Category: Banking and Finance

Feb 19, 2009 (LBO) – Sri Lanka’s NDB Bank said group net profit rose sharply in the December quarter, although annual profit was up only five percent to 1.6 billion rupees from a year ago.NDB group total income for the December quarter rose almost 30 percent to 3.2 billion rupees and net profit increased almost […]

Feb 19, 2009 (LBO) – Sri Lanka’s government will make a final decision on a bailout package to deal with toxic assets of banks and finance companies next week, government minister said. He said the first round of negotiations was held Wednesday. State-run People’s Bank has also stopped payments on hedges to counterparty banks, opening […]

Feb 18, 2009 (LBO) – Sri Lanka is starting a round of talks with several banks to re-negotiate oil derivatives sold to a state-run petroleum firm which had gone against the utility, a government minister said. Sri Lanka’s central bank said the deals were ‘tainted’ and advised banks not to proceed with the deals. State-run […]

Feb 15, 2009 (LBO) – Sri Lanka Fitch Ratings has downgraded the rating of state-run mortgage lender State Mortgage and Investment Bank (SMIB) and withdrawn its rating, the firm said. The bank’s rating was downgraded to ‘BBB+(lka)’ from ‘A-(lka). The rating outlook is negative at the new level. Fitch Sri Lanka said SMIB owns 1.78 […]

Feb 13, 2009 (LBO) – Sri Lanka’s NDB Bank said it has acquired a controlling interest of Capital Market Services Limited, a licensed merchant bank in Bangladesh. The acquisition was made after it fulfilled pre-investment conditions, National Development Bank said in a stock exchange filing. The announcement did not give the value of the investment […]

Feb 03, 2008 (LBO) – Sri Lanka’s Commercial Bank says the ‘ambiguity’ behind a suspension of payments on oil derivatives sold to state-run Ceylon Petroleum Corporation (CPC) is causing uncertainty, and leaving it in a tight position. “Unless there is a strict instruction by the regulator we feel that we have to honor the counterparties […]

Feb 03, 2009 (LBO) – Sri Lanka is developing a policy support package for registered finance and leasing companies that are facing liquidity problems, the Central Bank said. The Central Bank intervened to stop a run on Seylan Bank, dissolved its board of directors and put the bank under state-run Bank of Ceylon. Depositors says […]

Jan 31, 2008 (LBO) – Though Sri Lanka’s policymakers and borrowers are expecting banks to give loans, cut interest rates and extend repayment periods, the sector’s ability to bailout the broader economy is limited, officials said. Sri Lanka’s businesses were feeling the impact of local and external downturn from last year. Baited Breath “Even though […]

Jan 30, 2008 (LBO) – Sri Lanka’s President Mahinda Rajapaksa had met the heads of banks, finance and leasing companies to discuss recent turmoil and future direction, the president’s office said. Representatives of state and private banks, the Central Bank and Treasury were also in the meeting, held Thursday. The meeting discussed the steps take […]

Jan 27, 2009 (LBO) – Sri Lanka’s Central Bank said the government will pay a 20 percent bonus interest in rupees on the interest earned on foreign currency deposits in banks from February 1.“This aims to promote inflows of foreign remittances into Sri Lanka through the banking channels as well as to promote the general […]

Jan 23, 2009 (LBO) – Sri Lankan registered finance company sector (RFC) which has been shaken by recent collapses of unregulated institutions should be able to overcome liquidity problems, a rating agency has said. RAM Ratings say that the collapse of Sakvithi and Golden Key, two unregulated firms had affected public confidence. “So much so […]

Jan 19, 2009 (LBO) – Sri Lanka’s central bank said it had won a court order impounding the passports of several officials of Okanda Finance Limited, an unlicensed finance company, to prevent them leaving the country. A bank statement said four of six organisations and individuals carrying on finance business without authority had failed to […]