on the matter has been issued by the regulator.

Over time, Laugfs Capital will be diversifying into loans business, hire purchase, personal loans and factoring.

Formerly known as Softlogic Credit, Laugfs Capital was re-branded in October last year following a Rs. 103.6 million acquisition representing a 67 per cent stake by Laugfs Holdings.