Foreign Boost

Feb 14, 2008 (LBO) – Sri Lanka’s Sanasa Development Bank, which has roots in the micro-finance sector, will get cash from foreign partners to meet regulatory capital requirements, an official said.

A unit of Singapore’s Orient Global has injected 71 million rupees in Sanasa and has received the regulatory nod to invest up to 15 percent of the total capital or 225 million rupees, Sanasa and central bank officials said.

A member of the Singaporean firm will be appointed to the bank’s board of directors.

Last year Peoples’ Leasing had also bought 50 million rupees worth of the bank’s shares.

People’s Leasing chief D P Kumarage will also sit on the director board of the Sanasa Development Bank.

An Italian firm has also agreed to buy 60 million rupees of shares.

The company has already put in 30 million rupees.

An institution connected to the Canadian co-operative system which had funded tsunami reconstruction projects had also agreed to put recoveries into the bank’s capital, a senior bank official said.

The bank now has a capital of 561 million. It has to raised 1,500 million by 2009 to meet central bank regulations.

Sanasa has 39 branche