MBSL diversifies portfolio:

Takes majority stake of Ceylinco Savings Bank and acquires ABC Insurance

Hiran H.Senewiratne

Merchant Bank of Sri Lanka (MBSL), a subsidiary of Bank of Ceylon, diversified its business portfolio by taking the majority stake of Ceylinco Savings Bank and acquiring ABC Insurance Company recently.

“MBSL has been taking advantage of the current financial crisis and economic downturn, which has turned to an opportunity for us. All segments of the market are hard hit by the Global Financial Crisis,” said MBSL Chairman Janaka Ratnayake at a media conference held yesterday.

He said that Ceylinco Savings Bank is now known as MBSL Savings Bank, while the ABC Insurance will be known as MBSL Insurance Company. “With the unfolding of the Golden Key fiasco all companies under the Ceylinco Group are facing a severe crisis situation and together with the global financial crisis, we were able to capitalize on that situation,” he said.

In this process a mandate was given by the Central Bank and MBSL completed the transition period where an analysis and remedial action was taken to stop the bleeding of the Ceylinco Savings Bank which owns majority of shares of the entity, he said.

Ratnayake said that all normal operations are proceeding as usual at the MBSL Savings Bank and at this stage the MBSL in its capacity offered to restructure the bank which included infusion of new capital and making changes with regard to the future operations. Therefore, they are looking at a share mandate for it, he said.

Ratnayake speaking to the media and said that the acquisition of ABC Insurance makes the company the only Government owned insurance company in Sri Lanka which will give the stability and security that is much needed in today’s crisis environment.