State Bank of India partners with MBSL Bank to raise funds for key development projects

The Merchant Bank of Sri Lanka (MBSL Bank) has today established itself in the industry as a catalyst in national development by promoting and assisting both public and private sector enterprises in the country.

It is embraced by the parental strength of the Bank of Ceylon and features a Board of Directors that comprises of a directorate who are eminent leaders in management/industry and other opinion makers in their own right with affiliations to the private and public sectors.

Considering the manner in which the Sri Lankan economy is growing at a rapid rate, MBSL Bank with its aim of playing a key role in assisting and strengthening in the economic development of the country, is geared to act as sources to generate funds for the many development projects that are being initiated all over the country.

It recently signed a MoU with the State Bank of India (SBI), which will be involved in attracting relevant investors for these endeavours.

Commenting on this venture, MBSL Director P.G. Rupasinghe said: “The preliminary discussions had with the Merchant Banking Arm of the State Bank of India were with a view to renew their strategic alliance with SBI to sustain long-term competitive advantage in the fast-changing business world. Completion of major infrastructure projects commenced under the leadership of President Mahinda Rajapaksa, such as ports, airports, major roads and railway networks integrating the lagging regions, building new power plants providing electricity to reach 100% coverage, supplement the role of the private sector for enhanced investment opportunities.

“With self sufficiency becoming increasingly difficult in a complex, uncertain and discontinuous external environment that call for focus and flexibility in equal measure, we at MBSL Bank believe that if we have a voluntary strategic alliance with a formal agreement (MoU) with another similar organisation with international exposure, to pool both partners’ resources to achieve a common objective while remaining independent entities, it would mutually benefit and definitely facilitating the growth of the financial services industry including merchant bank activities in the country.”

The current projects targeted include an expressway between Mannar to Hambantota (via Monaragala, Ampara and Batticaloa), electrification of identified railway lines, building a network of airports that consists of construction of international airports at Hingurankoda, expansion of airports in Batticaloa, Kalutara, Puttalam and Galle, construction on new domestic airports in Kandy, Nuwara Eliya, Mannar, Monaragala and Dambulla and the expansion of the Trincomalee and Galle Harbours.

In addition, the bank is also involved in projects in the power and energy sector, travel and tourism and the information communication and technology sector and plans to put forward a proposal to its strategic partner on equity participation in insurance and hotel projects, a private equity investment in a generator manufacturing project, a debenture issue for a liquid gas company, funding of solar power projects in Hambantota and private-public partnerships and some joint venture participation for national projects.

Endorsing this initiative, MBSL Bank Chairman M.R. Shah stated: “We can play a highly significant role in mobilising funds and assuring promising returns on investment and thus can assist in meeting the widening demand for the funds required for relevant development and economic activities of the country. With the growth of corporate enterprises in both public and private sectors, we would be able to raise the required amount of funds to meet the growing requirement for establishing new enterprises, undertaking expansion, modernisation and diversification of the existing enterprises and contribute to the overall economic development of the country.

“This reinforces the need for a vigorous role to be played by a merchant bank such as ours and MBSL will continue to play a significant and active role in making a substantial contribution to both public and private sectors industries and the economic development of the country by influencing economy activity and investing in new enterprises, promotion of trade and industry and the balanced development of the different regions in the country.”