Finance Proposal

Nov 25, 2013 (LBO) – Sri Lanka’s central bank said budget proposals to boost mergers will strengthen finance companies. The full statement is reproduced below:-

Strengthening Finance Companies and Banks

The Central Bank notes the several measures proposed in the Budget 2014 to strengthen
the licensed finance companies, where, with a view to encouraging consolidation in the
financial sector, tax incentives have been offered for the strengthening of finance
companies.

In this regard, in keeping with the proposal articulated by the Hon. Minister
of Finance, the Central Bank would issue guidelines in relation to the merger and
consolidation of finance companies, at the time of the release of the Central Bank Road
Map 2014 and Beyond, on 2nd January 2014.

These new measures would be in addition to the series of measures taken by the Central
Bank since 2009, where finance companies that were facing liquidity constraints have
undergone restructuring processes under the supervision of the Central Bank. Such
restructuring schemes included the appointment of Managing Agents, Restructuring