Category: Banking and Finance

Oct 14, 2010 (LBO) – Sri Lanka’s poor are reliable borrowers and repay loans, offering a growth opportunity for micro-finance especially in rural areas, deputy finance minister Sarath Amunugama said. Developing countries like Sri Lanka must not rely solely on export-led growth as in the past given sluggish recovery and rising protectionism in advanced economies, […]

Oct 12, 2010 (LBO) – The efficiency in Sri Lanka’s banking system can be improved with interest margin tightening at least 150 basis points over the next nine months to 5. 0 percent with banks remaining profitable, Central Bank Governor Nivard Cabraal said. Profits are needed to build capital to buffer deposits. “About a year […]

Oct 11, 2010 (LBO) – Sri Lanka’s Credit Information Bureau (CRIB) is to launch an ‘e-alert’ service using mobile phones and email to warn banks of defaulters who have borrowed from more than one bank, an official said. Furthermore, there are also no detailed reports being exchanged now on monthly loan installment payments by borrowers. […]

Oct 11, 2010 (LBO) – The outlook on Sri Lanka’s stat-run Bank of Ceylon, the island’s largest commercial bank by assets, has been lifted to ‘positive’ from ‘stable’ after a lifting of the sovereign rating increased the capacity of the state to support it, Fitch Ratings said. But Fitch said it considered the absolute capitalisation […]

Oct 06, 2010 (LBO) – Sri Lanka’s The Finance Company is to issue 100 million non-voting shares at 20 rupees each to deposit holders to convert into equity part of their deposits which were blocked after the firm suffered a run, a statement said. The shares will be issued to fixed deposit holders to convert […]

Oct 04, 2010 (LBO) – Sri Lankans investing in unregulated investment schemes face higher risks and should not expect government bailouts if their investments go sour, the banking regulator has warned. Central bank governor Nivard Cabraal said the regulator has repeatedly warned the public of the risk of investing money in unregulated institutions and publicised […]

Oct 01, 2010 (LBO) – Sri Lanka’s Citizens Development and Business Finance, a firm 35 percent owned by Ceylinco Insurance is listing itself to comply with a central bank direction and pave the way for raising capital in the future, officials said. CDB is listing on the ‘diri savi’ board of the Colombo Stock Exchange […]

Oct 01, 2010 (LBO) – The World Bank is giving a 57. 4 million US dollar to Sri Lanka to finance small and medium sized business affected by a global downturn and is also giving a partial credit guarantee to banks using the credit line to lend. “The banks can independently access the line of […]

Sept 30, 2010 (LBO) – Sri Lanka’s Standard Chartered Bank (SCB) branch has been rated at ‘AAA’ by RAM Ratings Lanka, with the assessment driven mainly by the credit profile of the parent Standard Chartered Bank Plc, the rating agency said. It has also been given a ‘P1’ short term rating on RAM’s rating scale. […]

Sept 30, 2010 (LBO) – Sri Lanka’s Central Bank has decided to reduce the general provision on performing loans of banks to 0.5 percent by December 31, 2011 from the current one percent, governor Nivard Cabraal said. “We believe our economy does not now need provisioning as high as one percent and it will be […]

Sept 30, 2010 (LBO) – Sri Lanka’s Central Bank said it will introduce a deposit insurance scheme from October 1 that will help protect small depositors and reduce government liability if a financial institution collapses. Central Bank Governor Nivard Cabraal said that under the scheme, depositors will be compensated up to a maximum of 200,000 […]

Sept 29, 2010 (LBO) – Fitch Ratings Lanka has confirmed DFCC Bank’s (DFCC) National Long-term rating at ‘AA(lka)’ with a stable outlook, a statement said. The agency has also affirmed DFCC’s senior debentures at ‘AA(lka)’ and subordinated debentures at ‘AA-(lka)’. “DFCC’s ratings are driven by its strong capitalisation supported by ongoing high profitability,” the rating […]