Category: Banking and Finance

The government has shelved plans to privatise the state owned Development Lotteries Board following opposition from President Chandrika Kumaratunga.ldblquote The privatisation process has been put off, instead we are hoping to re-organise Development Lotteries Board by introducing innovative products to popularise lotteries in Sri Lanka, dblquote Chairman, J K Fernando told journalists on Monday.rn rnHowever, […]

A team from the IMF is expected soon to start final negotiations on a structural adjustment loan expected by March this year.The International Monetary Fund team will arrive on January 20, to negotiate the final terms of a long-term loan.The IMF board could approve the loan in March if the terms are finalized during the […]

The new contributory pension fund for public servants has not got parliamentary approval as unions opposing the deal have sought legal action.The present Employees Provident Fund Act will be amended to include the new Public Service Provident Fund.rn rnThe new pension scheme will kick in from January 1, 2003, with new recruits to the public […]

HSBC added another trophy to its acquisition collection by taking over the sole agent for Diners Club credit cards in Sri Lanka and the Maldives.Diners Club is the worlds first credit card.The Citigroup of the USA currently handles its operations. A high-end American credit card, Diners Club is used mainly as a corporate entertainment card.rn […]

Union Bank hopes to issue preference shares to a consortium of new investors, as part of its efforts to re-capitalise.The consortium led by Sampath Bank plans to inject Rs. 600 mn to prop up Union Banks balance sheet.rn rnSampath will inject Rs. 150 mn, with the balance split between National Savings Bank and Singapore based […]

Vanik Inc., which has delayed payment on its listed debentures, says it is hoping to pay interest as soon as some planned debt collections come in.Vanik has also come up with a new restructuring plan, which they are hoping to present to their bankers.rn rnThe plan involves waiving off accumulated interest and releasing some of […]

Pramuka Banks depositors association on Monday appealed to President Chandrika Kumaratunga to intervene and re-open the failed bank.Members walked up to the Presidents House to hand over the letter but were unsuccessful as the President was not in.rn rnPresident of the association Palitha Gamage says the Central Bank should take full responsibility for the failure […]

Hatton National Bank on Monday sold part of its controversial stake in Sampath Bank through a private transfer on the Colombo Stock Exchange.The 19 percent parcel was disposed at Rs.80 per share or at Rs. 680 mn. The sellers were HNB (4.1 mn), HNB EPF (2.2 mn) and Smart Development (2.08 mn).rn rnAnother 10 percent […]

Depositors of the collapsed Pramuka Savings & Development Bank are likely to get a third of their money back once the liquidation process starts to roll in.Smalltime depositors who had invested up to Rs. 50,000 are likely to get most of their capital back. But for others who invested millions, their capital is likely to […]

Officials say the collapse of Pramuka Bank will not pose a systemic risk to the financial sector, as most commercial banks did not have links with the failed bank.Finance Minister K. N. Choksy told LBR on Tuesday (17 Dec.) that the financial system could withstand the effects of Pramuka Banks liquidation.rn rnAs Pramuka was the […]

Government has put up Rs. 3 billion to provide low cost housing loans in a bid to raise the levels of house ownership in the country.Specialized housing banks like HDFC and the NDB Housing Bank will lend the government funds.rn rnHousing loans will carry a 10.5 percent annual interest to the end customer. The scheme, […]

Sampath and Bank of Ceylon signed a memorandum of understanding to link their automatic teller machines locallyThe deal will create a combined network of more that 150 machines, which almost doubles the amount of ATMs that customers in each bank, can now access.rn rnThough customers of banks that use the Cirrus network, part of the […]