Move to strengthen AFL and CIRL
To strengthen the stability of Asian Finance Ltd. (AFL) and Ceylinco
Investment and Realty Ltd. (CIRL), the Central Bank of Sri Lanka has
invited Merchant Bank of Sri Lanka PLC (MBSL) to function as the
Managing Agent of those two companies.
Lankaputhra Development Bank Ltd. (LDB), which functioned as the
Managing Agent, has performed its initial task in establishing stability
and restoring public confidence in AFL and CIRL.
Having stabilised the situation, it is now considered necessary to
strengthen AFL and CIRL and restore their normal business operations to
strengthen the viability of the companies.
In that regard, MBSL has been invited to provide its expertise and to
take AFL and CIRL forward. The Monetary Board, having considered the
vital role to be played by LDB in the on-going development projects in
the country, particularly, in the North and East, has decided that it is
more appropriate to release LDB from the responsibilities as the
Managing Agent and to appoint MBSL as the Managing Agent of AFL and CIRL
from September 1. LDB will work closely with MBSL to ensure the smooth
transition of the Managing Agents' functions and the strengthening of
the business operations of AFL and CIRL.
An overall advisory body, consisting of the members of the expert
group would also provide overall guidance on charting the future course
of action of AFL and CIRL.
The Central Bank will closely monitor the affairs and the progress of
the two companies.
The Central Bank is of the view that this procedure would enable
Asian Finance Ltd. and Ceylinco Investment and Realty Ltd. to further
strengthen the restored confidence, and return to their normal business
operations, within a short period of time.