Oct 01, 2014 (LBO) – Sri Lanka’s regulator driven consolidation is on track with eight banks and non-bank lenders given approval for mergers and recapitalization during September 2014, the Central Bank said.

Another eight banks and non-bank lenders have completed internal processes to allow them to submit the plans, the regulator said.

A total of 37 proposals have been approved.

The full statement is reproduced below:-

Financial Sector Consolidation Update – September 2014

During September 2014, the Monetary Board approved, in-principle, another 8 consolidation proposals submitted by banks and Non-Bank Financial Institutions (NBFIs), thus bringing the total number of proposals approved so far to 37.

At the same time, consolidation plans of another 4 banks and 4 NBFIs are also being finalized, and are due to be announced in the near future.

The work relating to the mergers/acquisitions that have already commenced continued to progress, with the respective banks and NBFIs working towards the timelines set at the beginning of the year.

The Central Bank held a further round of discussions with selected NBFIs with a view to resolving pending issues on their resp