eSavings

Tech savvy Senkadagala Finance is coming out with savings products linked purely to teller machines, to mobilise low cost funds. Tech savvy Senkadagala Finance is coming out with savings products linked purely to teller machines, to mobilise low cost funds. The BBB+ (sri) rated company also plans to raise Rs. 250 million shortly through a four-year debenture. The issue will be rated and listed on the Colombo Stock Exchange, says Lakshman Balasuriya, Senkadagala’s Director.

In 2004, Senkadagala raised about Rs. 900 million by securitising part of its lease portfolio. Balasuriya says about Rs. 100 million of this fund raising exercise was rated A (sri) by Fitch Ratings Lanka, to gauge market appetite.

Sri Lanka’s Central Bank recently allowed finance companies to offer savings products, but only a handful of firms have submitted sample savings books for regulatory approval.

The 27 registered finance companies were earlier limited to accept fixed deposits.

The new guidelines give finance companies limited mobility initially. Firms are mandated to cap interest rates on their savings products to the three-month weig