LFSUS established in 2006 and registered as a Company limited by guarantee in 2007. The seed capital was provided by the UN-Habitat after signing an agreement with the Government (.Ministry of Urban Development)
LFSUS provides credit guarantees to the commercial banks to encourage them to finance MFIs/ NGOs for the development of housing sector for its low income members.
The United Nations in its endeavor to address the issues of poverty, sanitation and housing for billions of marginalized communities across the world, set up The Slum Upgrading Facility (SUF) Pilot programme of UN-Habitat in 2004 to address these issues. The projects were initiated in Kenya, Tanzania, Ghana, Indonesia and Sri Lanka. The success of this programme in Sri Lanka has opened new vistas for future development and expansion. UN- Habitat provided US $ 1.4 million to LFSUS as seed capital to implement the credit enhancement facility.
LFSUS in partnership with Banks provides a wide gamut of housing requirements. The methodology adopted is a Guarantee mechanism of LFSUS as a comfort for bulk bank loans granted to MFIs in order to grant small housing loan facilities to the rural folk.
LMPA is the pioneer in microfinance networking among microfinance practitioners in Sri Lanka, and was initiated on the 31st of March 2006. The Lanka Microfinance Practitioners’ Association is incorporated as a non-profit organization under the Companies Act No. 7 of 2007.