Second Chapter

The Ceylinco Consolidated Group on Friday signed up with Rating Agency Malaysia Berhad or RAM, to launch Sri Lankas second credit rating agency.rnrn
Lanka Ratings Ltd will be jointly owned by Key Ratings Ltd (51 percent) and RAM 49 percent.rn

rnThe company has an initial share capital of Rs. 35 mn.rn

rnldblquote The joint venture will combine the dynamism, innovative entrepreneurial spirit and technical strengths of both Ceylinco and RAM,
dblquote says Datuk C Rajandram, Executive Deputy Chairman, RAM in a statement.rn

rnSri Lankas maiden rating agency Fitch Ratings Lanka has been in operation for over four-years, despite the local capital markets still at a nascent stage.rn

rnBut the promoters of Lanka Ratings expect things to improve and see room for another credit agency to foster competition. rn

rnTo promote ratings, in its 2003 budget, the government said it was making it mandatory for commercial banks, licenced specialised financial institutions and finance companies to secure a credit