July 01, 2014 (LBO) – Sri Lanka’s central bank said ‘almost all’ banks and finance companies have submitted plans to merge or acquire others in a regulatory driven push to consolidate and reduce the number of financial institutions in the country. “These plans will now be reviewed by the Central Bank with a view to
facilitating the respective companies to proceed further,” the Central Banks said in a statement.
“In addition, as requested by the Central Bank, the Panel of Audit Firms
continued their transaction management activities to facilitate the negotiation
process between financial institutions in an independent manner.”
DFCC Bank and the National Development Bank PLC were working on a merger, and Merchant Bank of Sri Lanka, MBSL Savings Bank and MCSL Financial Services, which were group companies were also going forward with their merger.
The Monetary Board has given the nod for Assetline Leasing Company Ltd to acquire Lisvin Investments Ltd., and for TKS Finance Ltd to acquire Asian Finance Ltd.
“At the same time, several NBFIs (non-bank finance companies) falling within the same group also continued the consolidation process while initial approval was granted for the mergers of a few other NBFIs as well,” the Central