SMIB mulls legal action against Fitch Rating Lanka

Shirajiv SIRIMANE

State Mortgage and Investment Bank (SMIB) is contemplating legal action against Fitch Rating Lanka.

Chairman, SMIB, Chandima Weerakkody said that they also hope to write to Fitch International on this issue.

"Fitch had recently downplayed our ratings and this has created major problems for the company. We have also decided to discontinue with Fitch," he said.

Weerakkody said that Fitch had done research on a separate state entity and implied it on SMIB.

He said that SMIB being a state entity is very steady and their deposit base has swelled in recent times. "In addition we are also introducing new financial instruments," he said.

The Chairman said that with the war ending and the North and East opening up there would be a vista of opportunities especially for the housing sector. In addition to the Head Office in Colombo and nine branches, the SMIB hopes to open new branches in the North and East to facilitate the envisaged investments," he said.

Weerakkody said that the bank would play a leading role to promote the novel concept of making Sri Lanka its second home. "We want to fund entrepreneurs who want to build houses near the proposed Colombo Matara highway so that foreign families could build houses.

He said that by building houses these foreign families could have easy access to the airport to fly back to their countries and return for holidays.

Established in 1931 the SMIB continues to be the leading Housing Financier in Sri Lanka promoting shelter. The Bank grants loans at competitive rates of interest with repayment by equal monthly installments up to fifteen years.