DFCC to sell its stakes

Sri Lanka's DFCC Bank is negotiating with the Distilleries Group to sell off part of its stake in National Asset Management Ltd or NAMAL, a top official said.

DFCC currently holds 80 percent in NAMAL, and the balance is held by state-run pension fund the Employers Trust Fund.

"Talks are still at the discussion stage," the company sources said.

"The company is looking for a strategic partner who will give us sufficient funds to manage.

The Distilleries Group has that advantage because its quite diversified into so many sectors," its source said.

For Distilleries, NAMAL is an ideal vehicle, which can be used to invest funds generated through Sri Lanka Insurance.

The company looking at buying the controlling stake of NAMAL, but talks are still ongoing," Distilleries Group sources said.

NAMAL, which pioneered unit trusts in Sri Lanka, currently manages a two billion-rupee portfolio.