Category: Banking and Finance

June 25 (LBO) – A new board of directors has been appointed to state-owned SME Bank as a first step in a proposed take-over by Lankaputhra Development Bank, an official said. But officials now say RDBs would be allowed to function independently. Lankaputhra Bank chairman A de Vass Gunewardene is the new chairman of SME […]

June 21, 2007 (LBO) – A 5-year, two billion rupee debenture issue of DFCC Bank has been assigned a rating of AA (lka) while the bank’s long-term rating of the same level has been confirmed, Fitch Ratings said. The rating agency also confirmed the AA- (lka) tag of DFCC’s subordinated debt was also confirmed. The […]

June 21, 2007 (LBO) – Sri Lanka is to merge two state banks created as a result of election promises in the recent past, but keep a regional banking network with a good credit culture as an independent entity, officials said. Officials say Lankaputhra can take-over SME Bank under the provisions of company law, but […]

June 19, 2007 (LBO) – Institutional investors in Sri Lanka’s small stock market still lack the strength to influence managements of listed firms on issues like corporate governance, a top fund manager said. Unit trusts or mutual funds still hold only a small slice of the equities on the Colombo bourse, according to S. Jeyavarman, […]

June 18, 2007 (LBO) – Seylan Merchant Bank said it was unable to pay a dividend proposed earlier, following a solvency test specified in a new company law. The investment bank said in a stock exchange filing that shareholders who attended its annual general meeting last week had already been told that a 25 cent […]

June 17, 2007 (LBO) – Sri Lanka’s insurance industry has voiced concern over a recent proposal by regulators to transfer the Strike, Riot, Civil Commotion and Terrorism Fund to the National Insurance Trust Fund. The industry is asking the government to relax the proposal for compulsory ceding of re-insurance premiums, said Marina Tharmaratnam, CEO of […]

June 12, 2007 (LBO) – Sri Lanka should widen its tax base and practice fiscal discipline instead of heavily taxing a few sectors like the financial sector, and have a formal taxation commission to devise a medium-term tax policy, a top bank has said. While Sri Lanka’s tax collections as a percentage of gross domestic […]

June 12, 2007 (LBO) – A controlling stake in the listed financial firm, Asia Capital was bought by a consortium led by Asia Fort Asset Managment, with two foreign funds selling out Tuesday, an official said. Two foreign funds, Rockport and Sezeka sold out with a consortium led by Asia Fort Asset Management buying the […]

June 8, 2007 (LBO) – The cellular operator Mobitel has raised five billion rupees through a syndicated loan to fund its expansion into rural Sri Lanka, officials said. The 8-year loan was syndicated by HSBC Sri Lanka. Bank of Ceylon, Peoples’ Bank, Hatton National Bank and HSBC itself brought in a billion rupees each while […]

June 7, 2007 (LBO) – DFCC Bank has been asked to cut its 28.98 percent stake in Commercial Bank to 15 percent under Sri Lanka’s banking laws, the development financier said. Commercial Bank of Ceylon has informed DFCC Bank that if the stake was not cut by October 23, 2008, DFCC its voting rights would […]

June 5, 2007 (LBO) – Fitch Ratings has upgraded PABC Bank, a Sri Lankan commercial bank to an investment grade BBB- (lka) with the stable outlook, the agency said Tuesday. “The upgrade of the rating recognises improvements in PABC’s profitability and relative improvements in its capitalisation ratios and asset quality since the bank was first […]

June 01, 2007 (LBO) – Sri Lanka’s insurance policy lapse rate is far too high and might mean the industry’s sales pitch is overenthusiastic, an international expert told a gathering of industry professionals in Colombo. Rudy Verrilli, consultant to the Life Insurance and Market Research Association (LIMRA) stressed the importance of “ethical selling” and of […]