Sri Lanka state bank buys into insurance firm

July 06, 2010 (LBO) – Sri Lanka’s state owned Bank of Ceylon (BOC) and its subsidiary Merchant Bank of Sri Lanka (MBSL) has bought 4.1 percent of Janashakthi Insurance for 225 million rupees. In a privately negotiated off-the-floor deal between BOC and its investment banking unit MBCL, 15 million shares of Janashakthi Insurance changed hands at 15.00 rupees per share with a premium of 25 cents.

It closed at 15.25 rupees, up 50 cents, brokers said.

In recent months state sector institutions and funds have bought heavily into listed companies especially in the financial sector.