Merchant Credit of Sri Lanka celebrates Silver Jubilee

Merchant Credit of Sri Lanka celebrates 25 years of dedicated service to the nation. Founded in 1983, Merchant Credit was acquired by Bank of Ceylon and its subsidiary Merchant Bank of Sri Lanka in 1991 and commenced operations under a new management team in 1992. 89.3 per cent of share is owned by Bank of Ceylon, 49 per cent directly and 40.3 per cent through its 79 per cent -owned subsidiary Merchant Bank of Sri Lanka.

Chairman of Merchant Credit of Sri Lanka Janaka Ratnayake launches the new website of the MCSL. Looking on are Chief Executive Officer Hafeez Rajudin (at right) and Chief Operations Officer Gamini Karunatilleke.

Merchant Credit has obtained the Fitch rating of 'BBB(lka)'. The ratings are primarily based upon the credit strength and financial flexibility which stem from its parents - the state-owned Bank of Ceylon ("BOC"), i.e. the largest commercial bank in Sri Lanka and Merchant Bank of Sri Lanka - a highly innovative company providing specialised financial services of a highly personalised nature backed by the Government of Sri Lanka.

Merchant Credit's core business is the provision of vehicle finance in the form of finance leases and hire purchase (HP) which together represented 75 per cent of its asset base at FY`07. In addition Merchant Credit also offers several products and services including Term Loans, Acceptance of Term Deposits, Import and Export Financing, Real Estate Development etc.

Chairman of Merchant Credit of Sri Lanka Janaka Ratnayake said "it's a memorable occasion for us in celebrate this event which signifies the stability and growth in performance of Merchant Credit."

In spite of a very difficult economic climate, the Company demonstrated solid top line revenue growth during the 10 months of operation in 2008. The income of Merchant Credit has increased by 20 per cent over 2007.

Merchant Credit fixed deposit base has grown and stands at Rs. 2.2 Billion which is a record in the company's history. Income derived from loans and advances have also grown during the 10 months of operation increased by 81 per cent compared to 2007. We hope to end the year on a very positive note in terms of profitability.

We continue to carefully monitor our business activities to avoid undue risks in this rapidly changing environment."

The company has taken steps to increase its branch network in order to reach out to its clients. The fifth branch was opened in Kiribathgoda two months ago and the next branch will be opened in Wennappuwa on Monday 01 December to commemorate the 25th anniversary.

"We are also planning to open several more branches in the coming year in strategic locations. Through the branch network we are aiming to take Merchant Credit to new heights", Mr. Ratnayake added.