Sri Lanka central bank asks CDB to restrict dividends
Thursday August 1, 2019 14:15
ECONOMYNEXT- Sri Lanka’s Citizens Development Business Finance Plc (CDB) has been asked to stop paying dividends for the next two years by the Central Bank, which regulates non-bank lenders.
The central bank had asked CDB to leave out the ‘fair value’ of its holding of Ceylinco Insurance Plc, shares when calculating capital adequacy.
On July 26, the regulator has given time to write down the holding in three annual tranches.
Dividend payments had been restricted until the relaxation of the rule is in effect.
CDB has 663,624 shares of Ceylinco Insurance or 3.1 percent of the firm with a market value of over a billion rupees, which had cost about 240 million rupees. (Colombo/Aug01/2019)