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Seylan Sale

April 18, 2009 (LBO) - Sri Lanka's central bank says six parties have expressed interest in buying a one-third stake of Seylan Bank, which was put under the wing of a state bank following a run on its deposits.

Seylan Bank, a unit of Sri Lanka's Ceylinco group, suffered a run after an unregulated firm in the group collapsed. The central bank called for expressions of interest to acquire a 33 percent interest in the bank by injecting capital through new shares.

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"These prospective investors comprise four financial institutions and two other non financial establishments," the Central Bank said in a statement.

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Listed Sampath Bank has said it has submitted a bid.

The central bank said a committee was now evaluating the bids to "to identify prospective bidders".

The bidders will be notified of the regulator's decision by April 24.

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The central bank said it was looking for 5.7 billion rupees to be injected to the bank by the new strategic buyer.

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