Looking Abroad

Feb. 28 (LBO) – Sri Lanka’s Sanasa Development Bank is looking for foreign money to bring its capital up to the new Central Bank core capital requirements.

Corrected: accounting period

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General Manager T A Gajaba says they are hoping to raise around Rs700 million from a consortium of foreign investors.

Sanasa, a specialised licensed bank, needs a minimum capital of Rs1500 million by 2007, while commercial banks need to put in at least Rs2500 million .

At least half the capital requirement has to be met by the end of this year.

Analysts say the Dutch based Rabo Bank which was a technical partner of Sanasa, is one source of foreign capital.

Sanasa has already sought approval from the Central Bank for the move.

The bank had net assets of Rs272 million according to the provisional accounts as at March 2005.

It posted after tax profits of Rs11 million for the quarter.

Sanasa Development Bank is set up as the apex bank of the co-operative thrift movement and its shareholders are thrift and credit societies.

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