Sri Lankaâ€™s Dialog to curb loan portfolio, deposits of Colombo Trust Finance
ECONOMYNEXT – Sri Lankan celco Dialog Axiata said it will retain all employees of Colombo Trust Finance, a finance company it acquired, and increase its core capital but restructure its loan portfolio and deposits.
Dialog Axiata last month bought a controlling stake in Colombo Trust Finance PLC from the Cargills group for just over a billion rupees, in a foray into financial services.
According to the Mandatory Offer document by Dialog Axiata for Colombo Trust Finance (CTF), it sees the acquisition as expanding Dialog’s scope of operations into digital financial services (DFS).
“Dialog intends to continue operations of CTF as a standalone business providing financial services managed independently under the guidance of senior management appointed by Dialog,” it said.
Dialog said expects to use the existing fixed assets of CTF and where required make investments in technology to facilitate business operations under DFS.
However, Dialog said it does not intend to continue with the existing product portfolio offered by CTF and plans to “significantly curtail and restructure the existing loan portfolio and deposits.”
Dialog said it will retain all employees of CTF and increase core capital of CTF in terms of the finance business act direction No. 2 of 2017 which requires finance companies to raise core capital to Rs400 million by December 2017 and Rs1 billion by January 2018.
(COLOMBO, October 13, 2017)