Merchant Bank of Sri Lanka, DFCC Bank unit mergers on track: regulator
COLOMBO (EconomyNext) – The merger of units of Merchant Bank of Sri Lanka and DFCC Bank is in the final stages with the Treasury also freeing the deals from stamp duty, the regulator said.
Sri Lanka’s central bank has ordered banks and non-bank lenders to merge in a bid to make oversight easier and to reduce failures with the creation of larger units.
The regulator said the merger of Merchant Bank of Sri Lanka PLC, MCSL Financial Services Ltd and MBSL Savings Bank Ltd, all units of state-run Bank of Ceylon, was in the final stages.
The central bank had also approved the articles of association of DFCC Bank which was expected to help with the merger of its own unit DFCC Vardhana Bank and another lender National Development Bank.