Close Scrutiny

The Central Bank has commissioned audit consultants E&Y to do a valuation on six rural development banks up for privatisation.
E&Ys mandate includes coming up with a restructuring model, a three-year financial forecast, recommending future changes for its management and set the tone to prepare an information memorandum for private management.rn

rnAround 47 percent stake in each of the six RDBs endash Kandurata, Ruhuna, Wayamba, Sabaragamuwa, Uva and Rajarata are up for grabs.rn

rnUnder the new structure, the Central Bank, which controls around 67 percent of the rural development banks (RDBs), will continue to hold 20 percent.

The Central Bank had earlier offered the 47 percent stake to RDB employees, who turned it down under bank union pressures. rn

rnThe balance 33 percent, currently equally split among the Peoples Bank, Bank of Ceylon, National Savings Bank and Employees Provident Fund (EPF), will also be up for sale, if the new owners wish to purchase them. rn

rnFormerly known as the Reg