Lankaputhra Bank license cancelled after merger with RDB: CB

Tuesday, 3 December 2019 02:28 - - {{hitsCtrl.values.hits}}

Central Bank said license cancelled after all assets and liabilities acquired by RDB
Merger completed in accordance with the Budget 2016 proposal
Ability to carry out domestic banking business in SL cancelled from 1 April

The Central Bank yesterday said it had cancelled the licence issued to Lankaputhra Development Bank Ltd. effective from 1 April 2019 after it completed its merger with the Regional Development Bank (RDB) as proposed in Budget 2016.

The Monetary Board of the Central Bank of Sri Lanka has granted approval in terms of section 76F read with section 9(9) of the Banking Act No. 30 of 1988 (as amended), to cancel the licence issued to the Lankaputhra Development Bank Ltd. in terms of the Banking Act, No. 30 of 1988 (as amended), with effect from 1 April 2019, with the completion of the merger of Lankaputhra Development Bank Limited with Pradeshiya Sanwardhana Bank, as proposed in the Government Budget 2016.

“Accordingly, all assets and liabilities of Lankaputhra Development Bank Ltd. was acquired and merged with Pradeshiya Sanwardhana Bank with effect from 1 April 2019, and all banking business carried on by Lankaputhra Development Bank Limited shall be carried on by Pradeshiya Sanwardhana Bank,” the Central Bank said in a statement.

Therefore, the licence issued to Lankaputhra Development Bank Ltd. in terms of section 76C of the Banking Act, No. 30 of 1988 (as amended) to carry on banking business as specified in Schedule IV of the Banking Act, in the form of domestic banking business, is cancelled with effect from 1 April 2019.