Several finance, real estate and leasing companies and a bank under the Ceylinco Group have undergone structural, management and name changes over the past six months after the collapse of the Golden Key (GK) Credit Card Company.
Industry sources told The Sunday Times FT that Ceylinco Insurance still remains the strongest in group. Immediately after the GK crisis, panicked investors and depositors began pulling out their money from Seylan Bank, and to prevent a run, the Central Bank (CB) stepped in and asked Bank of Ceylon to take over its management.
Ceylinco finance and leasing companies have also been affected. In a move to rescue the finance industry, the CB introduced a bailout package worth Rs.4.2 billion for finance companies and leasing companies affected by the general crisis. Several Ceylinco Group finance companies made use of the package. As a result, the CB appointed the Merchant Bank of Sri Lanka (MBSL) as the managing agent of The Finance & Guarantee Company Ltd and The Finance Company.
The MBSL also acquired ABC Insurance and Ceylinco Savings Bank, both of which are now known as MBSL Insurance and MBSL Savings Bank respectively. Lankaputhra Development Bank was appointed as the managing agent of Ceylinco Investment and Realty Ltd. Seylan Merchant Leasing Company has signed a non-disclosure agreement with People’s Leasing Company Ltd. Ceylinco Shriram Capital Management Services Co. (Pvt) Ltd. sought the expertise of Wealth Lanka Management (Pvt) Ltd to evaluate the assets and liabilities of two companies it manages -- Ceylinco Capital Investment Company (Pvt.) Ltd and CLC Asset Management (Pvt.) Ltd and to formulate a repayment program to meet its liabilities to creditors. Ceylinco Shriram Asset Management Ltd whose name was changed to Entrust Investments Ltd is now in a phasing-out operation. Ceylinco Shriram Securities Holdings Ltd was changed to Entrust Ltd. and Ceylinco Shriram Securities Ltd to Entrust Securities Ltd.
Ceylinco Finance made changes to its board of directors by bringing in a new non-executive Chairman and a non-executive Director. Independent Financial News & Views (Pvt) Ltd, a subsidiary of the F&G Group also changed its board of directors and name to Ceylanka Publications. |
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