Asset Sale

April 27, 2009 (LBO) – Sri Lanka’s Ceylinco Finance said it has decided to sell some of its assets to raise funds to improve its liquidity position. “The company made a decision to divest certain selected businesses and assets including property in Colombo, and land and buildings in suburban areas,” the company said in a stock exchange filing.

“The decision was made mainly to improve the liquidity position of the company.”

Ceylinco Finance is part of the troubled Ceylinco group, but the company recently said it operates independently as a listed firm on the Colombo Stock Exchange and as a licensed leasing company.

This was in response to queries by the public over its links to the Ceylinco group, which is trying to sell off assets to raise funds to pay depositors of an unlisted group firm that collapsed last year.

Ceylinco Consolidated chairman Lalith Kotelawala is in remand over fraud allegations at the unlisted firm that collapsed, Golden Key Credit Card Company.

Sri Lanka’s Supreme Court has halted the sale of assets of Ceylinco Consolidated, an apex firm of the Ceylinco group, Golden Key and the personal assets of the fir