With Merchant Bank of Sri Lanka (MBSL) acquiring a majority stake (51%) in Ceylinco Savings Bank Ltd (CSBL), the name of the Ceylinco bank has been changed to MBSL Savings Bank.
MBSL Chairman Janaka Ratnayake said they have invested Rs 100 million in the licensed specialized savings bank to tackle a liquidity crisis in the bank.
He told a press conference this week that “there is no way to make an unsustainable financial system stable without drastic remedial action.” MBSL has decided to do away with the old business model of the CSBL and it plans to introduce new financial services and products focusing on individual, retail and corporate clients, medium –size companies, corporates and markets (including public finance).
CBSL’s deposit base has eroded from Rs.2.2 billion to Rs.1.7 billion due to withdrawals of matured deposits during the past three months. The restructuring plan was devised to tackle this situation to bring the situation under control, he said. MBSL is a unit of the state-run Bank of Ceylon.
The name change of the former Ceylinco unit is in line with many other Ceylinco companies changing names to re-start under a new era and new management after the negative sentiment towards the Ceylinco name following the Golden Key collapse.