April 24, 2009 (LBO) – Sri Lanka’s central bank has cleared five out of six parties who expressed interest in buying a 33.3 percent stake in Seylan Bank to look into the bank in detail and submit bids, officials said.
The Central Bank took over the bank and put it under the supervision of state-run Bank of Ceylon after a run on deposits triggered by the collapse of an unregulated financial firm.
The central bank said in a statement that bid documents would be released on April 27. Bid would close on May 07. Among the approved are, Samapath Bank, Lanka Orix Leasing Company (LOLC) group, National Development Bank and John Keells Holdings, and V V Karunaratne & Company a construction firm.
The short listed investors would be given a detailed information memorandum on Seylan Bank to conduct ‘due diligence.’
Central Bank Governor Nivard Cabraal told LBO last week that several foreign financial firms had partnered with local ones to bid for Seylan.
Sri Lanka’s central bank said it was looking for an investor to inject at least 5.7 billion rupees into the bank to boost its capital.