Management Chat

Mar 06, 2009 (LBO) – Merchant Bank of Sri Lanka, (MBSL) a unit of state-run Bank of Ceylon, said it was in talks with the regulator to manage and rehabilitate Ceylinco Savings Bank, a member of the island’s troubled Ceylinco group.

In another development Seylan Merchant Bank said it was in talks with People’s Leasing to sell Seylan Merchant Leasing, a subsidiary. Bank of Ceylon is already overlooking the affairs of Seylan Bank, a Ceylinco group firm, after the listed bank was placed under its care by the Central Bank, which is the island’s banking regulator.

MBSL also said it will provide consultancy services to The Finance & Guarantee Co Ltd to “restore public confidence” and to resolve “current liquidity problems,” with Central Bank clearance.

“MBSL is in the process of gathering relevant information/documents to develop a plan to restore the business activities of The Finance and Guarantee group without any responsibility in the capacity of managers or directors,” the firm said in a stock exchange disclosure.

The “Finance and Guarantee group” includes a clutch of real estate firms which were not regulated by the Central Bank.