Category: Banking and Finance

State run Bank of Ceylon has announced an across the board, early retirement scheme for its 9,000 odd staff.The announcement was made in response to requests from unions to allow employees with family commitments to leave early without losing their pension rights.rn rnEmployees who reach 50 years of age and have put in 20 years […]

Guardian Investment will raise Rs. 130 million through a 1:5 rights issue to fund its portfolio expansion.The Ceylon Gurdian Investments Trust Limiteds Director P C P Tissera told LBO that new investment options could include power and infrastructure projects, in addition to stocks.rn rnThe company is also re-evaluating its investment policy in order to restructure […]

A team from Sri Lanka Insurance Corp.s technical partner ING Financial Institution, has started an eight-week task to look at the insurance firms key operations.At the end of the first phase next month, the taskforce will recommend changes to SLICs board on issues ranging from overall strategic direction, commercial management and distribution of its insurance […]

Sri Lanka Export Credit Insurance Corp (SLECIC) is tinkering with its Act to allow it to raise public funds and offer refinance facilities.Cabinet has already approved the changes and SLECIC is awaiting parliamentary approval to convert itself into a limited liability company.rn rnSLECIC Ltd, as the firm will be known, plans to raise around two […]

Janashakthi Insurance has sought regulatory approval to complete its merger with National Insurance Corp.Once the Insurance Board of Sri Lanka approves the merger, Janashakthi will need to go before the Colombo District Court to officially seal the name change.rn rnldblquote NIC will be known as Janashakthi Insurance and we hope to wrap up the paper […]

The Carsons and JKH Groups recent acquisition of Aitken Spence shares in Union Assurance Ltd has got the securities watchdogs attention.The Securities & Exchange Commission says it is looking into the issue as to whether both parties acted in concert and triggered the Takeovers & Mergers code.rn rnPresently, Carsons owns 36.91 percent and JKH owns […]

A team of consultants has recommended tough reforms, a more focused regulatory regime and the winding up of co-operative banks with a negative net worth to clean up the rural financial institutions.The report jointly commissioned for the Central Bank and the Asian Development Bank also recommends a stronger regulatory role for the rural financial sector.rn […]

Conglomerate Aitken Spence Ltd on Tuesday disposed its equity stake in Union Assurance Ltd.The sale comes after Aitken Spence bought into Sri Lanka Insurance Corp. recently, through a consortium led by the Distilleries Company.rn rnUALs existing shareholders, the Carsons Group and John Keells Holdings Group picked up Aitken Spences parcel.rn rnAccordingly JKH raises its stake […]

National Development Bank said its first quarter profits rose 58% to Rs. 225.9 mn due prevailing low interest rates and capital gains.Interest expense during the period rose to Rs. 643.6 mn, while equity income went up 38% to Rs. 115.4 mn.rn rnThe bank provided Rs. 149.2 mn for possible credit losses, while the VAT on […]

Laws to give banks and finance companies more muscle to tackle bad debts have got regulatory approval and are before the Legal Draftsmen.Under the Amendments to the Debt Recovery Laws, finance companies registered with the Central Bank will be given similar parate rights as banks.rn rnParate Laws allow banks to auction properties mortgaged against loans […]

A new entrant to the primary market in Government securities wants to make investments in Government debt more attractive to retail investors.Capital Alliance, which got a Central Bank license as a Primary Dealer recently, plans to put out innovative products to allow investors to get over problems of high minimum investments in Government Debt.rn rnldblquote […]

State housing finance giant HDFC, has sought a quotation on the Colombo Stock Exchange by way of an introduction.The Attorney Generals Dept. has recommended Housing Development & Finance Corp. or HDFC to get a listing, prior to raising fresh capital.rn rnA valuation by consultants E&Y two-years ago valued HDFCs Rs. 100 share at Rs. 640.rn […]