Merger Plan

Mar 03, 2014 (LBO) - Merchant Bank of Sri Lanka (MBSL), a unit of state-run Bank of Ceylon said it was merging with two subsidiaries and become a finance company, under a regulatory directive. Instead, all three units will merge and operate as a licensed finance company.

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MBSL will merge with MBSL Savings Bank Limited and MCSL Financial Services Ltd, under a master plan by Sri Lanka's central bank to reduce the total number of banks and finance companies in operation.

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MBSL said it was dropping an earlier plan to merge with MBSL Savings Bank and become a 'licensed specialized bank.

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