Sampath, LOLC consortiums eye Seylan Bank

Hiran H. Senewiratne

The Sampath Bank consortium coordinated by Dhammika Perera and LOLC consortium coordinated by Ishara Nanayakkara and other foreign parties are eyeing to take over Seylan Bank, market sources said.

However, Central Bank approval is needed for any investor to buy more than 10 per cent shares issued capital by Seylan Bank.

Those interested are expected to buy Lalith Kotelawala's stake, which amounts to 23 per cent of the total shareholding.

The Central Bank is expected to give the proxies 27 per cent of Seylan Bank owned by the employees' share option for suitable partners.

Market sources said that the Central Bank is planning to give the proxies 27 per cent.

LOLC Orix Securities (Pvt) Ltd sources said that Ishara Nanayakkara through his LOLC Group has also expressed interest to purchase these shares.

Sampath Bank sources said that Dhammika Perera is also eyeing Sampath Bank. However, no decision has been taken so far.

It is believed that this issue surfaced when Seylan Bank Plc stakes were to be disposed to settle Golden Key Credit Card company depositors. It was done to establish the country's banking stability. The Central Bank Monetary Board dissolved the Seylan Bank director board and transferred the management to the Bank of Ceylon.

However, Central Bank sources said that they have no idea of divesting any shares to anybody at this juncture.

When Daily News Business contacted incumbent Chairman Eastman Narangoda, he said that he is unaware of it and has no plans to do anything to the Bank right now. It is slowly but steadily building the confidence of the public.

The Bank is hoping to offer attractive interest rates and other benefits to its depositors, which is now resilient for any situation, he said.