Its provisioning for bad loans went up to 76 million rupees from 13 million rupees a year ago.
First half net profit was down 23 percent year-on-year to 283 million rupees.
In a breakdown of its results for the six months to September, LOLC said leasing, hire purchase and other products brought in pre-tax profits of 314 million rupees, followed by 70 million rupees from factoring and 14 million rupees from insurance brokering.
Securities brokering made a loss of 11 million rupees.
The company said its subsidiary, Lanka Orix Factors, bought a 51 percent stake in Sundaya Lanka (Private) Limited for 6.2 million rupees on 30 August 2007.