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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.

Sep 16, 2009 (LBO) - Sri Lanka's Ceylinco Sussex College, a unit of the troubled Ceylinco Group, is to be managed by Merchant Bank of Sri Lanka (MBSL), which has taken over or is overlooking several troubled firms.
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More than 5,700 students are at 20 Ceylinco Sussex College branches island-wide, studying for national exams in the English medium, making it the largest private school network in the country, MBSL chairman Janaka Ratnayake said.

"Consider the impact of a closure on over 5000 students studying in a network of 20 colleges spread over many districts," Ratnayake said in a statement.


"This could have far reaching political implications especially at time when the government is preparing for general elections."

Sussex Colleges employ 900 people of whom 600 are teachers trained in the English medium, he said.

Liability

MBSL says about 60 percent of the assets of the Sussex College were financed by The Finance Company (TFC), another troubled Ceylinco firm, for which the merchant bank has been appointed managing agent by regulators.

The rest of its assets are funded by bank loans, private individual investments and through Ceylinco Profit Sharing Co.

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