Lanka Credit and Business expands with acquisition of City Finance Corporation

Wednesday, 6 June 2018 00:00 - - {{hitsCtrl.values.hits}}

Lanka Credit and Business Ltd. (LCBL) a leading institution down South of Sri Lanka acquired City Finance Corporation Ltd. on 19 April, after discussions and negotiations with Central Bank of Sri Lanka (CBSL).

LCBL was gone through an in-depth evaluation by CBSL and made a correct 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.

According to the CBSL instructions they called all depositors of the CFCL for the meeting at the Auditorium of Public Library, Colombo recently.

LCBL also complied with CBSL to repay existing deposit liabilities and accrued interest within two years in three tranches. 10% of deposits and interest liabilities on or before 31 May 2018 (already continue), 45% of deposits and interest liabilities on or before 30 May 2019, balance 45% on or before 30 May 2020, interest for the existing deposit liabilities will be paid at 4% per annum.

LCBL has big plans for development and expansion of City Finance Corporation Ltd. They have already agreed with Central Bank of Sri Lanka to make further investment, in addition to the first capital infusion of Rs. 565 million and 338 million Net Assets transferred (NAV) to City Finance Corporation Ltd. Rs. 400 million before 30.06.2018 (Balance portion up to 1 billion Core Capital); a further Rs. 400 million before 31.03.2019.

With the acquisition by LCBL, City Finance Corporation Ltd., becomes the first Southern based finance company, catering to the retail and middle markets through Financial Products of Leasing, Hire Purchase, Mortgaged Loans, Pawning, Micro Finance, acceptance of foreign current deposits, etc. At present the LCBL operates its head office in Galle city and the branches at Karandeniya, Mirissa and Pelawatta down south of Sri Lanka. The LCBL has proposed to change the name of the company as the LCB Finance Ltd. after the merger of the two companies. The new head office and corporate branch are going be located at No. 76, S De S Jayasinghe Mawatha, Kohuwala, Nugegoda, Sri Lanka.

The LCBL expects to expand its branch network in the areas of Negombo, Kurunegala, Anuradhapura, Kohuwala and Rathgama in the near future.Their prime objective is to serve the people in this country by providing tailor made solutions to the needy people. Also, they expect to service to the nation irrespective of the race, religion or any other differences such as poor, rich, young or old.

The Board of Directors consists of well educated professionals and reputed and qualified businessmen Down South. The new Board of Directors is as follows: Senior Professor W.M. Abeyrathne Bandara – Chairman, K.G. Leelananda – CEO/GM/Executive Director, Ranjan Lal Masakorala (Director), A.G. Mahin Priyantha (Director), U.K. Harith Ruwan Ranasinghe (Director), Kapila Indika Weerasinghe (Director), Jagathraja Weerasinghe Nanayakkara (Director), Sathyananda Wijesekara Subasinghe (Director), Vijitha Lokunarangoda (Director), Ramanathan Nadarajah (Consultant to the Board),Bandula Weerasinghe Nanayakkara (Consultant to the Board). A further Rs. 300 million is expected before 31.03.2020.