COLOMBO: Central Bank of Sri Lanka says further progress was made by Merchant Bank of Sri Lanka Public Limited Company, DFCC Bank finance and leasing companies on the financial sector consolidation process.
The Central Bank said Amalgamation of the Merchant Bank of Sri Lanka Public Limited Company (PLC), MCSL Financial Services Limited and MBSL Savings Bank Limited reached the final stage and is expected to take place shortly, with the merged entity operating as a licensed finance company.
The regulator also approved the Articles of Association of DFCC Bank which will facilitate the consolidation of the three banks, viz., DFCC Bank, National Development Bank (PLC) and the DFCC Vardhana Bank (PLC).
Further the Central bank said these banks, through their internal committees are now working closely to ensure the smooth transition to the combined entity.
A long term loan on concessionary terms was provided from the Sri Lanka Deposit Insurance and Liquidity Support Fund to stabilize The Finance Company PLC and to move to a profitable level.
The Ministry of Finance has issued the Gazette Notification in relation to the exemption of stamp duty, for the issue of share certificates for mergers and acquisitions under the financial sector consolidation process.
