Sept 04, 2009 (LBO) – Sri Lanka’s Asian Finance Ltd, and Ceylinco Investment and Realty Ltd, two firms of the troubled Ceylinco group will be put under a new managing agent, the Central Bank said.
MBSL has been asked to “restore their normal business operations to strengthen the viability of the companies,” by the regulator.
LDB will work closely with MBSL to ensure the smooth transition of the Managing Agents’ functions and the strengthening of the business operations of AFL and CIRL.
An expert group of advisors will also guide the future direction of the two firms.
The Central Bank said it will closely monitor the two firm and said the move will ” further strengthen the restored confidence, and return to their normal business operations, within a short period of time.”
The regulator moved quickly to restore confidence in Seylan Bank, a licensed commercial bank of the Ceylinco group and also to avert a run and a loss of confidence in the entire finance company sector.
The ‘sub-prime’ finance companies were suffering from excessive investments in a property bubble, which was fired by a bout of money printing which started in 2004.
A similar budget-deficit cu