Stable Path

Jan 09, 2009 (LBO) – Sri Lanka’s Seylan Bank is now stable and is focusing on improving asset quality, and some customers who earlier withdrew deposits are now bringing them bank, officials said.

Chief executive Ajita Pasqual said the bank had raised 800 million rupees and with the year-end profits, it was on its way to meeting regulatory capital adequacy levels.

Chairman of Ceylinco group, Lalith Kotelawala had said he would sell out of Seylan to raise money to pay off Golden Key depositors.

The Ceylinco group controlled about 23 percent of its voting stock, while the board also had proxy rights to over 27 percent of stock which were in a number of share trusts.

Pasqual said several interested firms had contacted the company secretary for information on the firm, but no formal sale process had yet been initiated or an entity appointed to manage the sale.

Seylan shares closed up 1.50 at 31.50 rupee, Thursday. “The bank is stable and trading normally,” newly appointed chairman Eastman Narangoda told reporters.

“Our top priority is to manage risk.”

Seylan’s board directors was dissolved and put under state-run Bank of Ceylon by the Central Bank when depositors