Category: Banking and Finance

June 18, 2014 (LBO) – Fitch Ratings said an ‘A-(lka)’ national fund credit rating given to Ceylon Income Fund in Sri Lanka has been confirmed. The negative modifier in the fund’s ‘A-(lka)’ National Fund Credit Rating reflects Fitch’s view that the fund is moderately concentrated with a top-five issuer concentration of around 56% of the […]

June 6, 2014 (LBO) – Sri Lanka’s DFCC says it has seen a sharp rise in credit demand with new approvals rising to 34.6 billion rupees from 23.4 billion rupees a year earlier, though draw downs are just picking up.DFCC Bank group which has assets of 177 billion rupees said amid a rise of all […]

June 02, 2014 (LBO) – A credit to guarantee to encourage banks to lend more against gold may help reduce the build-up of bad loans, but pawning loans are not risk-free as currently categorized in Sri Lanka, Fitch Ratings said.Non-performing loans in Sri Lanka’s banking system had risen to 5.6 percent of total loans by […]

May 28, 2014 (LBO) – Sri Lanka’s banks are lending money to industry and services, but the total loan stock is not growing fast because of contracting gold loans, Deputy Central Bank Governor Ananda Silva said. The Central Bank gave a partial credit guarantee to banks to lend against gold, which is expected to boost […]

May 27, 2014 (LBO) – Sri Lanka’s Central Bank, said it had given a liquidity facility to The Finance Company, and has also changed the board under a new restructuring plan. Chairman M P Jayawardena and C Rosa had said they were not available re-appointment, the statement said. The Finance was a member of Sri […]

May 23, 2014 (LBO) – A credit guarantee scheme announced by Sri Lanka for banks lending against gold is positive for banks which have been hit by defaults, Moody’s, a rating agency said.Moody’s said underwriting standards fell in Sri Lanka after 2009 and banks were advancing as much as 80 to 95 percent of loan-to-values […]

May 22, 2014 (LBO) – Fitch Ratings which confirmed an ‘AA-(lka)’ rating of Hatton National Bank, Sri Lanka’s fourth largest commercial lender by assets said the it had boosted loans to larger firms.“HNB’s loan book is shifting towards larger, mid-sized corporates from its previous focus on retail and SME sectors, which, while adding to diversification, […]

May 22, 2014 (LBO) – Fitch has confirmed a ‘A+(lka)’ rating of Sri Lanka’s Melsta Regal Finance based on expected support from its parent, ‘AAA(lka)’ rated Distilleries Company of Sri Lanka. MRF has expanded quickly since it started commercial operations in October 2012 as part of DIST group and Fitch expects that it will continue […]

May 22, 2014 (LBO) – Sri Lankan firms and banks should look at borrowing and lending longer term as interest rates and inflation fall, Central Bank Governor Nivard Cabraal said.Analysts say Sri Lanka’s banks and their customers borrow short term as excessive state intervention in the economy, especially in energy prices lead to sudden surges […]

May 20, 2014 (LBO) – A credit guarantee scheme covering gold-backed loans or pawning advances will be set up so that banks will have more comfort to lend against the asset, Central Bank Governor Nivard Cabraal said.But banks saw defaults rising on the credit when gold prices fell and values fell below the collateral. Sri […]

May 17, 2014 (LBO) – Profits at Sri Lanka’s National Development Bank rose 135 percent from a year earlier to 1.19 billion rupees in the March 2014 quarter, amid positive loan growth, interim accounts showed. Group total assets grew 12 percent to 197 billion rupees and net assets were up 1 percent to 24.7 billion […]

May 15, 2014 (LBO) – Profits at Sri Lanka’s state-run Bank of Ceylon group fell 1.9 percent from a year earlier to 2.64 billion rupees in the March 2014 quarter with loan loss reversals and trading gains, offsetting flat net interest income. Financial investments held-to-maturity rose to 206 billion rupees from 157 billion rupees. Fees […]