Sri Lanka’s small state banks to be merged
ECONOMYNEXT: The government will merge several small state run banks while private sector banks have been asked to merge on a voluntary basis and increase the number of branches, Finance Minister Ravi Karunanayake said.
Listed Housing Development Finance Corporation Bank and the unlisted State Mortgage and Investment Bank will merged into a single mortgage bank.
National Savings Bank will absorb two smaller state banks, Sri Lanka Savings Bank and Divinaguma Bank.
Loss making Lankaputhra Development Bank, which is ridded in bad loans will be merged with better managed Regional Development Banks.
"We also encourage private sector banks to merge. They have been talking about it for a long time so now it is time for them to walk the talk,” the minister said.
Private banks have been asked to increase their island-wide branch network by 15 percnet with each new branch employing at least six people.