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Jan 31, 2011 (LBO) - Sri Lanka's People's Merchant Bank will not take over the assets and liabilities of a finance company whose shares it has acquired but will keep it separate and list in the stock market.
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PMB, a listed company said in a stock exchange filing that the decision was taken following instructions received from the Central Bank.
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PMB owns 99.9 percent of the stock of People's Merchant Finance, formerly known as Silvereen Finance.

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PMB said earlier that it wanted to take-over the firm along with its finance company license allowing the merged firm to raise deposits and lower its funding costs, provided regulatory approval was given.

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Finance companies are regulated by the Central Bank.

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