City Finance acquired by LCBL; Depositors to be repaid within 2 years

June, 5, 2018

Lanka Credit and Business Ltd (LCBL) a leading institution in down South of Sri Lanka acquired City Finance Corporation Ltd on 19th April 2018, 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 we called the all depositors of the CFCL for the meeting at the Auditorium of Public Library, Colombo on 23rd May 2018. LCBL also comply with CBSL to repay existing deposit liabilities and accrued interest within 2 years in 3 tranches.

  • 10% of deposits and interest liabilities on or before 31st May 2018 (already continue).
  • 45% of deposits and interest liabilities on or before 31st March 2019.
  • Balance 45% on or before 31st March 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. 565.0 Million and 338 Million worth Net Assets (NAV) transferred to City Finance Corporation Ltd

  • 400 Million before 30.06.2018 (Balance portion up to Rs. 1 Billion Core Capital)
  • A further Rs. 400 Million before 31.03.2019
  • A further Rs. 300 Million before 31.03.2020
  • A further Rs. 200 Million before 31.03.2021

With the acquisition by LCBL, City Finance Corporation Ltd become 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 in down south of Sri Lanka.

The LCBL has proposed to change the name of the company as the LCB Finance Limited 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.

Our prime objective is to serve the people in this country by providing tailor made solutions to the needy people. Also, we expect to service to the nation irrespective of the race, religion or any other differences such as poor, rich, young or old.

The new Board of Directors is as follows. The board of directors consists with well educated professionals and reputed and qualified businessmen in the Down South.

Senior Professor Mr. W. M. Abeyrathne Bandara - Chairman

Mr. K. G. Leelananda - CEO/GM/Executive Director

Mr. Ranjan Lal Masakorala (Board of director)

Mr. A. G. Mahin Priyantha (Board of director)

Mr. U. K. Harith Ruwan Ranasinghe (Board of director)

Mr. Kapila Indika Weerasinghe (Board of director)

Mr. Jagathraja Weerasinghe Nanayakkara (Board of director)

Mr. Sathyananda Wijesekara Subasinghe (Board of director)

Mr. Vijitha Lokunarangoda (Board of director)

Mr.Ramanathan Nadarajah (Consultant to the Board)

Mr.Bandula Weerasinghe Nanayakkara (Consultant to the Board)