Category: Banking and Finance

July 23, 2013 (LBO) – Sri Lanka’s state-run National Savings Bank has been rated ‘B+’, the same as the sovereign rating by Standard & Poor’s Ratings Services with a ‘stable’ outlook. “We believe the Sri Lankan government is almost certain to provide extraordinary support to the bank, if needed,” Standard & Poor’s credit analyst Amit […]

July 19, 2013 (LBO) – Sri Lanka’s state-run National Savings Bank has been given a ‘BB-‘ international rating by Fitch, ahead of a planned bond sale.“NSB’s ratings reflect Fitch’s expectation of the government of Sri Lanka’s high propensity but moderate ability to provide support to the bank in case of need,” Fitch said. “The state’s […]

July 18, 2013 (LBO) – Sri Lanka’s state-run Bank of Ceylon said it had been ranked as one of the 1,000 top banks in the world by UK-based The Banker Magazine, ahead of other domestic banks. Bank of Ceylon has over 10 million customers and is the largest commercial bank by assets in Sri Lanka. […]

July 18, 2013 (LBO) – Sri Lanka will begin regulating micro financing institutions with large entities coming directly under the central bank information minister Keheliya Rambukwelle said.A third category coming under the Commissioner of Co-operative Development and Registrar of Co-operative Societies, Divineguma Department will be exempted from Central Bank regulations. They will come under existing […]

July 14, 2013 (LBO) – Sri Lanka is looking to be flexible on banks share ownership limits to make it easier to merge and allow sector consolidation, a top regulatory official said.However analysts say financial institutions play in different risk categories. Non bank financial institutions generally play in the more risky categories not accessed by […]

July 02, 2013 (LBO) – Sri Lanka’s money markets were flooded with 35 billion rupees in excess cash after a cut in the statutory reserve ratio despite pre-emptive moves by the Central Bank to kill some liquidity.“But often liquidity is generated when the Central Bank buys dollar especially capital inflows to the government,” says fuss-budget. […]

July 02, 2013 (LBO) – Fitch Ratings said it had given Sri Lanka’s National Development Bank a ‘B+’ international rating with a stable outlook. The SR and SRF are sensitive to the sovereign’s ability and propensity to provide timely support, particularly if the sovereign rating were to change. The SRF could be upgraded if NDB’s […]

July 1, 2013 (LBO) – Sri Lanka’s state-run Ceylon Petroleum Corporation had settled a claim over an oil derivative for 60 million US dollars, a media report said.State-run CPC refused to pay on a complex options position which went against it after oil prices collapsed in later 2008 as the US monetary system de-leveraged, amid […]

July 01, 2013 (LBO) – Sri Lanka’s Central Bank said People’s Leasing and Finance Plc, the island’s largest non-bank lender has been appointed managing agent for Central Investments and Finance Plc, which had seen liquidity issues.. “The Managing Agent will be expected to improve the financial status of CIFL within a reasonable period of time, […]

June 28, 2013 (LBO) – Sri Lanka’s People’s Bank’s exposures to the state and state enterprises has gone up in 2012, and the lender plans to cut exposure to gold backed loans, Fitch Ratings said confirming its ‘AA+(lka)’ rating. The lender which accounts for 20 percent of banking assets, 23 percent of loans and 19 […]

BRUSSELS, June 27, 2013 (AFP) – European finance ministers on Thursday agreed a draft deal on new rules for bank rescues that will only allow bailouts by taxpayers in exceptional cases and shift the burden onto bank owners, creditors and large depositors.The Irish presidency said it hoped the new rules would be finalised by early […]

June 27, 2013 (LBO) – Sri Lanka’s Hatton National Bank said it had inked a deal to raise 49 million US dollars from China Development Bank. Acting chief executive of Hatton National Bank, Jonathan Alles said it was the second loan given by CDB, indicating the confidence in the bank’s strength. State-run CDB has assets […]