Share Limits

Feb 22, 2013 (LBO) – Sri Lanka’s central bank will look at “the need for raising” shareholder ceilings imposed on banks, a media report said, quoting Central Bank Governor Nivard Cabraal. Several state entities have also bought stock in private banks, exceeding the limit.

Reuters, a news agency quoted Cabraal as saying on the sidelines of an investor meeting in India that, for the moment existing rules shall apply.

Under Sri Lanka’s existing law a single shareholder limit of 10 percent applies to banks though related parties can go up to 15 percent.

Special permission had also been given for some banks to allow higher shareholders limits.

But there are also listed banks with higher shareholder limits, where existing shareholders have been given deadlines to sell down.