Broad Plans

May 01, 2014 (LBO) – All banks and non bank lenders in Sri Lanka directed by the regulator have given broad plans on a consolidation and some are in talks on acquisitions or mergers, the Central Bank said. Several non bank lenders within business groups have been given the nod to merge.

Banks and large non-bank lenders that have shown interest in merging with or acquiring smaller firms and have already started Board level discussions.

“To facilitate these discussions, due diligence and valuation reports of the respective NBFIs available with the Central Bank have been released to the interested parties, upon completing the necessary legal documentation,” the Central Bank said.

During the first of May all information memoranda, valuation reports and due diligence reports are expected to be completed by appointed auditors, the Central Bank said.

Several strategic investors who want to put in capital are also assessing the firms.

DFCC and NDB Bank are working on a merger.

The Merchant Bank of Sri Lanka PLC, MBSL Savings Bank Limited and MCSL Financial Services Limited which are part of state-run Bank of Ceylon are working to become one finance company.

These reports ba