One Horse

June 5, 2009 (LBO) – Sri Lanka’s Lanka Orix Leasing Company (LOLC) is the sole bidder for a 33 percent stake in Seylan Bank offered by the Central Bank to a strategic partner that can inject equity to the firm, market sources said. “In response to the invitation for fresh bids by the Central Bank of Sri Lanka to be a strategic partner of Seylan Bank PLC, one bid has been received,” the Central Bank said in a statement.

“The Committee for Evaluation of Bids on Seylan Bank PLC is currently in the process of evaluating such bid. The Monetary Board is expected to make the final decision by June 16, 2009.”

The Central Bank extended the deadline to bid for Seylan, after only two bids were received by the previous closing day, from LOLC and Sampath Bank.

National Development Bank, John Keells Holdings and V V Karunaratne & Company, who were shortlisted had dropped out.

The Central Bank put Seylan under state-run Bank of Ceylon following a run on its deposits after an unregulated financial firm in the controlling Ceylinco group collapsed late last year.