Category: Banking and Finance

A top rung Economists is suggesting the government converts one of the two state owned commercial banks to a Non-Performing Loan (NPL) management agency in view of clearing the local financial sectors financial overhang. rnrnldblquote Most Sri Lankan banks cannot provide the risk capital or seed capital to high potential businesses because of their bad […]

Issues ranging from market regulators incompetence to issues that are strangling the debt market, the insurance sector, the Central Bank quote s role, exchange control regulations will be hotly debated over the three day conference starting March 18. rnrnThe absence of a long-term bond market, which will resolve the current maturity mismatches between loans and […]

According to the study, the local banking sector is saddled with a 19 percent NPL ratio and only few banks record a NPL ratio below 10 percent.Cost to income ratio endash a key efficiency indicator endash is also recorded well above 80 percent for some banks. rnrnIn addition, findings reveal a heavy reliance on collateral […]

At least two local banks are carrying out due diligence studies to make a bid, informed market sources told Lanka Business Online. rnrnLeading consultancy, Ernst & Young is expected to conduct the due diligence for the prospective bidders, that include Commercial Bank, whose Chairman declared the banks strategy to grow through acquisitions last week and […]

The government today expressed its interest to dispose its 39 percent stake in NIC to the highest bidder. The employees control 10 percent of the company. rnrnThe government quote s privatisation arm, the Public Enterprise Reform Commission, has called for Expressions of Interest to be submitted by April 8. rnrnJanashakthi picked up NIC quote s […]

The Mercantile Merchant Bank Ltd (MMBL), one of the two local agents for the Western Union has set on a aggressive expansion drive that will double its 25 sub agent network by the end of this year. rnrnldblquote We are looking at areas with high inward remittances. In North and East we will be opening […]

The solution combines IT hardware from IBM, accounting software from Golden Key and telecommunication services of SLT to give companies a ready to use accounting solution simply by logging on to a secure server.rn rnCompany offices say solution will reduce client side cost as they would not have to invest in hardware and expensive software […]

The bank is also planning to raise Rs.1 bn to its Tier II capital ratio through a debt instrument or preference shares, to improve its total capital ratio to 11 percent from current 9.53 percent. rnldblquote We have been through hard times, but never like this before dblquote , HNB quote s Managing Director Rienzie […]

On the cards are a higher ownership limits on foreign stakes in financial services including banks and insurance companies. rnPresently, foreign ownership is limited to 49 percent in Finance services, 90 percent in insurance companies and 60 percent in banks. rnCentral Bank Governor A S Jayawardene said they were discussing various possibilities, lquote but the […]

The government presently runs a two-tier tax system where provincial councils charges a 1 percent Turnover Tax (TT) while the Inland Revenue charges a 12.5 percent Goods & Service Tax (GST). rnrnThe chamber is proposing the government broadbase GST to cover all activities ranging from production distribution chain right through to the consumer and eliminate […]

ldblquote The request will be made to the Secretary Treasury, shortly.Our auditors PWC [PricewaterhouseCoopers] has informed us that a provision would be needed to cover the exposure in the absence of a government guarantee dblquote , the source said. rnrnThe state utility has stopped paying the capital element of the repayments, but continues to service […]

ldblquote Sri Lanka quote s cash reserve requirement should be reduced to at least 5 percent from the current 10 percent.We have one of the highest cash reserve requirements in the world, which significantly increases the intermediation cost in the financial sector dblquote , notes Mangala Boyagoda CEO Standard Chartered Bank and a key figure […]