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Guarantee Status

Dec 07, 2009 (LBO) - Finance and Guarantee Company Limited, a regulated finance company in the troubled Ceylinco group will be renamed The Island Finance Company, the Central Bank said.
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The company suffered liquidity constraints in the wake of the crisis in the Ceylinco Group and its day to day operations were restricted following legal action by investors.

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Merchant Bank was subsequently appointed managing agents by the Central Bank of Sri Lanka and is taking steps to resume normal operations.

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"The Central Bank of Sri Lanka has issued necessary directions to enable the company to strengthen its financial position," the Central Bank said in a statement on Monday.

"In order to recommence the normal business activities, the company is now considering to reorganise the company under the new name ˜Island Finance Company Ltd.

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