With Rs 20 b in deposits, Rs 25 billion in assets and
The Finance mulls banking
Eleven apartments in Trillium acquired in lieu of Rs
300 m loan :
The Finance Co PLC will shortly enter the banking arena following the
successful restructuring of the debt-ridden company, which began in
February. “We have successfully restructured the company and we will be
getting into the banking arena with Rs 20 billion in deposits, Rs 25
billion in assets and 60 branches and with the support of the Central
Bank of Sri Lanka, The Finance Company Chairman Preethi Jayawardena told
Daily News Business yesterday.
“The Central Bank of Sri Lanka has always been supportive of our
progress of the restructuring and we will be applying for the banking
licence soon making use of the sixty branches we have in our network. We
will be getting into a diverse array of financial services,” he said.
“The entire operation has been restructured from the serious
situation that the company which has been saddled with a Rs 200 million
loan a month which has been caused by the mismanagement by the earlier
management which has been sorted out,” he said.
He said the company was pursuing other areas for diversification as
well. “We will be striving to be the best financial services house in
Sri Lanka, keeping in mind the best practices of corporate governance
and looking after the 1050 employees who have helped turn the company
and also the shareholders,” he said. Managing Director and CEO Kamal
Yatawara said the company has seen a massive turnaround in the
performance where there has been a 70 percent increase in the turnover
in the first quarter of 2012 vis-a-vis the fourth quarter of 2011 and
the company would be increasing its deposit base with the planned
improvements. We will be taking our pawning to the North and Eastern
Provinces of Sri Lanka as well,” he said.
Yatawara said the financial stability of the company was extremely
strong with assets valued at Rs 25 billion and a deposit base of Rs 20
billion. He said the company will be increasing the land sales portfolio
He said that the Balance Sheet of the company has been cleared as at
March 31, 2011 and the Central Bank is giving positive signals and is
encouraging their activities with the turnaround.
TFC has also acquired eleven apartments of the Trillium Residencies,
which owes TFC around Rs 300 million.
The corporate structure is that TFC owns 24.6 percent of Ceylinco
Land and Real Estates of which Trillium Residencies is a wholly owned
“They will be paying the loan in instalments,” he said. TFC has also
given a repayment plan for Sussex College, which has 22 schools which
owes it Rs 1.5 billion.