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The Sunday Island newspaper quoting an unnamed source said LOLC and Browns had each applied for 10 percent of the expanded capital of Seylan Bank through a share issue to which state institutions also subscribed.
LOLC had earlier bid for a one third stake in Seylan when the Central Bank was seeking a strategic partner, after it put the bank under the wings of state run Bank of Ceylon, following a run on its deposits.
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The founder of Seylan Bank, the Ceylinco group, is in difficulties after an unregulated financial firm in its umbrella collapsed.
The public issue was for 54.29 million shares at 35 rupees each to inject 1.
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9 billion rupees in fresh equity.
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Bank of Ceylon (13 million shares) and state-run Sri Lanka Insurance Corporation (19.15 million shares) injected more money by a placement, taking the total to 3.025 billion rupees, The Sunday Island said.
The newspaper said LOLC and Browns combine may get board representation.
The reported quoted Central Bank