Lanka Credit and Business Ltd (LCBL) a leading institution in down South of Sri Lanka acquired City Finance Corporation Ltd on April 2018, and plans to infuse over Rs 3.1 billion as capital to turnaround the company
The management will further invest Rs 300 million to open several branches in Colombo and the head office branch will be opened on June 25 at Kohuwela.
The acquisition was done after discussions and negotiations with the Central Bank of Sri Lanka (CBSL). “CBSL went through an in-depth evaluation on LCBL and made an assessment of the future business plan of LCBL, to restructure and turnaround City Finance Corporation Ltd. LCBL has already made an initial capital infusion of Rs 565 million to City Finance Corporation Ltd,” said, CEO, GM, Executive Director, LCBL, G. Leelananda.
“According to the CBSL instructions we called all depositors of the CFCL for a meeting at the Auditorium of Public Library, Colombo recently. LCBL also agrees to comply with CBSL stipulations to repay existing deposit liabilities and accrued interest within two years in three tranches. Accordingly 10% of deposits and interest liabilities have been paid. “A further 45% of deposits and interest liabilities will settled before May 30, 2019.” The balance 45% will be settled on or before May 30, 2020. Interest for the existing deposit liabilities will be paid at 4% per annum.
LCBL has big plans for the development and expansion of City Finance Corporation Ltd. They have already agreed with CBSL to make further investment, in addition to the first capital infusion of Rs 565 million, Rs. 400 million will be transferred before June 30, 2018 and a further Rs. 400 million before March 31 2019.
The LCBL expects to expand its branch network in the areas of Negombo, Kurunegala, Anuradhapura, Kohuwala and Rathgama in the near future.
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