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6 billion rupees (42.6 million US dollars) from shareholders by the sale of new voting and non-voting shares.
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The bank will issue 43.33 million voting shares at 75 rupees in the proportion of one new share for every exiting three shares and 41.
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1 million non-voting shares at 35 rupees in the same proportion.
Seylan Bank said in a stock exchange filing that the cash will boost Tire I regulatory capital, help in future restructuring and will be used to match long term lending.
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In the year to December 2010 Seylan has reported earnings of 1.2 billion rupees or 4.75 rupees per share. In the December quarter it earned 387.
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5 million rupees or 1.52 rupees per share.
The bank earlier said it will shed 250 employees through a voluntary retirement scheme costing 700 million rupees.
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The bank's voting shares closed at 87.70 down 40 cents Tuesday and non-voting shares 44.
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70 down 1.00 rupee.