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Saturday October 1st, 2022

Sri Lanka finance companies raise Rs12.5bn in new capital

ECONOMYNEXT – Nine finance companies in Sri Lanka have raised 12.6 billion rupees to shore up capital and have also proposed consolidation plans, the central bank said.

Sarvodaya Development Finance PLC, Dialog Finance PLC, Asia Asset Finance PLC, Lanka Credit and Business Finance PLC, People’s Merchant Finance PLC, Softlogic Finance PLC, Merchant Bank of Sri Lanka & Finance PLC, UB Finance Co Ltd and Richard Pieris Finance Ltd have raised 12.5 billion rupees.

Another 12 companies are in the process of consolidation.

The full statement is reproduced below:

Masterplan for Consolidation of Non-Bank Financial Institutions being fast-tracked

Under the Masterplan for Consolidation of Non-Bank Financial Institutions (the Masterplan) being implemented by the Central Bank of Sri Lanka (CBSL), the following 9 companies have already introduced fresh capital of Rs 12.56 billion to meet regulatory capital requirements: Sarvodaya Development Finance PLC, Dialog Finance PLC, Asia Asset Finance PLC, Lanka Credit and Business Finance PLC, People’s Merchant Finance PLC, Softlogic Finance PLC, Merchant Bank of Sri Lanka & Finance PLC, UB Finance Co Ltd and Richard Pieris Finance Ltd.

In addition, 12 companies have submitted their acquisition/consolidation plans to CBSL and obtained relevant preliminary approvals as follows:

1. Assetline Leasing Co Ltd – acquisition of finance business licence of Kanrich Finance Ltd and settlement of its deposits.

2. LB Finance PLC – acquisition and subsequent amalgamation of Multi Finance PLC.

3. SMB Leasing PLC – acquisition of finance business licence of Swarnamahal Financial Services PLC and settlement of its deposits.

4. Commercial Leasing & Finance PLC – acquisition and subsequent amalgamation of Sinhaputhra Finance PLC.

5. HNB Finance PLC – acquisition and subsequent amalgamation of Prime Finance PLC.

6. LOLC Finance PLC- amalgamation of Commercial Leasing & Finance PLC.

As a result of the above developments, the Non-Bank Financial Institutions sector has witnessed a significant improvement in compliance with regulatory capital requirements and has recorded the lowest non-compliance levels during recent times.

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  1. Rajen says:

    Bankruptcy nevertheless is at your doorstep

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Comments (1)

Your email address will not be published.

  1. Rajen says:

    Bankruptcy nevertheless is at your doorstep