SML clarifies

Seylan Merchant Leasing (SML) PLC has sent us the following clarification on the article 'People's Leasing takes over SML Management' in the Business section of the Daily News on April 2.

"No EGM was held for the shareholders of SML but an EGM in terms of Section 220 of the Companies Act No. 07 of 2007 was held on March 31, 2009 for the Shareholders of SMB (Seylan Merchant Bank).

SML is not a leasing company but a finance company registered by the Monetary Board of the Central Bank of Sri Lanka.

SML signed a Confidentiality and Non Disclosure Agreement with People's Leasing Company Ltd, and not with People's Leasing Bank as stated in the article. People's Leasing Company Ltd is currently considering investing in a minimum 80 percent of the shares of SML and there is no management take over as stated in the article.

In the said article it is reported quoting 'Market Sources' that the net capital of SML is below the asset base which is totally incorrect.

The core-capital requirement for a Registered Finance Company is Rs. 200 million and as per our financial statements as at December 31, 2008, SML's net capital is more than Rs. 376 million.

The said article quoting Ms Waniganayaka - Assistant Commissioner - Industrial, reports that the last month's salaries of the employees of SML have not been paid. We categorically deny the allegation and wish to state that the salaries of all employees of SML were paid for the month of March 2009".