Share Stakes

Oct 03, 2009 (LBO) – State-run Merchant Bank of Sri Lanka (MBSL) chairman Janaka Ratnayake owns a large stake in a Ceylinco group company in which the state bank has also invested an equal stake, a listed company filing has disclosed. The Finance Company (TFC), a troubled Ceylinco group firm which is also under MBSL management, said Ceylinco Investment Company Limited (CICL) which owned 37.14 percent of its stock was 46.35 percent owned by Ratnayake.

Earlier on Friday, MBSL in a separate disclosure said it was injecting 5.0 million rupees to increase its stake in CICL to 46.35 percent.

The Finance Company said in a disclosure that its largest shareholder, CICL was 46.35 percent owned by Ratnayake and 46.35 percent owned by MBSL.

Both TFC and MBSL are listed companies.

MBSL has bought Ceylinco Savings Bank, and also took over Ceylinco Sussex College, a school which it said owed 2.7 billion rupees to TFC, and is also involved in several other Ceylinco firms.

MBSL is a subsidiary of state-run Bank of Ceylon.

The TFC announcement to the CSE is as follows:

“The five major shareholders of The Finance Company PLC are as follows as at 30th September 2009 –

Name of Shareholder – No of Shares: