Close Watch

The governments 20 percent stake in Commercial Bank held through Sri Lanka Insurance Corp. has caught the interest of the International Finance Corp
A fact-finding team from the IFCs Washington office were in Colombo recently to carry out due diligence work. Their findings are expected to be presented to the IFC Board sometime next month, Treasury sources said Monday.rn

rnThe government had earlier opted to shed its 30 percent SLIC stake in Commercial Bank to 20 percent. SLICs new owners will only get a 10 percent slice in the commercial banking giant.rn

rnMonies from the 20 percent sale are to be transferred to SLICs balance sheet.rn

rnIf it goes through, the sale will be mutually beneficial to both parties. IFC is said to be interested in the parcel, provided the price is right. The government is keen not to upset the local banking laws. rn

rnIFC is said to be interested investing in a mix of equity and loan financing.rn

rnCommercial Banks 20 percent stake or 7.8 mn shares is valued at Rs.