Alliance Finance Company

Subsidy : December 2025

BIO has granted EUR 7,195 of technical assistance to Alliance Finance Company, the oldest finance company in Sri Lanka.

Amount

$ 8,373.00

Type of investment

Subsidy

Beneficiary locations

Asia: Sri Lanka

Investment field

Financial Institutions

Activity

KK.64.191 Microfinance institution

Organisation

Alliance Finance Company

Domicile

Sri Lanka

Alliance Finance Co. PLC (AFC) is the oldest finance company in Sri Lanka with a legacy of over 69 years of serving its customers, supporting financial inclusion and sustainability. Incorporated in 1956, it now operates with an island-wide network of 91 points of presence and a team of 1,832 employees. It offers a range of financial products, primarily targeting low-income segments, largely concentrated in rural areas, with a wide outreach, small loan sizes, and a large savings and deposits base.
The institution’s efforts align with some of Sri Lanka’s national development policies. AFC’s SME lending supports the government’s “Enterprise Sri Lanka” program, which aims to empower small businesses and stimulate regional economic development. Furthermore, AFC integrates the UN Sustainable Development Goals into its business strategy, with ambitions to reduce carbon emissions and promote social enterprises.

Its issuance of Sri Lanka’s first green bond by an NBFI — listed on both the Colombo and Luxembourg stock exchanges— and recognition under the Sustainability Standards and Certification Initiative highlight its expertise in sustainable finance. BIO is currently in due diligence phase to prepare an investment in AFC. During the assessment, some questions have been raised regarding the level and respect of client protection procedures, and more broadly, the integration of Environmental and Social performances management within the institution.

Technical assistance

BIO has supported AFC for designing a technical assistance to accompany the institution in conducting their first external accompanied SPI5 Self-Assessment, which is, by design, a full audit tool that offers a comprehensive assessment to evaluate an organization’s strengths and weaknesses regarding overall social and environmental performance management (SEPM).