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People’s Bank will receive the first Rs. 2 billion traunche of the ADB sponsored recapitalization programme later in October, as it fulfills its initial set of targets. People’s Bank will receive the first Rs. 2 billion traunche of the ADB sponsored recapitalization programme later in October, as it fulfills its initial set of targets. A total Rs. 8.5 billion package will come in installments spread over four years and help the government keep ownership of Sri Lanka’s second largest commercial bank.

People’s Bank Chief Executive and General Manager Asoka de Silva said the government had agreed to pump in some 8 billion rupees to help the bank meet capital adequacy requirements, fulfilling one of the two conditions.

The second criterion was also fulfilled when the state’s Strategic Enterprises Management Agency (SEMA) accepted the bank’s restructuring programme, de Silva said.

A second Rs. 2 billion installment will come in early 2006 when the bank posts satisfactory financial results including a lowering its loan exposure to the state sector for the full year 2005.

Bank official say the state giant is already posting satisfactory progress with its