Sri Lanka troubled ETI may be overseen by state bank: report

ECONOMYNEXT – State-run Bank of Ceylon, may be appointed managing agent of two troubled finance companies of Sri Lanka’s EAP group of companies, a report said.

Sri Lanka’s The Sunday Times newspaper said discussions had taken place between the bank and the Public Enterprise Development Ministry under which it comes.

Edirisinghe Trust Investments and Swarnamahal Financial Services non-bank finance companies, of the EAP group had been asked to boost capital earlier by the central bank. ETI had also faced credit downgrades.

A so-called managing agent appointed by the Central Bank for a troubled finance company is not required to inject capital but is only performs management functions.

Separately reports said there had been negotiations between the EAP group to State Grid Pte Ltd, a Singapore based firm, to sell some of the media assets of the EAP group.

At a news conference on Thursday central bank officials said if any negotiations are finalized in connection with finance companies the central bank will check whether the funds inflows are in compliance with laws. (Colombo/Dec31/2017)

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