Bank Bids

May 07, 2009 (LBO) – Sri Lanka’s central bank said two short-listed prospective investors have submitted their bids for a controlling stake in Seylan Bank. Seylan is part of the troubled Ceylinco group.

Seylan was put under the wings of state-run Bank of Ceylon by the regulator after a run on its deposits triggered by the collapse of an unregulated financial firm in Ceylinco. “In response to the invitation by the Central Bank to be a strategic partner of Seylan Bank, two short-listed prospective investors have submitted their bids,” the central bank said in a statement.

It did not identify the short-listed bidders.

The bids are being evaluated by a central bank committee set up to examine the proposals, the bank said.

The central bank Monetary Board is expected to make the final decision by May 20, 2009 and notify the successful bidder immediately thereafter, it said.

Central Bank governor Nivard Cabraal had said earlier that a number of prospective buyers interested in Seylan Bank have tied up with foreign partners to bid for a 33 percent stake in the bank.

The Central Bank said six parties responded to a call for expressi