Category: Banking and Finance

The banking sector is planning to pass down a 10 percent Value Added Tax imposed on it from next year.rn rnLending rates are expected to go up proportionately when the tax is charged on the net profit and employee related expenditure. rn rnBut, the question troubling most borrowers is how much additional interest will they […]

The race to grab the lion quote s share of Sri Lanka Insurance Corp. has narrowed down further with just three firms sending their financial and technical bids.rn rnSources close to the deal said that Janashakthi Insurance Ltd., Commercial Bank/DFCC Bank consortium and Aitken Spence/Stassens/Distilleries Corp. consortium had sent in their proposals when bids closed […]

Central Bank has recommended the strengthening of foreclosure laws to fix the bad debt problems in local banks.rn rnParate laws, which allow banks to auction off properties pledged against loans are to be strengthened.rn rnThe scope of the Parate laws will also be extended to cover finance companies and specialised banks.rn rnThe amendments to the […]

Tapping into a market segment with huge growth potential, Sampath Bank on Monday launched, ldblquote Sampath Profession dblquote , an account targeted at the busy young professionals with monthly earnings topping Rs.20,000. rn rnDesigned to act as a fund manager for busy professionals, the account is tied up with a host of banking products to […]

The banking sector is planning to pass on a small percentage of their costs to customers, when the proposed 10 percent VAT comes into effect from January.rn rnUnder the budget proposal, VAT is slapped on the aggregate net profit and employee related expenses of all banks and financial institutions. The financial sector was also denied […]

Hatton National Bank will sell its Sampath Bank Holdings within days after the regulators gave the green light on Friday. rn rnThe Central Bank and the Securities and Exchange Commission gave the nod for a private sale to go ahead.rn rnSampath Bank, which has obtained a restraining order against the sale of shares by HNB […]

Central Bank quote s supervisors completed preliminary investigations on Pramuka Bank, as depositors awaited a final decision from the Monetary Board on the suspended bank.rn rnMeanwhile Pramuka Merchant Corporation, an affiliate financial firm, of the bank also stopped repaying its maturing bondholders.rn rnEmployees say that the bank has invested their provident funds in the bank […]

Complicated organization structures are making financial statements difficult to understand.Estimating the underlying risk is also becoming difficult not only for shareholders but for company directors as well.rn rnExperts on corporate governance speaking at a Institute of Charted Secretaries and Administrators seminar, said that directors should seek professional help when the underlying risk is not clear.rn […]

Ministers, heads of government institutions and financial controllers will be held accountable for submitting state sector accounts on time.Commerce Minister Ravi Karunanayake says they will get a 3-month time frame to submit the accounts to parliament.rn rnThe Minister was addressing the graduation ceremony of the Association of Charted Certified Accountants. rn rnTwenty three Sri Lankan […]

The Central Bank said Friday it decide on future of the troubled Pramuka Savings & Development Bank and announce the decision next week.rn rnPramuka Bank quote s activities were suspended for 60 days on October 25, for its weak financial position and repeatedly violating Central Bank directives.rn rnThe Central Bank said it was “hampered by […]

The government plans to tinker with the Employees Provident Fund Act to set up a new contributory pension scheme for public sector employees.The new pension scheme will kick in from January 1, 2003, with new recruits to the public cadre contributing eight percent of their salaries and the government forking the balance 12 percent.rn rnThe […]

The government firmed up plans announced in its 2002 budget through its latest fiscal forecast on Wednesday.rn rnThe retail and wholesale trade will be slapped with Value Added Tax while the scope of the Withholding Tax was expanded.rn rnHowever, landing VAT on financial services and the continuation of the port and airport development levy came […]