Capital Gain

L to R: Samantha Ranatunga, Chairman, HVA Foods PLC; Jan Müggenburg, Chief Executive Officer, Müggenburg Group; Graham Stork, Chief Executive Officer, HVA Foods PLC; Sarva Ameresekere, Group Chairman, George Steuart & Co. Ltd.

Oct 28, 2014 (LBO) – Sri Lanka's Bank of Ceylon (BOC) to receive 10 billion rupees from budget 2015 in order to strengthen the capital of the bank. President Mahina Rajapaksa said this presenting the budget to the parliament last week.

BOC’s profits before tax increased 20 percent to 8.6 billion rupees the first half of 2014 compared to 7.2 billion rupees in 2013.

The bank says the profit after tax stood at 6.2 billion rupees for the 1H this year up 23 percent from 2013.

President said the capitalization of the Central Bank with 50 billion rupees this year has laid a solid foundation for the financial system stability in this country.

Similarly following the last year budget proposal, consolidation of finance companies 25 has witnessed progress, President Mahina Rajapaksa said.

As part of financial sector strengthening, the two Development Banks are also being merged to create a strong development bank in the country, next year.

President also proposed an increase on deposit insurance by 50 percent in order to provide greater security for deposit holders of the banks.

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