Intervention

Mar 06, 2009 (LBO) – Sri Lanka’s central bank said it is looking for managing agents for two registered finance companies in the troubled Ceylinco group and a management shake-up is on the cards for another. Managing agents were being sought for Asian Finance and Ceylinco Investment and Realty under central bank monitoring while the Finance and Guarantee Company had entered into a deal with the Merchant Bank of Sri Lanka (MBSL).

MBSL is a unit of state-run Bank of Ceylon which has already taken Seylan Bank, a licensed commercial bank of Ceylinco group under its wing.

The regulator said a management shake up is on the cards for The Finance Company, one of the largest and oldest finance companies in the country.

“The CBSL (Central Bank of Sri Lanka) has identified certain key executives who would be entrusted with the overall management responsibilities of this company and these appointments are due to be made within the next two days,” the regulator said in a statement.

“Meanwhile, assessments are made in relation to the current situation so that the necessary interventions can be made by the selected management team expeditiously, under the guidance and advice of the Expert Group.”