In the Sri Lankan, local loans and development fund and local authority play a pivotal role in the quest for sustainable growth and development. And at the helm of the local authorities’ development march toward progress is the of the local loans and Development fund. As the country’s pre-eminent Local authority financial institution, LLDF has taken upon itself the strategic task of influencing and accelerating sustainable economic growth, through the provision of finance resources, for the continued well-being of the Sri Lankan people.
The LL& DF, under its new charter, is classified as a statutory body and may perform lending functions of a development bank.
Its primary objective is to provide local authorities infrastructure development and public utility services principally to cater to the medium and long-term needs of local authority communities with emphasis on local authorities community development needs.
According to the provisions of the ordinance Minister in charge of the subject of local government appoint 13 members to administer the fund and 8 of them are recommended by the Governor of respective provinces. The secretary to the ministry of Local Government is the chairman. In 2016 the composition of the Board has been dramatically changed in order to make the fund more powerful in terms of administration. As a result the Current board is a combination of Local Government Commissioners and Chief Secretaries of respective provinces. Further LLDF believes that maintaining a strongest workforce is a critical success factor for its sustainability and With more than ten decades of committed advocacy as the country’s premier local authority financing institution
LL&DF’s history can be traced back during the Commonwealth when the infrastructure for local authorities and public utility development financing was laid by the National Government. The prime function of LLDF is to meet the capital investment needs of the local authorities namely Muncipal councils, urban councils and Pradeshiya Sabhas totaling 340 nos and it provides finance at a concessionary rate of interest.