Local Loan Development Fund (LLDF)

 
The Local Loans and Development Commissioners (LLDC) is a statutory body created under the Local Loans and Development Ordinance No.22 of 1916, presently operating under the Ministry of Finance & Planning (MFP). The Local Loans and Development Fund (LLDF) is a fund formed under the LLDC located at 17 A Barnes Place, Colombo 7. Its main functions include granting and administering loans for investment in infrastructure development and revenue-generating projects of local authorities (LAs). LAs are of three types: Municipal Councils, Urban Councils and Pradeshiya Sabah’s. A Board of Commissioners (BOC), comprising of 15 members manages the LLDF. The minister in charge of portfolio of local government appoints all commissioners, but since May 2010 this is done with the explicit approval of the MFP, since MFP became the subject ministry. The BOC constitutes the body corporate and has the legal authority under this ordinance. The Secretary, Ministry of Local Government and Provincial Councils (MLGPC) is the Chairman of the BOC.
 
The Chief Executive Officer (CEO) of the LLDF appointed by the BOC as directed by the MFP, looks after the day-to-day administration, presently supported by a staff of twenty-five; ten at the central office (Colombo) and fifteen positioned across the Island. The LLDF thus falls under the direct purview of MFP and the indirect purview of the MLGPC and is, thus, not an autonomous body. The main objective of the LLDF is to provide loans to LAs at a concessionary rate for the purpose of any work of public utility such LA may be authorized to undertake by law. It can obtain loans from (i) the consolidated fund, (ii) any commercial bank, (iii) any Government-sponsored lending institution, or (iv) any LA. It cannot borrow funds from capital market and/or general public. Since it does not accept deposits from the general public, it is at present not required to or subject to regulation of the Central Bank of Sri Lanka.
 
 
VISION
To be the leading Financial Institution for local level infrastructure financing
 
MISSION
To become an autonomous and sustainable financial institution providing long term financing for basic infrastructure services and to contribute to the social and economic development of the country.
 
OBJECTIVES
 
Provision of Loan requirements’ at a concessionary rate of interest to any Local Authorities in the country for the purpose of any work of public utility such Local Authority may be authorized by law to undertake. (Granting of Loans are restricted only to Local Authorities)
 
FUNDS
 
In the past (up to year 2004) funds for the purpose of granting loans were provided by the Treasury in the form of a long term loan at a concessionary rate of interest. With the commencement of loans recovered under ADB Loan (No.1632 SRI (SF)) since year 2002, a revolving facility of funds are available for the purpose of granting of loans.
 
ESTABLISHMENT
 
Local Loans & Development Commissioners is a Statutory Body established under the Local Loans and Development Ordinance No. 22 of 1916 and amended by Ordinance Nos. 6 of 1930, 25 of 1931, 43 of 1938, 21 of 1942, Act No.29 of 1949, Law No.9 of 1974 and Act No. 24 of 1993 and functions under the Ministry of Local Government & Provincial Councils during the year 2009 as well.
 
Loans granted for the following purposes,
 
 
Category
Interest Rate
Repayment Period (years)
1
Construction of Weekly Fair & Economic Centers
7.5%
10
2
Solid Waste Management Project
6.5%
10
3
Construction of Crematoria
7.5%
10
4
Community water Supply/ Sewerage System
8.0%
10
5
Construction of Office Building and Libraries
8.0%
10
6
Purchase of Equipment for Road Maintenance and Sanitation
9.0%
05
7
Construction of  Market Building
12.0%
10
8
Other Income Generating Projects
7.0%
10
 
 

Gallery

dsc_0227 dsc_0220 dsc_0212 dsc_0198

PC Information

Recent Posts